Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | W R GRACE & CO | ||
Entity Central Index Key | 1,045,309 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7,218,117,083 | ||
Entity Common Stock, Shares Outstanding | 70,538,445 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 3,051.5 | $ 3,243 | $ 3,060.7 |
Cost of goods sold | 1,884 | 2,050.6 | 1,918.6 |
Gross profit | 1,167.5 | 1,192.4 | 1,142.1 |
Selling, general and administrative expenses | 574.2 | 664 | 505.7 |
Research and development expenses | 69.6 | 79.5 | 65.2 |
Interest expense and related financing costs | 100.1 | 61.5 | 43.8 |
Interest accretion on deferred payment obligations | 0.8 | 65.7 | 0 |
Repositioning expenses | 64.3 | 0 | 0 |
Loss in Venezuela | 59.6 | 1 | 8.5 |
Equity in earnings of unconsolidated affiliate | (20.4) | (19.7) | (22.9) |
Asbestos and bankruptcy-related charges, net | (8.7) | 7.1 | 21.9 |
Chapter 11 expenses, net | 5.1 | 11 | 15.3 |
Gain on termination and curtailment of postretirement plans | 4.5 | 39.5 | 0 |
Default interest settlement | 0 | 0 | 129 |
Other expense, net | (17.8) | (27.5) | (15) |
Total costs and expenses | 857.9 | 858.1 | 781.5 |
Income before income taxes | 309.6 | 334.3 | 360.6 |
Provision for income taxes | (164.7) | (57) | (102.9) |
Net income | 144.9 | 277.3 | 257.7 |
Less: Net income attributable to noncontrolling interests | (0.7) | (1) | (1.6) |
Net income attributable to W. R. Grace & Co. shareholders | $ 144.2 | $ 276.3 | $ 256.1 |
Basic earnings per share: | |||
Net income attributable to W. R. Grace & Co. shareholders | $ 2 | $ 3.67 | $ 3.35 |
Weighted average number of basic shares | 72 | 75.3 | 76.4 |
Diluted earnings per share: | |||
Net income attributable to W. R. Grace & Co. shareholders | $ 1.99 | $ 3.63 | $ 3.30 |
Weighted average number of diluted shares | 72.6 | 76.2 | 77.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 144.9 | $ 277.3 | $ 257.7 |
Other comprehensive income (loss): | |||
Defined benefit pension and other postretirement plans, net of income taxes | (1) | (2.6) | 4.6 |
Currency translation adjustments | (43.3) | (28) | (23.6) |
Gain (loss) from hedging activities, net of income taxes | 1.3 | (4.5) | (0.2) |
Other than temporary impairment of investment | 0 | 0.8 | 0 |
(Loss) gain on securities available for sale, net of income taxes | 0 | (0.1) | 0.1 |
Total other comprehensive income (loss) attributable to noncontrolling interests | 0.2 | (2.2) | (0.9) |
Total other comprehensive loss | (42.8) | (36.6) | (20) |
Comprehensive income | 102.1 | 240.7 | 237.7 |
Less: comprehensive (income) loss attributable to noncontrolling interests | (0.9) | 1.2 | (0.7) |
Comprehensive income attributable to W. R. Grace & Co. shareholders | $ 101.2 | $ 241.9 | $ 237 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 144.9 | $ 277.3 | $ 257.7 |
Reconciliation to net cash provided by operating activities: | |||
Depreciation and amortization | 131.5 | 137.1 | 123.1 |
Equity in earnings of unconsolidated affiliate | (20.4) | (19.7) | (22.9) |
Dividends received from unconsolidated affiliate | 11.8 | 11.2 | 2.8 |
Chapter 11 expenses, net | 5.1 | 11 | 15.3 |
Asbestos and bankruptcy-related charges, net | (8.7) | 7.1 | 21.9 |
Cash paid for Chapter 11 and asbestos | (495) | (1,348.1) | (15) |
Cash paid to settle deferred payment obligation | 0 | (632) | 0 |
Provision for income taxes | 164.7 | 57 | 102.9 |
Cash paid for income taxes, net of refunds | (57.6) | (34.4) | (60.4) |
Interest expense and accretion | (100.9) | (127.2) | (43.8) |
Cash paid for interest on credit arrangements | (91.9) | (28.4) | (5.5) |
Defined benefit pension expense (income) | 72.3 | 160.3 | (23.2) |
Cash paid under defined benefit pension arrangements | (17.8) | (100) | (68.3) |
Currency and other losses in Venezuela | 73.2 | 1 | 8.5 |
Repositioning expenses | 64.3 | 0 | 0 |
Cash paid for repositioning | (38.6) | 0 | 0 |
Cash paid for restructuring | (16.4) | (7.9) | (6.4) |
Cash paid for environmental remediation | (12.7) | (12.4) | (14) |
Default interest settlement | 0 | 0 | 129 |
Changes in assets and liabilities, excluding effect of currency translation: | |||
Trade accounts receivable | (38.9) | (25.8) | 13.5 |
Inventories | (1.4) | (52.1) | 8.6 |
Accounts payable | 35.9 | (17.2) | 4.2 |
All other items, net | 8.2 | 16.7 | 0.3 |
Net cash provided by (used for) operating activities | 13.4 | (1,472.1) | 515.9 |
INVESTING ACTIVITIES | |||
Capital expenditures | (154.8) | (169.8) | (156.2) |
Businesses acquired, net of cash acquired | 0 | 0 | (526.2) |
Transfer (to) from restricted cash and cash equivalents | (9.4) | 395.4 | (197.8) |
Other investing activities | 19.7 | 9.7 | (0.5) |
Net cash (used for) provided by investing activities | (144.5) | 235.3 | (880.7) |
FINANCING ACTIVITIES | |||
Borrowings under credit arrangements | 343.6 | 1,123.4 | 57.5 |
Repayments under credit arrangements | (106.5) | (770.3) | (69.4) |
Proceeds from issuance of bonds | 0 | 1,000 | 0 |
Cash paid for debt financing costs | (2.5) | (46.6) | 0 |
Proceeds from exercise of stock options | 26.9 | 23.4 | 34.4 |
Cash paid for repurchases of common stock | (301.5) | (469.5) | 0 |
Purchase of noncontrolling interest | 0 | (12.4) | 0 |
Other financing activities | 1.8 | 1.9 | (30.9) |
Net cash (used for) provided by financing activities | (38.2) | 849.9 | (8.4) |
Effect of currency exchange rate changes on cash and cash equivalents | (58.3) | (20.4) | 1.1 |
Decrease in cash and cash equivalents | (227.6) | (407.3) | (372.1) |
Cash and cash equivalents, beginning of period | 557.5 | 964.8 | 1,336.9 |
Cash and cash equivalents, end of period | 329.9 | 557.5 | 964.8 |
Cash paid for interest | $ 91.9 | $ 696.5 | $ 5.5 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 329.9 | $ 557.5 |
Restricted cash and cash equivalents | 9.4 | 0 |
Trade accounts receivable, less allowance of $7.7 (2014—$5.8) | 458.1 | 481.1 |
Inventories | 304.1 | 332.8 |
Other current assets | 83 | 84.1 |
Total Current Assets | 1,184.5 | 1,455.5 |
Properties and equipment, net of accumulated depreciation and amortization of $1,746.5 (2014—$1,818.4) | 842.4 | 833.5 |
Goodwill | 439 | 452.9 |
Technology and other intangible assets, net | 260.8 | 288 |
Deferred income taxes | 746.3 | 845.8 |
Overfunded defined benefit pension plans | 26.1 | 44.1 |
Investment in unconsolidated affiliate | 103.2 | 113.1 |
Other assets | 73.7 | 60.7 |
Total Assets | 3,676 | 4,093.6 |
Current Liabilities | ||
Debt payable within one year | 84.6 | 96.8 |
Accounts payable | 266.7 | 255.3 |
PI warrant liability | 0 | 490 |
Other current liabilities | 356.1 | 338.5 |
Total Current Liabilities | 707.4 | 1,180.6 |
Debt payable after one year | 2,144.3 | 1,919 |
Deferred income taxes | 9.9 | 19.2 |
Income tax contingencies | 20.9 | 24 |
Underfunded and unfunded defined benefit pension plans | 456.5 | 457.5 |
Other liabilities | 124.5 | 124.3 |
Total Liabilities | $ 3,463.5 | $ 3,724.6 |
Commitments and Contingencies—Note 10 | ||
Equity | ||
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 70,533,515 (2014—72,922,565) | $ 0.7 | $ 0.7 |
Paid-in capital | 496 | 526.1 |
Retained earnings | 436.3 | 292.1 |
Treasury stock, at cost: shares: 6,923,110 (2014—4,524,688) | (658.4) | (429.2) |
Accumulated other comprehensive loss | (66.8) | (23.8) |
Total W. R. Grace & Co. Shareholders' Equity | 207.8 | 365.9 |
Noncontrolling interests | 4.7 | 3.1 |
Total Equity | 212.5 | 369 |
Total Liabilities and Equity | $ 3,676 | $ 4,093.6 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance (in dollars) | $ 7.7 | $ 5.8 |
Properties and equipment, accumulated depreciation and amortization | $ 1,746.5 | $ 1,818.4 |
Common stock issued, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued, shares authorized | 300,000,000 | 300,000,000 |
Common stock issued, shares outstanding | 70,533,515 | 72,922,565 |
Treasury Stock, Shares | 6,923,110 | 4,524,688 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock and Paid-in Capital | Retained Earnings (Accumulated Deficit) | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at Dec. 31, 2012 | $ 319.8 | $ 537.3 | $ (240.3) | $ (16.8) | $ 29.7 | $ 9.9 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 257.7 | 0 | 256.1 | 0 | 0 | 1.6 |
Cash paid for repurchases of common stock | 0 | |||||
Stock based compensation | 13.4 | 13.4 | 0 | 0 | 0 | 0 |
Exercise of stock options | 34.4 | 17.6 | 0 | 16.8 | 0 | 0 |
Purchase of noncontrolling interest | 0 | |||||
Tax benefit related to stock plans | (35.4) | (35.4) | 0 | 0 | 0 | 0 |
Shares issued | 1.3 | 1.3 | 0 | 0 | 0 | 0 |
Other comprehensive loss | (20) | 0 | 0 | 0 | (19.1) | (0.9) |
Balance at Dec. 31, 2013 | 571.2 | 534.2 | 15.8 | 0 | 10.6 | 10.6 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 277.3 | 0 | 276.3 | 0 | 0 | 1 |
Cash paid for repurchases of common stock | (469.5) | 0.1 | 0 | 469.4 | 0 | 0 |
Stock based compensation | 12.5 | 12.5 | 0 | 0 | 0 | 0 |
Exercise of stock options | 23.4 | (16.8) | 0 | 40.2 | 0 | 0 |
Purchase of noncontrolling interest | (12.4) | 6.1 | 0 | 0 | 0 | 6.3 |
Tax benefit related to stock plans | 1.2 | 1.2 | 0 | 0 | 0 | 0 |
Shares issued | 1.9 | 1.9 | 0 | 0 | 0 | 0 |
Other comprehensive loss | (36.6) | 0 | 0 | 0 | (34.4) | (2.2) |
Balance at Dec. 31, 2014 | 369 | 526.8 | 292.1 | (429.2) | (23.8) | 3.1 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 144.9 | 0 | 144.2 | 0 | 0 | 0.7 |
Cash paid for repurchases of common stock | (301.5) | 0 | 0 | 301.5 | 0 | 0 |
Stock based compensation | 13 | 13 | 0 | 0 | 0 | 0 |
Exercise of stock options | 26.9 | (45.4) | 0 | 72.3 | 0 | 0 |
Purchase of noncontrolling interest | 0 | 0.7 | 0 | 0 | 0 | (0.7) |
Tax benefit related to stock plans | 1.9 | 1.9 | 0 | 0 | 0 | 0 |
Shares issued | 1.1 | 1.1 | 0 | 0 | 0 | 0 |
Other comprehensive loss | (42.8) | 0 | 0 | 0 | (43) | 0.2 |
Balance at Dec. 31, 2015 | $ 212.5 | $ 496.7 | $ 436.3 | $ (658.4) | $ (66.8) | $ 4.7 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | W. R. Grace & Co., through its subsidiaries, is engaged in specialty chemicals and specialty materials businesses on a global basis through three operating segments: Grace Catalysts Technologies, which includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications; Grace Materials Technologies, which includes packaging technologies and engineered materials used in consumer, industrial, coatings, and pharmaceutical applications; and Grace Construction Products, which includes specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction. W. R. Grace & Co. conducts all of its business through a single wholly owned subsidiary, W. R. Grace & Co.—Conn. ("Grace—Conn."). Grace—Conn. owns all of the assets, properties and rights of W. R. Grace & Co. on a consolidated basis, either directly or through subsidiaries. As used in these notes, the term "Company" refers to W. R. Grace & Co. The term "Grace" refers to the Company and/or one or more of its subsidiaries and, in certain cases, their respective predecessors. Separation Transaction On February 5, 2015, Grace announced a plan to separate into two independent, publicly traded companies, intended to improve Grace's strategic focus, simplify its operating structure, and allow for more efficient capital allocation. On January 27, 2016, Grace entered into a separation agreement with GCP Applied Technologies Inc., then a wholly-owned subsidiary of Grace ("GCP"), pursuant to which Grace agreed to transfer its Grace Construction Products operating segment and the packaging technologies business, operated under the “Darex” name, of its Grace Materials Technologies operating segment to GCP (the "Separation"). The Separation occurred on February 3, 2016, by means of a pro rata distribution to Grace stockholders of all of the outstanding shares of GCP common stock (the "Distribution"). Under the Distribution, one share of GCP common stock was distributed for each share of Grace common stock held as of the close of business on January 27, 2016. No fractional shares were distributed. As a result of the Distribution, GCP is now an independent public company and its common stock is listed under the symbol “GCP” on the New York Stock Exchange. Chapter 11 Proceedings On April 2, 2001, Grace and 61 of its United States subsidiaries and affiliates filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") in order to resolve outstanding asbestos personal injury and property damage claims, including class-action lawsuits alleging damages from Zonolite ® Attic Insulation ("ZAI"), a former Grace attic insulation product. In 2008, Grace and other parties filed a joint plan of reorganization with the Bankruptcy Court (as subsequently amended, the "Joint Plan"). Following the confirmation of the Joint Plan in 2011 by the Bankruptcy Court and in 2012 by a U.S. District Court, and the resolution of all appeals, Grace emerged from bankruptcy on February 3, 2014. Principles of Consolidation The Consolidated Financial Statements include the accounts of Grace and entities as to which Grace exercises control over operating and financial policies. Grace consolidates the activities of variable interest entities in circumstances where management determines that Grace is the primary beneficiary of the variable interest entity. Intercompany transactions and balances are eliminated in consolidation. Investments in affiliated companies in which Grace can significantly influence operating and financial policies are accounted for under the equity method, unless Grace's investment is deemed to be temporary, in which case the investment is accounted for under the cost method. Noncontrolling Interests in Consolidated Entities Grace conducts certain of its business through joint ventures with unaffiliated third parties. For joint ventures in which Grace has a controlling financial interest, Grace consolidates the results of such joint ventures in the Consolidated Financial Statements. Grace recognizes a liability for cumulative amounts due to the third parties based on the financial results of the joint ventures, and deducts the amount of income attributable to noncontrolling interests in the measurement of its consolidated net income. During the 2014 fourth quarter, Grace acquired the remaining 50% equity interest in its Construction Products joint venture in Turkey for $11.7 million , making the business a wholly owned subsidiary of Grace. Operating Segments Grace reports financial results of each of its operating segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by Grace's Chief Executive Officer. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. Actual amounts could differ from those estimates, and the differences could be material. Changes in estimates are recorded in the period identified. Grace's accounting measurements that are most affected by management's estimates of future events are: • Realization values of net deferred tax assets, which depend on projections of future taxable income (see Note 7 ); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 8 ); and • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate obligation, such as litigation (see Note 10 ), income taxes (see Note 7 ), and environmental remediation (see Note 10 ). Revenue Recognition Grace recognizes revenue when all of the following criteria are satisfied: risk of loss and title transfer to the customer; the price is fixed and determinable; persuasive evidence of a sales arrangement exists; and collectability is reasonably assured. Risk of loss and title transfers to customers are based on individual contractual terms which generally specify the point of shipment. Terms of delivery are generally included in customer contracts of sale, order confirmation documents and invoices. Certain customer arrangements include conditions for volume rebates. Grace accrues a rebate allowance and reduces recorded sales for anticipated selling price adjustments at the time of sale. Grace regularly reviews rebate accruals based on actual and anticipated sales patterns. Certain customer arrangements, constituting less than 2% of our annual revenues, include licenses of technology combined with other deliverables. Generally, the licenses are non-exclusive, perpetual licenses that permit the licensee to use Grace proprietary technology to design, build, and maintain a polypropylene manufacturing plant, and to make and sell products from the plant. In these multiple-element arrangements, Grace typically bundles the license, the basic process design package, and training and consulting-type services into one fixed price contract. The fixed price contract revenue is accounted for as one unit of accounting and is recognized on a straight-line basis over the period of performance of the contract, which typically ranges from three to five years, except for contingent revenue associated with a final performance guarantee. Revenue associated with the performance guarantee is recognized when customer acceptance is obtained, which is typically at the time that the licensee’s plant is operational. Elements in the fixed price contract are not accounted for as separate units of accounting because they do not have standalone value. Each of the deliverables are necessary components to the successful construction and future operation of the manufacturing plants, and the elements have interdependencies such that there is minimal value in each deliverable without the other bundled elements. Other services and optional software that are sold in connection with license arrangements qualify as separate units of accounting, with revenue recognized when services are rendered and in the case of process control software, when installed and functional. Additional services that are not part of the fixed price contract are billed on a variable basis. The selling prices of the significant deliverables described above are based on Grace’s best estimate of selling price, determined using historical business information. Cash Equivalents Cash equivalents consist of liquid instruments and investments with maturities of three months or less when purchased. The recorded amounts approximate fair value. Inventories Inventories are stated at the lower of cost or market. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability, and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. Long Lived Assets Properties and equipment are stated at cost. Depreciation of properties and equipment is generally computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives range from 20 to 40 years for buildings, 3 to 7 years for information technology equipment, 3 to 10 years for operating machinery and equipment, and 5 to 10 years for furniture and fixtures. Interest is capitalized in connection with major project expenditures. Fully depreciated assets are retained in properties and equipment and related accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged or credited to earnings. Obligations for costs associated with asset retirements, such as requirements to restore a site to its original condition, are accrued at net present value and amortized along with the related asset. Other intangible assets with finite lives consist of technology, customer lists, trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 1 to 30 years. Grace reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. There were impairment charges recorded in 2015 and 2014; no impairment charge was required in 2013 (see Note 11 ). Goodwill Goodwill arises from certain business combinations. Grace reviews its goodwill for impairment on an annual basis at October 31 and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Recoverability is assessed at the reporting unit level most directly associated with the business combination that generated the goodwill. For the purpose of measuring impairment under the provisions of ASC 350 "Intangibles—Goodwill and Other," Grace has identified its reporting units at one level below its operating segments. Grace has evaluated its goodwill annually with no impairment charge required in any of the periods presented. Financial Instruments Grace uses commodity forward, swap and/or option contracts and currency forward and/or option contracts to manage exposure to fluctuations in commodity prices and currency exchange rates. Grace does not hold or issue derivative financial instruments for trading purposes. Derivative instruments are recorded in the Consolidated Balance Sheets as either assets or liabilities at their fair value. For derivative instruments designated as fair value hedges, changes in the fair values of the derivative instruments closely offset changes in the fair values of the hedged items in "other expense, net" in the Consolidated Statements of Operations. For derivative instruments designated as cash flow hedges, if the derivative instruments qualify for hedge accounting pursuant to ASC 815, the effective portion of any hedge is reported as "accumulated other comprehensive income" in the Consolidated Balance Sheets until it is cleared to earnings during the same period in which the hedged item affects earnings. The ineffective portion of all hedges, and changes in the fair values of derivative instruments that are not designated as hedges, are recorded in current period earnings. Cash flows from derivative instruments are reported in the same category as the cash flows from the items being hedged. Income Taxes Deferred tax assets and liabilities are recognized with respect to the expected future tax consequences of events that have been recorded in the Consolidated Financial Statements. If it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is provided against such deferred tax assets. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Grace evaluates such likelihood based on relevant facts and tax law. Grace adjusts its recorded liability for income tax matters due to changes in circumstances or new uncertainties, such as amendments to existing tax law. Grace's ultimate tax liability depends upon many factors, including negotiations with taxing authorities in the jurisdictions in which it operates, outcomes of tax litigation, and resolution of disputes arising from federal, state, and foreign tax audits. Due to the varying tax laws in each jurisdiction management, with the assistance of local tax advisors as necessary, assesses individual matters in each jurisdiction on a case-by-case basis. Grace researches and evaluates its income tax positions, including why it believes they are compliant with income tax regulations, and these positions are documented as appropriate. Pension Benefits Grace's method of accounting for actuarial gains and losses relating to its global defined benefit pension plans is referred to as "mark-to-market accounting." Under mark-to-market accounting, Grace's pension costs consist of two elements: 1) ongoing costs recognized quarterly, which include service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; and 2) mark-to-market gains and losses recognized annually in the fourth quarter resulting from changes in actuarial assumptions, such as discount rates and the difference between actual and expected returns on plan assets. Should a significant event occur, Grace's pension obligation and plan assets would be remeasured at an interim period, and the gains or losses on remeasurement would be recognized in that period. Stock-Based Compensation The Company recognizes expenses related to stock-based compensation payment transactions in which it receives employee services in exchange for (a) equity instruments of the Company or (b) liabilities that are based on the fair value of the Company’s equity instruments or that may be settled by the issuance of equity instruments. Stock-based compensation cost for restricted stock units (RSUs) and share settled performance based units (PBUs) are measured based on the high/low average of the Company’s common stock on the date of grant. Cash settled performance based units (CSPBU) are remeasured at the end of each reporting period based on the closing fair market value of the Company’s common stock. Stock-based compensation cost for stock options is estimated at the grant date based on each option’s fair value as calculated by the Black-Scholes option pricing model. The Company recognizes stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period. Currency Translation Assets and liabilities of foreign subsidiaries (other than those located in countries with highly inflationary economies, including Venezuela) are translated into U.S. dollars at current exchange rates, while revenues, costs and expenses are translated at average exchange rates during each reporting period. The resulting translation adjustments are included in "accumulated other comprehensive loss" in the Consolidated Balance Sheets. The financial statements of any subsidiaries located in countries with highly inflationary economies are remeasured as if the functional currency were the U.S. dollar; the remeasurement creates translation adjustments that are reflected in net income in the Consolidated Statements of Operations. Until September 30, 2015, Grace accounted for its results in Venezuela at the official exchange rate of 6.3 . bolivars to one U.S. dollar. Based on developments in the 2015 third quarter, including changed expectations about Grace's ability to import raw materials into Venezuela at the official exchange rate in the future and the increase in inflation, Grace determined that it is no longer appropriate to do so. Effective September 30, 2015, Grace is accounting for its results in Venezuela at the SIMADI rate. At December 31, 2015 , this rate was 199 bolivars to one U.S. dollar. Grace recorded a pre-tax charge of $73.2 million in 2015 to reflect the devaluation of monetary assets and the impairment of non-monetary assets, including $40.5 million for cash, $28.6 million for working capital and $4.1 million for properties and equipment. Of this amount, $13.6 million related to inventory was recorded in cost of goods sold, and $59.6 million related to other assets and liabilities was recorded as a separate line in the Consolidated Statement of Operations. The remaining assets and liabilities, as well as future sales, earnings and cash flows of Grace's Venezuelan subsidiary are immaterial after September 30, 2015. See "Item 7. Management's Discussion and Analysis—Venezuela" for further discussion. Reclassifications Certain amounts in prior years' Consolidated Financial Statements have been reclassified to conform to the current year presentation. Such reclassifications have not materially affected previously reported amounts in the Consolidated Financial Statements. Effect of New Accounting Standards In April 2014, the FASB issued ASU 2014-08 "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This update is intended to change the requirements for reporting discontinued operations and enhance convergence of the FASB’s and the International Accounting Standard Board’s ("IASB") reporting requirements for discontinued operations. Grace adopted this standard in the 2015 first quarter, and it did not have a material effect on the Consolidated Financial Statements at that time. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." This update is intended to remove inconsistencies and weaknesses in revenue requirements; provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; provide more useful information to users of financial statements through improved disclosure requirements; and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new requirements were to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers—Deferral of the Effective Date," deferring the effective date by one year but permitting adoption as of the original effective date. The revised standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. Grace does not intend to adopt the standard early and is in the process of determining the adoption method as well as the effects the adoption will have on the Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03 "Simplifying the Presentation of Debt Issuance Costs." This update is part of the FASB's Simplification Initiative and is also intended to enhance convergence with the IASB's treatment of debt issuance costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." The update clarifies ASU 2015-03, allowing debt issuance costs related to line of credit arrangements to be deferred and presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new requirements are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the effect of these updates on the Consolidated Financial Statements and will adopt them in the 2016 first quarter. As of December 31, 2015 and 2014, capitalized financing fees included in other assets in the Consolidated Balance Sheets were $34.2 million and $37.7 million , respectively. In July 2015, the FASB issued ASU 2015-11 "Simplifying the Measurement of Inventory." This update is part of the FASB's Simplification Initiative and is also intended to enhance convergence with the IASB's measurement of inventory. The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO or average cost methods. The new requirements are effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the timing of adoption and does not expect the update to have an effect on the Consolidated Financial Statements. In November 2015, the FASB issued Accounting Standards Update 2015-17, “Balance Sheet Classification of Deferred Taxes” as an amendment to ASC 740 "Income Taxes." As part of the FASB’s Simplification Initiative, this update requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Thus, each jurisdiction will now only present one net noncurrent deferred tax asset or liability. The update does not change the existing requirement that only permits offsetting of deferred tax assets and liabilities within a specific jurisdiction. The update is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted, and may be applied either prospectively or retrospectively. Grace has elected to early adopt this standard retrospectively in 2015. Consistent with the new guidance, Grace has presented the deferred tax assets or liabilities of each jurisdiction as one net noncurrent deferred tax asset or liability. As a result, for the year ended December 31, 2014, Grace reclassified $233.8 million previously reported as net current deferred tax assets to net noncurrent deferred tax assets and $0.1 million previously reported as net current deferred tax liabilities to net noncurrent deferred tax liabilities. The retrospective application of the update results in total net deferred tax assets of $845.8 million and total net deferred tax liabilities of $19.2 million as of December 31, 2014. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are stated at the lower of cost or market, and cost is determined using FIFO. Inventories consisted of the following at December 31, 2015 and 2014 : December 31, (In millions) 2015 2014 Raw materials $ 86.2 $ 78.8 In process 39.6 47.2 Finished products 149.6 177.7 Other 28.7 29.1 $ 304.1 $ 332.8 |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | December 31, (In millions) 2015 2014 Land $ 18.9 $ 18.5 Buildings 529.3 530.0 Information technology and equipment 180.6 175.6 Machinery, equipment and other 1,756.8 1,825.3 Projects under construction 103.3 102.5 Properties and equipment, gross 2,588.9 2,651.9 Accumulated depreciation and amortization (1,746.5 ) (1,818.4 ) Properties and equipment, net $ 842.4 $ 833.5 Capitalized interest costs amounted to $1.1 million , $1.5 million , and $1.2 million in 2015 , 2014 , and 2013 , respectively. Depreciation and lease amortization expense relating to properties and equipment was $109.3 million , $112.5 million , and $108.6 million in 2015 , 2014 , and 2013 , respectively. Grace's rental expense for operating leases was $27.0 million , $27.5 million , and $28.4 million in 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , minimum future non-cancelable payments for operating leases are: (In millions) 2016 $ 23.9 2017 15.8 2018 11.0 2019 8.0 2020 5.8 Thereafter 21.2 $ 85.7 The above minimum non-cancelable lease payments are net of anticipated sublease income of $0.5 million in 2016 , $0.3 million in 2017 , $0.2 million in 2018 , $0.1 million in 2019 , and $0.1 million in 2020 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | The carrying amount of goodwill attributable to each operating segment and the changes in those balances during the years ended December 31, 2015 and 2014 , are as follows: (In millions) Grace Catalysts Technologies Grace Materials Technologies Grace Construction Products Total Grace Balance, December 31, 2013 $ 293.4 $ 41.2 $ 122.9 $ 457.5 Foreign currency translation (0.9 ) (2.3 ) (10.8 ) (14.0 ) Other adjustments 1.3 11.5 (3.4 ) 9.4 Balance, December 31, 2014 293.8 50.4 108.7 452.9 Foreign currency translation (1.0 ) (2.0 ) (10.8 ) (13.8 ) Other adjustments — — (0.1 ) (0.1 ) Balance, December 31, 2015 $ 292.8 $ 48.4 $ 97.8 $ 439.0 Other adjustments in 2014 in the table above relate primarily to deferred income taxes for prior acquisitions that were corrected during 2014, including $8.0 million that was recorded in "benefit from (provision for) income taxes" in the Consolidated Financial Statements. Grace determined that these amounts are not material to 2014 or prior periods. Grace's net book value of other intangible assets at December 31, 2015 and 2014 , was $260.8 million and $288.0 million , respectively, detailed as follows: December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Technology $ 254.9 $ 60.7 Customer lists 81.1 47.6 Trademarks 34.0 16.3 Other 20.6 5.2 Total $ 390.6 $ 129.8 December 31, 2014 (In millions) Gross Carrying Amount Accumulated Amortization Technology $ 257.9 $ 49.5 Customer lists 88.5 46.2 Trademarks 34.9 15.0 Other 21.5 4.1 Total $ 402.8 $ 114.8 Total indefinite-lived trademarks, included above, at December 31, 2015 and 2014 , were $3.8 million and $4.2 million , respectively. Amortization expense related to intangible assets was $20.8 million , $22.9 million , and $12.7 million in 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , estimated future annual amortization expense for intangible assets is: (In millions) 2016 $ 17.9 2017 16.7 2018 16.4 2019 14.7 2020 14.3 Thereafter 177.0 $ 257.0 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Components of Debt December 31, (In millions) 2015 2014 U.S. dollar term loan, net of unamortized discount of $1.7 at December 31, 2015 (2014—$2.1) $ 933.6 $ 692.6 5.125% senior notes due 2021 700.0 700.0 5.625% senior notes due 2024 300.0 300.0 Euro term loan, net of unamortized discount of $0.4 at December 31, 2015 (2014—$0.4) 161.3 181.2 Debt payable—unconsolidated affiliate 33.4 31.5 Deferred payment obligation 29.1 28.2 Other borrowings(1) 71.5 82.3 Total debt 2,228.9 2,015.8 Less debt payable within one year 84.6 96.8 Debt payable after one year $ 2,144.3 $ 1,919.0 Weighted average interest rates on total debt 4.2 % 4.3 % ___________________________________________________________________________________________________________________ (1) Represents borrowings under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries. See Note 6 for a discussion of the fair value of Grace's debt. The principal maturities of debt outstanding at December 31, 2015 , were as follows: (In millions) 2016 $ 84.6 2017 47.1 2018 17.7 2019 17.1 2020 15.6 Thereafter 2,046.8 Total debt $ 2,228.9 Credit Agreement On February 3, 2014, Grace entered into a Credit Agreement (the "Credit Agreement") in connection with its exit financing. The Credit Agreement provides for: (a) a $700 million term loan due in 2021, with interest at LIBOR +225 bps with a 75 bps floor; (b) a €150 million term loan due in 2021, with interest at EURIBOR +250 bps with a 75 bps floor; (c) a $400 million revolving credit facility due in 2019, with interest at LIBOR +175 bps; and (d) a $250 million delayed draw term loan facility available for 12 months , with amounts drawn due in 2021, with interest at LIBOR +225 bps with a 75 bps floor. The term loans will amortize in equal quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount thereof. The Credit Agreement contains customary affirmative covenants, including, but not limited to (i) maintenance of legal existence and compliance with laws and regulations; (ii) delivery of consolidated financial statements and other information; (iii) payment of taxes; (iv) delivery of notices of defaults and certain other material events; and (v) maintenance of adequate insurance. The Credit Agreement also contains customary negative covenants, including but not limited to restrictions on (i) dividends on, and redemptions of, equity interests and other restricted payments; (ii) liens; (iii) loans and investments; (iv) the sale, transfer or disposition of assets and businesses; (vi) transactions with affiliates; and (vii) a maximum total leverage ratio. The Credit Agreement contains conditions that would require mandatory principal payments in advance of the term loan maturity date; none of these conditions had been triggered as of December 31, 2015. Events of default under the Credit Agreement include, but are not limited to: (i) failure to pay principal, interest, fees or other amounts under the Credit Agreement when due, taking into account any applicable grace period; (ii) any representation or warranty proving to have been incorrect in any material respect when made; (iii) failure to perform or observe covenants or other terms of the Credit Agreement subject to certain grace periods; (iv) a cross-default and cross-acceleration with certain other material debt; (v) bankruptcy events; (vi) certain defaults under ERISA; and (vii) the invalidity or impairment of security interests. To secure its obligations under the Credit Agreement, the Company has granted security interests in the shares of its Grace—Conn. and Alltech Associates, Inc. subsidiaries, substantially all of its U.S. non-real estate assets and property, and certain U.S. real estate. On January 30, 2015, Grace borrowed on its $250 million delayed draw term loan facility and used the funds, together with cash on hand, to repurchase the warrant issued to the asbestos personal injury trust for $490 million . (See Note 10 for Chapter 11 information.) Grace had no outstanding draws on the revolving credit facility as of December 31, 2015; however, the available credit under that facility was reduced to $343.2 million by outstanding letters of credit. During the fourth quarter, Grace entered into an amendment to the Credit Agreement to permit the Separation. The amendment, which became effective upon completion of the Separation, revised certain covenants, reduced the revolving credit facility limit to $300 million and extended the facility's term to November 1, 2020. In connection with the Separation, GCP distributed $750 million to Grace. Using a portion of these proceeds, Grace repaid $500 million of its euro and U.S. dollar term loans. See Note 21 for information related to the Separation. Senior Notes On September 16, 2014, Grace-Conn. (the "Issuer") issued $1,000.0 million of senior unsecured notes (the "Notes") in two tranches: (a) $700 million in aggregate principal amount of Notes due 2021 at a coupon rate of 5.125% , and (b) $300 million in aggregate principal amount of Notes due 2024 at a coupon rate of 5.625% . The Notes were priced at 100% of par and were offered and sold pursuant to exemptions from registration under the Securities Act of 1933, as amended, (the "Securities Act"). The net proceeds received from issuance were $985.5 million , a portion of which was used to terminate Grace's obligations under the deferred payment agreement with the PI Trust for $632.0 million and to repay amounts outstanding under Grace's revolving credit facility. The remaining proceeds from the Notes were used to partially fund the settlement of the warrant issued to the PI Trust (as defined in Note 10) and for other general corporate purposes. Interest is payable on the Notes on each April 1 and October 1, commencing April 1, 2015. Grace may redeem some or all of the Notes at any time at a price equal to the greater of (i) 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest to, but excluding, the redemption date and (ii) the sum, as determined by an independent investment banker, of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate plus 50 basis points, in each case, accrued and unpaid interest to, but excluding, the date of redemption. In the event of a change in control, Grace will be required to offer to purchase the Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest. The Notes are jointly and severally guaranteed on a full and unconditional senior unsecured basis by the Company and Alltech Associates, Inc., a wholly-owned subsidiary of the Issuer (the "Guarantors"). The Notes and guarantees are senior obligations of the Issuer and the Guarantors, respectively, and will rank equally with all of the existing and future unsubordinated obligations of the Issuer and the Guarantors, respectively. The Notes are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to the debt and other liabilities of Grace’s non-guarantor subsidiaries. The Notes were issued subject to covenants that limit the Issuer’s and certain of its subsidiaries’ ability, subject to certain exceptions and qualifications, to (i) create or incur liens on assets, (ii) enter into any sale and leaseback transaction and (iii) in the case of the Issuer, merge or consolidate with another company. The Notes were also issued subjected to customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the Indenture; failure to pay certain other indebtedness; failure to discharge a final judgment for payment of $75 million or more (excluding any amounts covered by insurance or indemnities) rendered against the Issuer or any of its significant subsidiaries; and certain events of bankruptcy or insolvency. Generally, if any event of default occurs, the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding series of Notes may declare all the Notes of such series to be due and payable immediately. The Separation had no impact on the payment terms or other terms of the Notes, and they remain obligations of Grace. This summary of the Credit Agreement, the amendment to the Credit Agreement, the indentures and the Notes does not purport to be complete and is qualified in its entirety by reference to the full text of such agreements, copies of which have been filed with the SEC. |
Fair Value Measurements and Ris
Fair Value Measurements and Risk | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Risk | Certain of Grace's assets and liabilities are reported at fair value on a gross basis. ASC 820 "Fair Value Measurements and Disclosures" defines fair value as the value that would be received at the measurement date in the principal or "most advantageous" market. Grace uses principal market data, whenever available, to value assets and liabilities that are required to be reported at fair value. Grace has identified the following financial assets and liabilities that are subject to the fair value analysis required by ASC 820: Fair Value of Debt and Other Financial Instruments Debt payable is recorded at carrying value as discussed in Note 5 . Fair value is determined based on Level 2 inputs, including expected future cash flows (discounted at market interest rates), estimated current market prices and quotes from financial institutions. At December 31, 2015 , the carrying amounts and fair values of Grace's debt were as follows: December 31, 2015 December 31, 2014 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value U.S. dollar term loan(1) $ 933.6 $ 927.1 $ 692.6 $ 691.3 5.125% senior notes due 2021 700.0 710.5 700.0 720.9 5.625% senior notes due 2024 300.0 302.6 300.0 312.0 Euro term loan(2) 161.3 161.1 181.2 181.4 Other borrowings 134.0 134.0 142.0 142.0 Total debt $ 2,228.9 $ 2,235.3 $ 2,015.8 $ 2,047.6 ___________________________________________________________________________________________________________________ (1) Carrying amounts are net of unamortized discounts of $1.7 million and $2.1 million at December 31, 2015 and 2014 , respectively. (2) Carrying amounts are net of unamortized discounts of $0.4 million and $0.4 million at December 31, 2015 and 2014 , respectively. At December 31, 2015 , the recorded values of other financial instruments such as cash equivalents and trade receivables and payables approximated their fair values, based on the short-term maturities and floating rate characteristics of these instruments. Commodity Derivatives From time to time, Grace enters into commodity derivatives such as fixed-rate swaps or options with financial institutions to mitigate the risk of volatility of prices of natural gas or other commodities. Under fixed-rate swaps, Grace locks in a fixed rate with a financial institution for future purchases, purchases its commodity from a supplier at the prevailing market rate, and then settles with the bank for any difference in the rates, thereby "swapping" a variable rate for a fixed rate. The valuation of Grace's fixed-rate natural gas swaps was determined using a market approach, based on natural gas futures trading prices quoted on the New York Mercantile Exchange. Commodity fixed-rate swaps with maturities of not more than 12 months are used and designated as cash flow hedges of forecasted purchases of natural gas. Current open contracts hedge forecasted transactions until March 2016. The effective portion of the gain or loss on the commodity contracts is recorded in "accumulated other comprehensive (loss) income" and reclassified into income in the same period or periods that the underlying commodity purchase affects income. At December 31, 2015 , the contract volume, or notional amount, of the commodity contracts was 1.3 million MMBtu (million British thermal units) with a total contract value of $2.4 million . The valuation of Grace's natural gas call options was determined using a market approach, based on the strike price of the options and the natural gas futures trading prices quoted on the New York Mercantile Exchange. Commodity option contracts with maturities of not more than 24 months are used and designated as cash flow hedges of forecasted purchases of natural gas. The effective portion of the gain or loss on the commodity contracts is recorded in "accumulated other comprehensive (loss) income" and reclassified into income in the same period or periods that the underlying purchases affect income. At December 31, 2015 , there are no outstanding commodity option contracts. The valuation of Grace's fixed-rate aluminum swaps was determined using a market approach, based on aluminum futures trading prices quoted on the London Metal Exchange. Commodity fixed-rate swaps with maturities of not more than 12 months are used and designated as cash flow hedges of forecasted purchases of aluminum. Current open contracts hedge forecasted transactions until November 2016. The effective portion of the gain or loss on the commodity contracts is recorded in "accumulated other comprehensive (loss) income" and reclassified into income in the same period or periods that the underlying commodity purchase affects income. At December 31, 2015 , the contract volume, or notional amount, of the commodity contracts was 1.4 million pounds with a total contract value of $1.1 million . Currency Derivatives Because Grace conducts business in over 40 countries and in more than 50 currencies, results are exposed to fluctuations in currency exchange rates. Grace seeks to minimize exposure to these fluctuations by matching sales in volatile currencies with expenditures in the same currencies, but it is not always possible to do so. From time to time, Grace will use financial instruments such as currency forward contracts, options, or combinations of them to reduce the risk of certain specific transactions. However, Grace does not have a policy of hedging all exposures, because management does not believe that such a level of hedging would be cost-effective. The valuation of Grace's currency exchange rate forward contracts is determined using both a market approach and an income approach. Inputs used to value currency exchange rate forward contracts consist of: (1) spot rates, which are quoted by various financial institutions; (2) forward points, which are primarily affected by changes in interest rates; and (3) discount rates used to present value future cash flows, which are based on the London Interbank Offered Rate (LIBOR) curve or overnight indexed swap rates. Debt and Interest Rate Swap Agreements Grace uses interest rate swaps designated as cash flow hedges to manage fluctuations in interest rates on variable rate debt. The effective portion of gains and losses on these interest rate cash flow hedges is recorded in "accumulated other comprehensive (loss) income" and reclassified into "interest expense and related financing costs" during the hedged interest period. In connection with its emergence financing, Grace entered into an interest rate swap beginning on February 3, 2015, and maturing on February 3, 2020, fixing the LIBOR component of the interest on $250 million of Grace's term debt at a rate of 2.393% . The valuation of this interest rate swap is determined using both a market approach and an income approach, using prevailing market interest rates and discount rates to present value future cash flows based on the forward LIBOR yield curves. The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 : Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 1.1 $ — $ 1.1 $ — Commodity derivatives 0.6 — 0.6 — Total Assets $ 1.7 $ — $ 1.7 $ — Liabilities Currency derivatives $ 0.6 $ — $ 0.6 $ — Interest rate derivatives 7.9 — 7.9 — Commodity derivatives 0.1 — 0.1 — Total Liabilities $ 8.6 $ — $ 8.6 $ — Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.3 $ — $ 3.3 $ — Total Assets $ 3.3 $ — $ 3.3 $ — Liabilities Currency derivatives $ 0.1 $ — $ 0.1 $ — Interest rate derivatives 5.5 — 5.5 — Commodity derivatives 2.6 — 2.6 — Total Liabilities $ 8.2 $ — $ 8.2 $ — The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of December 31, 2015 and 2014 : Asset Derivatives Liability Derivatives December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Commodity contracts Other current assets $ 0.6 Other current liabilities $ 0.1 Currency contracts Other current assets 0.7 Other current liabilities 0.4 Interest rate contracts Other current assets — Other current liabilities 4.1 Currency contracts Other assets 0.2 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.8 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.2 Other current liabilities 0.2 Total derivatives $ 1.7 $ 8.6 Asset Derivatives Liability Derivatives December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Commodity contracts Other current assets $ — Other current liabilities $ 2.6 Currency contracts Other current assets 0.8 Other current liabilities — Interest rate contracts Other current assets — Other current liabilities 2.5 Currency contracts Other assets 0.9 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.0 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 1.6 Other current liabilities 0.1 Total derivatives $ 3.3 $ 8.2 The following tables present the location and amount of gains and losses on derivative instruments included in the Consolidated Statements of Operations or, when applicable, gains and losses initially recognized in other comprehensive income (loss) ("OCI") for the years ended December 31, 2015 , 2014 , and 2013 : Year Ended December 31, 2015 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (5.6 ) Interest expense $ (3.8 ) Currency contracts 6.3 Other expense 5.6 Currency contracts 0.2 Cost of goods sold 0.2 Commodity contracts (1.4 ) Cost of goods sold (4.6 ) Total derivatives $ (0.5 ) $ (2.6 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (0.5 ) Year Ended December 31, 2014 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (5.4 ) Interest expense $ — Currency contracts 2.1 Other expense 1.3 Commodity contracts (2.2 ) Cost of goods sold 0.3 Total derivatives $ (5.5 ) $ 1.6 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ 7.1 Year Ended December 31, 2013 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Currency contracts $ 2.0 Other expense $ 2.4 Currency contracts (0.2 ) Cost of goods sold (0.2 ) Commodity contracts (0.3 ) Cost of goods sold (0.4 ) Total derivatives $ 1.5 $ 1.8 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (10.9 ) Net Investment Hedges Grace uses foreign currency denominated debt as nonderivative hedging instruments in certain net investment hedges. The effective portion of gains and losses attributable to these net investment hedges is recorded to "currency translation adjustments" within "accumulated other comprehensive (loss) income." Recognition in earnings of amounts previously recorded to "currency translation adjustments" is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. At December 31, 2015 , €147.4 million of Grace's term loan principal was designated as a hedging instrument of its net investment in European subsidiaries. The following tables present the location and amount of gains and losses on nonderivative instruments designated as net investment hedges. There were no reclassifications of the effective portion of net investment hedges out of OCI and into earnings for the periods presented in the tables below. Year Ended December 31, 2015 (In millions) Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Nonderivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 18.3 Total nonderivatives $ 18.3 Year Ended December 31, 2014 (In millions) Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Nonderivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 22.7 Total nonderivatives $ 22.7 Credit Risk Grace is exposed to credit risk in its trade accounts receivable. Customers in the petroleum refining and construction industries represent the greatest exposure. Grace's credit evaluation policies, relatively short collection terms and history of minimal credit losses mitigate credit risk exposures. Grace does not generally require collateral for its trade accounts receivable, but may require a bank letter of credit in certain instances, particularly when selling to customers in cash-restricted countries. Grace may also be exposed to credit risk in its derivatives contracts. Grace monitors counterparty credit risk and currently does not anticipate nonperformance by counterparties to its derivatives. Grace's derivative contracts are with internationally recognized commercial financial institutions. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Provision for Income Taxes The components of income from consolidated operations before income taxes and the related provision for income taxes for 2015 , 2014 , and 2013 are as follows: (In millions) 2015 2014 2013 Income before income taxes: Domestic $ 143.2 $ 137.5 $ 141.4 Foreign 166.4 196.8 219.2 Total $ 309.6 $ 334.3 $ 360.6 Provision for income taxes: Federal—current $ — $ 59.4 $ 1.4 Federal—deferred (69.4 ) (45.8 ) (73.1 ) State and local—current (1.4 ) (0.7 ) (0.7 ) State and local—deferred (6.3 ) (17.6 ) 38.2 Foreign—current (87.6 ) (62.5 ) (83.5 ) Foreign—deferred — 10.2 14.8 Total $ (164.7 ) $ (57.0 ) $ (102.9 ) The preceding allocation of income between jurisdictions does not reflect $173.1 million , $38.9 million , and $25.9 million of domestic income resulting from repatriated earnings in 2015 , 2014 , and 2013 , respectively. The difference between the provision for income taxes at the U.S. federal income tax rate of 35% and Grace's overall income tax provision is summarized as follows: (In millions) 2015 2014 2013 Tax provision at U.S. federal income tax rate $ (108.4 ) $ (117.0 ) $ (126.2 ) Change in benefit (provision) resulting from: Separation tax costs (39.1 ) — — Nondeductible Venezuela charge (24.7 ) — — Effect of tax rates in foreign jurisdictions 14.4 17.8 16.6 State and local income taxes, net (6.4 ) (11.9 ) (0.7 ) U.S. tax on foreign earnings (1.9 ) 5.2 3.7 Adjustments to uncertain tax positions (1.7 ) 57.7 (6.8 ) Release of state valuation allowance 1.6 — 24.4 Nontaxable income/non-deductible expenses (1.2 ) (6.0 ) (9.7 ) Other 2.7 (2.8 ) (4.2 ) Provision for income taxes $ (164.7 ) $ (57.0 ) $ (102.9 ) Separation tax costs are composed of $19.0 million for repatriation of current and prior year earnings pursuant to the Separation discussed in further detail below under "Unrepatriated Foreign Earnings," $14.5 million for nondeductible transaction costs and $5.6 million for the restructuring of foreign subsidiaries. The nondeductible Venezuela charge is the tax effect of the $73.2 million nondeductible pre-tax charge recorded during the third quarter of 2015. Deferred Tax Assets and Liabilities At December 31, 2015 and 2014 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items: (In millions) December 31, 2015 December 31, 2014 Deferred tax assets: U.S. net operating loss carryforwards $ 366.3 $ 371.8 Pension liabilities 127.8 114.2 Federal tax credit carryforwards 124.3 49.6 State net operating loss carryforwards 53.2 51.1 Reserves and allowances 48.4 46.2 Research and development 41.7 34.5 Liability for environmental remediation 20.6 22.7 Foreign net operating loss carryforwards 15.5 18.0 Liability for asbestos-related litigation 10.8 192.4 Other 39.2 45.4 Total deferred tax assets $ 847.8 $ 945.9 Deferred tax liabilities: Properties and equipment $ (45.3 ) $ (52.8 ) Intangible assets (40.5 ) (36.4 ) Pension assets (10.6 ) (9.4 ) Other (4.7 ) (8.2 ) Total deferred tax liabilities $ (101.1 ) $ (106.8 ) Valuation allowance: Foreign net operating loss carryforwards (4.6 ) (4.2 ) State net operating loss carryforwards $ (3.5 ) $ (5.9 ) Federal tax credit carryforwards (2.2 ) (2.4 ) Total valuation allowance (10.3 ) (12.5 ) Net deferred tax assets $ 736.4 $ 826.6 Grace’s deferred tax assets decreased by $90.2 million from December 31, 2014 to December 31, 2015 . The decrease was primarily related to a reduction in assets for liability for asbestos-related litigation due to repurchase of the warrant held by the PI Trust, partially offset by an increase in assets for federal tax credit carryforwards as a result of foreign tax credits generated on dividend repatriation associated with the Separation. In the 2016 first quarter, Grace expects to recognize a gain for federal and state income tax purposes on certain Separation transactions, resulting in a partial use of its U.S. deferred tax assets. Grace has recorded a valuation allowance to reduce its net deferred tax assets to the amount that is more likely than not to be realized. Grace considers forecasted earnings, recent past and future taxable income, the mix of earnings in the jurisdictions in which it operates and, where applicable, prudent and feasible tax planning strategies in determining the need for these valuation allowances. The valuation allowance decreased $2.2 million from December 31, 2014 , to December 31, 2015 . The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards. The realization of deferred tax assets is dependent on the generation of sufficient taxable income in the appropriate tax jurisdictions. Grace believes it is more likely than not that the remaining deferred tax assets will be realized. If Grace were to determine that it would not be able to realize a portion of its net deferred tax assets in the future, for which there is currently no valuation allowance, an adjustment to the net deferred tax assets would be charged to earnings in the period such determination was made. Conversely, if Grace were to make a determination that it is more likely than not that deferred tax assets, for which there is currently a valuation allowance, would be realized, the related valuation allowance would be reduced and a benefit to earnings would be recorded. As a result of certain realization requirements, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 and 2014 , that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Under the with and without approach to calculating excess stock compensation, equity will increase by approximately $92 million when such deferred tax assets are ultimately realized. U.S. Federal and State Net Operating Losses and Credit Carryforwards Grace generated approximately $1,800 million in U.S. federal tax deductions relating to its emergence from bankruptcy, including approximately $670 million relating to payments made upon emergence, $632 million upon payment of the PI deferred payment obligation, and $490 million upon repurchase of the warrant held by the PI Trust. The deductions generated a U.S. federal and state net operating loss carryforward in 2014, which Grace will carry forward and expects to utilize in subsequent years. Under U.S. federal income tax law, a corporation is generally permitted to carryforward NOLs for a 20 -year period for deduction against future taxable income. Grace also expects to generate U.S. federal tax deductions of $30 million upon payment of the ZAI PD deferred payment obligation in 2017 . As of December 31, 2015, Grace had U.S federal NOLs of approximately $1,048 million expiring between 2034 and 2035 and state NOLs of approximately $1,100 million on a post apportioned basis expiring between 2016 and 2035. Grace will need to generate approximately $ 1,900 million of U.S. federal taxable income by 2035 (or approximately $95 million per year during the carryforward period) to fully realize the U.S. federal and a majority of the U.S. state net deferred tax assets. Grace believes that it will generate taxable income during this period sufficient to use all available NOL carryforwards and future tax deductions prior to expiration. Grace has recorded a valuation allowance of $5.3 million (before federal benefit) on the state NOLs that it believes will not be utilized prior to expiration. Included in Grace’s U.S. federal tax credit carryforwards ( $124.3 million as of December 31, 2015 ) are approximately $120 million of foreign tax credits, which expire between 2016 and 2025. Grace has recorded a valuation allowance of $2.2 million on the credit carryforwards that it believes will not be utilized prior to expiration. Unrepatriated Foreign Earnings Grace has not provided for U.S. federal, state and foreign deferred income taxes on $793.6 million of undistributed earnings of foreign subsidiaries. Grace expects that these earnings will be permanently reinvested by such subsidiaries except in certain instances where repatriation attributable to current earnings results in minimal or no U.S. tax consequences. The unrecorded deferred tax liability associated with these earnings is $97.2 million . Grace repatriated earnings of $173.1 million , $38.9 million , and $25.9 million from its non-U.S. subsidiaries in 2015 , 2014 , and 2013 , respectively, incurring an insignificant amount of U.S. income tax expense or benefit in 2013 and 2014 . The tax effect of the repatriation of foreign earnings in 2015 is discussed in detail below. As of December 31, 2014, Grace had the intent and ability to indefinitely reinvest undistributed earnings of its foreign subsidiaries outside the United States. In the 2015 first quarter, Grace announced its plan to separate into two publicly traded companies and has subsequently reassessed the capital structure and financial requirements of both Grace and GCP. Further, in connection with the Separation, Grace repatriated a total of $173.1 million of foreign earnings from foreign subsidiaries transferred to GCP pursuant to the Separation. Such amount was determined based on an analysis of each non-U.S. subsidiary's requirements for working capital, debt repayment and strategic initiatives. Grace also considered local country legal and regulatory restrictions. In 2015 , Grace included tax expense of $19.0 million in its effective tax rate for repatriation attributable to both current and prior years' earnings. The tax effect of the repatriation is determined by several variables including the tax rate applicable to the entity making the distribution, the cumulative earnings and associated foreign taxes of the entity and the extent to which those earnings may have already been taxed in the U.S. Grace anticipates that the tax consequences of other transactions pursuant to the Separation may require recognition of additional tax expense for deemed repatriation of undistributed earnings of our foreign subsidiaries. Such tax consequences will be recorded in the 2016 first quarter. Grace believes that the Separation is a one-time, non-recurring event, and that recognition of deferred taxes of undistributed earnings during 2015 would not have occurred if not for the Separation. Subsequent to separation, Grace expects undistributed prior-year earnings of its foreign subsidiaries to remain permanently reinvested except in certain instances where repatriation of such earnings would result in minimal or no tax. Grace bases this assertion on: (1) the expectation that it will satisfy its U.S. cash obligations in the foreseeable future without requiring the repatriation of prior-year foreign earnings; (2) plans for significant and continued reinvestment of foreign earnings in organic and inorganic growth initiatives outside the U.S.; and (3) remittance restrictions imposed by local governments. Grace will continually analyze and evaluate its cash needs to determine the appropriateness of its indefinite reinvestment assertion. Unrecognized Tax Benefits The balance of unrecognized tax benefits at December 31, 2015 , was $27.0 million ( $23.1 million excluding interest and penalties). The balance of unrecognized tax benefits at December 31, 2014 , was $29.7 million ( $26.5 million excluding interest and penalties). The balance of unrecognized tax benefits at December 31, 2013 , was $84.4 million ( $80.3 million excluding interest and penalties). As of December 31, 2015 and December 31, 2014 , unrecognized tax benefits which resulted in the reduction of a deferred tax asset were $6.1 million and $5.7 million , respectively. A reconciliation of the unrecognized tax benefits, excluding interest and penalties, for the three years ended December 31, 2015 , follows: (In millions) Unrecognized Tax Benefits Balance, January 1, 2013 $ 83.1 Additions for current year tax positions 6.3 Additions for prior year tax positions 6.4 Reductions for prior year tax positions and reclassifications(1) (9.6 ) Reductions for expirations of statute of limitations (5.9 ) Balance, December 31, 2013 80.3 Additions for current year tax positions 0.9 Additions for prior year tax positions 11.0 Reductions for prior year tax positions and reclassifications (5.7 ) Reductions for expirations of statute of limitations (0.4 ) Settlements(2) (59.6 ) Balance, December 31, 2014 26.5 Additions for current year tax positions 0.1 Additions for prior year tax positions 0.8 Reductions for prior year tax positions and reclassifications (1.6 ) Reductions for expirations of statute of limitations (1.5 ) Settlements (1.2 ) Balance, December 31, 2015 $ 23.1 ___________________________________________________________________________________________________________________ (1) In 2013, $9.6 million of unrecognized tax benefits representing agreed adjustments resulting from the 2007-2009 IRS examination were reclassified to income taxes payable. (2) In 2014, $59.6 million of benefits associated with reserves for unrecognized tax benefits were recognized based on the status of examinations in taxing jurisdictions. The entire balance of unrecognized tax benefits as of December 31, 2015 , of $23.1 million , if recognized, would affect the effective tax rate. The balance of unrecognized tax benefits as of December 31, 2015 , also includes $5.4 million for tax positions with an indirect tax benefit that results in a corresponding deferred tax asset as of December 31, 2015 . Grace accrues potential interest and any associated penalties related to uncertain tax positions in "benefit from (provision for) income taxes" in the Consolidated Statements of Operations. The total amount of interest and penalties accrued on uncertain tax positions as of December 31, 2015 , 2014 , and 2013 was $3.9 million , $3.2 million and $4.1 million Grace files U.S. federal income tax returns as well as income tax returns in various state and foreign jurisdictions. Grace's unrecognized tax benefits are related to income tax returns for tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes these open tax years by major jurisdiction: Tax Jurisdiction(1) Examination in Progress Examination Not Initiated United States—Federal None 2010-2014 United States—States 2007-2009 2010-2014 Germany 2009-2013 2014 Italy None 2009-2014 France None 2012-2014 Canada 2012-2013 2014 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. Grace notes that there are attributes generated in prior years that are otherwise closed by statute and were carried forward into years that are open to examination. Those attributes may still be subject to adjustment to the extent utilized in open years. As a multinational taxpayer, Grace is under continual audit by various tax authorities. Grace believes it is reasonably possible that in the next 12 months the amount of the liability for unrecognized tax benefits could decrease by approximately $1 million . |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Pension Plans and Other Postretirement Benefit Plans | Pension Plans The following table presents the funded status of Grace's fully-funded, underfunded, and unfunded pension plans: (In millions) December 31, 2015 December 31, 2014 Overfunded defined benefit pension plans $ 26.1 $ 44.1 Underfunded defined benefit pension plans (118.9 ) (79.5 ) Unfunded defined benefit pension plans (337.6 ) (378.0 ) Total underfunded and unfunded defined benefit pension plans (456.5 ) (457.5 ) Pension liabilities included in other current liabilities (15.3 ) (15.6 ) Net funded status $ (445.7 ) $ (429.0 ) Fully-funded plans include several advance-funded plans where the fair value of the plan assets exceeds the projected benefit obligation ("PBO"). This group of plans was overfunded by $26.1 million as of December 31, 2015 , and the overfunded status is reflected as "overfunded defined benefit pension plans" in the Consolidated Balance Sheets. Underfunded plans include a group of advance-funded plans that are underfunded on a PBO basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis, and therefore, the entire PBO is unfunded. The combined balance of the underfunded and unfunded plans was $471.8 million as of December 31, 2015 . Grace maintains defined benefit pension plans covering current and former employees of certain business units and divested business units who meet age and service requirements. Benefits are generally based on final average salary and years of service. Grace funds its U.S. qualified pension plans ("U.S. qualified pension plans") in accordance with U.S. federal laws and regulations. Non-U.S. pension plans ("non-U.S. pension plans") are funded under a variety of methods, as required under local laws and customs. Grace also provides, through nonqualified plans, supplemental pension benefits in excess of U.S. qualified pension plan limits imposed by federal tax law. These plans cover officers and higher-level employees and serve to increase the combined pension amount to the level that they otherwise would have received under the U.S. qualified pension plans in the absence of such limits. The nonqualified plans are unfunded and Grace pays the costs of benefits as they are due to the participants. At the December 31, 2015 , measurement date for Grace's defined benefit pension plans, the PBO was $1,900.2 million as measured under U.S. GAAP compared with $2,027.7 million as of December 31, 2014 . The PBO basis reflects the present value (using a 4.31% weighted average discount rate for U.S. plans and a 3.00% weighted average discount rate for non-U.S. plans as of December 31, 2015 ) of vested and non-vested benefits earned from employee service to date, based upon current services and estimated future pay increases for active employees. On an annual basis a full remeasurement of pension assets and pension liabilities is performed based on Grace's estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information as well as certain key assumptions provided by management. Postretirement Benefits Other Than Pensions Grace has provided postretirement health care and life insurance benefits for retired employees of certain U.S. business units and certain divested business units. The postretirement medical plan provided various levels of benefits to employees hired before 1993 who retired from Grace after age 55 with at least 10 years of service. These plans are unfunded and Grace pays a portion of the costs of benefits under these plans as they are incurred. Grace applies ASC 715 "Compensation-Retirement Benefits" to these plans, which requires that the future costs of postretirement health care and life insurance benefits be accrued over the employees' years of service. Actuarial gains and losses are recognized in the Consolidated Balance Sheets as a component of Shareholders' Equity, with amortization of the net actuarial gains and losses that exceed 10 percent of the accumulated postretirement benefit obligation recognized each quarter in the Consolidated Statements of Operations over the average future service period of active employees. In June 2014, Grace announced that it would discontinue its postretirement medical plan for all U.S. employees effective October 31, 2014, and eliminate certain postretirement life insurance benefits. As a result of these actions, Grace recognized a gain of $41.9 million in other comprehensive income in the 2014 second quarter. Grace amortized $39.5 million from accumulated other comprehensive income into the Consolidated Statement of Operations during the five -month period from June to October 2014. The postretirement plan was further remeasured as of September 30, 2015, due to a plan amendment to eliminate certain other postretirement life insurance benefits, which resulted in a curtailment gain of $4.5 million . Defined Contribution Retirement Plan Grace sponsors a defined contribution retirement plan for its employees in the United States. This plan is qualified under section 401(k) of the U.S. tax code. Currently, Grace contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee's salary or wages. Grace's cost related to this benefit plan was $15.2 million , $13.8 million , and $13.2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Analysis of Plan Accounting and Funded Status The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2015 and 2014 : Defined Benefit Pension Plans Other Post- Retirement Plans Change in Financial Status of Retirement Plans (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 2015 2014 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,437.3 $ 1,326.8 $ 590.4 $ 546.4 $ 2,027.7 $ 1,873.2 $ 2.4 $ 57.2 Service cost 25.7 23.5 11.7 10.7 37.4 34.2 — 0.1 Interest cost 55.1 60.0 16.1 22.2 71.2 82.2 0.1 1.1 Plan participants' contributions — — 0.5 0.6 0.5 0.6 — — Amendments (3.6 ) — — — (3.6 ) — (2.1 ) (51.5 ) Settlements/curtailments — — (1.0 ) — (1.0 ) — — — Actuarial (gain) loss (63.0 ) 131.4 (11.4 ) 92.4 (74.4 ) 223.8 0.4 (1.0 ) Medicare subsidy receipts — — — — — — 1.0 0.2 Benefits paid (87.0 ) (104.4 ) (20.7 ) (25.8 ) (107.7 ) (130.2 ) (1.1 ) (3.7 ) Currency exchange translation adjustments — — (49.9 ) (56.1 ) (49.9 ) (56.1 ) — — Benefit obligation at end of year $ 1,364.5 $ 1,437.3 $ 535.7 $ 590.4 $ 1,900.2 $ 2,027.7 $ 0.7 $ 2.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,262.6 $ 1,145.2 $ 336.1 $ 306.5 $ 1,598.7 $ 1,451.7 $ — $ — Actual return on plan assets (34.6 ) 112.1 2.9 59.1 (31.7 ) 171.2 — — Employer contributions 7.3 109.7 10.5 18.1 17.8 127.8 0.1 3.5 Plan participants' contributions — — 0.5 0.6 0.5 0.6 — — Settlements — — (1.5 ) — (1.5 ) — — — Medicare subsidy receipts — — — — — — 1.0 0.2 Benefits paid (87.0 ) (104.4 ) (20.7 ) (25.8 ) (107.7 ) (130.2 ) (1.1 ) (3.7 ) Currency exchange translation adjustments — — (21.6 ) (22.4 ) (21.6 ) (22.4 ) — — Fair value of plan assets at end of year $ 1,148.3 $ 1,262.6 $ 306.2 $ 336.1 $ 1,454.5 $ 1,598.7 $ — $ — Funded status at end of year (PBO basis) $ (216.2 ) $ (174.7 ) $ (229.5 ) $ (254.3 ) $ (445.7 ) $ (429.0 ) $ (0.7 ) $ (2.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 26.1 $ 44.1 $ 26.1 $ 44.1 $ — $ — Current liabilities (7.1 ) (7.1 ) (8.2 ) (8.5 ) (15.3 ) (15.6 ) — (0.1 ) Noncurrent liabilities (209.1 ) (167.6 ) (247.4 ) (289.9 ) (456.5 ) (457.5 ) (0.7 ) (2.3 ) Net amount recognized $ (216.2 ) $ (174.7 ) $ (229.5 ) $ (254.3 ) $ (445.7 ) $ (429.0 ) $ (0.7 ) $ (2.4 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Accumulated actuarial loss $ — $ — $ — $ — $ — $ — $ 5.9 $ 6.2 Prior service (credit) cost (3.1 ) 0.8 (0.3 ) (0.3 ) (3.4 ) 0.5 (7.1 ) (12.9 ) Net amount recognized $ (3.1 ) $ 0.8 $ (0.3 ) $ (0.3 ) $ (3.4 ) $ 0.5 $ (1.2 ) $ (6.7 ) Defined Benefit Pension Plans Other Post- Retirement Plans Change in Financial Status of Retirement Plans (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 2015 2014 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.31 % 3.95 % 3.00 % 2.97 % NM NM 4.40 % 4.18 % Rate of compensation increase 4.70 % 4.70 % 3.35 % 3.24 % NM NM NM NM Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 3.95 % 4.76 % 2.97 % 4.25 % NM NM 4.18 % 4.26 % Expected return on plan assets 5.75 % 6.00 % 4.11 % 5.06 % NM NM NM NM Rate of compensation increase 4.70 % 4.70 % 3.24 % 3.41 % NM NM NM NM ___________________________________________________________________________________________________________________ NM—Not meaningful Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Income) Loss (In millions) 2015 2014 2013 U.S. Non-U.S. Other U.S. Non-U.S. Other U.S. Non-U.S. Other Net Periodic Benefit Cost (Income) Service cost $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 $ 25.2 $ 11.1 $ 0.2 Interest cost 55.1 16.1 0.1 60.0 22.2 1.1 51.9 20.6 2.2 Expected return on plan assets (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — (68.0 ) (14.0 ) — Amortization of prior service cost (credit) 0.3 — (3.4 ) 0.7 — (2.4 ) 0.7 — — Amortization of net deferred actuarial loss — — 0.7 — — — — — 0.4 Annual mark-to-market adjustment 42.0 (0.1 ) — 89.2 45.4 — (65.8 ) 11.0 — Gain on termination and curtailment of postretirement plans — — (4.5 ) — — (39.5 ) — — — Net curtailment and settlement gain — — — — — — — (0.1 ) — Net periodic benefit cost (income) $ 52.7 $ 14.7 $ (7.1 ) $ 103.5 $ 63.1 $ (40.7 ) $ (56.0 ) $ 28.6 $ 2.8 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ 0.4 $ — $ — $ (1.0 ) $ — $ — $ (4.3 ) Net prior service credit (3.6 ) — (2.1 ) — — (13.6 ) — — (1.7 ) Amortization of prior service cost (credit) (0.3 ) — 3.4 (0.7 ) — 2.4 (0.7 ) — — Amortization of net deferred actuarial loss — — (0.7 ) — — — — — (0.4 ) Loss on termination and curtailment of postretirement plans — — 4.5 — — 12.2 — — — Total recognized in other comprehensive (income) loss (3.9 ) — 5.5 (0.7 ) — — (0.7 ) — (6.4 ) Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 48.8 $ 14.7 $ (1.6 ) $ 102.8 $ 63.1 $ (40.7 ) $ (56.7 ) $ 28.6 $ (3.6 ) The estimated prior service credit for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost (income) over the next fiscal year is $0.2 million . The estimated net deferred actuarial loss and prior service credit for the other postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost (income) over the next fiscal year are $0.6 million and $2.6 million , respectively. Funded Status of U.S. Pension Plans (In millions) Fully-Funded U.S. Qualified Pension Plans(1) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ — $ — $ 1,257.5 $ 1,329.8 $ 107.0 $ 107.5 Fair value of plan assets — — 1,148.3 1,262.6 — — Funded status (PBO basis) $ — $ — $ (109.2 ) $ (67.2 ) $ (107.0 ) $ (107.5 ) Benefits paid $ — $ — $ (79.7 ) $ (69.7 ) $ (7.3 ) $ (34.7 ) Funded Status of Non-U.S. Pension Plans (In millions) Fully-Funded Non-U.S. Pension Plans(1) Underfunded Non-U.S. Pension Plans(1) Unfunded Pay-As-You-Go Non-U.S. Pension Plans(2) 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 240.3 $ 245.8 $ 49.5 $ 58.5 $ 245.9 $ 286.1 Fair value of plan assets 266.4 289.9 39.8 46.2 — — Funded status (PBO basis) $ 26.1 $ 44.1 $ (9.7 ) $ (12.3 ) $ (245.9 ) $ (286.1 ) Benefits paid $ (11.3 ) $ (12.3 ) $ (2.3 ) $ (4.7 ) $ (7.1 ) $ (8.8 ) ___________________________________________________________________________________________________________________ (1) Plans intended to be advance-funded. (2) Plans intended to be pay-as-you-go. The accumulated benefit obligation for all defined benefit pension plans was approximately $1,804 million and $1,933 million as of December 31, 2015 and 2014 , respectively. Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 1,364.4 $ 352.6 $ 260.8 $ 306.0 $ 1,625.2 $ 658.6 Accumulated benefit obligation 1,314.1 351.8 229.1 274.5 1,543.2 626.3 Fair value of plan assets 1,148.2 220.8 7.4 9.4 1,155.6 230.2 Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts for the Fiscal Years Ending (In millions) Pension Plans Other Postretirement Plans Total Payments Net of Subsidy U.S. Non-U.S.(1) Benefit Payments Medicare Subsidy Receipts Benefit Payments(2) Benefit Payments 2013 (actual) $ 79.2 $ 22.1 $ 4.5 $ (1.4 ) $ 104.4 2014 (actual)(2) 104.4 25.8 3.7 (0.2 ) 133.7 2015 (actual) 87.0 20.7 1.1 (1.0 ) 107.8 2016 85.7 21.8 — — 107.5 2017 86.0 20.6 — — 106.6 2018 87.0 21.2 — — 108.2 2019 87.9 22.1 — — 110.0 2020 89.1 23.0 — — 112.1 2021 - 2025 457.5 126.1 0.2 — 583.8 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2016 and future periods have been translated at the applicable December 31, 2015 , exchange rates. (2) Includes approximately $28 million of benefit payments from nonqualified plans that were previously restricted by the Bankruptcy Court while the Company was in Chapter 11 and were paid in 2014. Discount Rate Assumption The assumed discount rate for pension plans reflects the market rates for high-quality corporate bonds currently available and is subject to change based on changes in overall market interest rates. For the U.S. qualified pension plans, the assumed weighted average discount rate of 4.31% as of December 31, 2015 , was selected by Grace, in consultation with its independent actuaries, based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan. As of December 31, 2015 and 2014 , the United Kingdom pension plan and German pension plans combined represented approximately 87% and 86% , respectively, of the benefit obligation of the non-U.S. pension plans. The assumed weighted average discount rates as of December 31, 2015 , for the United Kingdom ( 3.00% ) and Germany ( 2.57% ) were selected by Grace, in consultation with its independent actuaries, based on yield curves constructed from a portfolio of sterling- and euro-denominated high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plans. The assumed discount rates for the remaining non-U.S. pension plans were determined based on the nature of the liabilities, local economic environments and available bond indices. As of December 31, 2015, Grace changed the approach used to determine the service and interest cost components of defined benefit pension expense. Previously, Grace estimated service and interest costs using a single weighted average discount rate derived from the same yield curve used to measure the projected benefit obligation. For 2016, Grace elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. Grace believes the new approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. This change does not affect the measurement of the projected benefit obligation at year-end. Grace considers this a change in accounting estimate, which will be accounted for prospectively beginning in 2016. Investment Guidelines for Advance-Funded Pension Plans The investment goal for the U.S. qualified pension plans subject to advance funding is to earn a long-term rate of return consistent with the related cash flow profile of the underlying benefit obligation. The plans are pursuing a well-defined risk management strategy designed to reduce investment risks as their funded status improves. The U.S. qualified pension plans have adopted a diversified set of portfolio management strategies to optimize the risk reward profile of the plans: • Liability hedging portfolio: primarily invested in intermediate-term and long-term investment grade corporate bonds in actively managed strategies. • Growth portfolio: invested in a diversified set of assets designed to deliver performance in excess of the underlying liabilities with controls regarding the level of risk. • U.S. equity securities: the portfolio contains domestic equities that are passively managed to the S&P 500 and Russell 2000 benchmark and an allocation to an active portfolio benchmarked to the Russell 2000. • Non-U.S. equity securities: the portfolio contains non-U.S. equities in an actively managed strategy. Currency futures and forward contracts may be held for the sole purpose of hedging existing currency risk in the portfolio. • Other investments: may include (a) high yield bonds: fixed income portfolio of securities below investment grade including up to 30% of the portfolio in non-U.S. issuers; and (b) global real estate securities: portfolio of diversified REIT and other liquid real estate related securities. These portfolios combine income generation and capital appreciation opportunities from developed markets globally. • Liquidity portfolio: invested in short-term assets intended to pay periodic plan benefits and expenses. For 2015 , the expected long-term rate of return on assets for the U.S. qualified pension plans was 5.75% . Average annual returns over one-, three-, five-, and ten-year periods were approximately (3)% , 4% , 6% , and 5% , respectively. The expected return on plan assets for the U.S. qualified pension plans for 2015 was selected by Grace, in consultation with its independent actuaries, using an expected return model. The model determines the weighted average return for an investment portfolio based on the target asset allocation and expected future returns for each asset class, which were developed using a building block approach based on observable inflation, available interest rate information, current market characteristics, and historical results. The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for Grace's U.S. qualified pension plans are as follows: Target Allocation Percentage of Plan Assets December 31, U.S. Qualified Pension Plans Asset Category 2015 2015 2014 U.S. equity securities 11 % 11 % 11 % Non-U.S. equity securities 7 % 7 % 6 % Short-term debt securities 6 % 6 % 10 % Intermediate-term debt securities 28 % 28 % 26 % Long-term debt securities 46 % 46 % 45 % Other investments 2 % 2 % 2 % Total 100 % 100 % 100 % The following tables present the fair value hierarchy for the U.S. qualified pension plan assets measured at fair value as of December 31, 2015 and 2014 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 120.1 $ — $ 120.1 $ — Non-U.S. equity group trust funds 81.8 — 81.8 — Corporate bond group trust funds—intermediate-term 320.4 — 320.4 — Corporate bond group trust funds—long-term 525.6 — 525.6 — Other fixed income group trust funds 25.4 — 25.4 — Common/collective trust funds 57.3 — 57.3 — Annuity and immediate participation contracts 17.7 — 17.7 — Total Assets $ 1,148.3 $ — $ 1,148.3 $ — Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 134.2 $ — $ 134.2 $ — Non-U.S. equity group trust funds 76.8 — 76.8 — Corporate bond group trust funds—intermediate-term 324.9 — 324.9 — Corporate bond group trust funds—long-term 567.1 — 567.1 — Other fixed income group trust funds 23.7 — 23.7 — Common/collective trust funds 118.8 — 118.8 — Annuity and immediate participation contracts 17.1 — 17.1 — Total Assets $ 1,262.6 $ — $ 1,262.6 $ — Non-U.S. pension plans accounted for approximately 21% of total global pension assets at December 31, 2015 and 2014 . Each of these plans, where applicable, follows local requirements and regulations. Some of the local requirements include the establishment of a local pension committee, a formal statement of investment policy and procedures, and routine valuations by plan actuaries. The target allocation of investment assets for non-U.S. pension plans varies depending on the investment goals of the individual plans. The plan assets of the United Kingdom pension plan represent approximately 85% and 84% of the total non-U.S. pension plan assets at December 31, 2015 and 2014 , respectively. In determining the expected rate of return for the U.K. pension plan, the trustees' strategic investment policy has been considered together with long-term historical returns and investment community forecasts for each asset class. The expected return by sector has been combined with the actual asset allocation to determine the 2015 expected long-term return assumption of 3.75% . The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for the U.K. pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, United Kingdom Pension Plan Asset Category 2015 2015 2014 Diversified growth funds 10 % 10 % 11 % U.K. gilts 29 % 29 % 42 % U.K. corporate bonds 8 % 8 % 47 % Insurance contracts 53 % 53 % — % Total 100 % 100 % 100 % The plan assets of the Canadian pension plan represent approximately 9% and 10% of the total non-U.S. pension plan assets at December 31, 2015 and 2014 , respectively. The expected long-term rate of return on assets for the Canadian pension plan was 5.25% for 2015 . The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2015 2015 2014 Equity securities 27 % 28 % 27 % Bonds 58 % 57 % 58 % Other investments 15 % 15 % 15 % Total 100 % 100 % 100 % The plan assets of the other country plans represent approximately 6% in the aggregate (with no country representing more than 3% individually) of total non-U.S. pension plan assets at December 31, 2015 and 2014 . The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2015 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 159.8 $ — $ 159.8 $ — Government and agency securities 2.5 — 2.5 — Corporate bonds 1.4 — 1.4 — Insurance contracts and other investments(1) 141.8 — 3.3 138.5 Cash 0.7 0.7 — — Total Assets $ 306.2 $ 0.7 $ 167.0 $ 138.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2015, the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. The following table presents a summary of the changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2015 . (In millions) Insurance Contracts Balance, December 31, 2014 $ — Actual return on plan assets relating to assets still held at year-end (1.2 ) Purchases, sales, and settlements, net 145.6 Transfers out for benefit payments (1.7 ) Currency exchange translation adjustments (4.2 ) Balance, December 31, 2015 $ 138.5 The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2014 . Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 326.7 $ — $ 326.7 $ — Government and agency securities 2.6 — 2.6 — Corporate bonds 1.1 — 1.1 — Insurance contracts and other investments 4.6 — 4.6 — Cash 1.1 1.1 — — Total Assets $ 336.1 $ 1.1 $ 335.0 $ — Plan Contributions and Funding Grace intends to satisfy its funding obligations under the U.S. qualified pension plans and to comply with all of the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). For ERISA purposes, funded status is calculated on a different basis than under U.S. GAAP. Based on the U.S. qualified pension plans' status as of December 31, 2015 , there are no minimum required payments under ERISA for 2016. Grace intends to fund non-U.S. pension plans based on applicable legal requirements and actuarial and trustee recommendations. Grace expects to contribute approximately $12 million to its non-U.S. pension plans in 2016. |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Accounts | (In millions) December 31, 2015 December 31, 2014 Other Current Liabilities Accrued compensation $ 79.2 $ 77.0 Income tax payable 49.1 34.1 Customer volume rebates 38.2 37.8 Environmental contingencies 21.8 21.5 Accrued interest 19.0 21.0 Deferred revenue 16.9 19.4 Pension liabilities 15.3 15.6 Other accrued liabilities 116.6 112.1 $ 356.1 $ 338.5 Accrued compensation in the table above includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Asbestos-Related Liabilities Grace emerged from an asbestos-related Chapter 11 bankruptcy on February 3, 2014 (the "Effective Date"). Under its plan of reorganization, all pending and future asbestos-related claims are channeled for resolution to either a personal injury trust (the "PI Trust") or a property damage trust (the "PD Trust"). The trusts are the sole recourse for holders of asbestos-related claims. The channeling injunctions issued by the bankruptcy court prohibit holders of asbestos-related claims from asserting such claims directly against Grace. Grace has satisfied all of its financial obligations to the PI Trust. Grace has fixed and contingent obligations remaining to the PD Trust. With respect to property damage claims related to Grace’s former attic insulation product installed in the U.S. ("ZAI PD Claims"), the PD Trust was funded with $34.4 million on the Effective Date. Grace is obligated to make a payment of $30 million to the PD Trust in respect of ZAI PD Claims on February 3, 2017, and has recorded a liability of $29.1 million representing the present value of this amount in "debt payable after one year" in the accompanying Consolidated Balance Sheets. Grace is also obligated to make up to 10 contingent deferred payments of $8 million per year to the PD Trust in respect of ZAI PD Claims during the 20 -year period beginning on the fifth anniversary of the Effective Date, with each such payment due only if the assets of the PD Trust in respect of ZAI PD Claims fall below $10 million during the preceding year. Grace has not accrued for the 10 additional payments as Grace does not currently believe they are probable. Grace is not obligated to make additional payments to the PD Trust in respect of ZAI PD Claims beyond the payments described above. Grace has satisfied all of its financial obligations with respect to Canadian ZAI PD Claims. With respect to other asbestos property damage claims ("Other PD Claims"), claims unresolved as of the Effective Date are to be litigated in the bankruptcy court and any future claims are to be litigated in a federal district court, in each case pursuant to procedures to be approved by the bankruptcy court. To the extent any such Other PD Claims are determined to be allowed claims, they are to be paid in cash by the PD Trust. Grace is obligated to make a payment to the PD Trust every six months in the amount of any Other PD Claims allowed during the preceding six months plus interest (if applicable) and the amount of PD Trust expenses for the preceding six months (the "PD Obligation"). The aggregate amount to be paid under the PD Obligation is not capped and Grace may be obligated to make additional payments to the PD Trust in respect of the PD Obligation. Grace has accrued for those unresolved Other PD Claims that it believes are probable and estimable. Grace has not accrued for other unresolved or unasserted Other PD Claims as it does not believe that payment is probable. All payments to the PD Trust required after the Effective Date are secured by the Company's obligation to issue 77,372,257 shares of Company common stock to the PD Trust in the event of default, subject to customary anti-dilution provisions. In the 2015 first quarter, Grace finalized its accounting for emergence from bankruptcy and recorded a gain of $9.0 million reflecting the final resolution of certain bankruptcy liabilities. This summary of the commitments and contingencies related to the Chapter 11 proceeding does not purport to be complete and is qualified in its entirety by reference to the plan of reorganization and the exhibits and documents related thereto, which have been filed with the SEC. Environmental Remediation Grace is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to the generation, storage, handling, discharge, disposition and stewardship of chemicals and other materials. Grace accrues for anticipated costs associated with response efforts where an assessment has indicated that a probable liability has been incurred and the cost can be reasonably estimated. These accruals do not take into account any discounting for the time value of money. Grace's environmental liabilities are reassessed whenever circumstances become better defined or response efforts and their costs can be better estimated. These liabilities are evaluated based on currently available information, including the progress of remedial investigation at each site, the current status of discussions with regulatory authorities regarding the method and extent of remediation at each site, existing technology, prior experience in contaminated site remediation and the apportionment of costs among potentially responsible parties. Estimated Investigation and Remediation Costs At December 31, 2015 , Grace's estimated liability for environmental investigation and remediation costs totaled $55.6 million , compared with $61.7 million at December 31, 2014 , and was included in "other current liabilities" and "other liabilities" in the Consolidated Balance Sheets. These amounts are based on funding and/or remediation agreements in place and Grace's estimate of costs for sites not subject to a formal remediation plan for which sufficient information is available to estimate response costs. These amounts do not include certain response costs for the Libby vermiculite mine area or certain vermiculite expansion facilities, which may be material but are not currently estimable. It is probable that Grace's actual response costs will exceed Grace's current estimates by material amounts. Grace recorded pre-tax charges of $6.6 million , $13.8 million , and $8.2 million for environmental matters in 2015 , 2014 , and 2013 , respectively. Net cash paid against previously established reserves in 2015 , 2014 , and 2013 were $12.7 million , $12.4 million , and $14.0 million , respectively. During 2014, claim payments of $76.5 million were made in connection with Grace's emergence from Chapter 11. Vermiculite-Related Matters Grace purchased a vermiculite mine in Libby, Montana, in 1963 and operated it until 1990. Vermiculite concentrate from the Libby mine was used in the manufacture of attic insulation and other products. Some of the vermiculite ore contained naturally occurring asbestos. The EPA and Grace are engaged in a remedial investigation of the Libby mine and the surrounding area. During 2010, the EPA began reinvestigating certain facilities on a list of 105 facilities where vermiculite concentrate from the Libby mine may have been used, stored or processed. Grace is cooperating with the EPA on this reinvestigation and has remediated several of these facilities. It is probable that the EPA will request additional remediation at other facilities. Grace's total estimated liability for response costs that are currently estimable related to its former vermiculite operations in Libby and vermiculite processing sites outside of Libby at December 31, 2015 and 2014 , was $18.7 million and $19.4 million , respectively. It is probable that Grace's ultimate liability for these vermiculite-related matters will exceed current estimates by material amounts. Grace's current recorded liability will be adjusted as Grace receives new information and amounts become reasonably estimable. Non-Vermiculite-Related Matters At December 31, 2015 and 2014 , Grace's estimated liability for response costs at sites not related to its former vermiculite mining and processing activities was $36.9 million and $42.3 million , respectively. This liability relates to Grace's current and former operations, including its share of liability for off-site disposal at facilities. Grace's estimated liability is based upon regulatory requirements and environmental conditions at each site. As Grace receives new information, its estimated liability may change materially. Purchase Commitments Grace uses purchase commitments to ensure supply and to minimize the volatility of major components of direct manufacturing costs including natural gas, certain metals, rare earths, asphalt, amines and other materials. Such commitments are for quantities that Grace fully expects to use in its normal operations. Guarantees and Indemnification Obligations Grace is a party to many contracts containing guarantees and indemnification obligations. These contracts primarily consist of: • Product warranties with respect to certain products sold to customers in the ordinary course of business. These warranties typically provide that products will conform to specifications. Grace accrues a warranty liability on a transaction-specific basis depending on the individual facts and circumstances related to each sale. Both the liability and annual expense related to product warranties are immaterial to the Consolidated Financial Statements. • Performance guarantees offered to customers under certain licensing arrangements. Grace has not established a liability for these arrangements based on past performance. • Licenses of intellectual property by Grace to third parties in which Grace has agreed to indemnify the licensee against third party infringement claims. • Contracts providing for the sale of a former business unit or product line in which Grace has agreed to indemnify the buyer against liabilities arising prior to the closing of the transaction, including environmental liabilities. • Guarantees of real property lease obligations of third parties, typically arising out of (a) leases entered into by former subsidiaries of Grace, or (b) the assignment or sublease of a lease by Grace to a third party. Financial Assurances Financial assurances have been established for a variety of purposes, including insurance and environmental matters, trade-related commitments and other matters. At December 31, 2015 , Grace had gross financial assurances issued and outstanding of $126.8 million , composed of $34.3 million of surety bonds issued by various insurance companies and $92.5 million of standby letters of credit and other financial assurances issued by various banks. Accounting for Contingencies Although the outcome of each of the matters discussed above cannot be predicted with certainty, Grace has assessed its risk and has made accounting estimates as required under U.S. GAAP. |
Restructuring Expenses and Rela
Restructuring Expenses and Related Asset Impairments | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses and Related Asset Impairments | In 2015 , Grace incurred costs from restructuring actions as a result of changes in the business environment and its business structure in part due to the Separation, which are included in "other expense, net" in the Consolidated Statements of Operations. Grace incurred $22.8 million ( $6.1 million in Construction Products, $4.9 million in Catalysts Technologies, $1.2 million in Materials Technologies and $10.6 million in Corporate) of restructuring expenses during 2015 , compared with $8.1 million in 2014 ( $2.7 million in Construction Products, $1.9 million in Catalysts Technologies, $0.3 million in Materials Technologies and $3.2 million in Corporate). These costs are not included in segment operating income. Substantially all costs related to the 2014 programs were paid as of December 31, 2015 , while substantially all remaining liabilities related to the 2015 restructuring programs are expected to be paid by December 31, 2016 . During 2014, Grace incurred asset impairment charges of $14.3 million , of which $9.8 million related to the concrete production management systems product that is part of the Construction Products operating segment and $4.5 million related to an unconsolidated investment of the Construction Products operating segment. Restructuring Expenses and Asset Impairments Year Ended December 31, 2015 2014 2013 Restructuring expenses $ 22.8 $ 8.1 $ 12.5 Asset impairments 0.1 14.3 — Total restructuring expenses and asset impairments $ 22.9 $ 22.4 $ 12.5 Restructuring Liability Total Balance, December 31, 2012 $ 3.0 Accruals for severance and other costs 7.6 Payments (6.4 ) Currency translation adjustments and other 0.2 Balance, December 31, 2013 $ 4.4 Accruals for severance and other costs 7.7 Payments (7.9 ) Currency translation adjustments and other 0.3 Balance, December 31, 2014 $ 4.5 Accruals for severance and other costs 22.8 Payments (16.4 ) Currency translation adjustments and other (0.2 ) Balance, December 31, 2015 $ 10.7 Repositioning Expenses In 2015 , Grace incurred pretax repositioning expenses of $64.3 million related to its planned separation into two independent companies. (In millions) Year Ended December 31, 2015 Professional fees $ 49.8 Employee-related costs 10.4 Asset impairments 4.1 Total $ 64.3 Substantially all of these costs, excluding the asset impairments, have been or are expected to be settled in cash. |
Other Expense, net
Other Expense, net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, net | Components of other expense, net are as follows: Year Ended December 31, (In millions) 2015 2014 2013 Restructuring expenses and asset impairments $ 22.9 $ 22.4 $ 12.5 Net (gain) loss on sales of investments and disposals of assets (11.8 ) (2.2 ) 0.5 Provision for environmental remediation 6.6 13.8 8.2 Interest income (0.5 ) (1.4 ) (1.0 ) Currency transaction effects (0.1 ) (1.1 ) 4.0 Other miscellaneous expense (income) 0.7 (4.0 ) (9.2 ) Total other expense, net $ 17.8 $ 27.5 $ 15.0 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | The following tables present the pre-tax, tax, and after-tax components of Grace's other comprehensive loss for the years ended December 31, 2015 , 2014 , and 2013 : Year Ended December 31, 2015 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service credit included in net periodic benefit cost $ (3.1 ) $ 1.0 $ (2.1 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.7 (0.2 ) 0.5 Net prior service credit arising during period 5.7 (1.9 ) 3.8 Net deferred actuarial loss arising during period (0.4 ) 0.1 (0.3 ) Loss on curtailment of postretirement plans (4.5 ) 1.6 (2.9 ) Benefit plans, net (1.6 ) 0.6 (1.0 ) Currency translation adjustments (43.3 ) — (43.3 ) Gain from hedging activities 2.1 (0.8 ) 1.3 Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (42.8 ) $ (0.2 ) $ (43.0 ) Year Ended December 31, 2014 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service credit included in net periodic benefit cost $ (1.7 ) $ 0.6 $ (1.1 ) Net prior service credit arising during period 13.6 (4.8 ) 8.8 Net deferred actuarial gain arising during period 1.0 (0.4 ) 0.6 Loss on termination of postretirement plans (12.2 ) 1.3 (10.9 ) Benefit plans, net 0.7 (3.3 ) (2.6 ) Currency translation adjustments (28.0 ) — (28.0 ) Loss from hedging activities (7.1 ) 2.6 (4.5 ) Other than temporary impairment of investment 0.8 — 0.8 Loss on securities available for sale (0.1 ) — (0.1 ) Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (33.7 ) $ (0.7 ) $ (34.4 ) Year Ended December 31, 2013 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.7 $ (0.2 ) $ 0.5 Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Net prior service credit arising during period 1.7 (0.6 ) 1.1 Net deferred actuarial gain arising during period 4.3 (1.6 ) 2.7 Benefit plans, net 7.1 (2.5 ) 4.6 Currency translation adjustments (23.6 ) — (23.6 ) Loss from hedging activities (0.3 ) 0.1 (0.2 ) Gain on securities available for sale 0.1 — 0.1 Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (16.7 ) $ (2.4 ) $ (19.1 ) The following table presents the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2015 , 2014 , and 2013 : Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Unrealized Loss on Investment Gain (Loss) on Securities Available for Sale Total Balance, December 31, 2012 $ 2.0 $ 28.8 $ (0.3 ) $ (0.8 ) $ — $ 29.7 Other comprehensive income (loss) before reclassifications 3.8 (23.6 ) 1.2 — 0.1 (18.5 ) Amounts reclassified from accumulated other comprehensive income 0.8 — (1.4 ) — — (0.6 ) Net current-period other comprehensive income (loss) 4.6 (23.6 ) (0.2 ) — 0.1 (19.1 ) Balance, December 31, 2013 $ 6.6 $ 5.2 $ (0.5 ) $ (0.8 ) $ 0.1 $ 10.6 Other comprehensive income (loss) before reclassifications 9.4 (28.0 ) (3.2 ) — (0.7 ) (22.5 ) Amounts reclassified from accumulated other comprehensive income (12.0 ) — (1.3 ) 0.8 0.6 (11.9 ) Net current-period other comprehensive (loss) income (2.6 ) (28.0 ) (4.5 ) 0.8 (0.1 ) (34.4 ) Balance, December 31, 2014 $ 4.0 $ (22.8 ) $ (5.0 ) $ — $ — $ (23.8 ) Other comprehensive income (loss) before reclassifications 3.5 (43.3 ) 0.6 — — (39.2 ) Amounts reclassified from accumulated other comprehensive income (4.5 ) — 0.7 — — (3.8 ) Net current-period other comprehensive (loss) income (1.0 ) (43.3 ) 1.3 — — (43.0 ) Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ — $ — $ (66.8 ) Grace is a global enterprise operating in over 40 countries with local currency generally deemed to be the functional currency for accounting purposes. The currency translation amount represents the adjustments necessary to translate the balance sheets valued in local currencies to the U.S. dollar as of the end of each period presented, and to translate revenues and expenses at average exchange rates for each period presented. See Note 6 for a discussion of hedging activities. See Note 8 for a discussion of pension plans and other postretirement benefit plans. |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Under its Amended and Restated Certificate of Incorporation, the Company is authorized to issue 300,000,000 shares of common stock, $0.01 par value. As of December 31, 2015 , the W. R. Grace & Co. 2014 Stock Incentive Plan had 4,265,421 shares of unissued stock reserved for issuance in the event of the exercise of stock options or settlement of stock based awards under the Plan. Historically all stock options exercised were covered by reissuing treasury stock. During 2014, stock options exercises exceeded the shares available in treasury stock and therefore the Company issued new shares, which were reserved for issuance under the Plans. For the years ended December 31, 2015 , 2014 , and 2013 , 728,408 , 793,359 , and 1,464,294 stock options were exercised for aggregate proceeds of $26.9 million , $23.4 million , and $34.4 million , respectively. Additionally in 2015 , 9,378 common shares were issued to members of the Board of Directors. The following table sets forth information relating to common stock activity for 2015 and 2014 : Balance of outstanding shares, December 31, 2013 77,046,143 Stock options exercised 793,359 Shares issued 19,560 Shares repurchased (4,936,497 ) Balance of outstanding shares, December 31, 2014 72,922,565 Stock options exercised 728,408 Shares issued 9,378 Shares forfeited (3,120 ) Shares repurchased (3,123,716 ) Balance of outstanding shares, December 31, 2015 70,533,515 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | The Company has granted nonstatutory stock options to certain key employees under the Plans. The Plans are administered by the Compensation Committee of the Board of Directors. Stock options are generally non-qualified and are at exercise prices not less than 100% of the average per share fair market value on the date of grant. Stock-based compensation awards granted under the Company's stock incentive plans are generally subject to a vesting period from the date of the grant ranging from 1 - 3 years. Currently outstanding options expire on various dates through November 2020. The following table sets forth information relating to such options during 2015 , 2014 , and 2013 : Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value Balance, January 1, 2013 4,024,484 $ 32.33 Options exercised (1,464,294 ) 23.46 Options forfeited (95,139 ) 52.17 Options terminated (1,381 ) 42.26 Options granted 421,385 76.70 $ 19.26 Balance, December 31, 2013 2,885,055 42.60 Options exercised (793,359 ) 29.53 Options forfeited (42,424 ) 68.07 Options granted 474,518 93.39 20.12 Balance, December 31, 2014 2,523,790 55.77 Options exercised (728,408 ) 36.85 Options forfeited (25,000 ) 92.57 Options terminated (500 ) 100.29 Options granted 550,805 96.01 19.28 Balance, December 31, 2015 2,320,687 The following is a summary of nonvested option activity for the year ended December 31, 2015 : Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 959,842 $ 20.12 Granted 550,805 19.28 Vested (511,146 ) 18.83 Forfeited (25,500 ) 15.37 Nonvested options outstanding at end of year 974,001 As of December 31, 2015 , the intrinsic value (the difference between the exercise price and the market price) for options outstanding was $66.7 million and for options exercisable was $59.9 million . The total intrinsic value of all options exercised during the years ended December 31, 2015 , 2014 and 2013 was $46.1 million , $53.6 million and $83.2 million , respectively. A summary of our stock options outstanding and exercisable at December 31, 2015 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $40 - $50 985,206 985,206 0.92 $ 45.30 $60 - $70 16,499 16,499 1.94 66.70 $70 - $80 332,279 209,074 2.32 76.66 $80 - $90 1,631 890 2.49 84.74 $90 - $100 957,572 131,072 3.97 92.94 $100 - $110 27,500 6,875 3.16 100.29 2,320,687 1,349,616 At December 31, 2015 , the weighted-average remaining contractual term of all options outstanding and exercisable was 2.41 years. Options Granted The Company granted approximately 0.6 million , 0.5 million , and 0.4 million nonstatutory stock options in 2015 , 2014 , and 2013 , respectively, under the Plans. For the years ended December 31, 2015 , 2014 and 2013 , Grace recognized non-cash stock-based compensation expense of $9.9 million , $12.0 million and $12.7 million , respectively, which is included in selling, general and administrative expense. Grace values options using the Black-Scholes option-pricing model, which was developed for use in estimating the fair value of traded options. The risk-free rate is based on the U.S. Treasury yield curve published as of the grant date, with maturities approximating the expected term of the options. The expected term of the options is estimated using the simplified method as allowed by ASC 718-20, whereby the average between the vesting period and contractual term is used. The expected volatility was estimated using both actual stock volatility and the volatility of an industry peer group. Grace believes its actual stock volatility in the last several years may not be representative of expected future volatility because of its previous status in Chapter 11. The following summarizes the assumptions used for estimating the fair value of stock options granted during 2015 , 2014 and 2013 , respectively. 2015 2014 2013 Expected volatility 23.0% - 27.2% 28.2% - 28.7% 32.3% - 34.3% Weighted average expected volatility 24.5% 28.6% 33.3% Expected term 3.00 - 4.00 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 1.30% 1.25% 0.61% Dividend yield —% —% —% Total unrecognized stock-based compensation expense at December 31, 2015 , was $5.8 million and the weighted-average period over which this expense will be recognized is 0.8 years. Restricted Stock and Performance Based Units During 2015 the Company granted 123,846 Restricted Stock Units (RSUs) and 1,864 Performance Based Units (PBUs) under the Company's Long-term Incentive Plan (LTIP). During 2014 the Company granted 110,993 PBUs under the LTIP. During 2013 the Company granted 111,770 PBUs under the LTIP. During 2015 , 2014 , and 2013 , 10,641 , 8,570 , and 5,513 awards were forfeited, respectively. The awards cliff vest on December 31, 2017 , 2016, and 2015, subject to continued employment through the payment date, and have a weighted average grant date fair value of $ 96.12 , $ 92.92 , and $ 76.66 , respectively. The Company anticipates that approximately 53% of the awards granted in 2015 will be settled in common stock, and approximately 47% will be settled in cash, assuming full vesting. The Company anticipates that approximately 53% of the PBUs granted in 2014 will be settled in common stock and approximately 47% will be settled in cash, assuming full vesting. The Company anticipates that approximately 54% of the PBUs granted in 2013 will be settled in common stock and approximately 46% will be settled in cash, assuming full vesting. PBUs and RSUs are recorded at fair value at the date of grant. The common stock settled portion is considered an equity award with the payout being valued based on the Company’s stock price on the grant date. The cash settled portion of the award is considered a liability award with payout being remeasured each reporting period based on the Company’s current stock price. PBU equity and cash awards are remeasured each reporting period based on the expected payout of the award, which may range from 0% to 200% of the targets for such awards; therefore, these portions of the awards are subject to volatility until the payout is finally determined at the end of the performance period. During 2015 , 2014 , and 2013 , the Company recognized $5.8 million, $ 3.5 million, and $1.7 million in compensation expense for these awards. As of December 31, 2015 , $11.1 million of total unrecognized compensation expense related to the awards is expected to be recognized over the remaining weighted-average service period of 1.7 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. (In millions, except per share amounts) 2015 2014 2013 Numerators Net income attributable to W. R. Grace & Co. shareholders $ 144.2 $ 276.3 $ 256.1 Denominators Weighted average common shares—basic calculation 72.0 75.3 76.4 Dilutive effect of employee stock options 0.6 0.9 1.3 Weighted average common shares—diluted calculation 72.6 76.2 77.7 Basic earnings per share $ 2.00 $ 3.67 $ 3.35 Diluted earnings per share $ 1.99 $ 3.63 $ 3.30 There were approximately 0.4 million , 0.3 million and 0.3 million anti-dilutive options outstanding for the years ended December 31, 2015 , 2014 and 2013 , respectively. On February 4, 2014, Grace announced that the Company's Board of Directors authorized a share repurchase program of up to $500 million expected to be completed over the following 12 to 24 months at the discretion of management. The Company completed this initial share repurchase program on January 15, 2015. On February 5, 2015, the Company announced that its Board of Directors authorized an additional share repurchase program of up to $500 million . The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company's shares, the strategic deployment of capital, and general market and economic conditions. During 2015 , the Company repurchased 3,123,716 shares of Company common stock for $301.5 million pursuant to the terms of the share repurchase program. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Grace is a global producer of specialty chemicals and specialty materials. Grace manages its business through three operating segments: Grace Catalysts Technologies, Grace Materials Technologies, and Grace Construction Products. Grace Catalysts Technologies includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. Grace's Advanced Refining Technologies (ART) joint venture is managed in this segment. ART is an unconsolidated affiliate, and Grace accounts for ART using the equity method as discussed in Note 18 . Grace Materials Technologies includes packaging products and engineered materials, coatings and sealants used in consumer, industrial, and pharmaceutical applications. Grace Construction Products includes specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction. Intersegment sales are eliminated in consolidation. The table below presents information related to Grace's operating segments. Only those corporate expenses directly related to the operating segments are allocated for reporting purposes. All remaining corporate items are reported separately and labeled as such. Grace excludes defined benefit pension expense from the calculation of segment operating income. Grace believes that the exclusion of defined benefit pension expense provides a better indicator of its operating segment performance as defined benefit pension expense is not managed at an operating segment level. Grace defines Adjusted EBIT (a non-GAAP financial measure) to be net income adjusted for interest income and expense; income taxes; costs related to Chapter 11 and asbestos; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; income and expense items related to divested businesses, product lines, and certain other investments; gains and losses on sales of businesses, product lines, and certain other investments; and certain other unusual or infrequent items that are not representative of underlying trends. Operating Segment Data (In millions) 2015 2014 2013 Net Sales Catalysts Technologies $ 1,162.1 $ 1,246.8 $ 1,124.0 Materials Technologies 797.0 890.6 878.5 Construction Products 1,092.4 1,105.6 1,058.2 Total $ 3,051.5 $ 3,243.0 $ 3,060.7 Adjusted EBIT Catalysts Technologies segment operating income $ 347.3 $ 378.3 $ 327.5 Materials Technologies segment operating income 177.5 185.2 181.8 Construction Products segment operating income 196.6 161.7 151.7 Corporate costs (79.3 ) (90.6 ) (82.8 ) Gain on termination and curtailment of postretirement plans related to current businesses 1.9 23.6 — Certain pension costs (25.5 ) (32.0 ) (27.4 ) Total $ 618.5 $ 626.2 $ 550.8 Depreciation and Amortization Catalysts Technologies $ 68.1 $ 66.3 $ 54.2 Materials Technologies 28.4 32.1 31.4 Construction Products 28.6 31.7 31.8 Corporate 6.4 7.0 5.7 Total $ 131.5 $ 137.1 $ 123.1 Capital Expenditures Catalysts Technologies $ 66.3 $ 81.6 $ 58.7 Materials Technologies 25.8 35.6 33.0 Construction Products 31.0 28.3 32.8 Corporate 31.7 24.3 31.7 Total $ 154.8 $ 169.8 $ 156.2 Total Assets Catalysts Technologies $ 1,390.8 $ 1,395.4 $ 1,361.8 Materials Technologies 464.1 501.2 508.9 Construction Products 536.0 580.0 609.1 Corporate 1,285.1 1,617.0 2,910.3 Total $ 3,676.0 $ 4,093.6 $ 5,390.1 Corporate costs include corporate support function costs and other corporate costs such as professional fees and insurance premiums. Reconciliation of Operating Segment Data to Financial Statements Grace Adjusted EBIT for the years ended December 31, 2015 , 2014 and 2013 is reconciled below to income before income taxes presented in the accompanying Consolidated Statements of Operations. Year Ended December 31, (In millions) 2015 2014 2013 Grace Adjusted EBIT $ 618.5 $ 626.2 $ 550.8 Interest expense, net (100.4 ) (125.8 ) (42.8 ) Currency and other losses in Venezuela (73.2 ) (1.0 ) (6.9 ) Repositioning expenses (64.3 ) — — Restructuring expenses and asset impairments (22.9 ) (22.4 ) (12.5 ) Pension MTM adjustment and other related costs, net (46.8 ) (128.3 ) 50.6 Costs related to Chapter 11 and asbestos, net (5.6 ) (26.3 ) (46.1 ) Gain on termination and curtailment of postretirement plans related to divested businesses 2.6 15.9 — Income and expense items related to divested businesses 1.0 (5.2 ) (4.1 ) Gain (loss) on sale of product line — 0.2 (1.0 ) Default interest settlement — — (129.0 ) Net income attributable to noncontrolling interests 0.7 1.0 1.6 Income before income taxes $ 309.6 $ 334.3 $ 360.6 The table below presents sales of similar products within each operating segment. Year Ended December 31, (In millions) 2015 2014 2013 Catalysts Technologies: Refining Catalysts $ 764.5 $ 845.5 $ 832.4 Polyolefin and Chemical Catalysts 397.6 401.3 291.6 Total $ 1,162.1 $ 1,246.8 $ 1,124.0 Materials Technologies: Engineered Materials $ 470.8 $ 515.8 $ 494.4 Packaging Products 326.2 374.8 384.1 Total $ 797.0 $ 890.6 $ 878.5 Construction Products: Specialty Construction Chemicals $ 665.4 $ 688.7 $ 650.4 Specialty Building Materials 427.0 416.9 407.8 Total $ 1,092.4 $ 1,105.6 $ 1,058.2 Geographic Area Data The table below presents information related to the geographic areas in which Grace operates. Sales are attributed to geographic areas based on customer location. (In millions) 2015 2014 2013 Net Sales United States $ 955.0 $ 937.7 $ 886.0 Canada and Puerto Rico 76.0 78.7 73.7 Total North America 1,031.0 1,016.4 959.7 Europe Middle East Africa 963.2 1,103.3 1,087.9 Asia Pacific 721.2 747.6 654.1 Latin America 336.1 375.7 359.0 Total $ 3,051.5 $ 3,243.0 $ 3,060.7 Properties and Equipment, net United States $ 564.5 $ 526.2 $ 497.8 Canada and Puerto Rico 15.5 17.5 19.1 Total North America 580.0 543.7 516.9 Europe Middle East Africa 174.1 189.3 212.4 Asia Pacific 67.9 70.7 70.9 Latin America 20.4 29.8 29.7 Total $ 842.4 $ 833.5 $ 829.9 Goodwill, Intangibles and Other Assets United States $ 622.2 $ 615.8 $ 589.7 Canada and Puerto Rico 7.7 7.6 8.6 Total North America 629.9 623.4 598.3 Europe Middle East Africa 71.7 90.9 106.4 Asia Pacific 46.0 49.8 52.4 Latin America 25.9 37.5 55.9 Total $ 773.5 $ 801.6 $ 813.0 |
Unconsolidated Affiliate
Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliate | Grace accounts for its 50% ownership interest in ART using the equity method of accounting. Grace's investment in ART amounted to $103.2 million and $113.1 million as of December 31, 2015 and 2014 , respectively, and the amount included in "equity in earnings of unconsolidated affiliate" in the accompanying Consolidated Statements of Operations totaled $20.4 million , $19.7 million and $22.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. ART is a private company and accordingly does not have a quoted market price available. The following summary lists ART's assets, liabilities and results of operations. December 31, (In millions) 2015 2014 Summary of Balance Sheet information: Current assets $ 244.2 $ 216.9 Noncurrent assets 69.7 59.3 Total assets $ 313.9 $ 276.2 Current liabilities $ 111.3 $ 54.7 Total liabilities $ 111.3 $ 54.7 Year Ended December 31, (In millions) 2015 2014 2013 Summary of Statement of Operations information: Net sales $ 415.7 $ 409.9 $ 370.4 Costs and expenses applicable to net sales 367.2 358.1 311.2 Income before income taxes 42.6 41.2 46.6 Net income 40.9 39.7 45.6 Grace and ART transact business on a regular basis and maintain several agreements in order to operate the joint venture. These agreements are treated as related party activities with an unconsolidated affiliate. The table below presents summary financial data related to transactions between Grace and ART. Year Ended December 31, (In millions) 2015 2014 2013 Grace sales of catalysts to ART $ 258.9 $ 266.4 $ 232.0 Charges for fixed costs, research and development and selling, general and administrative services to ART 23.4 26.9 28.8 Grace and Chevron provide lines of credit in the amount of $15.0 million each at a commitment fee of 0.1% of the credit amount. These agreements expire on February 26, 2016, and are expected to be renewed. No amounts were outstanding at December 31, 2015 and 2014 . |
Chapter 11 Information
Chapter 11 Information | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations [Abstract] | |
Chapter 11 Information | Grace emerged from an asbestos-related Chapter 11 bankruptcy on February 3, 2014 (the "Effective Date"). Under Grace's plan of reorganization (the "Joint Plan"), two asbestos trusts were established and funded. The court order that confirmed the Joint Plan channels all pending and future asbestos-related personal injury claims and demands ("PI Claims") for resolution to an asbestos personal injury trust (the "PI Trust") and all pending and future asbestos-related property damage claims and demands ("PD Claims"), including PD Claims related to Grace ’ s former attic insulation product ("ZAI PD Claims"), to a separate asbestos property damage trust (the "PD Trust"). The trusts are the sole recourse for holders of asbestos-related claims; the channeling injunctions prohibit holders of asbestos-related claims from asserting such claims directly against Grace. Under the terms of the Joint Plan, claims under the Grace Chapter 11 cases were satisfied as follows: Asbestos-Related Personal Injury Claims On the Effective Date, the PI Trust was funded with: • $557.7 million in cash from Grace (includes $464.1 million of cash from Grace and $93.6 million of cash from insurance proceeds that were held in escrow); • A warrant to acquire 10 million shares of Company common stock at an exercise price of $17.00 per share and expiring one year after the Effective Date (the "PI Warrant") (The Company repurchased the PI Warrant for a payment of $490 million in cash on February 3, 2015); • Rights to all proceeds under all of Grace's insurance policies that are available for payment of asbestos-related personal injury claims and demands; • $42.1 million in cash from a subsidiary of Fresenius AG, pursuant to the terms of a settlement agreement resolving asbestos-related, successor liability and fraudulent transfer claims against Fresenius; and • $856.8 million in cash and 18 million shares of Sealed Air Corporation common stock paid by Cryovac, Inc., a wholly owned subsidiary of Sealed Air, pursuant to the terms of a settlement agreement resolving asbestos-related, successor liability and fraudulent transfer claims against Cryovac and Sealed Air. Under the Joint Plan, Grace was also obligated to make deferred payments to the PI Trust of $110 million per year for 5 years beginning in 2019 and $100 million per year for 10 years beginning in 2024, which obligation was secured by the Company's obligation to issue 77,372,257 shares of Company common stock to the asbestos trusts in the event of default, subject to customary anti-dilution provisions. In September 2014, Grace paid the PI Trust $632 million in settlement of Grace's deferred payment obligations. Grace has no further financial obligations to the PI Trust. Asbestos-Related Property Damage Claims The PD Trust contains two accounts that cannot be commingled, the PD Account and the ZAI PD Account. U.S. ZAI PD Claims are to be paid from the ZAI PD Account and non-ZAI PD Claims are to be paid from the PD Account. On the Effective Date, the PD Account was funded with $39.9 million in cash from Grace and $111.4 million in cash from Cryovac and Fresenius to pay allowed non-ZAI PD Claims settled as of the Effective Date, a separate Canadian ZAI PD Claims fund was funded with CDN $8.6 million in cash from Grace, and the ZAI PD Account was funded with $34.4 million in cash from Cryovac and Fresenius. Other Claims As provided for in the Joint Plan, Grace paid substantially all other allowed pre-petition claims in full on or within 10 days after the Effective Date. All allowed administrative claims and all allowed priority claims were paid in cash with interest as provided in the Joint Plan. Secured claims were paid in cash with interest or by reinstatement. Allowed general unsecured claims, including $129.0 million accrued in December 2013 relating to an agreement to settle the final pending appeal with the holders of Grace's pre-petition bank debt, were paid in cash. The Joint Plan further provided that Grace, subject to certain non-bankruptcy limitations, satisfy all pension, retirement medical, and similar employee-related obligations and pay workers’ compensation claims. See Note 10 for more information on Grace's remaining asbestos-related liabilities. Condensed Financial Information of the Debtors W. R. Grace & Co.—Chapter 11 Filing Entities Debtor-in-Possession Statements of Operations (In millions) (Unaudited) Year Ended December 31, 2013 Net sales, including intercompany $ 1,425.4 Cost of goods sold, including intercompany, exclusive of depreciation and amortization shown separately below 882.2 Selling, general and administrative expenses 178.1 Depreciation and amortization 69.1 Chapter 11 expenses, net 15.3 Default interest settlement 129.0 Asbestos and bankruptcy-related charges, net 21.9 Research and development expenses 37.8 Interest expense and related financing costs 37.7 Other income, net (75.7 ) 1,295.4 Income before income taxes and equity in net income of non-filing entities 130.0 Provision for income taxes (53.2 ) Income before equity in net income of non-filing entities 76.8 Equity in net income of non-filing entities 179.3 Net income attributable to W. R. Grace & Co. shareholders $ 256.1 In the above table "Asbestos and bankruptcy-related charges, net," primarily includes adjustments made to reflect the emergence-date value of the deferred payment obligations and adjustments to record the final allowed claims listing, partially offset by adjustments for interest per the terms of the Joint Plan. W. R. Grace & Co.—Chapter 11 Filing Entities Debtor-in-Possession Statements of Cash Flows (In millions) (Unaudited) Year Ended December 31, 2013 OPERATING ACTIVITIES Net income attributable to W. R. Grace & Co. shareholders $ 256.1 Reconciliation to net cash provided by operating activities: Depreciation and amortization 69.1 Asbestos and bankruptcy-related charges, net 21.9 Default interest settlement 129.0 Equity in net income of non-filing entities (179.3 ) Provision for income taxes 53.2 Cash paid for income taxes, net of refunds 13.5 Excess tax benefits from stock-based compensation 35.4 Defined benefit pension income (51.8 ) Cash paid under defined benefit pension arrangements (55.6 ) Repatriation of cash from foreign entities 29.7 Changes in assets and liabilities, excluding the effect of foreign currency translation and business acquired: Trade accounts receivable (6.2 ) Inventories (23.0 ) Accounts payable 21.9 All other items, net 31.1 Net cash provided by operating activities 345.0 INVESTING ACTIVITIES Capital expenditures (94.1 ) Business acquired, net of cash acquired (510.4 ) Transfer to restricted cash and cash equivalents (222.2 ) Net cash used for investing activities (826.7 ) FINANCING ACTIVITIES Borrowings under credit arrangements 0.3 Repayments under credit arrangements (0.8 ) Proceeds from exercise of stock options 34.4 Excess tax benefits from stock-based compensation (35.4 ) Other financing activities 4.1 Net cash provided by financing activities 2.6 Decrease in cash and cash equivalents (479.1 ) Cash and cash equivalents, beginning of period 1,064.2 Cash and cash equivalents, end of period $ 585.1 In addition to Grace's financial reporting obligations as prescribed by the SEC, during the Chapter 11 proceeding, Grace was required, under the rules and regulations of the Bankruptcy Code, to periodically file certain statements and schedules with the Bankruptcy Court. This information is available to the public through the Bankruptcy Court and was prepared in a format that may not be comparable to information in Grace's quarterly and annual financial statements as filed with the SEC. These statements and schedules are not audited and do not purport to represent the financial position or results of operations of Grace on a consolidated basis. |
Quarterly Summary and Statistic
Quarterly Summary and Statistical Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary and Statistical Information (Unaudited) | (In millions, except per share amounts) March 31 June 30 September 30 December 31 2015 Net sales $ 720.6 $ 782.1 $ 790.1 $ 758.7 Gross profit 258.3 310.6 311.9 286.7 Net income 52.7 57.4 13.8 20.3 Net income per share:(1) Basic earnings per share: Net income $ 0.72 $ 0.79 $ 0.19 $ 0.29 Diluted earnings per share: Net income 0.72 0.78 0.19 0.29 Market price of common stock:(2) High $ 104.90 $ 103.72 $ 104.94 $ 101.99 Low 84.25 95.03 90.84 92.66 Close 98.87 100.30 93.05 99.59 ___________________________________________________________________________________________________________________ (1) Per share results for the four quarters may differ from full-year per share results, as a separate computation of the weighted average number of shares outstanding is made for each quarter presented. (2) Principal market: New York Stock Exchange. (In millions, except per share amounts) March 31 June 30 September 30 December 31 2014 Net sales $ 744.5 $ 838.0 $ 856.4 $ 804.1 Gross profit 269.2 320.9 327.8 274.5 Net income 50.1 136.2 74.5 15.5 Net income per share:(1) Basic earnings per share: Net income $ 0.65 $ 1.79 $ 1.00 $ 0.21 Diluted earnings per share: Net income 0.64 1.77 0.99 0.21 Market price of common stock:(2) High $ 105.05 $ 102.65 $ 100.07 $ 99.55 Low 90.58 90.40 90.56 79.06 Close 99.17 94.53 90.94 95.39 ___________________________________________________________________________________________________________________ (1) Per share results for the four quarters may differ from full-year per share results, as a separate computation of the weighted average number of shares outstanding is made for each quarter presented. (2) Principal market: New York Stock Exchange. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | On February 3, 2016, (the "Distribution Date"), Grace completed the separation of GCP. As a result, beginning in the 2016 first quarter, GCP's historical financial results through the Distribution Date will be reflected in Grace's Consolidated Financial Statements as a discontinued operation. To effect the Separation, Grace distributed to its stockholders one share of GCP common stock, par value $0.01 per share, for each share of Company common stock, par value $0.01 per share outstanding as of 5:00 p.m. on January 27, 2016, the record date for the Distribution. In lieu of fractional shares of GCP, Grace stockholders received cash, which generally will be subject to income tax. In connection with the Separation, GCP distributed $750 million to Grace. Grace used $500 million of those funds to repay $426.9 million of its U.S. dollar term loan and €67.3 million of its euro term loan. In connection with the financing GCP entered into related to the Separation, mortgages or deeds of trust will be executed with respect to GCP properties in Chicago, Illinois, and Mount Pleasant, Tennessee. Grace will have no obligations with respect to such mortgages or deeds of trust. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | FINANCIAL STATEMENT SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (In millions) For the Year Ended December 31, 2015 Description Balance at beginning of period Additions charged to costs and expenses Deductions Other, net(1) Balance at end of period Valuation and qualifying accounts deducted from assets: Allowances for notes and accounts receivable $ 5.7 $ 4.0 $ (3.4 ) $ 0.7 $ 7.0 Valuation allowance for deferred tax assets(2) 12.5 0.4 (2.6 ) — 10.3 Reserves: Reserves for environmental remediation 61.7 6.5 (12.6 ) — 55.6 Reserves for retained obligations of divested businesses 13.5 — — — 13.5 For the Year Ended December 31, 2014 Description Balance at beginning of period Additions charged to costs and expenses Deductions Other, net(1) Balance at end of period Valuation and qualifying accounts deducted from assets: Allowances for notes and accounts receivable $ 7.6 $ 2.5 $ (4.9 ) $ 0.5 $ 5.7 Valuation allowance for deferred tax assets(3) 18.3 1.2 (7.0 ) — 12.5 Reserves: Reserves for asbestos-related litigation 2,092.4 — (2,092.4 ) — — Reserves for environmental remediation 134.5 14.7 (87.5 ) — 61.7 Reserves for retained obligations of divested businesses 35.0 — (21.5 ) — 13.5 For the Year Ended December 31, 2013 Description Balance at beginning of period Additions charged to costs and expenses Deductions Other, net(1) Balance at end of period Valuation and qualifying accounts deducted from assets: Allowances for notes and accounts receivable $ 6.9 $ 2.2 $ (1.6 ) $ 0.1 $ 7.6 Valuation allowance for deferred tax assets(4) 40.8 4.4 (24.4 ) (2.5 ) 18.3 Reserves: Reserves for asbestos-related litigation 2,065.0 27.4 — — 2,092.4 Reserves for environmental remediation 140.5 8.0 (14.0 ) — 134.5 Reserves for retained obligations of divested businesses 34.2 0.8 — — 35.0 ___________________________________________________________________________________________________________________ (1) Various miscellaneous adjustments against reserves and effects of currency translation. (2) The valuation allowance decreased $2.2 million from December 31, 2014 , to December 31, 2015 . The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards. (3) The valuation allowance decreased $5.8 million from December 31, 2013 , to December 31, 2014 . The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards, partially offset by an increase in the valuation allowance on NOLs in certain foreign jurisdictions. (4) In the 2013 fourth quarter, Grace determined that it is more likely than not that its deductions generated at emergence will be used before their expiration. Grace recorded a $24.4 million release of its valuation allowance on its state deferred tax assets. Further decreases resulted from the utilization and expiration of state NOLs and the reduction of NOLs resulting from prior-year adjustments to taxable income. These decreases were partially offset by the recording of valuation allowances on deferred tax assets associated with certain U.S. federal foreign tax credits. |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The Consolidated Financial Statements include the accounts of Grace and entities as to which Grace exercises control over operating and financial policies. Grace consolidates the activities of variable interest entities in circumstances where management determines that Grace is the primary beneficiary of the variable interest entity. Intercompany transactions and balances are eliminated in consolidation. Investments in affiliated companies in which Grace can significantly influence operating and financial policies are accounted for under the equity method, unless Grace's investment is deemed to be temporary, in which case the investment is accounted for under the cost method. |
Noncontrolling Interests in Consolidated Entities | Grace conducts certain of its business through joint ventures with unaffiliated third parties. For joint ventures in which Grace has a controlling financial interest, Grace consolidates the results of such joint ventures in the Consolidated Financial Statements. Grace recognizes a liability for cumulative amounts due to the third parties based on the financial results of the joint ventures, and deducts the amount of income attributable to noncontrolling interests in the measurement of its consolidated net income. During the 2014 fourth quarter, Grace acquired the remaining 50% equity interest in its Construction Products joint venture in Turkey for $11.7 million , making the business a wholly owned subsidiary of Grace. |
Operating Segments | Grace reports financial results of each of its operating segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by Grace's Chief Executive Officer. |
Use of Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. Actual amounts could differ from those estimates, and the differences could be material. Changes in estimates are recorded in the period identified. Grace's accounting measurements that are most affected by management's estimates of future events are: • Realization values of net deferred tax assets, which depend on projections of future taxable income (see Note 7 ); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 8 ); and • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate obligation, such as litigation (see Note 10 ), income taxes (see Note 7 ), and environmental remediation (see Note 10 ). |
Revenue Recognition | Grace recognizes revenue when all of the following criteria are satisfied: risk of loss and title transfer to the customer; the price is fixed and determinable; persuasive evidence of a sales arrangement exists; and collectability is reasonably assured. Risk of loss and title transfers to customers are based on individual contractual terms which generally specify the point of shipment. Terms of delivery are generally included in customer contracts of sale, order confirmation documents and invoices. Certain customer arrangements include conditions for volume rebates. Grace accrues a rebate allowance and reduces recorded sales for anticipated selling price adjustments at the time of sale. Grace regularly reviews rebate accruals based on actual and anticipated sales patterns. Certain customer arrangements, constituting less than 2% of our annual revenues, include licenses of technology combined with other deliverables. Generally, the licenses are non-exclusive, perpetual licenses that permit the licensee to use Grace proprietary technology to design, build, and maintain a polypropylene manufacturing plant, and to make and sell products from the plant. In these multiple-element arrangements, Grace typically bundles the license, the basic process design package, and training and consulting-type services into one fixed price contract. The fixed price contract revenue is accounted for as one unit of accounting and is recognized on a straight-line basis over the period of performance of the contract, which typically ranges from three to five years, except for contingent revenue associated with a final performance guarantee. Revenue associated with the performance guarantee is recognized when customer acceptance is obtained, which is typically at the time that the licensee’s plant is operational. Elements in the fixed price contract are not accounted for as separate units of accounting because they do not have standalone value. Each of the deliverables are necessary components to the successful construction and future operation of the manufacturing plants, and the elements have interdependencies such that there is minimal value in each deliverable without the other bundled elements. Other services and optional software that are sold in connection with license arrangements qualify as separate units of accounting, with revenue recognized when services are rendered and in the case of process control software, when installed and functional. Additional services that are not part of the fixed price contract are billed on a variable basis. The selling prices of the significant deliverables described above are based on Grace’s best estimate of selling price, determined using historical business information. |
Cash Equivalents | Cash equivalents consist of liquid instruments and investments with maturities of three months or less when purchased. The recorded amounts approximate fair value. |
Inventories | Inventories are stated at the lower of cost or market. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability, and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. |
Long Lived Assets | Properties and equipment are stated at cost. Depreciation of properties and equipment is generally computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives range from 20 to 40 years for buildings, 3 to 7 years for information technology equipment, 3 to 10 years for operating machinery and equipment, and 5 to 10 years for furniture and fixtures. Interest is capitalized in connection with major project expenditures. Fully depreciated assets are retained in properties and equipment and related accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged or credited to earnings. Obligations for costs associated with asset retirements, such as requirements to restore a site to its original condition, are accrued at net present value and amortized along with the related asset. Other intangible assets with finite lives consist of technology, customer lists, trademarks and other intangibles and are amortized over their estimated useful lives, ranging from 1 to 30 years. Grace reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. There were impairment charges recorded in 2015 and 2014; no impairment charge was required in 2013 (see Note 11 ). |
Goodwill | Goodwill arises from certain business combinations. Grace reviews its goodwill for impairment on an annual basis at October 31 and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Recoverability is assessed at the reporting unit level most directly associated with the business combination that generated the goodwill. For the purpose of measuring impairment under the provisions of ASC 350 "Intangibles—Goodwill and Other," Grace has identified its reporting units at one level below its operating segments. Grace has evaluated its goodwill annually with no impairment charge required in any of the periods presented. |
Financial Instruments | Grace uses commodity forward, swap and/or option contracts and currency forward and/or option contracts to manage exposure to fluctuations in commodity prices and currency exchange rates. Grace does not hold or issue derivative financial instruments for trading purposes. Derivative instruments are recorded in the Consolidated Balance Sheets as either assets or liabilities at their fair value. For derivative instruments designated as fair value hedges, changes in the fair values of the derivative instruments closely offset changes in the fair values of the hedged items in "other expense, net" in the Consolidated Statements of Operations. For derivative instruments designated as cash flow hedges, if the derivative instruments qualify for hedge accounting pursuant to ASC 815, the effective portion of any hedge is reported as "accumulated other comprehensive income" in the Consolidated Balance Sheets until it is cleared to earnings during the same period in which the hedged item affects earnings. The ineffective portion of all hedges, and changes in the fair values of derivative instruments that are not designated as hedges, are recorded in current period earnings. Cash flows from derivative instruments are reported in the same category as the cash flows from the items being hedged. |
Income Taxes | Deferred tax assets and liabilities are recognized with respect to the expected future tax consequences of events that have been recorded in the Consolidated Financial Statements. If it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is provided against such deferred tax assets. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Grace evaluates such likelihood based on relevant facts and tax law. Grace adjusts its recorded liability for income tax matters due to changes in circumstances or new uncertainties, such as amendments to existing tax law. Grace's ultimate tax liability depends upon many factors, including negotiations with taxing authorities in the jurisdictions in which it operates, outcomes of tax litigation, and resolution of disputes arising from federal, state, and foreign tax audits. Due to the varying tax laws in each jurisdiction management, with the assistance of local tax advisors as necessary, assesses individual matters in each jurisdiction on a case-by-case basis. Grace researches and evaluates its income tax positions, including why it believes they are compliant with income tax regulations, and these positions are documented as appropriate. |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Grace's method of accounting for actuarial gains and losses relating to its global defined benefit pension plans is referred to as "mark-to-market accounting." Under mark-to-market accounting, Grace's pension costs consist of two elements: 1) ongoing costs recognized quarterly, which include service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; and 2) mark-to-market gains and losses recognized annually in the fourth quarter resulting from changes in actuarial assumptions, such as discount rates and the difference between actual and expected returns on plan assets. Should a significant event occur, Grace's pension obligation and plan assets would be remeasured at an interim period, and the gains or losses on remeasurement would be recognized in that period. |
Share-based Compensation, Option and Incentive Plans | The Company recognizes expenses related to stock-based compensation payment transactions in which it receives employee services in exchange for (a) equity instruments of the Company or (b) liabilities that are based on the fair value of the Company’s equity instruments or that may be settled by the issuance of equity instruments. Stock-based compensation cost for restricted stock units (RSUs) and share settled performance based units (PBUs) are measured based on the high/low average of the Company’s common stock on the date of grant. Cash settled performance based units (CSPBU) are remeasured at the end of each reporting period based on the closing fair market value of the Company’s common stock. Stock-based compensation cost for stock options is estimated at the grant date based on each option’s fair value as calculated by the Black-Scholes option pricing model. The Company recognizes stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period. |
Currency Translation | Assets and liabilities of foreign subsidiaries (other than those located in countries with highly inflationary economies, including Venezuela) are translated into U.S. dollars at current exchange rates, while revenues, costs and expenses are translated at average exchange rates during each reporting period. The resulting translation adjustments are included in "accumulated other comprehensive loss" in the Consolidated Balance Sheets. The financial statements of any subsidiaries located in countries with highly inflationary economies are remeasured as if the functional currency were the U.S. dollar; the remeasurement creates translation adjustments that are reflected in net income in the Consolidated Statements of Operations. |
Reclassification | Certain amounts in prior years' Consolidated Financial Statements have been reclassified to conform to the current year presentation. Such reclassifications have not materially affected previously reported amounts in the Consolidated Financial Statements. |
New Accounting Pronouncements | In April 2014, the FASB issued ASU 2014-08 "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This update is intended to change the requirements for reporting discontinued operations and enhance convergence of the FASB’s and the International Accounting Standard Board’s ("IASB") reporting requirements for discontinued operations. Grace adopted this standard in the 2015 first quarter, and it did not have a material effect on the Consolidated Financial Statements at that time. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." This update is intended to remove inconsistencies and weaknesses in revenue requirements; provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; provide more useful information to users of financial statements through improved disclosure requirements; and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new requirements were to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers—Deferral of the Effective Date," deferring the effective date by one year but permitting adoption as of the original effective date. The revised standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. Grace does not intend to adopt the standard early and is in the process of determining the adoption method as well as the effects the adoption will have on the Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03 "Simplifying the Presentation of Debt Issuance Costs." This update is part of the FASB's Simplification Initiative and is also intended to enhance convergence with the IASB's treatment of debt issuance costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." The update clarifies ASU 2015-03, allowing debt issuance costs related to line of credit arrangements to be deferred and presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new requirements are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the effect of these updates on the Consolidated Financial Statements and will adopt them in the 2016 first quarter. As of December 31, 2015 and 2014, capitalized financing fees included in other assets in the Consolidated Balance Sheets were $34.2 million and $37.7 million , respectively. In July 2015, the FASB issued ASU 2015-11 "Simplifying the Measurement of Inventory." This update is part of the FASB's Simplification Initiative and is also intended to enhance convergence with the IASB's measurement of inventory. The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO or average cost methods. The new requirements are effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the timing of adoption and does not expect the update to have an effect on the Consolidated Financial Statements. In November 2015, the FASB issued Accounting Standards Update 2015-17, “Balance Sheet Classification of Deferred Taxes” as an amendment to ASC 740 "Income Taxes." As part of the FASB’s Simplification Initiative, this update requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Thus, each jurisdiction will now only present one net noncurrent deferred tax asset or liability. The update does not change the existing requirement that only permits offsetting of deferred tax assets and liabilities within a specific jurisdiction. The update is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted, and may be applied either prospectively or retrospectively. Grace has elected to early adopt this standard retrospectively in 2015. Consistent with the new guidance, Grace has presented the deferred tax assets or liabilities of each jurisdiction as one net noncurrent deferred tax asset or liability. As a result, for the year ended December 31, 2014, Grace reclassified $233.8 million previously reported as net current deferred tax assets to net noncurrent deferred tax assets and $0.1 million previously reported as net current deferred tax liabilities to net noncurrent deferred tax liabilities. The retrospective application of the update results in total net deferred tax assets of $845.8 million and total net deferred tax liabilities of $19.2 million as of December 31, 2014. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories are stated at the lower of cost or market, and cost is determined using FIFO. Inventories consisted of the following at December 31, 2015 and 2014 : December 31, (In millions) 2015 2014 Raw materials $ 86.2 $ 78.8 In process 39.6 47.2 Finished products 149.6 177.7 Other 28.7 29.1 $ 304.1 $ 332.8 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment | December 31, (In millions) 2015 2014 Land $ 18.9 $ 18.5 Buildings 529.3 530.0 Information technology and equipment 180.6 175.6 Machinery, equipment and other 1,756.8 1,825.3 Projects under construction 103.3 102.5 Properties and equipment, gross 2,588.9 2,651.9 Accumulated depreciation and amortization (1,746.5 ) (1,818.4 ) Properties and equipment, net $ 842.4 $ 833.5 |
Schedule of minimum future payments under operating leases | At December 31, 2015 , minimum future non-cancelable payments for operating leases are: (In millions) 2016 $ 23.9 2017 15.8 2018 11.0 2019 8.0 2020 5.8 Thereafter 21.2 $ 85.7 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amount of goodwill attributable to each operating segment and the changes in those balances during the period | The carrying amount of goodwill attributable to each operating segment and the changes in those balances during the years ended December 31, 2015 and 2014 , are as follows: (In millions) Grace Catalysts Technologies Grace Materials Technologies Grace Construction Products Total Grace Balance, December 31, 2013 $ 293.4 $ 41.2 $ 122.9 $ 457.5 Foreign currency translation (0.9 ) (2.3 ) (10.8 ) (14.0 ) Other adjustments 1.3 11.5 (3.4 ) 9.4 Balance, December 31, 2014 293.8 50.4 108.7 452.9 Foreign currency translation (1.0 ) (2.0 ) (10.8 ) (13.8 ) Other adjustments — — (0.1 ) (0.1 ) Balance, December 31, 2015 $ 292.8 $ 48.4 $ 97.8 $ 439.0 |
Summary of net book value of other intangible assets | Grace's net book value of other intangible assets at December 31, 2015 and 2014 , was $260.8 million and $288.0 million , respectively, detailed as follows: December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Technology $ 254.9 $ 60.7 Customer lists 81.1 47.6 Trademarks 34.0 16.3 Other 20.6 5.2 Total $ 390.6 $ 129.8 December 31, 2014 (In millions) Gross Carrying Amount Accumulated Amortization Technology $ 257.9 $ 49.5 Customer lists 88.5 46.2 Trademarks 34.9 15.0 Other 21.5 4.1 Total $ 402.8 $ 114.8 |
Summary of estimated amortization expenses | At December 31, 2015 , estimated future annual amortization expense for intangible assets is: (In millions) 2016 $ 17.9 2017 16.7 2018 16.4 2019 14.7 2020 14.3 Thereafter 177.0 $ 257.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Components of debt | Components of Debt December 31, (In millions) 2015 2014 U.S. dollar term loan, net of unamortized discount of $1.7 at December 31, 2015 (2014—$2.1) $ 933.6 $ 692.6 5.125% senior notes due 2021 700.0 700.0 5.625% senior notes due 2024 300.0 300.0 Euro term loan, net of unamortized discount of $0.4 at December 31, 2015 (2014—$0.4) 161.3 181.2 Debt payable—unconsolidated affiliate 33.4 31.5 Deferred payment obligation 29.1 28.2 Other borrowings(1) 71.5 82.3 Total debt 2,228.9 2,015.8 Less debt payable within one year 84.6 96.8 Debt payable after one year $ 2,144.3 $ 1,919.0 Weighted average interest rates on total debt 4.2 % 4.3 % ___________________________________________________________________________________________________________________ (1) Represents borrowings under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries. |
Schedule of Maturities of Long-term Debt | The principal maturities of debt outstanding at December 31, 2015 , were as follows: (In millions) 2016 $ 84.6 2017 47.1 2018 17.7 2019 17.1 2020 15.6 Thereafter 2,046.8 Total debt $ 2,228.9 |
Fair Value Measurements and R35
Fair Value Measurements and Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | At December 31, 2015 , the carrying amounts and fair values of Grace's debt were as follows: December 31, 2015 December 31, 2014 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value U.S. dollar term loan(1) $ 933.6 $ 927.1 $ 692.6 $ 691.3 5.125% senior notes due 2021 700.0 710.5 700.0 720.9 5.625% senior notes due 2024 300.0 302.6 300.0 312.0 Euro term loan(2) 161.3 161.1 181.2 181.4 Other borrowings 134.0 134.0 142.0 142.0 Total debt $ 2,228.9 $ 2,235.3 $ 2,015.8 $ 2,047.6 |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 : Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 1.1 $ — $ 1.1 $ — Commodity derivatives 0.6 — 0.6 — Total Assets $ 1.7 $ — $ 1.7 $ — Liabilities Currency derivatives $ 0.6 $ — $ 0.6 $ — Interest rate derivatives 7.9 — 7.9 — Commodity derivatives 0.1 — 0.1 — Total Liabilities $ 8.6 $ — $ 8.6 $ — Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.3 $ — $ 3.3 $ — Total Assets $ 3.3 $ — $ 3.3 $ — Liabilities Currency derivatives $ 0.1 $ — $ 0.1 $ — Interest rate derivatives 5.5 — 5.5 — Commodity derivatives 2.6 — 2.6 — Total Liabilities $ 8.2 $ — $ 8.2 $ — |
Schedule of the location and fair values of derivative instruments included in the Consolidated Balance Sheets | The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of December 31, 2015 and 2014 : Asset Derivatives Liability Derivatives December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Commodity contracts Other current assets $ 0.6 Other current liabilities $ 0.1 Currency contracts Other current assets 0.7 Other current liabilities 0.4 Interest rate contracts Other current assets — Other current liabilities 4.1 Currency contracts Other assets 0.2 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.8 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.2 Other current liabilities 0.2 Total derivatives $ 1.7 $ 8.6 Asset Derivatives Liability Derivatives December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Commodity contracts Other current assets $ — Other current liabilities $ 2.6 Currency contracts Other current assets 0.8 Other current liabilities — Interest rate contracts Other current assets — Other current liabilities 2.5 Currency contracts Other assets 0.9 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.0 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 1.6 Other current liabilities 0.1 Total derivatives $ 3.3 $ 8.2 |
Schedule of the location and amount of gains and losses on derivative instruments included in the Consolidated Statements of Operations, or initially recognized in other comprehensive income (loss) ("OCI"), when applicable | The following tables present the location and amount of gains and losses on derivative instruments included in the Consolidated Statements of Operations or, when applicable, gains and losses initially recognized in other comprehensive income (loss) ("OCI") for the years ended December 31, 2015 , 2014 , and 2013 : Year Ended December 31, 2015 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (5.6 ) Interest expense $ (3.8 ) Currency contracts 6.3 Other expense 5.6 Currency contracts 0.2 Cost of goods sold 0.2 Commodity contracts (1.4 ) Cost of goods sold (4.6 ) Total derivatives $ (0.5 ) $ (2.6 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (0.5 ) Year Ended December 31, 2014 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (5.4 ) Interest expense $ — Currency contracts 2.1 Other expense 1.3 Commodity contracts (2.2 ) Cost of goods sold 0.3 Total derivatives $ (5.5 ) $ 1.6 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ 7.1 Year Ended December 31, 2013 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Currency contracts $ 2.0 Other expense $ 2.4 Currency contracts (0.2 ) Cost of goods sold (0.2 ) Commodity contracts (0.3 ) Cost of goods sold (0.4 ) Total derivatives $ 1.5 $ 1.8 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (10.9 ) |
Nonderivative Instruments, Gain (Loss) [Table Text Block] | The following tables present the location and amount of gains and losses on nonderivative instruments designated as net investment hedges. There were no reclassifications of the effective portion of net investment hedges out of OCI and into earnings for the periods presented in the tables below. Year Ended December 31, 2015 (In millions) Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Nonderivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 18.3 Total nonderivatives $ 18.3 Year Ended December 31, 2014 (In millions) Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Nonderivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 22.7 Total nonderivatives $ 22.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from consolidated operations before income taxes and the related provision for income taxes | The components of income from consolidated operations before income taxes and the related provision for income taxes for 2015 , 2014 , and 2013 are as follows: (In millions) 2015 2014 2013 Income before income taxes: Domestic $ 143.2 $ 137.5 $ 141.4 Foreign 166.4 196.8 219.2 Total $ 309.6 $ 334.3 $ 360.6 Provision for income taxes: Federal—current $ — $ 59.4 $ 1.4 Federal—deferred (69.4 ) (45.8 ) (73.1 ) State and local—current (1.4 ) (0.7 ) (0.7 ) State and local—deferred (6.3 ) (17.6 ) 38.2 Foreign—current (87.6 ) (62.5 ) (83.5 ) Foreign—deferred — 10.2 14.8 Total $ (164.7 ) $ (57.0 ) $ (102.9 ) |
Summary of difference between the provision for income taxes at the U.S. federal income tax rate and overall income tax provision | The difference between the provision for income taxes at the U.S. federal income tax rate of 35% and Grace's overall income tax provision is summarized as follows: (In millions) 2015 2014 2013 Tax provision at U.S. federal income tax rate $ (108.4 ) $ (117.0 ) $ (126.2 ) Change in benefit (provision) resulting from: Separation tax costs (39.1 ) — — Nondeductible Venezuela charge (24.7 ) — — Effect of tax rates in foreign jurisdictions 14.4 17.8 16.6 State and local income taxes, net (6.4 ) (11.9 ) (0.7 ) U.S. tax on foreign earnings (1.9 ) 5.2 3.7 Adjustments to uncertain tax positions (1.7 ) 57.7 (6.8 ) Release of state valuation allowance 1.6 — 24.4 Nontaxable income/non-deductible expenses (1.2 ) (6.0 ) (9.7 ) Other 2.7 (2.8 ) (4.2 ) Provision for income taxes $ (164.7 ) $ (57.0 ) $ (102.9 ) |
Summary of tax attributes giving rise to deferred tax assets and liabilities | Deferred Tax Assets and Liabilities At December 31, 2015 and 2014 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items: (In millions) December 31, 2015 December 31, 2014 Deferred tax assets: U.S. net operating loss carryforwards $ 366.3 $ 371.8 Pension liabilities 127.8 114.2 Federal tax credit carryforwards 124.3 49.6 State net operating loss carryforwards 53.2 51.1 Reserves and allowances 48.4 46.2 Research and development 41.7 34.5 Liability for environmental remediation 20.6 22.7 Foreign net operating loss carryforwards 15.5 18.0 Liability for asbestos-related litigation 10.8 192.4 Other 39.2 45.4 Total deferred tax assets $ 847.8 $ 945.9 Deferred tax liabilities: Properties and equipment $ (45.3 ) $ (52.8 ) Intangible assets (40.5 ) (36.4 ) Pension assets (10.6 ) (9.4 ) Other (4.7 ) (8.2 ) Total deferred tax liabilities $ (101.1 ) $ (106.8 ) Valuation allowance: Foreign net operating loss carryforwards (4.6 ) (4.2 ) State net operating loss carryforwards $ (3.5 ) $ (5.9 ) Federal tax credit carryforwards (2.2 ) (2.4 ) Total valuation allowance (10.3 ) (12.5 ) Net deferred tax assets $ 736.4 $ 826.6 |
Summary of information about uncertain tax positions | (In millions) Unrecognized Tax Benefits Balance, January 1, 2013 $ 83.1 Additions for current year tax positions 6.3 Additions for prior year tax positions 6.4 Reductions for prior year tax positions and reclassifications(1) (9.6 ) Reductions for expirations of statute of limitations (5.9 ) Balance, December 31, 2013 80.3 Additions for current year tax positions 0.9 Additions for prior year tax positions 11.0 Reductions for prior year tax positions and reclassifications (5.7 ) Reductions for expirations of statute of limitations (0.4 ) Settlements(2) (59.6 ) Balance, December 31, 2014 26.5 Additions for current year tax positions 0.1 Additions for prior year tax positions 0.8 Reductions for prior year tax positions and reclassifications (1.6 ) Reductions for expirations of statute of limitations (1.5 ) Settlements (1.2 ) Balance, December 31, 2015 $ 23.1 ___________________________________________________________________________________________________________________ (1) In 2013, $9.6 million of unrecognized tax benefits representing agreed adjustments resulting from the 2007-2009 IRS examination were reclassified to income taxes payable. (2) In 2014, $59.6 million of benefits associated with reserves for unrecognized tax benefits were recognized based on the status of examinations in taxing jurisdictions. |
Schedule of open tax years by major jurisdiction | The following table summarizes these open tax years by major jurisdiction: Tax Jurisdiction(1) Examination in Progress Examination Not Initiated United States—Federal None 2010-2014 United States—States 2007-2009 2010-2014 Germany 2009-2013 2014 Italy None 2009-2014 France None 2012-2014 Canada 2012-2013 2014 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. |
Pension Plans and Other Postr37
Pension Plans and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension plans and other postretirement benefit plans | |
Schedule of Changes in Benefit Obligation and Fair Value of Plan Assets Amounts Recognized in Balance Sheet and Assumptions Used [Table Text Block] | The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2015 and 2014 : Defined Benefit Pension Plans Other Post- Retirement Plans Change in Financial Status of Retirement Plans (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 2015 2014 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,437.3 $ 1,326.8 $ 590.4 $ 546.4 $ 2,027.7 $ 1,873.2 $ 2.4 $ 57.2 Service cost 25.7 23.5 11.7 10.7 37.4 34.2 — 0.1 Interest cost 55.1 60.0 16.1 22.2 71.2 82.2 0.1 1.1 Plan participants' contributions — — 0.5 0.6 0.5 0.6 — — Amendments (3.6 ) — — — (3.6 ) — (2.1 ) (51.5 ) Settlements/curtailments — — (1.0 ) — (1.0 ) — — — Actuarial (gain) loss (63.0 ) 131.4 (11.4 ) 92.4 (74.4 ) 223.8 0.4 (1.0 ) Medicare subsidy receipts — — — — — — 1.0 0.2 Benefits paid (87.0 ) (104.4 ) (20.7 ) (25.8 ) (107.7 ) (130.2 ) (1.1 ) (3.7 ) Currency exchange translation adjustments — — (49.9 ) (56.1 ) (49.9 ) (56.1 ) — — Benefit obligation at end of year $ 1,364.5 $ 1,437.3 $ 535.7 $ 590.4 $ 1,900.2 $ 2,027.7 $ 0.7 $ 2.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,262.6 $ 1,145.2 $ 336.1 $ 306.5 $ 1,598.7 $ 1,451.7 $ — $ — Actual return on plan assets (34.6 ) 112.1 2.9 59.1 (31.7 ) 171.2 — — Employer contributions 7.3 109.7 10.5 18.1 17.8 127.8 0.1 3.5 Plan participants' contributions — — 0.5 0.6 0.5 0.6 — — Settlements — — (1.5 ) — (1.5 ) — — — Medicare subsidy receipts — — — — — — 1.0 0.2 Benefits paid (87.0 ) (104.4 ) (20.7 ) (25.8 ) (107.7 ) (130.2 ) (1.1 ) (3.7 ) Currency exchange translation adjustments — — (21.6 ) (22.4 ) (21.6 ) (22.4 ) — — Fair value of plan assets at end of year $ 1,148.3 $ 1,262.6 $ 306.2 $ 336.1 $ 1,454.5 $ 1,598.7 $ — $ — Funded status at end of year (PBO basis) $ (216.2 ) $ (174.7 ) $ (229.5 ) $ (254.3 ) $ (445.7 ) $ (429.0 ) $ (0.7 ) $ (2.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 26.1 $ 44.1 $ 26.1 $ 44.1 $ — $ — Current liabilities (7.1 ) (7.1 ) (8.2 ) (8.5 ) (15.3 ) (15.6 ) — (0.1 ) Noncurrent liabilities (209.1 ) (167.6 ) (247.4 ) (289.9 ) (456.5 ) (457.5 ) (0.7 ) (2.3 ) Net amount recognized $ (216.2 ) $ (174.7 ) $ (229.5 ) $ (254.3 ) $ (445.7 ) $ (429.0 ) $ (0.7 ) $ (2.4 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Accumulated actuarial loss $ — $ — $ — $ — $ — $ — $ 5.9 $ 6.2 Prior service (credit) cost (3.1 ) 0.8 (0.3 ) (0.3 ) (3.4 ) 0.5 (7.1 ) (12.9 ) Net amount recognized $ (3.1 ) $ 0.8 $ (0.3 ) $ (0.3 ) $ (3.4 ) $ 0.5 $ (1.2 ) $ (6.7 ) Defined Benefit Pension Plans Other Post- Retirement Plans Change in Financial Status of Retirement Plans (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 2015 2014 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.31 % 3.95 % 3.00 % 2.97 % NM NM 4.40 % 4.18 % Rate of compensation increase 4.70 % 4.70 % 3.35 % 3.24 % NM NM NM NM Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 3.95 % 4.76 % 2.97 % 4.25 % NM NM 4.18 % 4.26 % Expected return on plan assets 5.75 % 6.00 % 4.11 % 5.06 % NM NM NM NM Rate of compensation increase 4.70 % 4.70 % 3.24 % 3.41 % NM NM NM NM ___________________________________________________________________________________________________________________ NM—Not meaningful Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Income) Loss (In millions) 2015 2014 2013 U.S. Non-U.S. Other U.S. Non-U.S. Other U.S. Non-U.S. Other Net Periodic Benefit Cost (Income) Service cost $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 $ 25.2 $ 11.1 $ 0.2 Interest cost 55.1 16.1 0.1 60.0 22.2 1.1 51.9 20.6 2.2 Expected return on plan assets (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — (68.0 ) (14.0 ) — Amortization of prior service cost (credit) 0.3 — (3.4 ) 0.7 — (2.4 ) 0.7 — — Amortization of net deferred actuarial loss — — 0.7 — — — — — 0.4 Annual mark-to-market adjustment 42.0 (0.1 ) — 89.2 45.4 — (65.8 ) 11.0 — Gain on termination and curtailment of postretirement plans — — (4.5 ) — — (39.5 ) — — — Net curtailment and settlement gain — — — — — — — (0.1 ) — Net periodic benefit cost (income) $ 52.7 $ 14.7 $ (7.1 ) $ 103.5 $ 63.1 $ (40.7 ) $ (56.0 ) $ 28.6 $ 2.8 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ 0.4 $ — $ — $ (1.0 ) $ — $ — $ (4.3 ) Net prior service credit (3.6 ) — (2.1 ) — — (13.6 ) — — (1.7 ) Amortization of prior service cost (credit) (0.3 ) — 3.4 (0.7 ) — 2.4 (0.7 ) — — Amortization of net deferred actuarial loss — — (0.7 ) — — — — — (0.4 ) Loss on termination and curtailment of postretirement plans — — 4.5 — — 12.2 — — — Total recognized in other comprehensive (income) loss (3.9 ) — 5.5 (0.7 ) — — (0.7 ) — (6.4 ) Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 48.8 $ 14.7 $ (1.6 ) $ 102.8 $ 63.1 $ (40.7 ) $ (56.7 ) $ 28.6 $ (3.6 ) |
Schedule of Net Benefit Cost and Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Income) Loss (In millions) 2015 2014 2013 U.S. Non-U.S. Other U.S. Non-U.S. Other U.S. Non-U.S. Other Net Periodic Benefit Cost (Income) Service cost $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 $ 25.2 $ 11.1 $ 0.2 Interest cost 55.1 16.1 0.1 60.0 22.2 1.1 51.9 20.6 2.2 Expected return on plan assets (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — (68.0 ) (14.0 ) — Amortization of prior service cost (credit) 0.3 — (3.4 ) 0.7 — (2.4 ) 0.7 — — Amortization of net deferred actuarial loss — — 0.7 — — — — — 0.4 Annual mark-to-market adjustment 42.0 (0.1 ) — 89.2 45.4 — (65.8 ) 11.0 — Gain on termination and curtailment of postretirement plans — — (4.5 ) — — (39.5 ) — — — Net curtailment and settlement gain — — — — — — — (0.1 ) — Net periodic benefit cost (income) $ 52.7 $ 14.7 $ (7.1 ) $ 103.5 $ 63.1 $ (40.7 ) $ (56.0 ) $ 28.6 $ 2.8 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ 0.4 $ — $ — $ (1.0 ) $ — $ — $ (4.3 ) Net prior service credit (3.6 ) — (2.1 ) — — (13.6 ) — — (1.7 ) Amortization of prior service cost (credit) (0.3 ) — 3.4 (0.7 ) — 2.4 (0.7 ) — — Amortization of net deferred actuarial loss — — (0.7 ) — — — — — (0.4 ) Loss on termination and curtailment of postretirement plans — — 4.5 — — 12.2 — — — Total recognized in other comprehensive (income) loss (3.9 ) — 5.5 (0.7 ) — — (0.7 ) — (6.4 ) Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 48.8 $ 14.7 $ (1.6 ) $ 102.8 $ 63.1 $ (40.7 ) $ (56.7 ) $ 28.6 $ (3.6 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation (In millions) U.S. Non-U.S. Total 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 1,364.4 $ 352.6 $ 260.8 $ 306.0 $ 1,625.2 $ 658.6 Accumulated benefit obligation 1,314.1 351.8 229.1 274.5 1,543.2 626.3 Fair value of plan assets 1,148.2 220.8 7.4 9.4 1,155.6 230.2 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts for the Fiscal Years Ending (In millions) Pension Plans Other Postretirement Plans Total Payments Net of Subsidy U.S. Non-U.S.(1) Benefit Payments Medicare Subsidy Receipts Benefit Payments(2) Benefit Payments 2013 (actual) $ 79.2 $ 22.1 $ 4.5 $ (1.4 ) $ 104.4 2014 (actual)(2) 104.4 25.8 3.7 (0.2 ) 133.7 2015 (actual) 87.0 20.7 1.1 (1.0 ) 107.8 2016 85.7 21.8 — — 107.5 2017 86.0 20.6 — — 106.6 2018 87.0 21.2 — — 108.2 2019 87.9 22.1 — — 110.0 2020 89.1 23.0 — — 112.1 2021 - 2025 457.5 126.1 0.2 — 583.8 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2016 and future periods have been translated at the applicable December 31, 2015 , exchange rates. (2) Includes approximately $28 million of benefit payments from nonqualified plans that were previously restricted by the Bankruptcy Court while the Company was in Chapter 11 and were paid in 2014. |
Pension Plans | |
Pension plans and other postretirement benefit plans | |
Schedule of Net Funded Status | The following table presents the funded status of Grace's fully-funded, underfunded, and unfunded pension plans: (In millions) December 31, 2015 December 31, 2014 Overfunded defined benefit pension plans $ 26.1 $ 44.1 Underfunded defined benefit pension plans (118.9 ) (79.5 ) Unfunded defined benefit pension plans (337.6 ) (378.0 ) Total underfunded and unfunded defined benefit pension plans (456.5 ) (457.5 ) Pension liabilities included in other current liabilities (15.3 ) (15.6 ) Net funded status $ (445.7 ) $ (429.0 ) |
U.S. qualified pension plans | |
Pension plans and other postretirement benefit plans | |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | The following tables present the fair value hierarchy for the U.S. qualified pension plan assets measured at fair value as of December 31, 2015 and 2014 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 120.1 $ — $ 120.1 $ — Non-U.S. equity group trust funds 81.8 — 81.8 — Corporate bond group trust funds—intermediate-term 320.4 — 320.4 — Corporate bond group trust funds—long-term 525.6 — 525.6 — Other fixed income group trust funds 25.4 — 25.4 — Common/collective trust funds 57.3 — 57.3 — Annuity and immediate participation contracts 17.7 — 17.7 — Total Assets $ 1,148.3 $ — $ 1,148.3 $ — Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 134.2 $ — $ 134.2 $ — Non-U.S. equity group trust funds 76.8 — 76.8 — Corporate bond group trust funds—intermediate-term 324.9 — 324.9 — Corporate bond group trust funds—long-term 567.1 — 567.1 — Other fixed income group trust funds 23.7 — 23.7 — Common/collective trust funds 118.8 — 118.8 — Annuity and immediate participation contracts 17.1 — 17.1 — Total Assets $ 1,262.6 $ — $ 1,262.6 $ — |
Schedule of Allocation of Plan Assets [Table Text Block] | The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for Grace's U.S. qualified pension plans are as follows: Target Allocation Percentage of Plan Assets December 31, U.S. Qualified Pension Plans Asset Category 2015 2015 2014 U.S. equity securities 11 % 11 % 11 % Non-U.S. equity securities 7 % 7 % 6 % Short-term debt securities 6 % 6 % 10 % Intermediate-term debt securities 28 % 28 % 26 % Long-term debt securities 46 % 46 % 45 % Other investments 2 % 2 % 2 % Total 100 % 100 % 100 % |
Non-U.S. pension plans | |
Pension plans and other postretirement benefit plans | |
Schedule of Net Funded Status | Funded Status of U.S. Pension Plans (In millions) Fully-Funded U.S. Qualified Pension Plans(1) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ — $ — $ 1,257.5 $ 1,329.8 $ 107.0 $ 107.5 Fair value of plan assets — — 1,148.3 1,262.6 — — Funded status (PBO basis) $ — $ — $ (109.2 ) $ (67.2 ) $ (107.0 ) $ (107.5 ) Benefits paid $ — $ — $ (79.7 ) $ (69.7 ) $ (7.3 ) $ (34.7 ) Funded Status of Non-U.S. Pension Plans (In millions) Fully-Funded Non-U.S. Pension Plans(1) Underfunded Non-U.S. Pension Plans(1) Unfunded Pay-As-You-Go Non-U.S. Pension Plans(2) 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 240.3 $ 245.8 $ 49.5 $ 58.5 $ 245.9 $ 286.1 Fair value of plan assets 266.4 289.9 39.8 46.2 — — Funded status (PBO basis) $ 26.1 $ 44.1 $ (9.7 ) $ (12.3 ) $ (245.9 ) $ (286.1 ) Benefits paid $ (11.3 ) $ (12.3 ) $ (2.3 ) $ (4.7 ) $ (7.1 ) $ (8.8 ) ___________________________________________________________________________________________________________________ (1) Plans intended to be advance-funded. (2) Plans intended to be pay-as-you-go. |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2015 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 159.8 $ — $ 159.8 $ — Government and agency securities 2.5 — 2.5 — Corporate bonds 1.4 — 1.4 — Insurance contracts and other investments(1) 141.8 — 3.3 138.5 Cash 0.7 0.7 — — Total Assets $ 306.2 $ 0.7 $ 167.0 $ 138.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2015, the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. The following table presents a summary of the changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2015 . (In millions) Insurance Contracts Balance, December 31, 2014 $ — Actual return on plan assets relating to assets still held at year-end (1.2 ) Purchases, sales, and settlements, net 145.6 Transfers out for benefit payments (1.7 ) Currency exchange translation adjustments (4.2 ) Balance, December 31, 2015 $ 138.5 The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2014 . Fair Value Measurements at December 31, 2014, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 326.7 $ — $ 326.7 $ — Government and agency securities 2.6 — 2.6 — Corporate bonds 1.1 — 1.1 — Insurance contracts and other investments 4.6 — 4.6 — Cash 1.1 1.1 — — Total Assets $ 336.1 $ 1.1 $ 335.0 $ — |
Non-U.S. pension plans | United Kingdom | |
Pension plans and other postretirement benefit plans | |
Schedule of Allocation of Plan Assets [Table Text Block] | The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for the U.K. pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, United Kingdom Pension Plan Asset Category 2015 2015 2014 Diversified growth funds 10 % 10 % 11 % U.K. gilts 29 % 29 % 42 % U.K. corporate bonds 8 % 8 % 47 % Insurance contracts 53 % 53 % — % Total 100 % 100 % 100 % |
Non-U.S. pension plans | Canada | |
Pension plans and other postretirement benefit plans | |
Schedule of Allocation of Plan Assets [Table Text Block] | The target allocation of investment assets at December 31, 2015 , and the actual allocation at December 31, 2015 and 2014 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2015 2015 2014 Equity securities 27 % 28 % 27 % Bonds 58 % 57 % 58 % Other investments 15 % 15 % 15 % Total 100 % 100 % 100 % |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of other balance sheet accounts | (In millions) December 31, 2015 December 31, 2014 Other Current Liabilities Accrued compensation $ 79.2 $ 77.0 Income tax payable 49.1 34.1 Customer volume rebates 38.2 37.8 Environmental contingencies 21.8 21.5 Accrued interest 19.0 21.0 Deferred revenue 16.9 19.4 Pension liabilities 15.3 15.6 Other accrued liabilities 116.6 112.1 $ 356.1 $ 338.5 |
Restructuring Expenses and Re39
Restructuring Expenses and Related Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring expenses and related asset impairments | Restructuring Expenses and Asset Impairments Year Ended December 31, 2015 2014 2013 Restructuring expenses $ 22.8 $ 8.1 $ 12.5 Asset impairments 0.1 14.3 — Total restructuring expenses and asset impairments $ 22.9 $ 22.4 $ 12.5 |
Schedule of restructuring liability | Restructuring Liability Total Balance, December 31, 2012 $ 3.0 Accruals for severance and other costs 7.6 Payments (6.4 ) Currency translation adjustments and other 0.2 Balance, December 31, 2013 $ 4.4 Accruals for severance and other costs 7.7 Payments (7.9 ) Currency translation adjustments and other 0.3 Balance, December 31, 2014 $ 4.5 Accruals for severance and other costs 22.8 Payments (16.4 ) Currency translation adjustments and other (0.2 ) Balance, December 31, 2015 $ 10.7 |
Repositioning Expenses | (In millions) Year Ended December 31, 2015 Professional fees $ 49.8 Employee-related costs 10.4 Asset impairments 4.1 Total $ 64.3 |
Other Expense, net (Tables)
Other Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Components of other (income) expense, net | Components of other expense, net are as follows: Year Ended December 31, (In millions) 2015 2014 2013 Restructuring expenses and asset impairments $ 22.9 $ 22.4 $ 12.5 Net (gain) loss on sales of investments and disposals of assets (11.8 ) (2.2 ) 0.5 Provision for environmental remediation 6.6 13.8 8.2 Interest income (0.5 ) (1.4 ) (1.0 ) Currency transaction effects (0.1 ) (1.1 ) 4.0 Other miscellaneous expense (income) 0.7 (4.0 ) (9.2 ) Total other expense, net $ 17.8 $ 27.5 $ 15.0 |
Other Comprehensive Income (L41
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Tabular disclosure of pre-tax, tax, and after-tax components of other comprehensive income (loss) | The following tables present the pre-tax, tax, and after-tax components of Grace's other comprehensive loss for the years ended December 31, 2015 , 2014 , and 2013 : Year Ended December 31, 2015 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service credit included in net periodic benefit cost $ (3.1 ) $ 1.0 $ (2.1 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.7 (0.2 ) 0.5 Net prior service credit arising during period 5.7 (1.9 ) 3.8 Net deferred actuarial loss arising during period (0.4 ) 0.1 (0.3 ) Loss on curtailment of postretirement plans (4.5 ) 1.6 (2.9 ) Benefit plans, net (1.6 ) 0.6 (1.0 ) Currency translation adjustments (43.3 ) — (43.3 ) Gain from hedging activities 2.1 (0.8 ) 1.3 Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (42.8 ) $ (0.2 ) $ (43.0 ) Year Ended December 31, 2014 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service credit included in net periodic benefit cost $ (1.7 ) $ 0.6 $ (1.1 ) Net prior service credit arising during period 13.6 (4.8 ) 8.8 Net deferred actuarial gain arising during period 1.0 (0.4 ) 0.6 Loss on termination of postretirement plans (12.2 ) 1.3 (10.9 ) Benefit plans, net 0.7 (3.3 ) (2.6 ) Currency translation adjustments (28.0 ) — (28.0 ) Loss from hedging activities (7.1 ) 2.6 (4.5 ) Other than temporary impairment of investment 0.8 — 0.8 Loss on securities available for sale (0.1 ) — (0.1 ) Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (33.7 ) $ (0.7 ) $ (34.4 ) Year Ended December 31, 2013 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.7 $ (0.2 ) $ 0.5 Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Net prior service credit arising during period 1.7 (0.6 ) 1.1 Net deferred actuarial gain arising during period 4.3 (1.6 ) 2.7 Benefit plans, net 7.1 (2.5 ) 4.6 Currency translation adjustments (23.6 ) — (23.6 ) Loss from hedging activities (0.3 ) 0.1 (0.2 ) Gain on securities available for sale 0.1 — 0.1 Other comprehensive loss attributable to W. R. Grace & Co. shareholders $ (16.7 ) $ (2.4 ) $ (19.1 ) |
Schedule of components of accumulated other comprehensive loss | The following table presents the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2015 , 2014 , and 2013 : Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Unrealized Loss on Investment Gain (Loss) on Securities Available for Sale Total Balance, December 31, 2012 $ 2.0 $ 28.8 $ (0.3 ) $ (0.8 ) $ — $ 29.7 Other comprehensive income (loss) before reclassifications 3.8 (23.6 ) 1.2 — 0.1 (18.5 ) Amounts reclassified from accumulated other comprehensive income 0.8 — (1.4 ) — — (0.6 ) Net current-period other comprehensive income (loss) 4.6 (23.6 ) (0.2 ) — 0.1 (19.1 ) Balance, December 31, 2013 $ 6.6 $ 5.2 $ (0.5 ) $ (0.8 ) $ 0.1 $ 10.6 Other comprehensive income (loss) before reclassifications 9.4 (28.0 ) (3.2 ) — (0.7 ) (22.5 ) Amounts reclassified from accumulated other comprehensive income (12.0 ) — (1.3 ) 0.8 0.6 (11.9 ) Net current-period other comprehensive (loss) income (2.6 ) (28.0 ) (4.5 ) 0.8 (0.1 ) (34.4 ) Balance, December 31, 2014 $ 4.0 $ (22.8 ) $ (5.0 ) $ — $ — $ (23.8 ) Other comprehensive income (loss) before reclassifications 3.5 (43.3 ) 0.6 — — (39.2 ) Amounts reclassified from accumulated other comprehensive income (4.5 ) — 0.7 — — (3.8 ) Net current-period other comprehensive (loss) income (1.0 ) (43.3 ) 1.3 — — (43.0 ) Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ — $ — $ (66.8 ) |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of information relating to common stock activity | The following table sets forth information relating to common stock activity for 2015 and 2014 : Balance of outstanding shares, December 31, 2013 77,046,143 Stock options exercised 793,359 Shares issued 19,560 Shares repurchased (4,936,497 ) Balance of outstanding shares, December 31, 2014 72,922,565 Stock options exercised 728,408 Shares issued 9,378 Shares forfeited (3,120 ) Shares repurchased (3,123,716 ) Balance of outstanding shares, December 31, 2015 70,533,515 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of information relating to options | The following table sets forth information relating to such options during 2015 , 2014 , and 2013 : Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value Balance, January 1, 2013 4,024,484 $ 32.33 Options exercised (1,464,294 ) 23.46 Options forfeited (95,139 ) 52.17 Options terminated (1,381 ) 42.26 Options granted 421,385 76.70 $ 19.26 Balance, December 31, 2013 2,885,055 42.60 Options exercised (793,359 ) 29.53 Options forfeited (42,424 ) 68.07 Options granted 474,518 93.39 20.12 Balance, December 31, 2014 2,523,790 55.77 Options exercised (728,408 ) 36.85 Options forfeited (25,000 ) 92.57 Options terminated (500 ) 100.29 Options granted 550,805 96.01 19.28 Balance, December 31, 2015 2,320,687 |
Schedule of summary of non-vested option activity for the period | The following is a summary of nonvested option activity for the year ended December 31, 2015 : Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 959,842 $ 20.12 Granted 550,805 19.28 Vested (511,146 ) 18.83 Forfeited (25,500 ) 15.37 Nonvested options outstanding at end of year 974,001 |
Schedule of stock options outstanding and exercisable by exercise price range | A summary of our stock options outstanding and exercisable at December 31, 2015 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $40 - $50 985,206 985,206 0.92 $ 45.30 $60 - $70 16,499 16,499 1.94 66.70 $70 - $80 332,279 209,074 2.32 76.66 $80 - $90 1,631 890 2.49 84.74 $90 - $100 957,572 131,072 3.97 92.94 $100 - $110 27,500 6,875 3.16 100.29 2,320,687 1,349,616 |
Schedule of the assumptions used for estimating the fair value of stock options granted during the period | The following summarizes the assumptions used for estimating the fair value of stock options granted during 2015 , 2014 and 2013 , respectively. 2015 2014 2013 Expected volatility 23.0% - 27.2% 28.2% - 28.7% 32.3% - 34.3% Weighted average expected volatility 24.5% 28.6% 33.3% Expected term 3.00 - 4.00 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 1.30% 1.25% 0.61% Dividend yield —% —% —% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. (In millions, except per share amounts) 2015 2014 2013 Numerators Net income attributable to W. R. Grace & Co. shareholders $ 144.2 $ 276.3 $ 256.1 Denominators Weighted average common shares—basic calculation 72.0 75.3 76.4 Dilutive effect of employee stock options 0.6 0.9 1.3 Weighted average common shares—diluted calculation 72.6 76.2 77.7 Basic earnings per share $ 2.00 $ 3.67 $ 3.35 Diluted earnings per share $ 1.99 $ 3.63 $ 3.30 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of operating segment data | (In millions) 2015 2014 2013 Net Sales Catalysts Technologies $ 1,162.1 $ 1,246.8 $ 1,124.0 Materials Technologies 797.0 890.6 878.5 Construction Products 1,092.4 1,105.6 1,058.2 Total $ 3,051.5 $ 3,243.0 $ 3,060.7 Adjusted EBIT Catalysts Technologies segment operating income $ 347.3 $ 378.3 $ 327.5 Materials Technologies segment operating income 177.5 185.2 181.8 Construction Products segment operating income 196.6 161.7 151.7 Corporate costs (79.3 ) (90.6 ) (82.8 ) Gain on termination and curtailment of postretirement plans related to current businesses 1.9 23.6 — Certain pension costs (25.5 ) (32.0 ) (27.4 ) Total $ 618.5 $ 626.2 $ 550.8 Depreciation and Amortization Catalysts Technologies $ 68.1 $ 66.3 $ 54.2 Materials Technologies 28.4 32.1 31.4 Construction Products 28.6 31.7 31.8 Corporate 6.4 7.0 5.7 Total $ 131.5 $ 137.1 $ 123.1 Capital Expenditures Catalysts Technologies $ 66.3 $ 81.6 $ 58.7 Materials Technologies 25.8 35.6 33.0 Construction Products 31.0 28.3 32.8 Corporate 31.7 24.3 31.7 Total $ 154.8 $ 169.8 $ 156.2 Total Assets Catalysts Technologies $ 1,390.8 $ 1,395.4 $ 1,361.8 Materials Technologies 464.1 501.2 508.9 Construction Products 536.0 580.0 609.1 Corporate 1,285.1 1,617.0 2,910.3 Total $ 3,676.0 $ 4,093.6 $ 5,390.1 |
Schedule of reconciliation of operating segment data to financial statements | Year Ended December 31, (In millions) 2015 2014 2013 Grace Adjusted EBIT $ 618.5 $ 626.2 $ 550.8 Interest expense, net (100.4 ) (125.8 ) (42.8 ) Currency and other losses in Venezuela (73.2 ) (1.0 ) (6.9 ) Repositioning expenses (64.3 ) — — Restructuring expenses and asset impairments (22.9 ) (22.4 ) (12.5 ) Pension MTM adjustment and other related costs, net (46.8 ) (128.3 ) 50.6 Costs related to Chapter 11 and asbestos, net (5.6 ) (26.3 ) (46.1 ) Gain on termination and curtailment of postretirement plans related to divested businesses 2.6 15.9 — Income and expense items related to divested businesses 1.0 (5.2 ) (4.1 ) Gain (loss) on sale of product line — 0.2 (1.0 ) Default interest settlement — — (129.0 ) Net income attributable to noncontrolling interests 0.7 1.0 1.6 Income before income taxes $ 309.6 $ 334.3 $ 360.6 |
Schedule of geographic area data | (In millions) 2015 2014 2013 Net Sales United States $ 955.0 $ 937.7 $ 886.0 Canada and Puerto Rico 76.0 78.7 73.7 Total North America 1,031.0 1,016.4 959.7 Europe Middle East Africa 963.2 1,103.3 1,087.9 Asia Pacific 721.2 747.6 654.1 Latin America 336.1 375.7 359.0 Total $ 3,051.5 $ 3,243.0 $ 3,060.7 Properties and Equipment, net United States $ 564.5 $ 526.2 $ 497.8 Canada and Puerto Rico 15.5 17.5 19.1 Total North America 580.0 543.7 516.9 Europe Middle East Africa 174.1 189.3 212.4 Asia Pacific 67.9 70.7 70.9 Latin America 20.4 29.8 29.7 Total $ 842.4 $ 833.5 $ 829.9 Goodwill, Intangibles and Other Assets United States $ 622.2 $ 615.8 $ 589.7 Canada and Puerto Rico 7.7 7.6 8.6 Total North America 629.9 623.4 598.3 Europe Middle East Africa 71.7 90.9 106.4 Asia Pacific 46.0 49.8 52.4 Latin America 25.9 37.5 55.9 Total $ 773.5 $ 801.6 $ 813.0 |
Similar products within each operating segment | Year Ended December 31, (In millions) 2015 2014 2013 Catalysts Technologies: Refining Catalysts $ 764.5 $ 845.5 $ 832.4 Polyolefin and Chemical Catalysts 397.6 401.3 291.6 Total $ 1,162.1 $ 1,246.8 $ 1,124.0 Materials Technologies: Engineered Materials $ 470.8 $ 515.8 $ 494.4 Packaging Products 326.2 374.8 384.1 Total $ 797.0 $ 890.6 $ 878.5 Construction Products: Specialty Construction Chemicals $ 665.4 $ 688.7 $ 650.4 Specialty Building Materials 427.0 416.9 407.8 Total $ 1,092.4 $ 1,105.6 $ 1,058.2 |
Unconsolidated Affiliate Uncons
Unconsolidated Affiliate Unconsolidated Affiliate (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information of equity method investee | The following summary lists ART's assets, liabilities and results of operations. December 31, (In millions) 2015 2014 Summary of Balance Sheet information: Current assets $ 244.2 $ 216.9 Noncurrent assets 69.7 59.3 Total assets $ 313.9 $ 276.2 Current liabilities $ 111.3 $ 54.7 Total liabilities $ 111.3 $ 54.7 Year Ended December 31, (In millions) 2015 2014 2013 Summary of Statement of Operations information: Net sales $ 415.7 $ 409.9 $ 370.4 Costs and expenses applicable to net sales 367.2 358.1 311.2 Income before income taxes 42.6 41.2 46.6 Net income 40.9 39.7 45.6 |
Summary of related party transactions | The table below presents summary financial data related to transactions between Grace and ART. Year Ended December 31, (In millions) 2015 2014 2013 Grace sales of catalysts to ART $ 258.9 $ 266.4 $ 232.0 Charges for fixed costs, research and development and selling, general and administrative services to ART 23.4 26.9 28.8 |
Chapter 11 Information (Tables)
Chapter 11 Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations [Abstract] | |
Schedule of Components of Liabilities Subject to Compromise | W |
Schedule of Chapter 11 Expenses | W |
Schedule of Condensed Statements of Operations of Debtors | W. R. Grace & Co.—Chapter 11 Filing Entities Debtor-in-Possession Statements of Operations (In millions) (Unaudited) Year Ended December 31, 2013 Net sales, including intercompany $ 1,425.4 Cost of goods sold, including intercompany, exclusive of depreciation and amortization shown separately below 882.2 Selling, general and administrative expenses 178.1 Depreciation and amortization 69.1 Chapter 11 expenses, net 15.3 Default interest settlement 129.0 Asbestos and bankruptcy-related charges, net 21.9 Research and development expenses 37.8 Interest expense and related financing costs 37.7 Other income, net (75.7 ) 1,295.4 Income before income taxes and equity in net income of non-filing entities 130.0 Provision for income taxes (53.2 ) Income before equity in net income of non-filing entities 76.8 Equity in net income of non-filing entities 179.3 Net income attributable to W. R. Grace & Co. shareholders $ 256.1 |
Schedule of Condensed Statements of Cash Flows of Debtors | W. R. Grace & Co.—Chapter 11 Filing Entities Debtor-in-Possession Statements of Cash Flows (In millions) (Unaudited) Year Ended December 31, 2013 OPERATING ACTIVITIES Net income attributable to W. R. Grace & Co. shareholders $ 256.1 Reconciliation to net cash provided by operating activities: Depreciation and amortization 69.1 Asbestos and bankruptcy-related charges, net 21.9 Default interest settlement 129.0 Equity in net income of non-filing entities (179.3 ) Provision for income taxes 53.2 Cash paid for income taxes, net of refunds 13.5 Excess tax benefits from stock-based compensation 35.4 Defined benefit pension income (51.8 ) Cash paid under defined benefit pension arrangements (55.6 ) Repatriation of cash from foreign entities 29.7 Changes in assets and liabilities, excluding the effect of foreign currency translation and business acquired: Trade accounts receivable (6.2 ) Inventories (23.0 ) Accounts payable 21.9 All other items, net 31.1 Net cash provided by operating activities 345.0 INVESTING ACTIVITIES Capital expenditures (94.1 ) Business acquired, net of cash acquired (510.4 ) Transfer to restricted cash and cash equivalents (222.2 ) Net cash used for investing activities (826.7 ) FINANCING ACTIVITIES Borrowings under credit arrangements 0.3 Repayments under credit arrangements (0.8 ) Proceeds from exercise of stock options 34.4 Excess tax benefits from stock-based compensation (35.4 ) Other financing activities 4.1 Net cash provided by financing activities 2.6 Decrease in cash and cash equivalents (479.1 ) Cash and cash equivalents, beginning of period 1,064.2 Cash and cash equivalents, end of period $ 585.1 |
Schedule of Condensed Balance Sheets Of Debtors |
Quarterly Summary and Statist48
Quarterly Summary and Statistical Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Summary and Statistical Information (Unaudited) | (In millions, except per share amounts) March 31 June 30 September 30 December 31 2015 Net sales $ 720.6 $ 782.1 $ 790.1 $ 758.7 Gross profit 258.3 310.6 311.9 286.7 Net income 52.7 57.4 13.8 20.3 Net income per share:(1) Basic earnings per share: Net income $ 0.72 $ 0.79 $ 0.19 $ 0.29 Diluted earnings per share: Net income 0.72 0.78 0.19 0.29 Market price of common stock:(2) High $ 104.90 $ 103.72 $ 104.94 $ 101.99 Low 84.25 95.03 90.84 92.66 Close 98.87 100.30 93.05 99.59 ___________________________________________________________________________________________________________________ (1) Per share results for the four quarters may differ from full-year per share results, as a separate computation of the weighted average number of shares outstanding is made for each quarter presented. (2) Principal market: New York Stock Exchange. (In millions, except per share amounts) March 31 June 30 September 30 December 31 2014 Net sales $ 744.5 $ 838.0 $ 856.4 $ 804.1 Gross profit 269.2 320.9 327.8 274.5 Net income 50.1 136.2 74.5 15.5 Net income per share:(1) Basic earnings per share: Net income $ 0.65 $ 1.79 $ 1.00 $ 0.21 Diluted earnings per share: Net income 0.64 1.77 0.99 0.21 Market price of common stock:(2) High $ 105.05 $ 102.65 $ 100.07 $ 99.55 Low 90.58 90.40 90.56 79.06 Close 99.17 94.53 90.94 95.39 ___________________________________________________________________________________________________________________ (1) Per share results for the four quarters may differ from full-year per share results, as a separate computation of the weighted average number of shares outstanding is made for each quarter presented. (2) Principal market: New York Stock Exchange. |
Basis of Presentation and Sum49
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)entitysegment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of operating segments | segment | 3 | ||
Number of United States subsidiaries and affiliates filed voluntary petitions for reorganization | entity | 61 | ||
Percent of revenue recieved from certain customers | 2.00% | ||
Deferred Finance Costs, Noncurrent, Gross | $ 34,200,000 | $ 37,700,000 | |
Reclassification of net current deferred tax assets to net noncurrent deferred tax assets | 0 | ||
Reclassification of net current deferred tax liabilities to net noncurrent deferred tax liabilities | 0.1 | ||
Revised deferred tax assets, net balance after reclassifications | 845,800,000 | ||
Revised deferred tax liabilities, net balance after reclassifications | $ 19,200,000 | ||
Noncontrolling Interest [Abstract] | |||
Payments to Acquire Interest in Joint Venture | $ 11,700,000 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | ||
Cash Equivalents | |||
Cash Equivalents, Maximum Remaining Maturity Period at Purchase Maximum | 3 months | ||
Impairment of non monetary assets [Line Items] | |||
Venezuela currency exchange rate, future | 6.3 | ||
Venezuelan Bolivar Exchange Rate, SIMADI | 199 | ||
Currency and other losses in Venezuela | $ 73,200,000 | $ 1,000,000 | $ 8,500,000 |
Loss in Venezuela | $ 59,600,000 | $ 1,000,000 | $ 8,500,000 |
Minimum | |||
Long-lived assets | |||
Finite lived intangible assets, estimated useful life | 1 year | ||
Minimum | Building [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 20 years | ||
Minimum | Information technology and equipment [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 3 years | ||
Minimum | Operating machinery and equipment [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 3 years | ||
Minimum | Furniture and fixtures [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 5 years | ||
Maximum | |||
Long-lived assets | |||
Finite lived intangible assets, estimated useful life | 30 years | ||
Maximum | Building [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 40 years | ||
Maximum | Information technology and equipment [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 7 years | ||
Maximum | Operating machinery and equipment [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 10 years | ||
Maximum | Furniture and fixtures [Member] | |||
Long-lived assets | |||
Long lived assets, estimated useful life | 10 years | ||
Cash [Member] | |||
Impairment of non monetary assets [Line Items] | |||
Devaluation of Monetary Assets and Liabilities | $ 40,500,000 | ||
Working Capital [Member] | |||
Impairment of non monetary assets [Line Items] | |||
Devaluation of Monetary Assets and Liabilities | 28,600,000 | ||
Property, Plant and Equipment [Member] | |||
Impairment of non monetary assets [Line Items] | |||
Devaluation of Monetary Assets and Liabilities | 4,100,000 | ||
Inventories [Member] | |||
Impairment of non monetary assets [Line Items] | |||
Devaluation of Monetary Assets and Liabilities | $ 13,600,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 86.2 | $ 78.8 |
In process | 39.6 | 47.2 |
Finished products | 149.6 | 177.7 |
Other | 28.7 | 29.1 |
Total inventories | $ 304.1 | $ 332.8 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Properties and Equipment | |||
Properties and equipment, gross | $ 2,588.9 | $ 2,651.9 | |
Accumulated depreciation and amortization | (1,746.5) | (1,818.4) | |
Properties and equipment, net | 842.4 | 833.5 | $ 829.9 |
Depreciation and lease amortization expense related to properties and equipment | 109.3 | 112.5 | 108.6 |
Rental expense for operating leases | 27 | 27.5 | 28.4 |
Land | |||
Properties and Equipment | |||
Properties and equipment, gross | 18.9 | 18.5 | |
Building [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 529.3 | 530 | |
Information technology and equipment [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 180.6 | 175.6 | |
Machinery, equipment and other | |||
Properties and Equipment | |||
Properties and equipment, gross | 1,756.8 | 1,825.3 | |
Projects under construction | |||
Properties and Equipment | |||
Properties and equipment, gross | 103.3 | 102.5 | |
Other Capitalized Property Plant and Equipment [Member] | |||
Properties and Equipment | |||
Properties and equipment, net | $ 1.1 | $ 1.5 | $ 1.2 |
Properties and Equipment (Det52
Properties and Equipment (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Abstract] | |
2,015 | $ 23.9 |
2,016 | 15.8 |
2,017 | 11 |
2,018 | 8 |
2,019 | 5.8 |
Thereafter | 21.2 |
Total | 85.7 |
Anticipated sublease income in 2016 | 0.5 |
Anticipated sublease income in 2017 | 0.3 |
Anticipated sublease income in 2018 | 0.2 |
Anticipated sublease income in 2019 | 0.1 |
Anticipated sublease income in 2020 | $ 0.1 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Changes in goodwill balances | ||
Balance at the beginning of the period | $ 452.9 | |
Foreign currency translation | (13.8) | $ (14) |
Other adjustments | (0.1) | 9.4 |
Balance at the end of the period | 439 | 457.5 |
Goodwill, Subsequent Recognition of Deferred Tax Asset | 8 | |
Grace Catalysts Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 293.8 | |
Foreign currency translation | (1) | (0.9) |
Other adjustments | 1.3 | |
Balance at the end of the period | 292.8 | 293.4 |
Grace Materials Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 50.4 | |
Foreign currency translation | (2) | (2.3) |
Other adjustments | 11.5 | |
Balance at the end of the period | 48.4 | 41.2 |
Construction Products | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 108.7 | |
Foreign currency translation | (10.8) | (10.8) |
Other adjustments | (0.1) | (3.4) |
Balance at the end of the period | $ 97.8 | $ 122.9 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, net book value | $ 260.8 | $ 288 | |
Net book value of other intangible assets | |||
Gross carrying amount | 390.6 | 402.8 | |
Accumulated Amortization | 129.8 | 114.8 | |
Amortization of intangible assets | 20.8 | 22.9 | $ 12.7 |
Estimated Amortization Expenses | |||
2,015 | 17.9 | ||
2,016 | 16.7 | ||
2,017 | 16.4 | ||
2,018 | 14.7 | ||
2,019 | 14.3 | ||
Thereafter | 177 | ||
Total estimated amortization expenses | 257 | ||
Technology | |||
Net book value of other intangible assets | |||
Gross carrying amount | 254.9 | 88.5 | |
Accumulated Amortization | 60.7 | 46.2 | |
Customer Lists [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 81.1 | 257.9 | |
Accumulated Amortization | 47.6 | 49.5 | |
Trademarks [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 34 | 34.9 | |
Accumulated Amortization | 16.3 | 15 | |
Indefinite-lived trademarks | 3.8 | 4.2 | |
Other Intangible Assets [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 20.6 | 21.5 | |
Accumulated Amortization | $ 5.2 | $ 4.1 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Notes Payable, Related Parties | $ 31.5 | $ 33.4 | |||
Deferred payment obligations | 28.2 | 29.1 | |||
Debt payable within one year | 96.8 | 84.6 | |||
Debt payable after one year | $ 1,919 | $ 2,144.3 | |||
Full-year weighted average interest rates on total debt | 4.30% | 4.20% | 4.20% | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 84.6 | ||||
2,017 | 47.1 | ||||
2,018 | 17.7 | ||||
2,019 | 17.1 | ||||
2,020 | 15.6 | ||||
Thereafter | 2,046.8 | ||||
Total debt | $ 2,015.8 | 2,228.9 | |||
Term Loans, Percent of Original Principal Annual Amortization Amounts | 1.00% | ||||
Payments for Repurchase of Warrants | $ 490 | ||||
Letters of Credit Outstanding, Amount | 343.2 | ||||
Revised credit facility due to change in covenants following separation | 300 | ||||
Distribution to Grace from GCP | 750 | ||||
Amount of distribution from GCP dividend used to pay down Grace debt | $ 500 | ||||
Debt Instrument, Price as Percent of Par Value | 100.00% | ||||
Proceeds from Debt, Net of Issuance Costs | $ 985.5 | ||||
Cash paid to settle deferred payment obligation | $ 0 | 632 | $ 0 | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Debt Instrument, Required Redemption Price, Percentage | 101.00% | ||||
Final Judgment for Payment, Event of Debt Default | 75 | ||||
Debt Instrument, Event of Default, Percent Principal Aggregate Outstanding | 25.00% | ||||
Term Loan B (USD) [Member] | |||||
Senior Secured Credit Facilities to Fund Emergence | 700 | ||||
Amount of distribution from GCP dividend used to pay down Grace debt | $ 426.9 | ||||
Debt Instrument, Unamortized Discount | 2.1 | 1.7 | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.25% | ||||
Term Loan B (EUR) [Member] | |||||
Senior Secured Credit Facilities to Fund Emergence | 150 | ||||
Amount of distribution from GCP dividend used to pay down Grace debt | $ 67 | ||||
Debt Instrument, Unamortized Discount | $ 0.4 | 0.4 | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.50% | ||||
Revolving Credit Facility [Member] | |||||
Senior Secured Credit Facility to Fund Emergence | € | € 400 | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% | |||
Other Debt Obligations [Member] | |||||
Total debt | $ 82.3 | 71.5 | |||
Delayed-Draw Term Loan B [Member] | |||||
Senior Secured Credit Facilities to Fund Emergence | 250 | ||||
Length of Delayed Draw Term Loan Facility | 12 months | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.25% | ||||
Senior Notes [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | 5.00% | |||
Senior Notes | 1,000 | ||||
Senior Notes, Due 2021 [Member] | |||||
Senior Notes | $ 700 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% | ||
Senior Notes, Due 2024 [Member] | |||||
Senior Notes | $ 300 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% |
Fair Value Measurements and R56
Fair Value Measurements and Risk (Details) lb in Millions, MMBTU in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015 | Dec. 31, 2015lb | Dec. 31, 2015country | Dec. 31, 2015MMBTU | |
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | $ 2,228.9 | $ 2,015.8 | |||||
Maximum original maturity period of cash equivalents (in months) | 3 months | ||||||
Payments to Acquire Interest in Joint Venture | $ 0 | 12.4 | $ 0 | ||||
Number of countries where company does business, greater than | 50 | 40 | |||||
Derivative, Fixed Interest Rate | 2.393% | ||||||
Recurring basis | |||||||
Assets | |||||||
Currency derivatives | 1.1 | 3.3 | |||||
Commodity derivatives | 0.6 | ||||||
Total Assets | 1.7 | 3.3 | |||||
Liabilities | |||||||
Currency derivatives | 0.6 | 0.1 | |||||
Interest rate derivatives | 7.9 | 5.5 | |||||
Commodity derivatives | 0.1 | 2.6 | |||||
Total Liabilities | 8.6 | 8.2 | |||||
Recurring basis | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Currency derivatives | 0 | 0 | |||||
Commodity derivatives | 0 | ||||||
Total Assets | 0 | 0 | |||||
Liabilities | |||||||
Currency derivatives | 0 | 0 | |||||
Interest rate derivatives | 0 | 0 | |||||
Commodity derivatives | 0 | 0 | |||||
Total Liabilities | 0 | 0 | |||||
Recurring basis | Significant Other Observable Inputs (Level 2) | |||||||
Assets | |||||||
Currency derivatives | 1.1 | 3.3 | |||||
Commodity derivatives | 0.6 | ||||||
Total Assets | 1.7 | 3.3 | |||||
Liabilities | |||||||
Currency derivatives | 0.6 | 0.1 | |||||
Interest rate derivatives | 7.9 | 5.5 | |||||
Commodity derivatives | 0.1 | 2.6 | |||||
Total Liabilities | 8.6 | 8.2 | |||||
Recurring basis | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Currency derivatives | 0 | 0 | |||||
Commodity derivatives | 0 | ||||||
Total Assets | 0 | 0 | |||||
Liabilities | |||||||
Currency derivatives | 0 | 0 | |||||
Interest rate derivatives | 0 | 0 | |||||
Commodity derivatives | 0 | 0 | |||||
Total Liabilities | $ 0 | $ 0 | |||||
Fixed Rate Natural Gas Swaps [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Maximum period of cash flow hedging | 12 months | ||||||
Commodity Contract [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 1.3 | ||||||
Derivative, Notional Amount | $ 2.4 | ||||||
Commodity Option [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Maximum period of cash flow hedging | 24 months | ||||||
Fixed-rate aluminum swaps | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Maximum period of cash flow hedging | 12 months | ||||||
Derivative, Nonmonetary Notional Amount | lb | 1.4 | ||||||
Derivative, Notional Amount | $ 1.1 | ||||||
Interest Rate Swap [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Derivative, Notional Amount | 250 | ||||||
Senior Notes, Due 2021 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | |||||
Senior Notes, Due 2024 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | |||||
Term Loan B (USD) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Debt Instrument, Unamortized Discount | 1.7 | $ 2.1 | |||||
Term Loan B (EUR) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Debt Instrument, Unamortized Discount | 0.4 | 0.4 | |||||
Other Debt Obligations [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 71.5 | 82.3 | |||||
Estimate of Fair Value Measurement [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 2,235.3 | 2,047.6 | |||||
Estimate of Fair Value Measurement [Member] | Senior Notes, Due 2021 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 710.5 | 720.9 | |||||
Estimate of Fair Value Measurement [Member] | Senior Notes, Due 2024 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 302.6 | 312 | |||||
Estimate of Fair Value Measurement [Member] | Term Loan B (USD) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 927.1 | 691.3 | |||||
Estimate of Fair Value Measurement [Member] | Term Loan B (EUR) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 161.1 | 181.4 | |||||
Estimate of Fair Value Measurement [Member] | Other Debt Obligations [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 134 | 142 | |||||
Reported Value Measurement [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 2,228.9 | 2,015.8 | |||||
Reported Value Measurement [Member] | Senior Notes, Due 2021 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 700 | 700 | |||||
Reported Value Measurement [Member] | Senior Notes, Due 2024 [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 300 | 300 | |||||
Reported Value Measurement [Member] | Term Loan B (USD) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 933.6 | 692.6 | |||||
Reported Value Measurement [Member] | Term Loan B (EUR) [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | 161.3 | 181.2 | |||||
Reported Value Measurement [Member] | Other Debt Obligations [Member] | |||||||
Items measured at Fair Value on a Recurring Basis | |||||||
Other borrowings (not subject to compromise) | $ 134 | $ 142 |
Fair Value Measurements and R57
Fair Value Measurements and Risk (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair values of derivative instruments | |||
Asset Derivatives | $ 1.7 | $ 3.3 | |
Liability Derivatives | 8.6 | 8.2 | |
Not Designated as Hedging Instrument [Member] | Other current assets | |||
Fair values of derivative instruments | |||
Asset Derivatives, Currency contracts | 0.2 | 1.6 | |
Not Designated as Hedging Instrument [Member] | Other current liabilities | |||
Fair values of derivative instruments | |||
Asset Derivatives, Currency contracts | 0.2 | 0.1 | |
Derivatives designated as hedging instruments under ASC 815 | Other current assets | |||
Fair values of derivative instruments | |||
Asset Derivatives, Commodity contracts | 0.6 | 0 | |
Asset Derivatives, Currency contracts | 0.7 | 0.8 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 0 | 0 | |
Derivatives designated as hedging instruments under ASC 815 | Other assets | |||
Fair values of derivative instruments | |||
Asset Derivatives, Currency contracts | 0.2 | 0.9 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 0 | 0 | |
Derivatives designated as hedging instruments under ASC 815 | Other current liabilities | |||
Fair values of derivative instruments | |||
Asset Derivatives, Commodity contracts | 0.1 | 2.6 | |
Asset Derivatives, Currency contracts | 0.4 | 0 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 4.1 | 2.5 | |
Derivatives designated as hedging instruments under ASC 815 | Other liabilities | |||
Fair values of derivative instruments | |||
Asset Derivatives, Currency contracts | 0 | 0 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 3.8 | 3 | |
Other Income(Expense) [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Fair values of derivative instruments | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (0.5) | $ 7.1 | $ (10.9) |
Fair Value Measurements and R58
Fair Value Measurements and Risk (Details 3) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Gains and losses on derivative instruments | |||||
Debt, Long-term and Short-term, Combined Amount | $ 2,015.8 | $ 2,228.9 | |||
Derivative, Fixed Interest Rate | 2.393% | 2.393% | |||
Interest Rate Swap [Member] | |||||
Gains and losses on derivative instruments | |||||
Derivative, Notional Amount | $ 250 | ||||
Commodity contracts | |||||
Gains and losses on derivative instruments | |||||
Derivative, Notional Amount | $ 2.4 | ||||
Net Investment Hedging [Member] | |||||
Gains and losses on derivative instruments | |||||
Nonderivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 18.3 | 22.7 | |||
Derivatives in ASC 815 cash flow hedging relationships | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (0.5) | (5.5) | $ 1.5 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2.6 | (1.6) | (1.8) | ||
Derivatives in ASC 815 cash flow hedging relationships | Interest Rate Contract [Member] | Other income (expense) | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (5.6) | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (3.8) | ||||
Derivatives in ASC 815 cash flow hedging relationships | Currency contracts | Cost of goods sold | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 2.1 | (0.2) | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1.3) | 0.2 | |||
Derivatives in ASC 815 cash flow hedging relationships | Currency contracts | Other income (expense) | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 6.3 | (5.4) | 2 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 5.6 | 0 | 2.4 | ||
Derivatives in ASC 815 cash flow hedging relationships | Currency contracts | Cost of Goods, Total [Member] | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0.2 | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0.2 | ||||
Derivatives in ASC 815 cash flow hedging relationships | Commodity contracts | Cost of goods sold | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (1.4) | (2.2) | (0.3) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (4.6) | (0.3) | 0.4 | ||
Derivatives designated as hedging instruments under ASC 815 | Term Loan B (EUR) [Member] | |||||
Gains and losses on derivative instruments | |||||
Debt, Long-term and Short-term, Combined Amount | € | € 147.4 | ||||
Not Designated as Hedging Instrument [Member] | Currency contracts | Other income (expense) | |||||
Gains and losses on derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (0.5) | $ 7.1 | $ (10.9) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before income taxes: | |||
Domestic | $ 143.2 | $ 137.5 | $ 141.4 |
Foreign | 166.4 | 196.8 | 219.2 |
Income before income taxes | 309.6 | 334.3 | 360.6 |
Provision for income taxes: | |||
Federal-current | 59.4 | 1.4 | |
Federal-deferred | (69.4) | (45.8) | (73.1) |
State and local-current | (1.4) | (0.7) | (0.7) |
State and local - deferred | (6.3) | (17.6) | 38.2 |
Foreign-current | (87.6) | (62.5) | (83.5) |
Foreign-deferred | 10.2 | 14.8 | |
Provision for income taxes | (164.7) | (57) | (102.9) |
Foreign Earnings Repatriated | $ 173.1 | 38.9 | 25.9 |
U.S. federal income tax rate (as a percent) | 35.00% | ||
Income tax provision analysis | |||
Tax provision at U.S. federal income tax rate | $ (108.4) | (117) | (126.2) |
Change in provision resulting from: | |||
Separation tax costs | (39.1) | ||
Nondeductible Venezuela charge | (24.7) | 0 | 0 |
Effect of tax rates in foreign jurisdictions | 14.4 | 17.8 | 16.6 |
State and local income taxes, net | (6.4) | (11.9) | (0.7) |
U.S. tax on foreign earnings | (1.9) | 5.2 | 3.7 |
Adjustments to uncertain tax positions | (1.7) | 57.7 | (6.8) |
Release of state valuation allowance | 1.6 | 24.4 | |
Nontaxable income/non-deductible expenses | 1.2 | 6 | 9.7 |
Other | 2.7 | (2.8) | (4.2) |
Provision for income taxes | (164.7) | (57) | (102.9) |
Deferred tax assets: | |||
U.S. net operating loss carryforwards | 366.3 | 371.8 | |
Pension liabilities | 127.8 | 114.2 | |
Federal tax credit carryforwards | 124.3 | 49.6 | |
State net operating loss carryforwards | 53.2 | 51.1 | |
Reserves and allowances | 48.4 | 46.2 | |
Research and development | 41.7 | 34.5 | |
Liability for environmental remediation | 20.6 | 22.7 | |
Foreign net operating loss carryforwards | 15.5 | 18 | |
Liability for asbestos-related litigation | 10.8 | 192.4 | |
Other | 39.2 | 45.4 | |
Total deferred tax assets | 847.8 | 945.9 | |
Deferred tax liabilities: | |||
Properties and equipment | (45.3) | (52.8) | |
Intangible assets | (40.5) | (36.4) | |
Pension assets | (10.6) | (9.4) | |
Other | (4.7) | (8.2) | |
Total deferred tax liabilities | (101.1) | (106.8) | |
Valuation allowance: | |||
Currency and Other Losses in Venezuela | 73.2 | 1 | $ 6.9 |
Total valuation allowance | (10.3) | (12.5) | |
Separation tax costs | 19 | ||
Undistributed Earnings of Foreign Subsidiaries | 793.6 | ||
Net deferred tax assets | 736.4 | 826.6 | |
Foreign net operating loss carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | (4.6) | (4.2) | |
State net operating loss carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | (3.5) | (5.9) | |
Federal tax credit carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | (2.2) | $ (2.4) | |
Nondeductible transaction costs [Member] | |||
Valuation allowance: | |||
Undistributed Earnings of Foreign Subsidiaries | 14.5 | ||
Restrcuturing of foreign subsidiaries [Member] | |||
Valuation allowance: | |||
Undistributed Earnings of Foreign Subsidiaries | $ 5.6 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards | $ 124,300,000 | $ 49,600,000 | ||
Decrease (Increase) in deferred tax assets | 90,200,000 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2,200,000 | (24,400,000) | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 92,000,000 | |||
Net Operating Losses From Emergence and Settlement of Deferred Payment Obligation | 1,800,000,000 | |||
Net Operating Losses From Emergence | $ 670,000,000 | |||
Cash paid to settle deferred payment obligation | (632,000,000) | |||
US Federal Income Tax Deduction Upon Settlement of Warrant Held by Asbestos Trusts | $ 490,000,000 | |||
Period permitted to carryforward NOLs under federal income tax law (in years) | 20 years | |||
Expected Income Tax Deductions Generated from Deferred Payment Obligation | $ 30,000,000 | |||
Taxable Income Required to Realize DTA, Total | 1,900,000,000 | |||
Taxable Income Required to Realize DTA, Per Year | 95,000,000 | |||
Deferred Tax Assets, Valuation Allowance | 10,300,000 | 12,500,000 | ||
Undistributed foreign earnings | 793,600,000 | |||
Unrecorded deferred tax liability | 97,200,000 | |||
Foreign Earnings Repatriated | 173,100,000 | $ 38,900,000 | $ 25,900,000 | |
Foreign earnings expected to be repatriated | 173,000,000 | |||
Tax expense for repatriation attributable to current earnings | 19,000,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 1,048,000,000 | |||
Operating Loss Carryforwards, Valuation Allowance | 5,300,000 | |||
Federal Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 1,100 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards | $ 120,000,000 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Tax Disclosure [Abstract] | |||||
Amount of unrecognized tax benefits | $ 27 | $ 29.7 | $ 84.4 | ||
Amount of unrecognized tax benefits, excluding interest and penalties | 23.1 | 26.5 | 80.3 | ||
Unrecognized Tax Benefits, Resulting in Decrease of Deferred Tax Asset | 6.1 | 5.7 | |||
Additions for prior year tax positions | 5.4 | ||||
Roll forward of uncertain tax positions | |||||
Balance | 23.1 | 26.5 | 80.3 | $ 83.1 | |
Additions for current year tax positions | 0.1 | 0.9 | 6.3 | ||
Additions for prior year tax positions | 0.8 | 11 | 6.4 | ||
Reductions for prior year tax positions and reclassifications(1) | (1.6) | (5.7) | [1] | (9.6) | |
Reductions for expirations of statute of limitations | (1.5) | (0.4) | (5.9) | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (1.2) | (59.6) | |||
Material change to aggregate recorded liabilities for uncertain tax positions in the next twelve months | |||||
Unrecognized tax benefits, net of indemnification | 23.1 | ||||
Accrued interest and penalties related to uncertain tax positions | $ 3.9 | $ 3.2 | $ 4.1 | ||
Period in Which Liability for Unrecognized Tax Benefits Could Decrease | 12 months | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 1 | ||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjk2NGQ5ZjVhY2I1YTRjYmE4YjUyNDU3M2FmMjg2NmQ5fFRleHRTZWxlY3Rpb246RTJBQ0FDNDNENzJENUUxOTBCNjVGMTAwODcwNTUyQzkM} |
Pension Plans and Other Postr62
Pension Plans and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | ||||
Overfunded defined benefit pension plans | $ 26.1 | $ 44.1 | ||
Underfunded defined benefit pension plans | (456.5) | (457.5) | ||
Pension liabilities included in other current liabilities | $ (471.8) | |||
Postretirement Benefits Other Than Pensions | ||||
Percent of Net Actuarial Gains and Losses Over Accumulated Postretirement Benefit Obligation Recognized in Statement of Operations | 10.00% | |||
Other Comprehensive Income, Effect of Postretirement Plan Changes, Pre-tax, Net | $ 41.9 | |||
Effect of Postretirement Plan Changes, Amortize Amount from OCI | $ 39.5 | |||
Effect of Postretirement Plan Changes, Amortization Period | 5 months | |||
Gain on termination and curtailment of postretirement plans | $ 4.5 | $ 4.5 | 39.5 | $ 0 |
Defined contribution retirement plan | ||||
Percentage that the employer contributes of employee contributions under 401(k) plan | 100.00% | |||
Maximum percentage of employee compensation match by employer to defined contribution plan | 6.00% | |||
Costs related to defined contribution retirement plan | $ 15.2 | 13.8 | 13.2 | |
Pension Plans | ||||
Funded status of fully funded, underfunded, and unfunded pension plans: | ||||
Overfunded defined benefit pension plans | 26.1 | 44.1 | ||
Underfunded defined benefit pension plans | (118.9) | (79.5) | ||
Unfunded defined benefit pension plans | 337.6 | 378 | ||
Total underfunded and unfunded defined benefit pension plans | 456.5 | 457.5 | ||
Pension liabilities included in other current liabilities | (15.3) | (15.6) | ||
Net funded status | (445.7) | (429) | ||
U.S. qualified pension plans | ||||
Funded status of fully funded, underfunded, and unfunded pension plans: | ||||
Overfunded defined benefit pension plans | 0 | |||
Net funded status | (216.2) | (174.7) | ||
Postretirement Benefits Other Than Pensions | ||||
Gain on termination and curtailment of postretirement plans | 0 | 0 | 0 | |
Non-U.S. pension plans | ||||
Funded status of fully funded, underfunded, and unfunded pension plans: | ||||
Overfunded defined benefit pension plans | 26.1 | 44.1 | ||
Net funded status | (229.5) | (254.3) | ||
Postretirement Benefits Other Than Pensions | ||||
Gain on termination and curtailment of postretirement plans | 0 | 0 | 0 | |
Postretirement Benefits Other Than Pensions | ||||
Funded status of fully funded, underfunded, and unfunded pension plans: | ||||
Net funded status | $ (0.7) | (2.4) | ||
Postretirement Benefits Other Than Pensions | ||||
Minimum eligible age for medical plan benefits (in years) | 55 years | |||
Minimum eligible tenure of service for medical plan benefits (in years) | 10 years | |||
Gain on termination and curtailment of postretirement plans | $ 4.5 | $ 39.5 | $ 0 |
Pension Plans and Other Postr63
Pension Plans and Other Postretirement Benefit Plans (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | $ 2,027.7 | ||||
Benefit obligation at end of year | 1,900.2 | $ 2,027.7 | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 26.1 | 44.1 | |||
Current liabilities | (15.3) | (15.6) | |||
Net Periodic Benefit Cost | |||||
Defined Benefit Pension Mark to Market Adjustment | 46.8 | 128.3 | $ (50.6) | ||
Gain on termination of postretirement plans | $ (4.5) | (4.5) | (39.5) | 0 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Net prior service credit | (5.7) | (13.6) | (1.7) | ||
Amortization of prior service cost (credit) | 3.1 | 1.7 | (0.7) | ||
Prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year | 2.6 | ||||
U.S. qualified pension plans | |||||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | 1,437.3 | 1,326.8 | |||
Service cost | 25.7 | 23.5 | 25.2 | ||
Interest cost | 55.1 | 60 | 51.9 | ||
Amendments | (3.6) | ||||
Actuarial (gain) loss | (63) | 131.4 | |||
Benefits paid | (87) | (104.4) | (79.2) | ||
Benefit obligation at end of year | 1,364.5 | 1,437.3 | 1,326.8 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 1,262.6 | 1,145.2 | |||
Actual return on plan assets | (34.6) | 112.1 | |||
Employer contributions | 7.3 | 109.7 | |||
Benefits paid | (87) | (104.4) | (79.2) | ||
Fair value of plan assets at end of year | 1,148.3 | 1,262.6 | 1,145.2 | ||
Net funded status | (216.2) | (174.7) | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | ||||
Current liabilities | (7.1) | (7.1) | |||
Noncurrent liabilities | (209.1) | (167.6) | |||
Net amount recognized | (216.2) | (174.7) | |||
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||||
Prior service cost (credit) | (3.1) | 0.8 | |||
Net amount recognized | $ (3.1) | $ 0.8 | |||
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||||
Discount rate | 4.31% | 3.95% | |||
Rate of compensation increase | 4.70% | 4.70% | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||||
Discount rate | 3.95% | 4.76% | |||
Expected return on plan assets | 5.75% | 6.00% | |||
Rate of compensation increase | 4.70% | 4.70% | |||
Net Periodic Benefit Cost | |||||
Service cost | $ 25.7 | $ 23.5 | 25.2 | ||
Interest cost | 55.1 | 60 | 51.9 | ||
Expected return on plan assets | (70.4) | (69.9) | (68) | ||
Amortization of prior service cost (credit) | 0.3 | 0.7 | 0.7 | ||
Amortization of net deferred actuarial loss | 0 | 0 | |||
Defined Benefit Pension Mark to Market Adjustment | 42 | 89.2 | (65.8) | ||
Gain on termination of postretirement plans | 0 | 0 | 0 | ||
Net periodic benefit cost | 52.7 | 103.5 | (56) | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Net deferred actuarial (gain) loss | 0 | 0 | |||
Net prior service credit | (3.6) | ||||
Amortization of prior service cost (credit) | (0.3) | (0.7) | (0.7) | ||
Amortization of net deferred actuarial loss | 0 | 0 | |||
Loss on termination of postretirement plans | 0 | 0 | |||
Total recognized in other comprehensive (income) loss | (3.9) | (0.7) | (0.7) | ||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 48.8 | 102.8 | (56.7) | ||
Non-U.S. pension plans | |||||
Pension plans and other postretirement benefit plans | |||||
Defined Benefit Plan, Settlements, Plan Assets | 1.5 | 0 | |||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | 590.4 | 546.4 | |||
Service cost | 11.7 | 10.7 | 11.1 | ||
Interest cost | 16.1 | 22.2 | 20.6 | ||
Plan participants' contributions | 0.5 | 0.6 | |||
Amendments | 0 | ||||
Defined Benefit Plan Curtailments and Settlements | 1 | 0 | |||
Actuarial (gain) loss | (11.4) | 92.4 | |||
Benefits paid | (20.7) | (25.8) | (22.1) | ||
Currency exchange translation adjustments | (49.9) | (56.1) | |||
Benefit obligation at end of year | 535.7 | 590.4 | 546.4 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 336.1 | 306.5 | |||
Actual return on plan assets | 2.9 | 59.1 | |||
Employer contributions | 10.5 | 18.1 | |||
Plan participants' contributions | 0.5 | 0.6 | |||
Benefits paid | (20.7) | (25.8) | (22.1) | ||
Currency exchange translation adjustments | (21.6) | (22.4) | |||
Fair value of plan assets at end of year | 306.2 | 336.1 | 306.5 | ||
Net funded status | (229.5) | (254.3) | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 26.1 | 44.1 | |||
Current liabilities | (8.2) | (8.5) | |||
Noncurrent liabilities | (247.4) | (289.9) | |||
Net amount recognized | (229.5) | (254.3) | |||
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||||
Prior service cost (credit) | (0.3) | (0.3) | |||
Net amount recognized | $ (0.3) | $ (0.3) | |||
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||||
Discount rate | 3.00% | 2.97% | |||
Rate of compensation increase | 3.35% | 3.24% | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||||
Discount rate | 2.97% | 4.25% | |||
Expected return on plan assets | 4.11% | 5.06% | |||
Rate of compensation increase | 3.24% | 3.41% | |||
Net Periodic Benefit Cost | |||||
Service cost | $ 11.7 | $ 10.7 | 11.1 | ||
Interest cost | 16.1 | 22.2 | 20.6 | ||
Expected return on plan assets | (13) | (15.2) | (14) | ||
Amortization of prior service cost (credit) | 0 | ||||
Amortization of net deferred actuarial loss | 0 | ||||
Defined Benefit Pension Mark to Market Adjustment | (0.1) | 45.4 | 11 | ||
Gain on termination of postretirement plans | 0 | 0 | 0 | ||
Net curtailment and settlement loss | 0 | (0.1) | |||
Net periodic benefit cost | 14.7 | 63.1 | 28.6 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Net deferred actuarial (gain) loss | 0 | 0 | |||
Net prior service credit | 0 | ||||
Amortization of prior service cost (credit) | 0 | ||||
Amortization of net deferred actuarial loss | 0 | 0 | |||
Loss on termination of postretirement plans | 0 | 0 | |||
Total recognized in other comprehensive (income) loss | 0 | 0 | |||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 14.7 | 63.1 | 28.6 | ||
Non-U.S. pension plans | Overfunded pension plans | |||||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | [1] | 245.8 | |||
Benefits paid | [1] | (11.3) | (12.3) | ||
Benefit obligation at end of year | [1] | 240.3 | 245.8 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | [1] | 289.9 | |||
Benefits paid | [1] | (11.3) | (12.3) | ||
Fair value of plan assets at end of year | [1] | 266.4 | 289.9 | ||
Net funded status | [1] | $ 26.1 | 44.1 | ||
Non-U.S. pension plans | United Kingdom | |||||
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||||
Discount rate | (3.00%) | ||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||||
Expected return on plan assets | 3.75% | ||||
Non-U.S. pension plans | Canada | |||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||||
Expected return on plan assets | 5.25% | ||||
Pension Plans | |||||
Pension plans and other postretirement benefit plans | |||||
Defined Benefit Plan, Settlements, Plan Assets | $ 1.5 | 0 | |||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | 2,027.7 | 1,873.2 | |||
Service cost | 37.4 | 34.2 | |||
Interest cost | 71.2 | 82.2 | |||
Plan participants' contributions | 0.5 | 0.6 | |||
Amendments | (3.6) | 0 | |||
Defined Benefit Plan Curtailments and Settlements | 1 | 0 | |||
Actuarial (gain) loss | (74.4) | 223.8 | |||
Benefits paid | (107.7) | (130.2) | |||
Currency exchange translation adjustments | (49.9) | (56.1) | |||
Benefit obligation at end of year | 1,900.2 | 2,027.7 | 1,873.2 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 1,598.7 | 1,451.7 | |||
Actual return on plan assets | (31.7) | 171.2 | |||
Employer contributions | 17.8 | 127.8 | |||
Plan participants' contributions | 0.5 | 0.6 | |||
Benefits paid | (107.7) | (130.2) | |||
Currency exchange translation adjustments | (21.6) | (22.4) | |||
Fair value of plan assets at end of year | 1,454.5 | 1,598.7 | 1,451.7 | ||
Net funded status | (445.7) | (429) | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 26.1 | 44.1 | |||
Current liabilities | (15.3) | (15.6) | |||
Noncurrent liabilities | (456.5) | (457.5) | |||
Net amount recognized | (445.7) | (429) | |||
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||||
Prior service cost (credit) | (3.4) | 0.5 | |||
Net amount recognized | (3.4) | 0.5 | |||
Net Periodic Benefit Cost | |||||
Service cost | 37.4 | 34.2 | |||
Interest cost | 71.2 | 82.2 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year | 0.2 | ||||
Postretirement Benefits Other Than Pensions | |||||
Change in Projected Benefit Obligation (PBO): | |||||
Benefit obligation at beginning of year | 2.4 | 57.2 | |||
Service cost | 0.1 | 0.2 | |||
Interest cost | 0.1 | 1.1 | 2.2 | ||
Amendments | (2.1) | (51.5) | |||
Actuarial (gain) loss | 0.4 | (1) | |||
Medicare subsidy receipts | 1 | 0.2 | 1.4 | ||
Benefits paid | (1.1) | (3.7) | (4.5) | ||
Benefit obligation at end of year | 0.7 | 2.4 | 57.2 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Employer contributions | 0.1 | 3.5 | |||
Medicare subsidy receipts | 1 | 0.2 | 1.4 | ||
Benefits paid | (1.1) | (3.7) | (4.5) | ||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Net funded status | (0.7) | (2.4) | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | |||||
Current liabilities | (0.1) | ||||
Noncurrent liabilities | (0.7) | (2.3) | |||
Net amount recognized | (0.7) | (2.4) | |||
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||||
Accumulated actuarial loss (gain) | 5.9 | 6.2 | |||
Prior service cost (credit) | (7.1) | (12.9) | |||
Net amount recognized | $ (1.2) | $ (6.7) | |||
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||||
Discount rate | 4.40% | 4.18% | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||||
Discount rate | 4.18% | 4.26% | |||
Net Periodic Benefit Cost | |||||
Service cost | $ 0.1 | 0.2 | |||
Interest cost | $ 0.1 | 1.1 | 2.2 | ||
Amortization of prior service cost (credit) | (3.4) | (2.4) | 0 | ||
Amortization of net deferred actuarial loss | 0.7 | 0.4 | |||
Defined Benefit Pension Mark to Market Adjustment | 0 | ||||
Gain on termination of postretirement plans | (4.5) | (39.5) | 0 | ||
Net periodic benefit cost | (7.1) | (40.7) | 2.8 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Net deferred actuarial (gain) loss | 0.4 | (1) | (4.3) | ||
Net prior service credit | (2.1) | (13.6) | (1.7) | ||
Amortization of prior service cost (credit) | 3.4 | 2.4 | 0 | ||
Amortization of net deferred actuarial loss | 0.7 | 0 | 0.4 | ||
Loss on termination of postretirement plans | 4.5 | 12.2 | 0 | ||
Total recognized in other comprehensive (income) loss | 5.5 | 0 | (6.4) | ||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (1.6) | $ (40.7) | $ (3.6) | ||
Defined Benefit Plan, Future Amortization of Gain (Loss) | (0.6) | ||||
Fair Value, Inputs, Level 3 [Member] | Non-U.S. pension plans | |||||
Change in Projected Benefit Obligation (PBO): | |||||
Currency exchange translation adjustments | (4.2) | ||||
Change in Plan Assets: | |||||
Actual return on plan assets | (1.2) | ||||
Fair value of plan assets at end of year | 138.5 | ||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||
Defined Benefit Plan, Purchases, Sales, and Settlements | 145.6 | ||||
Defined Benefit Plan, Assets Transferred to (from) Plan | $ (1.7) | ||||
[1] | (1)Plans intended to be advance-funded. |
Pension Plans and Other Postr64
Pension Plans and Other Postretirement Benefit Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Funded Status of Pension Plans | ||||
Projected benefit obligation | $ 1,900.2 | $ 2,027.7 | ||
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Total payments net of subsidy | 107.8 | 133.7 | $ 104.4 | |
Total Payments Net of Subsidy | ||||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year One | 107.5 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Two | 106.6 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Three | 108.2 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Four | 110 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Five | 112.1 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Five Fiscal Years Thereafter | 583.8 | |||
Pension Plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | 1,900.2 | 2,027.7 | 1,873.2 | |
Defined Benefit Plan, Fair Value of Plan Assets | 1,454.5 | 1,598.7 | 1,451.7 | |
Net funded status | (445.7) | (429) | ||
Benefits paid | (107.7) | (130.2) | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 1,804 | 1,933 | ||
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 1,625.2 | 658.6 | ||
Accumulated benefit obligation | 1,543.2 | 626.3 | ||
Fair value of plan assets | 1,155.6 | 230.2 | ||
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | $ 107.7 | $ 130.2 | ||
U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | ||
Funded Status of Pension Plans | ||||
Projected benefit obligation | $ 1,364.5 | $ 1,437.3 | 1,326.8 | |
Defined Benefit Plan, Fair Value of Plan Assets | 1,148.3 | 1,262.6 | 1,145.2 | |
Net funded status | (216.2) | (174.7) | ||
Benefits paid | (87) | (104.4) | (79.2) | |
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 1,364.4 | 352.6 | ||
Accumulated benefit obligation | 1,314.1 | 351.8 | ||
Fair value of plan assets | 1,148.2 | 220.8 | ||
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | 87 | $ 104.4 | 79.2 | |
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 85.7 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 86 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 87 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 87.9 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 89.1 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 457.5 | |||
Total Payments Net of Subsidy | ||||
Estimated future benefit payments, amount excluded | $ 28 | |||
Discount rate | 4.31% | 3.95% | ||
Percentage of high yield bonds in foreign issuers portfolio | 30.00% | |||
Expected return on plan assets | 5.75% | 6.00% | ||
Average annual returns over one year (as a percent) | (3.00%) | |||
Average annual returns over three years (as a percent) | 4.00% | |||
Average annual returns over five years (as a percent) | 6.00% | |||
Average annual returns over ten years (as a percent) | 5.00% | |||
U.S. qualified pension plans | Underfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [1] | $ 1,257.5 | $ 1,329.8 | |
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 1,148.3 | 1,262.6 | |
Net funded status | [1] | (109.2) | (67.2) | |
Benefits paid | [1] | (79.7) | (69.7) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | [1] | 79.7 | 69.7 | |
Non-U.S. pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | 535.7 | 590.4 | 546.4 | |
Defined Benefit Plan, Fair Value of Plan Assets | 306.2 | 336.1 | 306.5 | |
Net funded status | (229.5) | (254.3) | ||
Benefits paid | (20.7) | (25.8) | (22.1) | |
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 260.8 | 306 | ||
Accumulated benefit obligation | 229.1 | 274.5 | ||
Fair value of plan assets | 7.4 | 9.4 | ||
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | 20.7 | $ 25.8 | 22.1 | |
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 21.8 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 20.6 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 21.2 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 22.1 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 23 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 126.1 | |||
Total Payments Net of Subsidy | ||||
Discount rate | 3.00% | 2.97% | ||
Percentage of United Kingdom and German pension plans to total non-U.S. pension plans | 87.00% | 86.00% | ||
Expected return on plan assets | 4.11% | 5.06% | ||
Non-U.S. pension plans | Fully-Funded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [1] | $ 240.3 | $ 245.8 | |
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 266.4 | 289.9 | |
Net funded status | [1] | 26.1 | 44.1 | |
Benefits paid | [1] | (11.3) | (12.3) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | [1] | 11.3 | 12.3 | |
Non-U.S. pension plans | Underfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [1] | 49.5 | 58.5 | |
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 39.8 | 46.2 | |
Net funded status | [1] | (9.7) | (12.3) | |
Benefits paid | [1] | (2.3) | (4.7) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | [1] | 2.3 | 4.7 | |
Non-U.S. pension plans | Unfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [2] | 245.9 | 286.1 | |
Net funded status | [2] | (245.9) | (286.1) | |
Benefits paid | [2] | (7.1) | (8.8) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | [2] | $ 7.1 | $ 8.8 | |
Non-U.S. pension plans | United Kingdom | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | ||
Total Payments Net of Subsidy | ||||
Discount rate | (3.00%) | |||
Expected return on plan assets | 3.75% | |||
Non-U.S. pension plans | Germany | ||||
Total Payments Net of Subsidy | ||||
Discount rate | (2.57%) | |||
Postretirement Benefits Other Than Pensions | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | $ 0.7 | $ 2.4 | 57.2 | |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | 0 | |
Net funded status | (0.7) | (2.4) | ||
Benefits paid | (1.1) | (3.7) | (4.5) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | 1.1 | 3.7 | 4.5 | |
Medicare Subsidy Receipts | (1) | $ (0.2) | $ (1.4) | |
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 0.2 | |||
Medicare Subsidy Receipts | ||||
Prescription Drug Subsidy Receipts, Next Twelve Months | 0 | |||
Prescription Drug Subsidy Receipts, Year Two | 0 | |||
Prescription Drug Subsidy Receipts, Year Three | 0 | |||
Prescription Drug Subsidy Receipts, Year Four | 0 | |||
Prescription Drug Subsidy Receipts, Year Five | 0 | |||
Prescription Drug Subsidy Receipts, after Year Five | $ 0 | |||
Total Payments Net of Subsidy | ||||
Discount rate | 4.40% | 4.18% | ||
Postretirement Benefits Other Than Pensions | Unfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [2] | $ 107 | $ 107.5 | |
Net funded status | [2] | (107) | (107.5) | |
Benefits paid | [2] | (7.3) | (34.7) | |
Estimated Expected Future Benefit Payments Reflecting Future Service and Medicare Subsidy Receipts | ||||
Defined Benefit Plan, Benefits Paid | [2] | $ 7.3 | $ 34.7 | |
Equity Securities Domestic [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 11.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 11.00% | 11.00% | ||
Equity Securities Foreign [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 7.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | 6.00% | ||
Short Term Debt Securities [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 6.00% | 10.00% | ||
Intermediate Debt Securities [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 28.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 28.00% | 26.00% | ||
Long Term Debt Securities [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 46.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 46.00% | 45.00% | ||
Other Investment [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 2.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 2.00% | ||
[1] | (1)Plans intended to be advance-funded. | |||
[2] | Plans intended to be pay-as-you-go. |
Pension Plans and Other Postr65
Pension Plans and Other Postretirement Benefit Plans (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 1,454.5 | $ 1,598.7 | $ 1,451.7 |
U.S. qualified pension plans | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Percentage of Plan Assets | 100.00% | 100.00% | |
Assets Measured at Fair value | $ 1,148.3 | $ 1,262.6 | 1,145.2 |
Expected return on plan assets | 5.75% | 6.00% | |
U.S. qualified pension plans | Equity Securities Domestic [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 11.00% | ||
Percentage of Plan Assets | 11.00% | 11.00% | |
U.S. qualified pension plans | Equity Securities Foreign [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 7.00% | ||
Percentage of Plan Assets | 7.00% | 6.00% | |
U.S. qualified pension plans | Short Term Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% | ||
Percentage of Plan Assets | 6.00% | 10.00% | |
U.S. qualified pension plans | Intermediate Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 28.00% | ||
Percentage of Plan Assets | 28.00% | 26.00% | |
U.S. qualified pension plans | Long Term Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 46.00% | ||
Percentage of Plan Assets | 46.00% | 45.00% | |
U.S. qualified pension plans | U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 120.1 | $ 134.2 | |
U.S. qualified pension plans | Non-U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 81.8 | 76.8 | |
U.S. qualified pension plans | Corporate bond group trust funds - intermediate-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 320.4 | 324.9 | |
U.S. qualified pension plans | Corporate bond group trust funds - long-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 525.6 | 567.1 | |
U.S. qualified pension plans | Other fixed income group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 25.4 | 23.7 | |
U.S. qualified pension plans | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 57.3 | 118.8 | |
U.S. qualified pension plans | Annuity and immediate participation contracts | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 17.7 | 17.1 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 1,148.3 | 1,262.6 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 120.1 | 134.2 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Non-U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 81.8 | 76.8 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Corporate bond group trust funds - intermediate-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 320.4 | 324.9 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Corporate bond group trust funds - long-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 525.6 | 567.1 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Other fixed income group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 25.4 | 23.7 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 57.3 | 118.8 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | Annuity and immediate participation contracts | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 17.7 | 17.1 | |
Non-U.S. pension plans | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 306.2 | $ 336.1 | 306.5 |
Percentage of foreign plan assets to global pension assets | 21.00% | ||
Expected return on plan assets | 4.11% | 5.06% | |
Plan contributions and funding | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 12 | ||
Non-U.S. pension plans | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 159.8 | $ 326.7 | |
Non-U.S. pension plans | Government and agency securities | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 2.5 | 2.6 | |
Non-U.S. pension plans | Corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 1.4 | 1.1 | |
Non-U.S. pension plans | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 141.8 | 4.6 | |
Non-U.S. pension plans | Cash | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.7 | 1.1 | |
Non-U.S. pension plans | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.7 | 1.1 | |
Non-U.S. pension plans | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Cash | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.7 | 1.1 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 167 | 335 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 159.8 | 326.7 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | Government and agency securities | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 2.5 | 2.6 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 1.4 | 1.1 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 3.3 | $ 4.6 | |
Non-U.S. pension plans | Significant Unobservable Inputs (Level 3) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 138.5 | ||
Non-U.S. pension plans | Significant Unobservable Inputs (Level 3) | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 138.5 | ||
Non-U.S. pension plans | United Kingdom | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Percentage of Plan Assets | 100.00% | 100.00% | |
Defined Benefit Plan Percentage of Certain Specified foreign Plan Assets to Total Foreign Plan Assets | 85.00% | 84.00% | |
Expected return on plan assets | 3.75% | ||
Non-U.S. pension plans | United Kingdom | Diversified growth funds | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | ||
Percentage of Plan Assets | 10.00% | 11.00% | |
Non-U.S. pension plans | United Kingdom | U.K. gilts | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 29.00% | ||
Percentage of Plan Assets | 29.00% | 42.00% | |
Non-U.S. pension plans | United Kingdom | U.K. corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 8.00% | ||
Percentage of Plan Assets | 8.00% | 47.00% | |
Non-U.S. pension plans | United Kingdom | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 53.00% | ||
Percentage of Plan Assets | 53.00% | ||
Non-U.S. pension plans | Canada | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Percentage of Plan Assets | 100.00% | 100.00% | |
Defined Benefit Plan Percentage of Certain Specified foreign Plan Assets to Total Foreign Plan Assets | 9.00% | 10.00% | |
Expected return on plan assets | 5.25% | ||
Non-U.S. pension plans | Canada | Equity securities | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 27.00% | ||
Percentage of Plan Assets | 28.00% | 27.00% | |
Non-U.S. pension plans | Canada | Bonds | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 58.00% | ||
Percentage of Plan Assets | 57.00% | 58.00% | |
Non-U.S. pension plans | Canada | Other Investments [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 15.00% | ||
Percentage of Plan Assets | 15.00% | 15.00% | |
Non-U.S. pension plans | Other country | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan Percentage of Certain Specified foreign Plan Assets to Total Foreign Plan Assets | 6.00% | ||
Percentage of individual foreign plan to total foreign plan assets | 3.00% | ||
Postretirement Benefits Other Than Pensions | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 0 | $ 0 | $ 0 |
Other Balance Sheet Accounts (D
Other Balance Sheet Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Current Liabilities | ||
Accrued compensation | $ 79.2 | $ 77 |
Income tax payable | 49.1 | 34.1 |
Customer volume rebates | 38.2 | 37.8 |
Environmental contingencies | 21.8 | 21.5 |
Accrued interest | 19 | 21 |
Deferred revenue | 16.9 | 19.4 |
Pension liabilities | 15.3 | 15.6 |
Other accrued liabilities | 116.6 | 112.1 |
Other Liabilities, Current | $ 356.1 | $ 338.5 |
Commitments and Contingent Li67
Commitments and Contingent Liabilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)facilitypaymentshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) | Feb. 03, 2014USD ($) | |
Environmental remediation | ||||||
ZAI PD Account Funding | $ 34.4 | |||||
ZAI P D Account, Payment on Third Anniversary of Effective Date of Joint Plan | $ 30 | |||||
Deferred payment obligations | $ 29.1 | $ 28.2 | ||||
ZAI P D Account, Maximum Number of Contingent Deferred Payments | payment | 10 | |||||
ZAI P D Account, Deferred Payments, Each Year for Twenty Years | $ 8 | |||||
Period in Which ZAI PD Contingent Deferred Payments Will be Made | 20 years | |||||
Minimum ZAI P D Account Assets for Condition in Relation to Contingent Obligation Payments | $ 10 | |||||
Frequency of PD Trust Payments | 6 months | |||||
Number of Shares Issuable under Warrant | shares | 77,372,257 | |||||
Gain from emergence from bankruptcy | $ 9 | |||||
Estimated liability for environmental investigative and remediation costs | $ 55.6 | 61.7 | ||||
Pre-tax charges for environmental matters | 6.6 | 13.8 | $ 8.2 | |||
Net cash expenditures | 12.7 | 12.4 | $ 14 | |||
Claim payments related to emergence from bankruptcy | 76.5 | |||||
Vermiculite Related Matters [Member] | ||||||
Environmental remediation | ||||||
Estimated liability for environmental investigative and remediation costs | $ 18.7 | 19.4 | ||||
Maximum number of operating plants under U.S. Environmental Protection Agency (EPA) reinvestigation | facility | 105 | |||||
Non Vermiculite Related Matters [Member] | ||||||
Environmental remediation | ||||||
Estimated liability for environmental investigative and remediation costs | $ 36.9 | $ 42.3 |
Commitments and Contingent Li68
Commitments and Contingent Liabilities (Details 2) $ in Millions | Dec. 31, 2015USD ($) |
Financial Guarantee | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 126.8 |
Surety Bonds | |
Financial assurances | |
Gross financial assurances issued and outstanding | 34.3 |
Standby Letters of Credit | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 92.5 |
Restructuring Expenses and Re69
Restructuring Expenses and Related Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring expenses and related asset impairments | |||
Restructuring Charges | $ 22.8 | $ 8.1 | $ 12.5 |
Impairment of Long-Lived Assets to be Disposed of | 0.1 | 14.3 | |
Total restructuring expenses and asset impairments | 22.9 | 22.4 | 12.5 |
Other than Temporary Impairment Losses, Investments | 4.5 | ||
Repositioning expenses | 64.3 | 0 | 0 |
Restructuring Liability | |||
Balance at beginning of the period | 4.5 | 4.4 | 3 |
Accruals for severance and other employee related costs | 22.8 | 7.7 | 7.6 |
Payments | (16.4) | (7.9) | (6.4) |
Currency translation adjustments and other | (0.2) | 0.3 | 0.2 |
Total restructuring liability | 10.7 | 4.5 | $ 4.4 |
Grace Construction Products | |||
Restructuring expenses and related asset impairments | |||
Restructuring Charges | 6.1 | 2.7 | |
Impairment of Long-Lived Assets to be Disposed of | 9.8 | ||
Grace Catalysts Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring Charges | 4.9 | 1.9 | |
Grace Materials Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring Charges | 1.2 | 0.3 | |
Corporate [Member] | |||
Restructuring expenses and related asset impairments | |||
Restructuring Charges | 10.6 | $ 3.2 | |
Professional service fees [Member] | |||
Restructuring expenses and related asset impairments | |||
Repositioning expenses | 49.8 | ||
Employee-related costs [Member] | |||
Restructuring expenses and related asset impairments | |||
Repositioning expenses | 10.4 | ||
Asset impairments [Member] | |||
Restructuring expenses and related asset impairments | |||
Repositioning expenses | $ 4.1 |
Other Expense, net (Details)
Other Expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Restructuring expenses and asset impairments | $ 22.9 | $ 22.4 | $ 12.5 |
Net (gain) loss on sales of investments and disposals of assets | 11.8 | 2.2 | (0.5) |
Provision for environmental remediation | 6.6 | 13.8 | 8.2 |
Interest income | 0.5 | 1.4 | 1 |
Currency transaction effects | (0.1) | (1.1) | 4 |
Other miscellaneous expense (income) | (0.7) | 4 | 9.2 |
Total other expense, net | $ 17.8 | $ 27.5 | $ 15 |
Other Comprehensive Income (L71
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined benefit pension and other postretirement plans, Pre-Tax Amount | |||
Amortization of net prior service cost included in net periodic benefit cost, Pre-Tax Amount | $ (3.1) | $ (1.7) | $ 0.7 |
Amortization of net deferred actuarial loss included in net periodic benefit cost, Pre-Tax Amount | 0.7 | 0.4 | |
Net prior service credit, Pre-Tax Amount | 5.7 | 13.6 | 1.7 |
Net Deferred Actuarial Loss Arising During Period, Pre-Tax Amount | (0.4) | 1 | 4.3 |
Other Comprehensive Income, Gain on termination of postretirement plans, Pre-Tax | (4.5) | ||
Benefit plans, net, Pre-Tax Amount | (1.6) | 0.7 | 7.1 |
Foreign Currency Transaction and Translation Adjustment, Pre-Tax Amount | (43.3) | (28) | (23.6) |
Other Comprehensive Income Gain (Loss)on curtailment of postretirement plans pretax | (12.2) | ||
Loss from Hedging Activities, Pre-Tax Amount | 2.1 | (7.1) | (0.3) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent | 0.8 | ||
Loss on Securities Available for Sale, Pre-Tax Amount | (0.1) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 0.1 | ||
Other Comprehensive Income (Loss), Attributable to W. R. Grace and Co Shareholders, Pre-Tax Amount | (42.8) | (33.7) | (16.7) |
Defined benefit pension and other postretirement plans, Tax Benefit (Expense) | |||
Amortization of Net prior service credit included in net periodic benefit cost, Tax Benefit (Expense) | 1 | 0.6 | (0.2) |
Amortization of Net Deferred Actuarial Gain (Loss), Recognized in Net Periodic Benefit Cost Tax Benefit (Expense) | (0.2) | (0.1) | |
Net Prior Service Cost (Credit), Tax Benefit (Expense) | (1.9) | (4.8) | (0.6) |
Net Deferred Actuarial Loss Arising During Period Tax Benefit (Expense) | 0.1 | (0.4) | (1.6) |
Other Comprehensive Income Gain (Loss)on curtailment of postretirement plans tax | 1.3 | ||
Other Comprehensive Income, Gain (Loss) on termination of postretirement plans, Tax | 1.6 | ||
Benefit plans, net Tax Benefit (Expense) | 0.6 | (3.3) | (2.5) |
Currency translation adjustments, Tax Benefit (Expense) | 0 | 0 | 0 |
Gain (loss) from hedging activities, Tax Benefit (Expense) | (0.8) | 2.6 | 0.1 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Tax, Portion Attributable to Parent | 0 | ||
Loss on Securities Available-for-sale Tax Benefit (Expense) | 0 | 0 | |
Other comprehensive income (loss) attributable to W. R. Grace and Co. shareholders, Tax Benefit (Expense) | (0.2) | (0.7) | (2.4) |
Defined benefit pension and other postretirement plans, After Tax Amount | |||
Amortization of Net prior service credit included in net periodic benefit cost, After-Tax Amount | (2.1) | (1.1) | 0.5 |
Amortization of Net Deferred Actuarial Gain (Loss) Recognized in Net Periodic Benefit Cost After Tax Amount | 0.5 | 0.3 | |
Net Prior Service Cost (Credit) Arising During Period, Net of Tax | 3.8 | 8.8 | 1.1 |
Net Deferred Actuarial Loss Arising During Period, Net of Tax | (0.3) | 0.6 | 2.7 |
Other Comprehensive Income, Gain (Loss) on termination of postretirement plans, Net of Tax | (2.9) | ||
Other Comprehensive Income Gain (Loss)on curtailment of postretirement plans net of tax | (10.9) | ||
Benefit plans, net After-Tax Amount | (1) | (2.6) | 4.6 |
Currency Transaction and Translation Adjustment, Net of Tax | (43.3) | (28) | (23.6) |
Gain (loss) from hedging activities, Net of Tax | 1.3 | (4.5) | (0.2) |
Other than Temporary Impairment Losses, Investments, After-Tax Amount | 0 | 0.8 | 0 |
Loss on Securities Available-for-sale, Post Tax Amount | (0.1) | ||
(Loss) gain on securities available for sale, net of income taxes | 0 | (0.1) | 0.1 |
Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders, Net of Tax | $ (43) | $ (34.4) | $ (19.1) |
Other Comprehensive Income (L72
Other Comprehensive Income (Loss) (Details 2) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015 | Dec. 31, 2015country | Dec. 31, 2012USD ($) | |
Equity [Abstract] | ||||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ 3 | $ 4 | $ 6.6 | $ 2 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (66.1) | (22.8) | 5.2 | 28.8 | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (3.7) | (5) | (0.5) | (0.3) | ||
Accumulated Other Comprehensive Income (Loss), Unrealized loss on investment | 0 | 0 | (0.8) | (0.8) | ||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 0.1 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (66.8) | (23.8) | 10.6 | $ 29.7 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 3.5 | 9.4 | 3.8 | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, before Reclassification Adjustments, Net of Tax | (43.3) | (28) | (23.6) | |||
Other Comprehensive Income (Loss), Before Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0.6 | (3.2) | 1.2 | |||
Other Comprehensive Income Loss, before Reclassification, Unrealized Loss on Investment, Net Of Tax | 0 | 0 | 0 | |||
Other Comprehensive Income Loss before Reclassification Adjustment For Sale Of Securities Included In Net Income Net Of Tax | 0 | (0.7) | 0.1 | |||
Other Comprehensive Income (loss) Before Reclassifications, Net of Tax | (39.2) | (22.5) | (18.5) | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (4.5) | (12) | 0.8 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0.7 | (1.3) | (1.4) | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Unrealized loss on investment | 0 | 0.8 | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0.6 | 0 | |||
Other Comprehensive Income Loss Reclassification Adjustment Net Of Tax | 3.8 | 11.9 | 0.6 | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 1 | 2.6 | (4.6) | |||
Currency Transaction and Translation Adjustment, Net of Tax | (43.3) | (28) | (23.6) | |||
Gain (loss) from hedging activities, Net of Tax | 1.3 | (4.5) | (0.2) | |||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During period, Net of Tax, Portion Attributable to Parent | 0 | (0.8) | 0 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 0 | (0.1) | 0.1 | |||
Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders, Net of Tax | $ (43) | $ (34.4) | $ (19.1) | |||
Defined benefit pension and other postretirement plans: | ||||||
Number of countries in which the entity has operations | 50 | 40 |
Shareholders' Equity (Deficit73
Shareholders' Equity (Deficit) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Authorized shares | 300,000,000 | 300,000,000 | |
Par value of common stock (in dollars per share) | $ 0.01 | $ 0.01 | |
Shares reserved for issuance of stock options | 4,265,421 | ||
Stock options exercised | 728,408 | 793,359 | 1,464,294 |
Exercise of stock options | $ 26.9 | $ 23.4 | $ 34.4 |
Common Stock, Shares, Issued | 9,378 | ||
Common stock activity roll forward | |||
Common stock outstanding at the beginning of the period (in shares) | 72,922,565 | 77,046,143 | |
Stock options exercised | 728,408 | 793,359 | 1,464,294 |
Shares issued | 9,378 | 19,560 | |
Shares forfeited | (3,120) | ||
Shares repurchased | (3,123,716) | (4,936,497) | |
Common stock outstanding at the end of the period (in shares) | 70,533,515 | 72,922,565 | 77,046,143 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock incentive plan | |||
Minimum exercise price to fair market value on the date of grant (as a percent) | 100.00% | ||
Stock Option Activity Roll Forward, Number of Shares | |||
Options exercised (in shares) | (728,408) | (793,359) | (1,464,294) |
Minimum | |||
Stock incentive plan | |||
Stock incentive plan vesting period | 1 year | ||
Maximum | |||
Stock incentive plan | |||
Stock incentive plan vesting period | 3 years | ||
Employee nonstatutory stock options | |||
Stock Option Activity Roll Forward, Number of Shares | |||
Options outstanding at the beginning of the period (in shares) | 2,523,790 | 2,885,055 | 4,024,484 |
Options exercised (in shares) | (728,408) | (793,359) | (1,464,294) |
Options forfeited (in shares) | (25,000) | (42,424) | (95,139) |
Options terminated (in shares) | (500) | (1,381) | |
Options granted (in shares) | 550,805 | 474,518 | 421,385 |
Options outstanding at the end of the period (in shares) | 2,320,687 | 2,523,790 | 2,885,055 |
Stock Option Activity Roll Forward, Average Exercise Price | |||
Average exercise price at the beginning of the period (in dollars per share) | $ 55.77 | $ 42.60 | $ 32.33 |
Options exercised (in dollars per share) | 36.85 | 29.53 | 23.46 |
Options forfeited (in dollars per share) | 92.57 | 68.07 | 52.17 |
Options terminated (in dollars per share) | 100.29 | 42.26 | |
Options granted (in dollars per share) | $ 96.01 | 93.39 | 76.70 |
Average exercise price at the end of the period (in dollars per share) | 55.77 | 42.60 | |
Stock Option Activity, Additional Disclosures | |||
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 19.28 | $ 20.12 | $ 19.26 |
Stock Option Activity Roll Forward, Non-vested, Number of Shares | |||
Non-vested stock options at the beginning of the period (in shares) | 959,842 | ||
Granted (in shares) | 550,805 | ||
Vested/exercised (in shares) | (511,146) | ||
Forfeited (in shares) | (25,500) | ||
Non-vested stock options outstanding at the end of the period (in shares) | 974,001 | 959,842 | |
Stock Option Activity Roll Forward, Non-vested, Weighted-Average Grant Date Fair Value | |||
Weighted average grant date fair value of non vested stock options at the beginning of the period (in dollars per share) | $ 20.12 | ||
Granted (in dollars per share) | 19.28 | ||
Vested/Exercised (in dollars per share) | 18.83 | ||
Forfeited (in dollars per share) | $ 15.37 | ||
Weighted average grant date fair value of non vested Stock options at the end of the period (in dollars per share) | $ 20.12 | ||
Summary of intrinsic value | |||
Intrinsic value for the options outstanding | $ 66.7 | ||
Intrinsic value for the options exercisable | 59.9 | ||
Total intrinsic value of all options exercised | $ 46.1 | $ 53.6 | $ 83.2 |
Restricted Stock Units (RSUs) [Member] | |||
Stock incentive plan | |||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 10,641 | 8,570 | 5,513 |
Stock Option Activity, Additional Disclosures | |||
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 96.12 | $ 92.92 | $ 76.66 |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 2) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options, additional information | |||
Total unrecognized stock-based compensation expense | $ 5.8 | ||
Weighted-average period over which this expense will be recognized | 9 months 18 days | ||
Employee nonstatutory stock options | |||
Stock Incentive Plans | |||
Number Outstanding (in shares) | 2,320,687 | ||
Number Exercisable (in shares) | 1,349,616 | ||
Weighted-average remaining contractual term of exercisable options (in years) | 2 years 4 months 28 days | ||
Options Granted | |||
Number of nonstatutory stock options granted (in shares) | 550,805 | 474,518 | 421,385 |
Stock or Unit Option Plan Expense | $ 9.9 | $ 12 | $ 12.7 |
Assumptions used for estimating the fair value of stock options | |||
Weighted average expected volatility (as a percent) | 24.50% | 28.60% | 33.30% |
Risk-free rate | 1.30% | 1.25% | 0.61% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility rate, minimum | 23.00% | 28.20% | 32.30% |
Volatility rate, maximum | 27.20% | 28.70% | 34.30% |
Options, additional information | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.28 | $ 20.12 | $ 19.26 |
Stock or Unit Option Plan Expense | $ 9.9 | $ 12 | $ 12.7 |
Employee nonstatutory stock options | Minimum | |||
Assumptions used for estimating the fair value of stock options | |||
Expected term | 3 years | 3 years | 3 years |
Employee nonstatutory stock options | Maximum | |||
Assumptions used for estimating the fair value of stock options | |||
Expected term | 4 years | 4 years | 4 years |
Employee nonstatutory stock options | Exercise Price Range One [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | $ 0 | ||
Exercise price, high end of range (in dollars per share) | 10 | ||
Employee nonstatutory stock options | Exercise Price Range Two [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 10 | ||
Exercise price, high end of range (in dollars per share) | 20 | ||
Employee nonstatutory stock options | Exercise Price Range Three [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 20 | ||
Exercise price, high end of range (in dollars per share) | 30 | ||
Employee nonstatutory stock options | Exercise Price Range Four [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 30 | ||
Exercise price, high end of range (in dollars per share) | 40 | ||
Employee nonstatutory stock options | Exercise Price Range Five [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 40 | ||
Exercise price, high end of range (in dollars per share) | $ 50 | ||
Number Outstanding (in shares) | 985,206 | ||
Number Exercisable (in shares) | 985,206 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 11 months 1 day | ||
Weighted-Average Exercise Price (in dollars per share) | $ 45.30 | ||
Employee nonstatutory stock options | Exercise Price Range Six [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 50 | ||
Exercise price, high end of range (in dollars per share) | 60 | ||
Employee nonstatutory stock options | Exercise Price Range Seven [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 60 | ||
Exercise price, high end of range (in dollars per share) | $ 70 | ||
Number Outstanding (in shares) | 16,499 | ||
Number Exercisable (in shares) | 16,499 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 11 months 8 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 66.70 | ||
Employee nonstatutory stock options | Exercise Price Range Eight [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 70 | ||
Exercise price, high end of range (in dollars per share) | $ 80 | ||
Number Outstanding (in shares) | 332,279 | ||
Number Exercisable (in shares) | 209,074 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 3 months 26 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 76.66 | ||
Employee nonstatutory stock options | Exercise Price Range Nine [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 80 | ||
Exercise price, high end of range (in dollars per share) | $ 90 | ||
Number Outstanding (in shares) | 1,631 | ||
Number Exercisable (in shares) | 890 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 5 months 27 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 84.74 | ||
Employee nonstatutory stock options | Exercise Price Range Ten [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 90 | ||
Exercise price, high end of range (in dollars per share) | $ 100 | ||
Number Outstanding (in shares) | 957,572 | ||
Number Exercisable (in shares) | 131,072 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 11 months 19 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 92.94 | ||
Employee nonstatutory stock options | Exercise Price Range Eleven [Member] | |||
Stock Incentive Plans | |||
Exercise price, low end of range (in dollars per share) | 100 | ||
Exercise price, high end of range (in dollars per share) | $ 110 | ||
Number Outstanding (in shares) | 27,500 | ||
Number Exercisable (in shares) | 6,875 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 1 month 27 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 100.29 | ||
Restricted Stock Units (RSUs) [Member] | |||
Options Granted | |||
Stock or Unit Option Plan Expense | $ 5.8 | $ 0 | $ 0 |
Options, additional information | |||
Performance Based Units Granted | 123,846 | 110,993 | 111,770 |
Performance Based Units, Forfeitures | 10,641 | 8,570 | 5,513 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 96.12 | $ 92.92 | $ 76.66 |
Percent of Units Expected to Settle in Common Stock | 53.00% | 53.00% | 54.00% |
Percent of Units Expected to Settle in Cash | 47.00% | 47.00% | 46.00% |
Stock or Unit Option Plan Expense | $ 5.8 | $ 0 | $ 0 |
Stock or Unit Option Plan Expense, Unrecognized | $ 11.1 | ||
Weighted-Average Remaining Contractual Term (in years) | 1 year 8 months 12 days | ||
Restricted Stock Units (RSUs) [Member] | Minimum | |||
Options, additional information | |||
Performance Based Compensation Payout Target | 0.00% | ||
Restricted Stock Units (RSUs) [Member] | Maximum | |||
Options, additional information | |||
Performance Based Compensation Payout Target | 200.00% | ||
Performance Based Units [Member] | |||
Options, additional information | |||
Performance Based Units Granted | 1,864 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerators | |||||||||||
Net income (loss) | $ 20.3 | $ 13.8 | $ 57.4 | $ 52.7 | $ 15.5 | $ 74.5 | $ 136.2 | $ 50.1 | $ 144.2 | $ 276.3 | $ 256.1 |
Denominators | |||||||||||
Weighted average common shares-basic calculation | 72,000,000 | 75,300,000 | 76,400,000 | ||||||||
Dilutive effect of employee stock options (in shares) | 600,000 | 900,000 | 1,300,000 | ||||||||
Weighted average common shares-diluted calculation | 72,600,000 | 76,200,000 | 77,700,000 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.29 | $ 0.19 | $ 0.79 | $ 0.72 | $ 0.21 | $ 1 | $ 1.79 | $ 0.65 | $ 2 | $ 3.67 | $ 3.35 |
Diluted earnings per share (in dollars per share) | $ 0.29 | $ 0.19 | $ 0.78 | $ 0.72 | $ 0.21 | $ 0.99 | $ 1.77 | $ 0.64 | $ 1.99 | $ 3.63 | $ 3.30 |
Stock options excluded from computation of diluted earnings per share (in shares) | 400,000 | 300,000 | 300,000 | ||||||||
Share Repurchase Program [Line Items] | |||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||
Stock Repurchased During Period, Shares | 3,123,716 | 4,936,497 | |||||||||
Payments for Repurchase of Common Stock | $ 301.5 | $ 469.5 | $ 0 | ||||||||
Minimum | |||||||||||
Share Repurchase Program [Line Items] | |||||||||||
Stock Repurchase Program, Period in Force | 12 months | ||||||||||
Maximum | |||||||||||
Share Repurchase Program [Line Items] | |||||||||||
Stock Repurchase Program, Period in Force | 24 months |
Operating Segment Information77
Operating Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating segment information | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Net Sales | |||||||||||
Net sales | $ 758.7 | $ 790.1 | $ 782.1 | $ 720.6 | $ 804.1 | $ 856.4 | $ 838 | $ 744.5 | $ 3,051.5 | $ 3,243 | $ 3,060.7 |
Adjusted EBIT | |||||||||||
Gain on termination of postretirement plans related to current businesses | 1.9 | 23.6 | 0 | ||||||||
Certain Pension Costs | 25.5 | 32 | 27.4 | ||||||||
Grace Adjusted EBIT | 618.5 | 626.2 | 550.8 | ||||||||
Depreciation and Amortization | 131.5 | 137.1 | 123.1 | ||||||||
Capital Expenditures | 154.8 | 169.8 | 156.2 | ||||||||
Total Assets | 3,676 | 4,093.6 | 3,676 | 4,093.6 | 5,390.1 | ||||||
Reconciliation of operating segment data to financial statements | |||||||||||
Grace Adjusted EBIT | 618.5 | 626.2 | 550.8 | ||||||||
Interest expense, net | (100.4) | (125.8) | (42.8) | ||||||||
Currency and other losses in Venezuela | 73.2 | 1 | 6.9 | ||||||||
Repositioning expenses | (64.3) | 0 | 0 | ||||||||
Restructuring expenses and asset impairments | (22.9) | (22.4) | (12.5) | ||||||||
Pension MTM adjustment and other related costs, net | (46.8) | (128.3) | 50.6 | ||||||||
Costs related to Chapter 11 and asbestos, net | 5.6 | 26.3 | 46.1 | ||||||||
Gain on termination and curtailment of postretirement plans related to divested businesses | 2.6 | 15.9 | 0 | ||||||||
Income and expense items related to divested businesses | 1 | (5.2) | (4.1) | ||||||||
Gain (loss) on sale of product line | 0.2 | (1) | |||||||||
Default interest settlement | 0 | 0 | (129) | ||||||||
Net income attributable to noncontrolling interests | (0.7) | (1) | (1.6) | ||||||||
Income before income taxes | 309.6 | 334.3 | 360.6 | ||||||||
Catalysts Technologies | |||||||||||
Net Sales | |||||||||||
Net sales | 1,162.1 | 1,246.8 | 1,124 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 347.3 | 378.3 | 327.5 | ||||||||
Depreciation and Amortization | 68.1 | 66.3 | 54.2 | ||||||||
Capital Expenditures | 66.3 | 81.6 | 58.7 | ||||||||
Total Assets | 1,390.8 | 1,395.4 | 1,390.8 | 1,395.4 | 1,361.8 | ||||||
Materials Technologies | |||||||||||
Net Sales | |||||||||||
Net sales | 797 | 890.6 | 878.5 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 177.5 | 185.2 | 181.8 | ||||||||
Depreciation and Amortization | 28.4 | 32.1 | 31.4 | ||||||||
Capital Expenditures | 25.8 | 35.6 | 33 | ||||||||
Total Assets | 464.1 | 501.2 | 464.1 | 501.2 | 508.9 | ||||||
Construction Products | |||||||||||
Net Sales | |||||||||||
Net sales | 1,092.4 | 1,105.6 | 1,058.2 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 196.6 | 161.7 | 151.7 | ||||||||
Depreciation and Amortization | 28.6 | 31.7 | 31.8 | ||||||||
Capital Expenditures | 31 | 28.3 | 32.8 | ||||||||
Total Assets | 536 | 580 | 536 | 580 | 609.1 | ||||||
Corporate costs | |||||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | (79.3) | (90.6) | (82.8) | ||||||||
Corporate [Member] | |||||||||||
Adjusted EBIT | |||||||||||
Depreciation and Amortization | 6.4 | 7 | 5.7 | ||||||||
Capital Expenditures | 31.7 | 24.3 | 31.7 | ||||||||
Total Assets | $ 1,285.1 | $ 1,617 | $ 1,285.1 | $ 1,617 | $ 2,910.3 |
Operating Segment Information78
Operating Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic Area Data | |||||||||||
Net sales | $ 758.7 | $ 790.1 | $ 782.1 | $ 720.6 | $ 804.1 | $ 856.4 | $ 838 | $ 744.5 | $ 3,051.5 | $ 3,243 | $ 3,060.7 |
Properties and equipment, net | 842.4 | 833.5 | 842.4 | 833.5 | 829.9 | ||||||
Goodwill and other assets | 773.5 | 801.6 | 773.5 | 801.6 | 813 | ||||||
Total North America | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 1,031 | 1,016.4 | 959.7 | ||||||||
Properties and equipment, net | 580 | 543.7 | 580 | 543.7 | 516.9 | ||||||
Goodwill and other assets | 629.9 | 623.4 | 629.9 | 623.4 | 598.3 | ||||||
United States | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 955 | 937.7 | 886 | ||||||||
Properties and equipment, net | 564.5 | 526.2 | 564.5 | 526.2 | 497.8 | ||||||
Goodwill and other assets | 622.2 | 615.8 | 622.2 | 615.8 | 589.7 | ||||||
Canada and Puerto Rico | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 76 | 78.7 | 73.7 | ||||||||
Properties and equipment, net | 15.5 | 17.5 | 15.5 | 17.5 | 19.1 | ||||||
Goodwill and other assets | 7.7 | 7.6 | 7.7 | 7.6 | 8.6 | ||||||
Europe Middle East Africa | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 963.2 | 1,103.3 | 1,087.9 | ||||||||
Properties and equipment, net | 174.1 | 189.3 | 174.1 | 189.3 | 212.4 | ||||||
Goodwill and other assets | 71.7 | 90.9 | 71.7 | 90.9 | 106.4 | ||||||
Asia Pacific | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 721.2 | 747.6 | 654.1 | ||||||||
Properties and equipment, net | 67.9 | 70.7 | 67.9 | 70.7 | 70.9 | ||||||
Goodwill and other assets | 46 | 49.8 | 46 | 49.8 | 52.4 | ||||||
Latin America | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 336.1 | 375.7 | 359 | ||||||||
Properties and equipment, net | 20.4 | 29.8 | 20.4 | 29.8 | 29.7 | ||||||
Goodwill and other assets | $ 25.9 | $ 37.5 | $ 25.9 | $ 37.5 | $ 55.9 |
Operating Segment Information O
Operating Segment Information Operating Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 758.7 | $ 790.1 | $ 782.1 | $ 720.6 | $ 804.1 | $ 856.4 | $ 838 | $ 744.5 | $ 3,051.5 | $ 3,243 | $ 3,060.7 |
Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,162.1 | 1,246.8 | 1,124 | ||||||||
Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 797 | 890.6 | 878.5 | ||||||||
Grace Construction Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,092.4 | 1,105.6 | 1,058.2 | ||||||||
Refining Catalysts [Member] | Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 764.5 | 845.5 | 832.4 | ||||||||
Polyolefin and Chemical Catalysts [Member] | Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 397.6 | 401.3 | 291.6 | ||||||||
Engineered Materials [Member] | Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 470.8 | 515.8 | 494.4 | ||||||||
Packaging Products [Member] | Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 326.2 | 374.8 | 384.1 | ||||||||
Specialty Construction Chemicals [Member] | Grace Construction Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 665.4 | 688.7 | 650.4 | ||||||||
Specialty Building Materials [Member] | Grace Construction Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 427 | $ 416.9 | $ 407.8 |
Unconsolidated Affiliates (Deta
Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity method investment, ownership interest | 50.00% | ||
Investment in unconsolidated affiliate | $ 103.2 | $ 113.1 | |
Equity in earnings of unconsolidated affiliates | 20.4 | 19.7 | $ 22.9 |
ART's assets, liabilities and results of operations: | |||
Current assets | 244.2 | 216.9 | |
Noncurrent assets | 69.7 | 59.3 | |
Total assets | 313.9 | 276.2 | |
Current liabilities | 111.3 | 54.7 | |
Total liabilities | 111.3 | 54.7 | |
Net sales | 415.7 | 409.9 | 370.4 |
Costs and expenses applicable to net sales | 367.2 | 358.1 | 311.2 |
Income before income taxes | 42.6 | 41.2 | 46.6 |
Net income | 40.9 | 39.7 | 45.6 |
Related party transactions: | |||
Grace sales of catalysts to ART | 258.9 | 266.4 | 232 |
Charges for fixed costs, research and development and selling, general and administrative services to ART | $ 23.4 | $ 26.9 | $ 28.8 |
Schedule of Investments [Line Items] | |||
Commitment fee on credit facility | 0.10% | ||
Corporate Joint Venture [Member] | |||
Schedule of Investments [Line Items] | |||
Line of credit facility, maximum provided by Grace and Chevron each | $ 15 | ||
W R Grace & Co. [Member] | |||
Schedule of Investments [Line Items] | |||
Line of credit facility, maximum provided by Grace and Chevron each | $ 15 |
Chapter 11 Information (Details
Chapter 11 Information (Details 2) $ / shares in Units, CAD in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2014USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Feb. 03, 2014USD ($)$ / sharesshares | Feb. 03, 2014CADshares | |
Debtor-in-Possession Statements of Operations | ||||||||||||||
Net sales, including intercompany | $ 758.7 | $ 790.1 | $ 782.1 | $ 720.6 | $ 804.1 | $ 856.4 | $ 838 | $ 744.5 | $ 3,051.5 | $ 3,243 | $ 3,060.7 | |||
Selling, general and administrative expenses | 574.2 | 664 | 505.7 | |||||||||||
Depreciation and amortization | 131.5 | 137.1 | 123.1 | |||||||||||
Chapter 11 expenses, net | 5.1 | 11 | 15.3 | |||||||||||
Default interest settlement | 0 | 0 | 129 | |||||||||||
Research and development expenses | 69.6 | 79.5 | 65.2 | |||||||||||
Interest expense and related financing costs | 100.1 | 61.5 | 43.8 | |||||||||||
Other income, net | 17.8 | 27.5 | 15 | |||||||||||
Benefit from (provision for) income taxes | (164.7) | (57) | (102.9) | |||||||||||
Net income attributable to W. R. Grace & Co. shareholders | 20.3 | $ 13.8 | $ 57.4 | 52.7 | 15.5 | $ 74.5 | $ 136.2 | 50.1 | 144.2 | 276.3 | 256.1 | |||
Reconciliation to net cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 131.5 | 137.1 | 123.1 | |||||||||||
Default interest settlement | 0 | 0 | 129 | |||||||||||
Provision for income taxes | 164.7 | 57 | 102.9 | |||||||||||
Cash paid for income taxes, net of refunds | (57.6) | (34.4) | (60.4) | |||||||||||
Defined benefit pension expense (income) | 72.3 | 160.3 | (23.2) | |||||||||||
Cash paid under defined benefit pension arrangements | (17.8) | (100) | (68.3) | |||||||||||
Foreign Earnings Repatriated | (173.1) | (38.9) | (25.9) | |||||||||||
Changes in assets and liabilities, excluding the effect of foreign currency translation: | ||||||||||||||
Trade accounts receivable | (38.9) | (25.8) | 13.5 | |||||||||||
Inventories | (1.4) | (52.1) | 8.6 | |||||||||||
Accounts payable | 35.9 | (17.2) | 4.2 | |||||||||||
All other items, net | 8.2 | 16.7 | 0.3 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Capital expenditures | (154.8) | (169.8) | (156.2) | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | (526.2) | |||||||||||
Transfer (to) from restricted cash and cash equivalents | (9.4) | 395.4 | (197.8) | |||||||||||
Borrowings under credit arrangements | 343.6 | 1,123.4 | 57.5 | |||||||||||
Repayments under credit arrangements | (106.5) | (770.3) | (69.4) | |||||||||||
Proceeds from exercise of stock options | 26.9 | 23.4 | 34.4 | |||||||||||
Other financing activities | 1.8 | 1.9 | (30.9) | |||||||||||
Cash and cash equivalents, beginning of period | $ 557.5 | 964.8 | $ 964.8 | 557.5 | 964.8 | 1,336.9 | ||||||||
Cash and cash equivalents, end of period | $ 329.9 | 557.5 | 329.9 | 557.5 | 964.8 | |||||||||
Cash paid to settle deferred payment obligations | $ 0 | $ 632 | 0 | |||||||||||
Number of Trust Accounts | 2 | |||||||||||||
ZAI PD Account Funding | $ 34.4 | |||||||||||||
Duration After Effective Date in Which Claims Payments Were Made | 10 days | |||||||||||||
Chapter 11 Filing Entities | ||||||||||||||
Debtor-in-Possession Statements of Operations | ||||||||||||||
Net sales, including intercompany | 1,425.4 | |||||||||||||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | 882.2 | |||||||||||||
Selling, general and administrative expenses | 178.1 | |||||||||||||
Depreciation and amortization | 69.1 | |||||||||||||
Chapter 11 expenses, net | 15.3 | |||||||||||||
Default interest settlement | 129 | |||||||||||||
Asbestos and bankruptcy-related charges | 21.9 | |||||||||||||
Research and development expenses | 37.8 | |||||||||||||
Interest expense and related financing costs | 37.7 | |||||||||||||
Other income, net | (75.7) | |||||||||||||
Costs and Expenses | 1,295.4 | |||||||||||||
Income (loss) before income taxes and equity in net income of non-filing entities | 130 | |||||||||||||
Benefit from (provision for) income taxes | (53.2) | |||||||||||||
Income (loss) before equity in net income of non-filing entities | 76.8 | |||||||||||||
Equity in net income of non-filing entities | 179.3 | |||||||||||||
Net income attributable to W. R. Grace & Co. shareholders | 256.1 | |||||||||||||
Reconciliation to net cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 69.1 | |||||||||||||
Asbestos and bankruptcy-related charges | 21.9 | |||||||||||||
Default interest settlement | 129 | |||||||||||||
Equity in net income of non-filing entities | (179.3) | |||||||||||||
Provision for income taxes | 53.2 | |||||||||||||
Cash paid for income taxes, net of refunds | 13.5 | |||||||||||||
Excess tax benefits from stock-based compensation | 35.4 | |||||||||||||
Defined benefit pension expense (income) | (51.8) | |||||||||||||
Cash paid under defined benefit pension arrangements | (55.6) | |||||||||||||
Foreign Earnings Repatriated | 29.7 | |||||||||||||
Changes in assets and liabilities, excluding the effect of foreign currency translation: | ||||||||||||||
Trade accounts receivable | (6.2) | |||||||||||||
Inventories | (23) | |||||||||||||
Accounts payable | 21.9 | |||||||||||||
All other items, net | 31.1 | |||||||||||||
Net cash provided by operating activities | 345 | |||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Capital expenditures | (94.1) | |||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (510.4) | |||||||||||||
Transfer (to) from restricted cash and cash equivalents | (222.2) | |||||||||||||
Net cash provided by (used for) investing activities | (826.7) | |||||||||||||
Borrowings under credit arrangements | 0.3 | |||||||||||||
Repayments under credit arrangements | (0.8) | |||||||||||||
Proceeds from exercise of stock options | 34.4 | |||||||||||||
Tax benefits from stock-based compensation | 35.4 | |||||||||||||
Other financing activities | 4.1 | |||||||||||||
Net cash provided by (used for) financing activities | 2.6 | |||||||||||||
Net increase in cash and cash equivalents | (479.1) | |||||||||||||
Cash and cash equivalents, beginning of period | $ 585.1 | $ 585.1 | $ 585.1 | 1,064.2 | ||||||||||
Cash and cash equivalents, end of period | 585.1 | |||||||||||||
Personal Injury Trust [Member] | ||||||||||||||
Chapter 11 information | ||||||||||||||
Proceeds from Joint Plan Funds | 39.9 | 39.9 | 557.7 | |||||||||||
Portion of PI Trust Funding from Grace Cash | 464.1 | |||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Portion of PI Trust Funding from Grace Insurance Proceeds in Escrow | $ 93.6 | |||||||||||||
Warrants Issued to Fund Trust | shares | 10,000,000 | 10,000,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 17 | |||||||||||||
PI Warrant Payment | 490 | 490 | ||||||||||||
Asbestos Related Settlement in Cash | $ 42.1 | |||||||||||||
Asbestos Related Settlement in Cash and Stock | $ 856.8 | |||||||||||||
Number of Common Stock Shares Held in Trust | shares | 18,000,000 | |||||||||||||
Deferred Payments, Each Year for Five Years | 110 | $ 110 | ||||||||||||
Five Year Period in Which PI Trust Deferred Payments Will be Made | 5 years | |||||||||||||
Deferred Payments, Each Year for Ten Years | $ 100 | $ 100 | ||||||||||||
Ten Year Period in Which PI Trust Deferred Payments Will be Made | 10 years | |||||||||||||
Common Stock, Shares, Issued | shares | 77,372,257 | 77,372,257 | ||||||||||||
Cash paid to settle deferred payment obligations | $ 632 | |||||||||||||
Unsettled claims accrued and subsequently paid in cash | $ 129 | |||||||||||||
Fresenius Medical Care Holdings [Member] | Personal Injury Trust [Member] | ||||||||||||||
Chapter 11 information | ||||||||||||||
Proceeds from Joint Plan Funds | $ 111.4 | 111.4 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
ZAI PD Account Funding | $ 34.4 | $ 34.4 | ||||||||||||
Canada [Member] | Personal Injury Trust [Member] | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
ZAI Property Damage Claims Fund | CAD | CAD 8.6 |
Quarterly Summary and Statist82
Quarterly Summary and Statistical Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 758.7 | $ 790.1 | $ 782.1 | $ 720.6 | $ 804.1 | $ 856.4 | $ 838 | $ 744.5 | $ 3,051.5 | $ 3,243 | $ 3,060.7 |
Gross Profit | 286.7 | 311.9 | 310.6 | 258.3 | 274.5 | 327.8 | 320.9 | 269.2 | 1,167.5 | 1,192.4 | 1,142.1 |
Net income (loss) | $ 20.3 | $ 13.8 | $ 57.4 | $ 52.7 | $ 15.5 | $ 74.5 | $ 136.2 | $ 50.1 | $ 144.2 | $ 276.3 | $ 256.1 |
Basic earnings per share: | |||||||||||
Net income (loss) (in dollars per share) | $ 0.29 | $ 0.19 | $ 0.79 | $ 0.72 | $ 0.21 | $ 1 | $ 1.79 | $ 0.65 | $ 2 | $ 3.67 | $ 3.35 |
Diluted earnings per share: | |||||||||||
Net income (loss) (in dollars per share) | 0.29 | 0.19 | 0.78 | 0.72 | 0.21 | 0.99 | 1.77 | 0.64 | $ 1.99 | $ 3.63 | $ 3.30 |
Market price of common stock: | |||||||||||
High (in dollars per share) | 101.99 | 104.94 | 103.72 | 104.90 | 99.55 | 100.07 | 102.65 | 105.05 | |||
Low (in dollars per share) | 92.66 | 90.84 | 95.03 | 84.25 | 79.06 | 90.56 | 90.40 | 90.58 | |||
Close (in dollars per share) | $ 99.59 | $ 93.05 | $ 100.30 | $ 98.87 | $ 95.39 | $ 90.94 | $ 94.53 | $ 99.17 |
Subsequent Event Subsequent E83
Subsequent Event Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 27, 2016 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||
Common stock issued, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Distribution to Grace from GCP | $ 750 | ||
Amount of distribution from GCP dividend used to pay down Grace debt | 500 | ||
Separation of GCP from Grace [Member] | |||
Subsequent Event [Line Items] | |||
Common stock issued, par value (in dollars per share) | $ 0.01 | ||
Term Loan B (USD) [Member] | |||
Subsequent Event [Line Items] | |||
Amount of distribution from GCP dividend used to pay down Grace debt | 426.9 | ||
Term Loan B (EUR) [Member] | |||
Subsequent Event [Line Items] | |||
Amount of distribution from GCP dividend used to pay down Grace debt | $ 67 |
SCHEDULE II-VALUATION AND QUA84
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Valuation and qualifying accounts deducted from assets and Reserves: | ||||
Reduction in valuation allowance | $ (2.2) | $ (5.8) | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2.2 | (24.4) | ||
Allowances for notes and accounts receivable | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 5.7 | 7.6 | $ 6.9 | |
Additions charged to costs and expenses | 4 | 2.5 | 2.2 | |
Deductions | (3.4) | (4.9) | (1.6) | |
Other net | [1] | 0.7 | 0.5 | 0.1 |
Balance at end of period | 7 | 5.7 | 7.6 | |
Valuation allowance for deferred tax assets | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | [2] | 12.5 | 18.3 | 40.8 |
Additions charged to costs and expenses | [2] | 0.4 | 1.2 | 4.4 |
Deductions | [2] | (2.6) | (7) | (24.4) |
Other net | [1],[2] | 0 | 0 | (2.5) |
Balance at end of period | [2] | 10.3 | 12.5 | 18.3 |
Reserves for asbestos related litigation | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 0 | 2,092.4 | 2,065 | |
Additions charged to costs and expenses | 0 | 27.4 | ||
Deductions | (2,092.4) | 0 | ||
Other net | [1] | 0 | 0 | |
Balance at end of period | 0 | 2,092.4 | ||
Reserves for environmental remediation | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 61.7 | 134.5 | 140.5 | |
Additions charged to costs and expenses | 6.5 | 14.7 | 8 | |
Deductions | (12.6) | (87.5) | (14) | |
Other net | [1] | 0 | 0 | 0 |
Balance at end of period | 55.6 | 61.7 | 134.5 | |
Reserves for retained obligations of divested businesses | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 13.5 | 35 | 34.2 | |
Additions charged to costs and expenses | 0 | 0 | 0.8 | |
Deductions | 0 | (21.5) | 0 | |
Other net | [1] | 0 | 0 | 0 |
Balance at end of period | $ 13.5 | $ 13.5 | $ 35 | |
[1] | Various miscellaneous adjustments against reserves and effects of currency translation. | |||
[2] | The valuation allowance decreased $5.8 million from December 31, 2013, to December 31, 2014. The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards, partially offset by an increase in the valuation allowance on NOLs in certain foreign jurisdictions. |