Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
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 | $ 4,574,202,603 | ||
Entity Common Stock, Shares Outstanding | 68,280,258 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 1,598.6 | $ 1,628.2 | $ 1,757.3 |
Cost of goods sold | 942.7 | 976.5 | 1,093.3 |
Gross profit | 655.9 | 651.7 | 664 |
Selling, general and administrative expenses | 309.3 | 323.4 | 415.1 |
Research and development expenses | 48.8 | 47.1 | 51.3 |
Interest expense and related financing costs | 80.6 | 98.6 | 57.6 |
Interest accretion on deferred payment obligations | 0.9 | 0.8 | 65.7 |
Restructuring and repositioning expenses | 38.6 | 20.4 | 4.3 |
Equity in earnings of unconsolidated affiliate | (29.8) | (20.4) | (19.7) |
Provision for environmental remediation | 28.7 | 6.4 | 13.8 |
Gain on termination and curtailment of postretirement plans | 0.5 | 4.5 | 39.5 |
Other (income) expense, net | (13.3) | 13.8 | (10.9) |
Total costs and expenses | 489.9 | 458 | 559.5 |
Income (loss) from continuing operations before income taxes | 166 | 193.7 | 104.5 |
(Provision for) benefit from income taxes | (59) | (69.8) | 12.4 |
Income (loss) from continuing operations | 107 | 123.9 | 116.9 |
Income (loss) from discontinued operations, net of income taxes | (12.9) | 20.2 | 159.3 |
Net income (loss) | 94.1 | 144.1 | 276.2 |
Less: Net (income) loss attributable to noncontrolling interests | 0 | 0.1 | 0.1 |
Net income (loss) attributable to W. R. Grace & Co. shareholders | 94.1 | 144.2 | 276.3 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Income from continuing operations attributable to W. R. Grace & Co. shareholders | $ 107 | $ 124 | $ 117 |
Basic earnings per share attributable to W. R. Grace & Co. shareholders | |||
Income (loss) from continuing operations | $ 1.53 | $ 1.72 | $ 1.55 |
Income (loss) from discontinued operations, net of income taxes | (0.19) | 0.28 | 2.12 |
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 1.34 | $ 2 | $ 3.67 |
Weighted average number of basic shares | 70.1 | 72 | 75.3 |
Diluted earnings per share attributable to W. R. Grace & Co. shareholders | |||
Income (loss) from continuing operations | $ 1.52 | $ 1.71 | $ 1.54 |
Income (loss) from discontinued operations, net of income taxes | (0.19) | 0.28 | 2.09 |
Net income attributable to W. R. Grace & Co. shareholders | $ 1.33 | $ 1.99 | $ 3.63 |
Weighted average number of diluted shares | 70.5 | 72.6 | 76.2 |
Dividends per common share | $ 0.51 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ 94.1 | $ 144.1 | $ 276.2 |
Other comprehensive income (loss): | |||
Defined benefit pension and other postretirement plans, net of income taxes | (0.6) | (1) | (2.6) |
Currency translation adjustments | (1.8) | (43.3) | (28) |
Gain (loss) from hedging activities, net of income taxes | 0.3 | 1.3 | (4.5) |
Other than temporary impairment of investment | 0 | 0 | 0.8 |
Gain (loss) on securities available for sale, net of income taxes | 0 | 0 | (0.1) |
Total other comprehensive income (loss) attributable to noncontrolling interests | 2.6 | 0.2 | (2.2) |
Total other comprehensive income (loss) | 0.5 | (42.8) | (36.6) |
Comprehensive income | 94.6 | 101.3 | 239.6 |
Less: comprehensive (income) loss attributable to noncontrolling interests | (2.6) | (0.1) | 2.3 |
Comprehensive income attributable to W. R. Grace & Co. shareholders | $ 92 | $ 101.2 | $ 241.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ 94.1 | $ 144.1 | $ 276.2 |
Income (loss) from discontinued operations, net of income taxes | 12.9 | (20.2) | (159.3) |
Income (loss) from continuing operations | 107 | 123.9 | 116.9 |
Reconciliation to net cash provided by operating activities: | |||
Depreciation and amortization | 100.3 | 99.2 | 102.7 |
Equity in earnings of unconsolidated affiliate | (29.8) | (20.4) | (19.7) |
Dividends received from unconsolidated affiliate | 31 | 11.8 | 11.2 |
Costs related to Chapter 11, and legacy product and environmental, net | 35.4 | 6.1 | 35.6 |
Cash paid for Chapter 11, and legacy product and environmental, net | (24.6) | (507.4) | (1,992.5) |
Provision for (benefit from) income taxes | 59 | 69.8 | (12.4) |
Cash paid for income taxes, net of refunds | (85.2) | (34.8) | (14.9) |
Interest expense and accretion | (81.5) | (99.4) | (123.3) |
Cash paid for interest on credit arrangements | 75.7 | 89.5 | 24 |
Loss on early extinguishment of debt | 11.1 | 0 | 0 |
Defined benefit pension expense (income) | 72.6 | 50.9 | 162.1 |
Cash paid under defined benefit pension arrangements | (15.9) | (15.4) | (95.6) |
Restructuring expenses | 24.3 | 11.3 | 4.3 |
Cash paid for restructuring | (16) | (5.6) | (3.6) |
Changes in assets and liabilities, excluding effect of currency translation: | |||
Trade accounts receivable | (15.7) | (18) | (24.8) |
Inventories | (0.6) | 3.8 | (27.6) |
Accounts payable | 32 | 7.3 | (22.7) |
All other items, net | (23.2) | 17.8 | (13.6) |
Net cash provided by (used for) operating activities from continuing operations | 267.5 | (189.8) | (1,695.3) |
INVESTING ACTIVITIES | |||
Capital expenditures | (116.9) | (118.8) | (132.3) |
Business acquired | (246.5) | 0 | 0 |
Transfer (to) from restricted cash and cash equivalents | (0.6) | (9.4) | 390.1 |
Proceeds from sale of assets | 13.7 | 0 | 0 |
Other investing activities | 5.3 | 16.2 | 3.8 |
Net cash provided by (used for) investing activities from continuing operations | (345) | (112) | 261.6 |
FINANCING ACTIVITIES | |||
Borrowings under credit arrangements | 39.4 | 292.4 | 1,096.8 |
Repayments under credit arrangements | (633) | (50) | (735.9) |
Proceeds from issuance of bonds | 0 | 0 | 1,000 |
Cash paid for debt financing costs | (0.3) | (2.5) | (46.6) |
Cash paid for repurchases of common stock | (195.1) | (301.5) | (469.5) |
Proceeds from exercise of stock options | 17 | 26.9 | 23.4 |
Dividends paid | (36) | 0 | 0 |
Distribution from GCP | 750 | 0 | 0 |
Other financing activities | (2.2) | (5.8) | (4) |
Net cash provided by (used for) financing activities from continuing operations | (60.2) | (40.5) | 864.2 |
Effect of currency exchange rate changes on cash and cash equivalents | (3) | (1.7) | (5) |
Increase (decrease) in cash and cash equivalents from continuing operations | (140.7) | (344) | (574.5) |
Cash flows from discontinued operations | |||
Net cash provided by (used for) operating activities | 23.9 | 202.5 | 222 |
Net cash provided by (used for) investing activities | (9.5) | (32.4) | (26.3) |
Net cash provided by (used for) financing activities | 31.4 | 2.9 | (13.1) |
Effect of currency exchange rate changes on cash and cash equivalents | (1) | (56.6) | (15.4) |
Increase (decrease) in cash and cash equivalents from discontinued operations | 44.8 | 116.4 | 167.2 |
Net increase (decrease) in cash and cash equivalents | (95.9) | (227.6) | (407.3) |
Less: cash and cash equivalents of discontinued operations | 0 | 0 | |
Cash and cash equivalents, beginning of period | 231.3 | ||
Cash and cash equivalents, end of period | 90.6 | 231.3 | |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 75.7 | 89.5 | 692.2 |
Net share settled stock option exercises | 10.5 | 0 | 0 |
Scenario, Previously Reported [Member] | |||
Cash flows from discontinued operations | |||
Cash and cash equivalents, beginning of period | $ 329.9 | 557.5 | 964.8 |
Cash and cash equivalents, end of period | $ 329.9 | $ 557.5 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 90.6 | $ 231.3 |
Restricted cash and cash equivalents | 10 | 9.4 |
Trade accounts receivable, less allowance of $2.2 (2015—$1.4) | 273.9 | 254.5 |
Inventories | 228 | 198.8 |
Other current assets | 52.3 | 44.1 |
Assets of discontinued operations | 0 | 446.4 |
Total Current Assets | 654.8 | 1,184.5 |
Properties and equipment, net of accumulated depreciation and amortization of $1,327.5 (2015—$1,286.8) | 729.6 | 621.7 |
Goodwill | 394.2 | 336.5 |
Technology and other intangible assets, net | 269.1 | 227.5 |
Deferred income taxes | 709.4 | 714.3 |
Investment in unconsolidated affiliate | 117.6 | 103.2 |
Other assets | 37.1 | 33.9 |
Assets of discontinued operations | 0 | 424.1 |
Total Assets | 2,911.8 | 3,645.7 |
Current Liabilities | ||
Debt payable within one year | 76.5 | 58.1 |
Accounts payable | 195.4 | 157.8 |
Other current liabilities | 208.9 | 232.9 |
Liabilities of discontinued operations | 0 | 258.6 |
Total Current Liabilities | 480.8 | 707.4 |
Debt payable after one year | 1,507.6 | 2,111.5 |
Deferred income taxes | 2.8 | 1.2 |
Unrecognized tax benefits | 0.3 | 9.8 |
Underfunded and unfunded defined benefit pension plans | 424.3 | 377.5 |
Other liabilities | 123.6 | 115.9 |
Liabilities of discontinued operations | 0 | 109.9 |
Total Liabilities | 2,539.4 | 3,433.2 |
Commitments and Contingencies—Note 10 | ||
Equity | ||
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 68,309,431 (2015—70,533,515) | 0.7 | 0.7 |
Paid-in capital | 487.3 | 496 |
Retained earnings | 619.3 | 436.3 |
Treasury stock, at cost: shares: 9,147,196 (2015—6,923,110) | (804.9) | (658.4) |
Accumulated other comprehensive income (loss) | 66.4 | (66.8) |
Total W. R. Grace & Co. Shareholders' Equity | 368.8 | 207.8 |
Noncontrolling interests | 3.6 | 4.7 |
Total Equity | 372.4 | 212.5 |
Total Liabilities and Equity | $ 2,911.8 | $ 3,645.7 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance (in dollars) | $ 2.2 | $ 1.4 |
Properties and equipment, accumulated depreciation and amortization | $ 1,327.5 | $ 1,286.8 |
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 | 68,309,431 | 70,533,515 |
Treasury Stock, Shares | 9,147,196 | 6,923,110 |
Consolidated Statements of Equi
Consolidated Statements of Equity Statement - USD ($) $ in Millions | Total | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Net Income including Noncontrolling Interest [Member] |
Beginning Balance at Dec. 31, 2013 | $ 571.2 | $ 534.2 | $ 15.8 | $ 0 | $ 10.6 | $ 10.6 | |
Net income (loss) | 276.2 | 0 | 276.3 | 0 | 0 | 1 | $ 277.3 |
Repurchase 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 income (loss) | (36.6) | 0 | 0 | 0 | (34.4) | (2.2) | |
Ending Balance at Dec. 31, 2014 | 369 | 526.8 | 292.1 | (429.2) | (23.8) | 3.1 | |
Net income (loss) | 144.1 | 0 | 144.2 | 0 | 0 | 0.7 | 144.9 |
Repurchase 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 income (loss) | (42.8) | 0 | 0 | 0 | (43) | 0.2 | |
Ending Balance at Dec. 31, 2015 | 212.5 | 496.7 | 436.3 | (658.4) | (66.8) | 4.7 | |
Net income (loss) | 94.1 | 0 | 94.1 | 0 | 0 | 0 | $ 94.1 |
Repurchase of common stock | (195.1) | 0 | 0 | (195.1) | 0 | 0 | |
Stock based compensation | 11.6 | 11.6 | 0 | 0 | 0 | 0 | |
Exercise of stock options | 27.5 | (21.1) | 0 | 48.6 | 0 | 0 | |
Tax benefit related to stock plans | 70.4 | 0 | 70.4 | 0 | 0 | 0 | |
Shares issued | 0.8 | 0.8 | 0 | 0 | 0 | 0 | |
Cash dividends declared | 36 | 0 | 36 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0.5 | 0 | 0 | 0 | (2.1) | 2.6 | |
Distribution of GCP | 186.1 | 0 | 54.5 | 0 | 135.3 | (3.7) | |
Ending Balance at Dec. 31, 2016 | $ 372.4 | $ 488 | $ 619.3 | $ (804.9) | $ 66.4 | $ 3.6 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 two reportable segments: Grace Catalysts Technologies, which includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications; and Grace Materials Technologies, which includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. 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 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 of its Grace Materials Technologies operating segment to GCP (the "Separation"). Grace and GCP completed the Separation on February 3, 2016 (the "Distribution Date"), by means of a pro rata distribution to the Company's stockholders of all of the outstanding shares of GCP common stock (the "Distribution"), with one share of GCP common stock distributed for each share of Company common stock held as of the close of business on January 27, 2016. As a result of the Distribution, GCP became an independent public company. GCP’s historical financial results through the Distribution Date are reflected in Grace’s Consolidated Financial Statements as discontinued operations. 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 maintains a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Investments in affiliated companies in which Grace can significantly influence operating and financial policies, but does not have a controlling financial interest, are accounted for under the equity method. 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. Reportable Segments Grace reports financial results of each of its reportable segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by Grace's Chief Executive Officer and Chief Operating 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, which depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 8 ); • Carrying values of goodwill and other intangible assets, which depend on assumptions of future earnings and cash flows (see Note 4 and Note 20), 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. The point at which risk of loss and title transfers to a customer is determined based on delivery terms, which are generally included in customer contracts of sale, order confirmation documents and invoices. 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 30 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. 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 no impairment charges recorded in 2016, 2015 or 2014. Goodwill Goodwill arises from business combinations, and it is reviewed 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 operating segments as reporting units. 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 at fair value in the Consolidated Balance Sheets as either assets or liabilities. 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 (income) 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 (loss)" 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 are remeasured at an interim period, and the gains or losses on remeasurement are 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) 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 income (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. 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. Recently Issued Accounting Standards 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 are effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2016. The 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 will adopt the standard when it becomes effective. Grace has begun its preliminary assessment and is identifying specific areas of impact on its Consolidated Financial Statements. Grace has tentatively decided to adopt this standard under the modified retrospective approach and is still evaluating the impact to its financial statements and disclosures. 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 International Accounting Standards Board's ("IASB") measurement of inventory. The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO (first-in, first-out) 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 will adopt this standard in 2017 and does not expect it to have a material effect on the Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)." This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term, including optional payments where they are reasonably certain to occur. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Currently, as a lessee Grace is a party to a number of leases which, under existing guidance, are classified as operating leases and not recorded on the balance sheet but are expensed as incurred (See Note 3). Under the new standard, many of these leases will be recorded on the Consolidated Balance Sheets. Grace is currently evaluating the standard's effect on the financial statements and will adopt the standard in 2019. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments." This update is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It addresses eight specific issues. The amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the timing of adoption and does not expect it to have a material effect on the Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new requirements are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption is permitted. Grace is currently evaluating the timing of adoption and does not expect the update to have a material effect on the Consolidated Financial Statements. As of December 31, 2016 and 2015, restricted cash included the Consolidated Balance Sheets was $10.0 million and $9.4 million , respectively. In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805)," which provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments in this Update also narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities are required to apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early application is permitted. Grace is currently evaluating the date of application. In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350)." This Update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Because these amendments eliminate Step 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. Public business entities are required to adopt the amendments in this Update for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Recently Adopted 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 IASB's reporting requirements for discontinued operations. Grace adopted this standard in the 2016 first quarter. 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. Grace adopted these standards in the 2016 first quarter and reclassified $30.3 million of capitalized financing fees from other assets to debt payable after one year in the Consolidated Balance Sheet as of December 31, 2015. In September 2015, the FASB issued ASU 2015-16 "Simplifying the Accounting for Measurement-Period Adjustments," which is part of the FASB's Simplification Initiative. The update requires that adjustments to provisional amounts that are identified during the measurement period following a business combination be recognized in the reporting period in which the adjustment amounts are determined. Acquirers must also recognize, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects resulting from the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Grace adopted this standard in the 2016 third quarter. See Note 20. Accounting for Stock Compensation In March 2016, the FASB issued ASU 2016-09 "Compensation—Stock Compensation," which is part of the FASB's Simplification Initiative. The update requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled. It also eliminates the requirement that excess tax benefits be realized (reduce cash taxes payable) before being recognized. Previously, an entity could not recognize excess tax benefits if the tax deduction increased a net operating loss ("NOL") or tax credit carryforward. The updated standard no longer requires cash flows related to excess tax benefits to be presented as a financing activity separate from other income tax cash flows. The update also allows Grace to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments to taxing authorities made on an employee's behalf for withheld shares should be presented as a financing activity on the statement of cash flows, and provides for an accounting policy election to account for forfeitures as they occur. Grace elected to early adopt this update in the 2016 second quarter, which requires any adjustments to be reflected as of January 1, 2016. This resulted in the recognition of excess tax benefits on the Consolidated Balance Sheet that were previously not recognized, as the benefits would have increased Grace's NOL or tax credit carryforwards. The recognition increased Grace's net deferred tax asset by $70.4 million ( $90.9 million net of a $20.5 million valuation allowance) as of January 1, 2016. In addition, Grace will recognize excess tax benefits in the provision for income taxes rather than paid-in capital for 2016 and future periods. Grace has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation expense to be recognized each period. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : December 31, (In millions) 2016 2015 Raw materials $ 57.7 $ 47.1 In process 33.4 33.4 Finished products 115.8 98.2 Other 21.1 20.1 $ 228.0 $ 198.8 |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | December 31, (In millions) 2016 2015 Land $ 10.0 $ 9.8 Buildings 375.4 369.9 Information technology and equipment 125.3 119.4 Machinery, equipment and other 1,445.8 1,329.5 Projects under construction 100.6 79.9 Properties and equipment, gross 2,057.1 1,908.5 Accumulated depreciation and amortization (1,327.5 ) (1,286.8 ) Properties and equipment, net $ 729.6 $ 621.7 Capitalized interest costs amounted to $1.3 million , $1.0 million , and $1.2 million in 2016 , 2015 , and 2014 , respectively. Depreciation and lease amortization expense relating to properties and equipment was $85.7 million , $81.8 million , and $83.9 million in 2016 , 2015 , and 2014 , respectively. Grace's rental expense for operating leases was $10.0 million , $10.6 million , and $10.5 million in 2016 , 2015 , and 2014 , respectively. At December 31, 2016 , minimum future non-cancelable payments for operating leases are: (In millions) 2017 $ 9.0 2018 6.0 2019 3.9 2020 2.6 2021 2.1 Thereafter 4.4 $ 28.0 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | The carrying amount of goodwill attributable to each reportable segment and the changes in those balances during the years ended December 31, 2016 and 2015 , are as follows: (In millions) Catalysts Technologies Materials Technologies Total Grace Balance, December 31, 2014 $ 293.8 $ 45.1 $ 338.9 Foreign currency translation (1.1 ) (1.3 ) (2.4 ) Balance, December 31, 2015 292.7 43.8 336.5 Goodwill acquired during the year 63.8 — 63.8 Foreign currency translation (3.0 ) (0.6 ) (3.6 ) Write-off related to exited product lines — (2.5 ) (2.5 ) Balance, December 31, 2016 $ 353.5 $ 40.7 $ 394.2 Grace's net book value of other intangible assets at December 31, 2016 and 2015 , was $269.1 million and $227.5 million , respectively, detailed as follows: December 31, 2016 December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Technology $ 222.3 $ 38.9 $ 237.5 $ 51.0 Customer lists 69.6 20.3 43.0 29.3 Trademarks 25.3 1.5 22.8 9.4 Other 15.7 3.1 16.6 2.7 Total $ 332.9 $ 63.8 $ 319.9 $ 92.4 Amortization expense related to intangible assets was $13.9 million , $16.2 million , and $17.0 million in 2016 , 2015 , and 2014 , respectively. At December 31, 2016 , estimated future annual amortization expense for intangible assets is: (In millions) 2017 $ 15.2 2018 15.1 2019 15.1 2020 14.9 2021 14.7 Thereafter 194.1 $ 269.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Components of Debt December 31, (In millions) 2016 2015 5.125% senior notes due 2021, net of unamortized debt issuance costs of $7.3 at December 31, 2016 (2015—$8.9) $ 692.7 $ 691.1 U.S. dollar term loan, net of unamortized debt issuance costs and discounts of $5.7 at December 31, 2016 (2015—$15.6) 402.7 919.3 5.625% senior notes due 2024, net of unamortized debt issuance costs of $4.0 at December 31, 2016 (2015—$4.5) 296.0 295.5 Euro term loan, net of unamortized debt issuance costs and discounts of $1.3 at December 31, 2016 (2015—$3.4) 82.5 158.7 Debt payable—unconsolidated affiliate 39.5 33.4 Deferred payment obligation 30.0 29.1 Other borrowings(1) 40.7 42.5 Total debt 1,584.1 2,169.6 Less debt payable within one year 76.5 58.1 Debt payable after one year $ 1,507.6 $ 2,111.5 Weighted average interest rates on total debt 4.6 % 4.1 % ___________________________________________________________________________________________________________________ (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, 2016 , were as follows: (In millions) 2017 $ 76.5 2018 7.9 2019 7.3 2020 6.0 2021 1,182.5 Thereafter 303.9 Total debt $ 1,584.1 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 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, 2016 . 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 (the "PI Trust") for $490 million . (See Note 10 for Chapter 11 information.) Grace had no outstanding draws on its revolving credit facility as of December 31, 2016 ; however, the available credit under that facility was reduced to $257.2 million by outstanding letters of credit. During the 2015 fourth quarter, to permit the Separation, Grace entered into an amendment to the Credit Agreement. 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. The Separation had no impact on payment or other terms of the senior notes, which remained obligations of Grace. In connection with the Separation, GCP distributed $750 million to Grace. Grace used $600 million of those funds to repay $526.9 million of its U.S. dollar term loan and €67.3 million of its euro term loan. As a result, Grace recorded a loss on early extinguishment of $11.1 million , which is included in "other (income) expense" in the Consolidated Statements of Operations. 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. 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 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. 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 subject 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, 2016 | |
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. 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, 2016 , the carrying amounts and fair values of Grace's debt were as follows: December 31, 2016 December 31, 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.125% senior notes due 2021(1) $ 692.7 $ 721.3 $ 691.1 $ 701.5 U.S. dollar term loan(2) 402.7 408.2 919.3 907.2 5.625% senior notes due 2024(1) 296.0 311.5 295.5 298.1 Euro term loan(2) 82.5 82.0 158.7 157.3 Other borrowings 110.2 110.2 105.0 105.0 Total debt $ 1,584.1 $ 1,633.2 $ 2,169.6 $ 2,169.1 ___________________________________________________________________________________________________________________ (1) Carrying amounts are net of unamortized debt issuance costs of $7.3 million and $4.0 million at December 31, 2016 , and $8.9 million and $4.5 million at December 31, 2015 , related to the 5.125% senior notes due 2021 and 5.625% senior notes due 2024, respectively. (2) Carrying amounts are net of unamortized debt issuance costs and discounts of $5.7 million and $1.3 million at December 31, 2016 and $15.6 million and $3.4 million at December 31, 2015 , related to the U.S. dollar term loan and euro term loan, respectively. At December 31, 2016 , 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 15 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 income (loss)" and reclassified into income in the same period or periods that the underlying commodity purchase affects income. At December 31, 2016 , there were no open fixed-rate natural gas swaps. 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 15 months are used and designated as cash flow hedges of forecasted purchases of aluminum. Current open contracts hedge forecasted transactions until November 2017. The effective portion of the gain or loss on the commodity contracts is recorded in "accumulated other comprehensive income (loss)" and reclassified into income in the same period or periods that the underlying commodity purchase affects income. At December 31, 2016 , the contract volume, or notional amount, of the commodity contracts was 1.3 million pounds with a total contract value of $1.0 million . Currency Derivatives Because Grace operates and/or sells to customers in over 60 countries and in 30 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, swaps, or combinations thereof 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 and swaps 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 income (loss)" 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, 2016 and 2015 : Fair Value Measurements at December 31, 2016, 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 $ 8.8 $ — $ 8.8 $ — Total Assets $ 8.8 $ — $ 8.8 $ — Liabilities Currency derivatives $ 0.9 $ — $ 0.9 $ — Interest rate derivatives 6.0 — 6.0 — Total Liabilities $ 6.9 $ — $ 6.9 $ — 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 $ 1.0 $ — $ 1.0 $ — Commodity derivatives 0.6 — 0.6 — Total Assets $ 1.6 $ — $ 1.6 $ — Liabilities Currency derivatives $ 0.5 $ — $ 0.5 $ — Interest rate derivatives 7.9 — 7.9 — Commodity derivatives 0.1 — 0.1 — Total Liabilities $ 8.5 $ — $ 8.5 $ — The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of December 31, 2016 and 2015 : Asset Derivatives Liability Derivatives December 31, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 4.0 Other current liabilities $ — Interest rate contracts Other current assets — Other current liabilities 2.8 Currency contracts Other assets 4.0 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.2 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.8 Other current liabilities 0.9 Total derivatives $ 8.8 $ 6.9 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 0.3 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 0.1 Other current liabilities 0.2 Total derivatives $ 1.6 $ 8.5 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, 2016 , 2015 , and 2014 : Year Ended December 31, 2016 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 $ (2.2 ) Interest expense $ (4.1 ) Currency contracts (0.1 ) Other expense 0.8 Commodity contracts (0.3 ) Cost of goods sold 0.1 Total derivatives $ (2.6 ) $ (3.2 ) 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 $ (0.8 ) 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 1.4 Other expense 0.7 Commodity contracts (1.4 ) Cost of goods sold (4.6 ) Total derivatives $ (5.6 ) $ (7.7 ) 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 ) Other expense $ — Currency contracts 0.4 Other expense 0.2 Commodity contracts (2.2 ) Cost of goods sold 0.3 Total derivatives $ (7.2 ) $ 0.5 Net Investment Hedges Grace uses cross-currency swaps as derivative hedging instruments in certain net investment hedges of our non-U.S. subsidiaries. The effective portion of gains and losses attributable to these net investment hedges is recorded net of tax to "currency translation adjustments" within "accumulated other comprehensive income (loss)" to offset the change in the carrying value of the net investment being hedged. 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, 2016 , the notional amount of €170.0 million of Grace's cross-currency swaps was designated as a hedging instrument of its net investment in European subsidiaries. Grace also uses foreign currency denominated debt and deferred intercompany royalties as non-derivative 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 income (loss)." 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, 2016 , €80.1 million of Grace's term loan principal was designated as a hedging instrument of its net investment in European subsidiaries. At December 31, 2016 , €56.2 million of Grace's deferred intercompany royalties 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 derivative and non-derivative 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, 2016 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ 5.6 Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 4.6 Foreign currency denominated deferred intercompany royalties 2.5 $ 7.1 Year Ended December 31, 2015 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 18.3 Year Ended December 31, 2014 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 22.7 Credit Risk Grace is exposed to credit risk in its trade accounts receivable. Customers in the petroleum refining industry represent the greatest exposure. Grace's credit evaluation policies 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, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Provision for Income Taxes The components of income from continuing operations before income taxes and the related provision for income taxes for 2016 , 2015 , and 2014 are as follows: (In millions) 2016 2015 2014 Income from continuing operations before income taxes: Domestic $ 72.7 $ 97.1 $ 77.2 Foreign 93.3 96.6 27.3 Total $ 166.0 $ 193.7 $ 104.5 Benefit from (provision for) income taxes: Federal—current $ — $ — $ 59.4 Federal—deferred (11.8 ) (35.4 ) (23.6 ) State and local—current (0.7 ) 4.1 3.3 State and local—deferred (17.7 ) (6.4 ) (18.0 ) Foreign—current (36.6 ) (23.5 ) (19.8 ) Foreign—deferred 7.8 (8.6 ) 11.1 Total $ (59.0 ) $ (69.8 ) $ 12.4 The difference between the benefit from (provision for) income taxes on continuing operations at the U.S. federal income tax rate of 35% and Grace's overall income tax provision is summarized as follows: (In millions) 2016 2015 2014 Tax provision at U.S. federal income tax rate $ (58.1 ) $ (67.8 ) $ (36.6 ) Change in benefit (provision) resulting from: Effect of tax rates in foreign jurisdictions 6.8 3.0 3.0 Stock option exercises (ASU 2016-09) 6.7 — — State and local income taxes, net (4.7 ) (2.9 ) (9.6 ) Adjustments to unrecognized tax benefits 2.6 (1.7 ) 57.9 Decrease (increase) in valuation allowance (2.5 ) 1.6 — Nontaxable income/non-deductible expenses (2.5 ) (0.9 ) (4.1 ) U.S. tax on foreign earnings (0.9 ) (1.7 ) 5.1 Other (6.4 ) 0.6 (3.3 ) Benefit from (provision for) income taxes $ (59.0 ) $ (69.8 ) $ 12.4 The increase in state and local income tax expense in 2016 is attributable to the recording of additional valuation allowance to reduce its net state deferred tax assets resulting from a Louisiana tax law change and the Separation. Deferred Tax Assets and Liabilities At December 31, 2016 and 2015 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items: December 31, (In millions) 2016 2015 Deferred tax assets: U.S. net operating loss carryforwards $ 293.6 $ 359.7 Federal tax credit carryforwards 183.2 124.3 Pension liabilities 120.1 102.1 State net operating loss carryforwards 50.9 52.5 Research and development 35.4 32.9 Reserves and allowances 31.1 40.9 Liability for environmental remediation 24.6 20.6 Prepaid royalties 20.8 — Liability for asbestos-related litigation 11.1 10.8 Foreign net operating loss carryforwards 5.9 4.2 Other 29.0 36.0 Total deferred tax assets $ 805.7 $ 784.0 Deferred tax liabilities: Properties and equipment $ (38.5 ) $ (33.8 ) Intangible assets (18.4 ) (17.6 ) Pension assets (6.1 ) (5.4 ) Other (4.7 ) (5.7 ) Total deferred tax liabilities $ (67.7 ) $ (62.5 ) Valuation allowance: Federal tax credit carryforwards $ (17.7 ) $ (2.2 ) State net operating loss carryforwards (11.2 ) (3.5 ) Foreign net operating loss carryforwards (2.5 ) (2.7 ) Total valuation allowance (31.4 ) (8.4 ) Net deferred tax assets $ 706.6 $ 713.1 Grace's deferred tax assets decreased by $6.5 million from December 31, 2015 , to December 31, 2016 . As discussed in Notes 1 and 21, the Separation was completed on February 3, 2016. In conjunction with the Separation, $58.9 million of Grace's deferred tax assets were transferred to GCP in 2016. This decrease was offset by the adoption of ASU 2016-09, which resulted in the recognition of excess tax benefits in the Consolidated Balance Sheets which had not previously been recognized. This increased Grace's deferred tax assets as of January 1, 2016, by $70.4 million , which is net of a $20.5 million valuation allowance. 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 increased by $23.0 million from December 31, 2015 , to December 31, 2016 , due to $20.5 million for deferred tax assets recognized upon adoption of ASU 2016-09 and $2.5 million for a change in the ability to utilize NOL carryforwards as a result of the Separation. 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. 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. The deductions generated a U.S. federal and state net operating loss in 2014, which Grace has carried forward and expects to utilize in subsequent years. Under U.S. federal income tax law, a corporation is generally permitted to carry forward NOLs for a 20 -year period for deduction against future taxable income. Grace also generated U.S. federal tax deductions of $30 million upon payment of the ZAI PD deferred payment obligation on February 3, 2017. (See Note 10). As of December 31, 2016 , Grace had U.S. federal NOLs of approximately $857 million expiring between 2034 and 2035 and state NOLs of approximately $733 million on a post apportioned basis expiring between 2017 and 2035. Grace will need to generate approximately $ 1,800 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 $17.3 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 ( $183.2 million as of December 31, 2016 ) are $144.4 million of foreign tax credits, which expire between 2018 and 2026. Grace has recorded a valuation allowance of $17.7 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 $536.6 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 $27.4 million . Grace repatriated earnings of $5.1 million , $173.1 million , and $38.9 million from its non-U.S. subsidiaries in 2016 , 2015 , and 2014 , respectively, incurring an insignificant amount of U.S. income tax expense or benefit in 2014 . The tax effect of the repatriation of foreign earnings in 2015 and 2016 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 U.S. However, in connection with the Separation, during 2015 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. Grace included tax expense in discontinued operations of $19.0 million in 2015 for repatriation and $1.3 million in 2016 for deemed 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 believes that the Separation was a one-time, non-recurring event and that recognition of deferred taxes on undistributed earnings would not have occurred if not for the Separation. Subsequent to the 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, 2016 , was $18.7 million ( $18.7 million excluding interest and penalties). 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). As of December 31, 2016 and 2015 , unrecognized tax benefits which resulted in the reduction of a deferred tax asset were $18.4 million and $6.1 million , respectively. A reconciliation of the unrecognized tax benefits, excluding interest and penalties, for the three years ended December 31, 2016 , follows: (In millions) Unrecognized Tax Benefits Balance, January 1, 2014 $ 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(1) (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 Additions for current year tax positions 6.8 Additions for prior year tax positions 0.2 Reductions for prior year tax positions and reclassifications (0.2 ) Settlements (3.3 ) Transferred to GCP upon Separation (7.9 ) Balance, December 31, 2016 $ 18.7 ___________________________________________________________________________________________________________________ (1) 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, 2016 , of $18.7 million , if recognized, would reduce the effective tax rate. The balance of unrecognized tax benefits as of December 31, 2016 , includes $18.4 million for tax positions with an indirect tax benefit that results in a corresponding deferred tax asset as of December 31, 2016 . Grace accrues potential interest and any associated penalties related to unrecognized tax benefits in "benefit from (provision for) income taxes" in the Consolidated Statements of Operations. The total amount of interest and penalties accrued on unrecognized tax benefits as of December 31, 2016 , 2015 , and 2014 was $0.0 million , $3.9 million and $3.2 million , respectively. Upon the Separation, $7.9 million of unrecognized tax benefits and $3.1 million of accrued penalties and interest on those benefits were transferred to GCP. 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 2010-2015 United States—States 2010-2014 2015 Germany None 2014 Sweden None 2012-2015 France 2014 2015 ___________________________________________________________________________________________________________________ (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 that the amount of the liability for unrecognized tax benefits will be unchanged in the next 12 months. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 underfunded and unfunded pension plans: December 31, (In millions) 2016 2015 Underfunded defined benefit pension plans $ (83.1 ) $ (73.2 ) Unfunded defined benefit pension plans (341.2 ) (304.3 ) Total underfunded and unfunded defined benefit pension plans (424.3 ) (377.5 ) Pension liabilities included in other current liabilities (14.4 ) (14.2 ) Net funded status $ (438.7 ) $ (391.7 ) Underfunded plans include a group of advance-funded plans that are underfunded on a projected benefit obligation ("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 $438.7 million as of December 31, 2016 . 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. U.S. salaried employees and certain U.S. hourly employees that are hired on or after January 1, 2017, and employees in Germany that are hired on or after January 1, 2016, will participate in defined contribution plans instead of defined benefit pension plans. 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, 2016 , measurement date for Grace's defined benefit pension plans, the PBO was $1,543.3 million as measured under U.S. GAAP compared with $1,477.6 million as of December 31, 2015 . The PBO basis reflects the present value (using a 4.06% weighted average discount rate for U.S. plans and a 1.91% weighted average discount rate for non-U.S. plans as of December 31, 2016 ) 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. 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, and December 31, 2016, due to plan amendments to eliminate certain other postretirement life insurance benefits, which resulted in curtailment gains of $4.5 million and $0.5 million , respectively. 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 $11.1 million , $10.4 million , and $9.3 million for the years ended December 31, 2016 , 2015 , and 2014 , 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 2016 and 2015 : Defined Benefit Pension Plans Other Post- Retirement Plans (In millions) U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,238.8 $ 1,437.3 $ 238.8 $ 590.4 $ 1,477.6 $ 2,027.7 $ 0.6 $ 2.4 Service cost 17.8 25.7 6.8 11.7 24.6 37.4 — — Interest cost 40.5 55.1 5.1 16.1 45.6 71.2 — 0.1 Plan participants' contributions — — — 0.5 — 0.5 — — Amendments (1.3 ) (3.6 ) — — (1.3 ) (3.6 ) (0.1 ) (2.1 ) Settlements/curtailments — — (2.3 ) (1.0 ) (2.3 ) (1.0 ) — — Actuarial (gain) loss 62.3 (63.0 ) 39.9 (11.4 ) 102.2 (74.4 ) — 0.4 Medicare subsidy receipts — — — — — — — 1.0 Benefits paid (83.9 ) (87.0 ) (7.5 ) (20.7 ) (91.4 ) (107.7 ) — (1.1 ) Currency exchange translation adjustments — — (11.7 ) (49.9 ) (11.7 ) (49.9 ) — — Less: discontinued operations — (125.7 ) — (296.9 ) — (422.6 ) — (0.1 ) Benefit obligation at end of year $ 1,274.2 $ 1,238.8 $ 269.1 $ 238.8 $ 1,543.3 $ 1,477.6 $ 0.5 $ 0.6 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,067.2 $ 1,262.6 $ 18.7 $ 336.1 $ 1,085.9 $ 1,598.7 $ — $ — Actual return on plan assets 95.6 (34.6 ) (0.5 ) 2.9 95.1 (31.7 ) — — Employer contributions 7.5 7.3 8.4 10.5 15.9 17.8 — 0.1 Plan participants' contributions — — — 0.5 — 0.5 — — Settlements — — (1.3 ) (1.5 ) (1.3 ) (1.5 ) — — Medicare subsidy receipts — — — — — — — 1.0 Benefits paid (83.9 ) (87.0 ) (7.5 ) (20.7 ) (91.4 ) (107.7 ) — (1.1 ) Currency exchange translation adjustments — — 0.4 (21.6 ) 0.4 (21.6 ) — — Less: discontinued operations — (81.1 ) — (287.5 ) — (368.6 ) — — Fair value of plan assets at end of year $ 1,086.4 $ 1,067.2 $ 18.2 $ 18.7 $ 1,104.6 $ 1,085.9 $ — $ — Funded status at end of year (PBO basis) $ (187.8 ) $ (171.6 ) $ (250.9 ) $ (220.1 ) $ (438.7 ) $ (391.7 ) $ (0.5 ) $ (0.6 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (7.4 ) $ (7.0 ) $ (7.0 ) $ (7.2 ) $ (14.4 ) $ (14.2 ) $ — $ — Noncurrent liabilities (180.4 ) (164.6 ) (243.9 ) (212.9 ) (424.3 ) (377.5 ) (0.5 ) (0.6 ) Net amount recognized $ (187.8 ) $ (171.6 ) $ (250.9 ) $ (220.1 ) $ (438.7 ) $ (391.7 ) $ (0.5 ) $ (0.6 ) Amounts recognized in Accumulated Other Comprehensive (Income) Loss consist of: Accumulated actuarial loss $ — $ — $ — $ — $ — $ — $ 4.3 $ 5.9 Prior service credit (4.3 ) (3.1 ) (0.1 ) (0.3 ) (4.4 ) (3.4 ) (3.3 ) (7.1 ) Net amount recognized $ (4.3 ) $ (3.1 ) $ (0.1 ) $ (0.3 ) $ (4.4 ) $ (3.4 ) $ 1.0 $ (1.2 ) Defined Benefit Pension Plans Other Post- Retirement Plans (In millions) U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 2016 2015 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.06 % 4.28 % 1.91 % 2.67 % NM NM 4.36 % 4.40 % Rate of compensation increase 4.60 % 4.70 % 3.09 % 3.09 % NM NM NM NM Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.28 % 3.95 % 2.67 % 2.97 % NM NM 4.40 % 4.18 % Expected return on plan assets 5.50 % 5.75 % 5.08 % 4.11 % NM NM NM NM Rate of compensation increase 4.70 % 4.70 % 3.09 % 3.24 % 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) 2016 2015 2014 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 $ 17.8 $ 6.8 $ — $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 Interest cost 40.5 5.1 — 55.1 16.1 0.1 60.0 22.2 1.1 Expected return on plan assets (56.7 ) (1.0 ) — (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — Amortization of prior service cost (credit) (0.2 ) — (2.2 ) 0.3 — (3.4 ) 0.7 — (2.4 ) Amortization of net deferred actuarial loss — — 0.5 — — 0.7 — — — Annual mark-to-market adjustment 23.3 40.1 — 42.0 (0.1 ) — 89.2 45.4 — Gain on termination and curtailment of postretirement plans — — (0.5 ) — — (4.5 ) — — (39.5 ) Net curtailment and settlement gain — (1.0 ) — — — — — — — Net periodic benefit cost (income) 24.7 50.0 (2.2 ) 52.7 14.7 (7.1 ) 103.5 63.1 (40.7 ) Less: discontinued operations — — — (4.0 ) (16.8 ) 1.4 (13.7 ) 14.8 0.7 Net periodic benefit cost (income) from continuing operations $ 24.7 $ 50.0 $ (2.2 ) $ 48.7 $ (2.1 ) $ (5.7 ) $ 89.8 $ 77.9 $ (40.0 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ — $ — $ — $ 0.4 $ — $ — $ (1.0 ) Net prior service credit (1.3 ) — (0.1 ) (3.6 ) — (2.1 ) — — (13.6 ) Amortization of prior service cost (credit) 0.2 — 2.2 (0.3 ) — 3.4 (0.7 ) — 2.4 Amortization of net deferred actuarial loss — — (0.5 ) — — (0.7 ) — — — Loss on termination and curtailment of postretirement plans — — 0.5 — — 4.5 — — 12.2 Total recognized in other comprehensive (income) loss (1.1 ) — 2.1 (3.9 ) — 5.5 (0.7 ) — — Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 23.6 $ 50.0 $ (0.1 ) $ 44.8 $ (2.1 ) $ (0.2 ) $ 89.1 $ 77.9 $ (40.0 ) The estimated prior service credit for the defined benefit pension plans that will be amortized from accumulated other comprehensive (income) loss into net periodic benefit cost (income) over the next fiscal year is $0.4 million . The estimated net deferred actuarial loss and prior service credit for the other postretirement plan that will be amortized from accumulated other comprehensive (income) loss into net periodic benefit cost (income) over the next fiscal year are $0.5 million and $1.9 million , respectively. Funded Status of U.S. Pension Plans (In millions) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2016 2015 2016 2015 Projected benefit obligation $ 1,167.9 $ 1,139.2 $ 106.3 $ 99.6 Fair value of plan assets 1,086.4 1,067.2 — — Funded status (PBO basis) $ (81.5 ) $ (72.0 ) $ (106.3 ) $ (99.6 ) Funded Status of Non-U.S. Pension Plans (In millions) Underfunded Non-U.S. Pension Plans(1) Unfunded Pay-As-You-Go Non-U.S. Pension Plans(2) 2016 2015 2016 2015 Projected benefit obligation $ 19.8 $ 19.9 $ 249.3 $ 218.9 Fair value of plan assets 18.2 18.7 — — Funded status (PBO basis) $ (1.6 ) $ (1.2 ) $ (249.3 ) $ (218.9 ) ___________________________________________________________________________________________________________________ (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 $1,478 million and $1,416 million as of December 31, 2016 and 2015 , respectively. Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation (In millions) U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 1,274.2 $ 1,238.8 $ 249.3 $ 220.5 $ 1,523.5 $ 1,459.3 Accumulated benefit obligation 1,238.8 1,205.6 222.6 195.6 1,461.4 1,401.2 Fair value of plan assets 1,086.4 1,067.2 — 0.8 1,086.4 1,068.0 Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending (In millions) Pension Plans Other Post-Retirement Plans Total Payments U.S. Non-U.S.(1) Benefit Payments Benefit Payments Benefit Payments 2017 $ 82.1 $ 7.7 $ — $ 89.8 2018 82.4 8.1 — 90.5 2019 83.1 8.2 — 91.3 2020 83.4 8.6 — 92.0 2021 83.8 8.8 — 92.6 2022 - 2026 419.0 46.5 0.1 465.6 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2017 and future periods have been translated at the applicable December 31, 2016 , exchange rates. 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 4.06% as of December 31, 2016 , 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, 2016 and 2015 , the German pension plans represented approximately 92% and 90% , respectively, of the benefit obligation of the non-U.S. pension plans. The assumed weighted average discount rate as of December 31, 2016 , for Germany ( 1.78% ) was selected by Grace, in consultation with its independent actuaries, based on a yield curve constructed from a portfolio of 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 did not affect the measurement of the projected benefit obligation as of December 31, 2015. Grace considers this a change in accounting estimate, which is being accounted for prospectively as of January 1, 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 2016 , the expected long-term rate of return on assets for the U.S. qualified pension plans was 5.50% . Average annual returns over one-, three-, five-, and ten-year periods were approximately 9% , 5% , 7% , and 5% , respectively. The expected return on plan assets for the U.S. qualified pension plans for 2016 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, 2016 , and the actual allocation at December 31, 2016 and 2015 , 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 2016 2016 2015 U.S. equity securities 9 % 8 % 10 % Non-U.S. equity securities 6 % 6 % 6 % Short-term debt securities 4 % 4 % 7 % Intermediate-term debt securities 31 % 32 % 28 % Long-term debt securities 48 % 48 % 47 % 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, 2016 and 2015 . Fair Value Measurements at December 31, 2016, 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 $ 91.5 $ — $ 91.5 $ — Non-U.S. equity group trust funds 62.6 — 62.6 — Corporate bond group trust funds—intermediate-term 342.6 — 342.6 — Corporate bond group trust funds—long-term 521.5 — 521.5 — Other fixed income group trust funds 22.4 — 22.4 — Common/collective trust funds 27.4 — 27.4 — Annuity and immediate participation contracts 18.4 — 18.4 — Total Assets $ 1,086.4 $ — $ 1,086.4 $ — Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 101.2 $ — $ 101.2 $ — Non-U.S. equity group trust funds 68.9 — 68.9 — Corporate bond group trust funds—intermediate-term 303.2 — 303.2 — Corporate bond group trust funds—long-term 498.0 — 498.0 — Other fixed income group trust funds 21.5 — 21.5 — Common/collective trust funds 56.7 — 56.7 — Annuity and immediate participation contracts 17.7 — 17.7 — Total Assets $ 1,067.2 $ — $ 1,067.2 $ — Non-U.S. pension plans accounted for approximately 2% of total global pension assets at December 31, 2016 and 2015 . 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 Canadian pension plan represent approximately 97% and 92% of the total non-U.S. pension plan assets at December 31, 2016 and 2015 , respectively. The expected long-term rate of return on assets for the Canadian pension plan was 5.25% for 2016 . The target allocation of investment assets at December 31, 2016 , and the actual allocation at December 31, 2016 and 2015 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2016 2016 2015 Equity securities 27 % 28 % 28 % Bonds 58 % 57 % 57 % Other investments 15 % 15 % 15 % Total 100 % 100 % 100 % The plan assets of the other country plans represent approximately 3% and 8% in the aggregate of total non-U.S. pension plan assets at December 31, 2016 and 2015 , respectively. The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2016 . Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 17.6 $ — $ 17.6 $ — Corporate bonds 0.3 — 0.3 — Insurance contracts and other investments 0.3 — 0.3 — Total Assets $ 18.2 $ — $ 18.2 $ — 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 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 17.2 $ — $ 17.2 $ — Corporate bonds 0.3 — 0.3 — Insurance contracts and other investments 1.2 — 1.2 — Total Assets $ 18.7 $ — $ 18.7 $ — 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, 2016 , there are no minimum required payments under ERISA for 2017. Grace intends to fund non-U.S. pension plans based on applicable legal requirements and actuarial and trustee recommendations. Grace expects to contribute approximately $8 million to its non-U.S. pension plans in 2017. |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Accounts | December 31, (In millions) 2016 2015 Other Current Liabilities Accrued compensation $ 49.6 $ 51.5 Environmental contingencies 32.5 21.4 Deferred revenue 27.2 24.7 Accrued interest 16.2 18.9 Pension liabilities 14.4 14.2 Income taxes payable 5.7 25.8 Other accrued liabilities 63.3 76.4 $ 208.9 $ 232.9 Accrued compensation 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, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Over the years, Grace operated numerous types of businesses that are no longer part of its business portfolio. As Grace divested or otherwise ceased operating these businesses, it retained certain liabilities and obligations, which we refer to as legacy liabilities. The principal legacy liabilities are product and environmental liabilities. Although the outcome of each of the matters discussed below cannot be predicted with certainty, Grace has assessed its risk and has made accounting estimates as required under U.S. GAAP. Legacy Product and Environmental Liabilities Legacy Product 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 and with $30.0 million on February 3, 2017. The $30.0 million liability was included in "debt payable within one year" in the accompanying Consolidated Balance Sheets as of December 31, 2016. Grace is also obligated to make up to 10 contingent deferred payments of $8 million each 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 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. Legacy Environmental Liabilities Grace is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to its manufacturing operations. Grace has procedures in place to minimize such contingencies; nevertheless, it has liabilities associated with past operations and additional claims may arise in the future. To address its legacy liabilities, Grace accrues for anticipated costs of 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 regularly and adjusted when circumstances become better defined or response efforts and their costs can be better estimated, typically as a matter moves through the life-cycle of environmental investigation and remediation. These liabilities are evaluated based on currently available information, relating to the nature and extent of contamination, risk assessments, feasibility of response actions, and apportionment amongst other potentially responsible parties, all evaluated in light of prior experience. At December 31, 2016 , Grace's estimated liability for legacy environmental response costs totaled $66.3 million , compared with $55.2 million at December 31, 2015 , and was included in "other current liabilities" and "other liabilities" in the Consolidated Balance Sheets. These amounts are based on agreements in place or on Grace's estimate of costs where no formal remediation plan exists, yet there is sufficient information to estimate response costs. Grace recorded pre-tax charges of $29.2 million , $6.4 million , and $14.7 million for environmental matters in 2016 , 2015 , and 2014 , respectively, which is included in "provision for environmental remediation" in the Consolidated Statements of Operations. Net cash paid against previously established reserves in 2016 , 2015 , and 2014 were $18.1 million , $12.3 million , and $11.7 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. Grace is engaged with the U.S. Environmental Protection Agency (the "EPA") and other federal, state and local governmental agencies in a remedial investigation and feasibility study ("RI/FS") of the Libby mine and the surrounding area. This RI/FS will determine the specific areas requiring remediation and will identify possible remedial action alternatives. Possible remedial actions are wide-ranging, from institutional controls such as land use restrictions, to more active measures involving soil removal, containment projects, or other protective measures. Grace expects the RI/FS and a record of decision to be completed in 2018 or 2019. When meaningful new information becomes available, Grace will reevaluate estimated liability for the costs for remediation of the mine and surrounding area and adjust its reserves accordingly. The EPA is also investigating or remediating formerly owned or operated sites that processed Libby vermiculite into finished products. Grace is cooperating with the EPA on these investigation and remediation activities, and has recorded a liability to the extent that its review has indicated that a probable liability has been incurred and the cost is estimable. These liabilities cover the estimated cost of investigations and, to the extent an assessment has indicated that remediation is necessary, the estimable cost of response actions. Response actions typically involve soil excavation and removal, and replacement with clean fill. The EPA may commence additional investigations in the future at other sites that processed Libby vermiculite, but Grace does not believe, based on its knowledge of prior and current operations and site conditions, that liability for remediation at such other sites is probable. Grace accrued $24.8 million , $6.0 million , and $7.5 million in 2016 , 2015 , and 2014 , respectively, for future costs related to vermiculite-related matters. More than half of the 2016 amount was for the completion of the RI/FS of the Libby mine and surrounding area, which is expected to be spent over the next three years. Grace's total estimated liability for response costs that are currently estimable for the Libby mine and surrounding area, and at vermiculite processing sites outside of Libby at December 31, 2016 and 2015 , was $31.2 million and $18.7 million , respectively. It is probable that Grace's ultimate liability for these vermiculite-related matters will exceed current estimates by material amounts. Non-Vermiculite-Related Matters At December 31, 2016 and 2015 , Grace's estimated legacy environmental liability for response costs at sites not related to its former vermiculite mining and processing activities was $35.1 million and $36.5 million , respectively. This liability relates to Grace's former businesses or operations, including its share of liability at off-site disposal 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. Commercial and Financial Commitments and Contingencies 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, 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 related to activities prior to the closing of the transaction, including environmental liabilities. • Contracts related to the Separation in which Grace has agreed to indemnify GCP against liabilities related to activities prior to the closing of the transaction, including tax, employee, and 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, 2016 , Grace had gross financial assurances issued and outstanding of $124.3 million , composed of $37.2 million of surety bonds issued by various insurance companies and $87.1 million of standby letters of credit and other financial assurances issued by various banks. |
Restructuring Expenses and Rela
Restructuring Expenses and Related Asset Impairments | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses and Related Asset Impairments | Restructuring Expenses In 2016 , Grace incurred costs from restructuring actions, primarily related to workforce reductions and asset write-offs due to the exit of certain non-strategic product lines in Materials Technologies. In 2015 and 2014, Grace incurred costs from restructuring actions as a result of changes in the business environment and its business structure; costs in 2015 were in part due to the Separation. Year Ended December 31, (In millions) 2016 2015 2014 Catalysts Technologies $ 3.4 $ 4.8 $ 2.1 Materials Technologies 15.1 0.8 0.2 Corporate 5.8 5.7 2.0 Total restructuring expenses $ 24.3 $ 11.3 $ 4.3 Restructuring Liability Total Balance, December 31, 2013 $ 1.1 Accruals for severance and other costs 4.3 Payments (3.6 ) Currency translation adjustments and other 0.3 Balance, December 31, 2014 $ 2.1 Accruals for severance and other costs 11.3 Payments (5.6 ) Currency translation adjustments and other (0.2 ) Balance, December 31, 2015 $ 7.6 Accruals for severance and other costs 17.8 Payments (16.0 ) Currency translation adjustments and other 0.2 Balance, December 31, 2016 $ 9.6 Repositioning Expenses Pretax repositioning expenses included in continuing operations for the years ended December 31, 2016 and 2015 , were $14.3 million and $9.1 million , respectively. These expenses primarily related to the Separation. Substantially all of these costs have been or are expected to be settled in cash. |
Other Expense, net
Other Expense, net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, net | Components of other (income) expense, net are as follows: Year Ended December 31, (In millions) 2016 2015 2014 Loss on early extinguishment of debt $ 11.1 $ — $ — Chapter 11 expenses, net 3.4 5.1 11.0 Third-party acquisition-related costs 2.5 — — Net (gain) loss on sales of investments and disposals of assets (1.4 ) (10.6 ) (2.5 ) Interest income (1.0 ) (0.3 ) (1.4 ) Currency transaction effects (1.0 ) (1.5 ) (1.5 ) Bankruptcy-related charges, net — (8.7 ) 7.1 Other miscellaneous expense (income) (0.3 ) 2.2 (1.8 ) Total other (income) expense, net $ 13.3 $ (13.8 ) $ 10.9 See Note 5 for more information related to Grace's 2016 early extinguishment of debt. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | The following tables present the pre-tax, tax, and after-tax components of Grace's other comprehensive income (loss) for the years ended December 31, 2016 , 2015 , and 2014 : Year Ended December 31, 2016 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 $ (2.4 ) $ 0.9 $ (1.5 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.5 (0.2 ) 0.3 Net prior service credit arising during period 1.4 (0.5 ) 0.9 Loss on curtailment of postretirement plans (0.5 ) 0.2 (0.3 ) Benefit plans, net (1.0 ) 0.4 (0.6 ) Currency translation adjustments (1.8 ) — (1.8 ) Gain (loss) from hedging activities 0.6 (0.3 ) 0.3 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (2.2 ) $ 0.1 $ (2.1 ) 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 gain (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 (loss) from hedging activities 2.1 (0.8 ) 1.3 Other comprehensive income (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 (loss) 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 ) Gain (loss) from hedging activities (7.1 ) 2.6 (4.5 ) Other than temporary impairment of investment 0.8 — 0.8 Gain (loss) on securities available for sale (0.1 ) — (0.1 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (33.7 ) $ (0.7 ) $ (34.4 ) The following table presents the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2016 , 2015 , and 2014 : 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, 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 (loss) (12.0 ) — (1.3 ) 0.8 0.6 (11.9 ) Net current-period other comprehensive income (loss) (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 (loss) (4.5 ) — 0.7 — — (3.8 ) Net current-period other comprehensive income (loss) (1.0 ) (43.3 ) 1.3 — — (43.0 ) Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ — $ — $ (66.8 ) Other comprehensive income (loss) before reclassifications 0.9 (1.8 ) (1.8 ) — — (2.7 ) Amounts reclassified from accumulated other comprehensive income (loss) (1.5 ) — 2.1 — — 0.6 Net current-period other comprehensive income (loss) (0.6 ) (1.8 ) 0.3 — — (2.1 ) Distribution of GCP (0.2 ) 135.5 — — — 135.3 Balance, December 31, 2016 $ 2.2 $ 67.6 $ (3.4 ) $ — $ — $ 66.4 Grace is a global enterprise operating in many 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, 2016 | |
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 per share. As of December 31, 2016 , the W. R. Grace & Co. 2014 Stock Incentive Plan (together with the 2011 Stock Incentive Plan and the Amended and Restated 2011 Stock Incentive Plan, collectively, the "Stock Incentive Plans") had 2,951,387 shares of unissued stock reserved for issuance in the event of the exercise of stock options or settlement of stock based awards. 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 Stock Incentive Plans. For the years ended December 31, 2016 , 2015 , and 2014 , 745,938 , 728,408 , and 793,359 stock options were exercised for aggregate proceeds of $17.0 million , $26.9 million , and $23.4 million , respectively. Additionally in 2016 , 7,844 common shares were issued to members of the Board of Directors, 86,045 shares were issued through net share settlement, 16,974 shares were issued to settle the 2013 PBU's, and 90 restricted shares were issued. The following table sets forth information relating to common stock activity for 2016 and 2015 : 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 options exercised 745,938 Shares issued 110,953 Shares forfeited through net share exercise (305,678 ) Shares repurchased (2,775,297 ) Balance of outstanding shares, December 31, 2016 68,309,431 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 Stock Incentive Plans. The Stock Incentive 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 May 2021. Previously outstanding stock-based compensation awards granted under equity compensation programs prior to the Separation and held by certain executives and employees were adjusted in 2016 to reflect the impact of the Separation on these awards. To preserve the aggregate intrinsic value of awards held prior to the Separation, as measured immediately before and immediately after the Separation, each holder of stock-based compensation awards generally received an adjusted award consisting of either (i) both a stock-based compensation award denominated in Company equity as it existed subsequent to the Separation and a stock-based compensation award denominated in GCP equity or (ii) solely a stock-based compensation award denominated in Company equity. In the Separation, the determination as to which type of adjustment applied to a holder’s previously outstanding award was based upon the date on which the award was originally granted under the equity compensation programs prior to the Separation. The adjustment of the original awards resulted in $0.6 million of incremental compensation cost. The following table sets forth information relating to such options during 2016 , 2015 , and 2014 : Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value Balance, January 1, 2014 2,885,055 $ 42.60 Options exercised (793,359 ) 29.53 Options forfeited (42,424 ) 68.07 Options granted 474,518 74.70 $ 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 77.31 19.28 Balance, December 31, 2015 2,320,687 71.01 Options exercised (745,938 ) 36.97 Options forfeited (9,458 ) 73.40 Options terminated (2,426 ) 67.06 Options granted 377,920 68.32 12.90 Balance, December 31, 2016 1,940,785 The following is a summary of nonvested option activity for the year ended December 31, 2016 : Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 974,001 $ 20.43 Granted 377,920 12.90 Vested (462,006 ) 19.01 Forfeited (11,884 ) 27.70 Nonvested options outstanding at end of year 878,031 As of December 31, 2016 , the intrinsic value (the difference between the exercise price and the market price) for options outstanding was $10.1 million and for options exercisable was $10.1 million . The total intrinsic value of all options exercised during the years ended December 31, 2016 , 2015 and 2014 was $25.9 million , $46.1 million and $53.6 million , respectively. A summary of our stock options outstanding and exercisable at December 31, 2016 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $30 - $40 286,495 286,495 0.49 39.02 $50 - $60 7,455 7,455 0.97 54.63 $60 - $70 688,735 316,889 2.85 61.77 $70 - $80 931,510 438,600 2.92 75.81 $80 - $90 26,590 13,315 2.16 80.76 1,940,785 1,062,754 At December 31, 2016 , the weighted-average remaining contractual term of all options outstanding and exercisable was 2.54 years. Options Granted The Company granted approximately 0.4 million , 0.6 million , and 0.5 million nonstatutory stock options in 2016 , 2015 , and 2014 , respectively, under the Stock Incentive Plans. For the years ended December 31, 2016 , 2015 and 2014 , the Company recognized non-cash stock-based compensation expense of $6.0 million , $9.9 million and $12.0 million , respectively, which is included in "selling, general and administrative expenses" in the Consolidated Statements of Operations. The actual tax benefit realized from stock options exercised totaled $11.2 million , $3.3 million , and $2.5 million for the year ended December 31, 2016 , 2015 and 2014 , respectively. The Company 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. The Company believes its actual stock volatility was not representative of future volatility during the time it was in Chapter 11. The following summarizes the assumptions used for estimating the fair value of stock options granted during 2016 , 2015 and 2014 , respectively. 2016 2015 2014 Expected volatility 26.2% - 27.5% 23.0% - 27.2% 28.2% - 28.7% Weighted average expected volatility 26.6% 24.5% 28.6% Expected term 3.00 - 4.00 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 1.01% 1.30% 1.25% Dividend yield 1.0% —% —% Total unrecognized stock-based compensation expense at December 31, 2016 , was $4.3 million and the weighted-average period over which this expense will be recognized is 1.0 year. Restricted Stock and Performance Based Units During 2016 the Company granted 77,358 Restricted Stock Units (RSUs) and 124,952 Performance Based Units (PBUs) under the Company's Long-term Incentive Plan (LTIP). During 2015 the Company granted 123,846 RSUs and 1,864 PBUs under the LTIP. During 2014 the Company granted 110,993 PBUs under the LTIP. The PBUs that were granted in 2014 were converted to RSUs in 2016 as a result of the Separation. During 2016 , 2015 , and 2014 , 15,197 , 10,641 , and 8,570 awards were forfeited, respectively. The awards cliff vest on December 31, 2018 , 2017, and 2016, subject to continued employment through the payment date, and have a weighted average grant date fair value of $68.65 , $67.95 , and $67.95 respectively. The Company anticipates that approximately 67% of the awards granted in 2016 will be settled in common stock, and approximately 33% will be settled in cash, assuming full vesting. The Company anticipates that approximately 53% of the PBUs 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. 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 2016 , 2015 , and 2014 , the Company recognized $8.6 million , $5.8 million , and $3.5 million in compensation expense for these awards. As of December 31, 2016 , $12.7 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, 2016 | |
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) 2016 2015 2014 Numerators Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders $ 107.0 $ 124.0 $ 117.0 Income (loss) from discontinued operations, net of income taxes (12.9 ) 20.2 159.3 Net income (loss) attributable to W. R. Grace & Co. shareholders $ 94.1 $ 144.2 $ 276.3 Denominators Weighted average common shares—basic calculation 70.1 72.0 75.3 Dilutive effect of employee stock options 0.4 0.6 0.9 Weighted average common shares—diluted calculation 70.5 72.6 76.2 Basic earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 1.53 $ 1.72 $ 1.55 Income (loss) from discontinued operations, net of income taxes (0.19 ) 0.28 2.12 Net income (loss) $ 1.34 $ 2.00 $ 3.67 Diluted earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 1.52 $ 1.71 $ 1.54 Income (loss) from discontinued operations, net of income taxes (0.19 ) 0.28 2.09 Net income (loss) $ 1.33 $ 1.99 $ 3.63 There were approximately 1.3 million , 0.4 million and 0.3 million anti-dilutive options outstanding for the years ended December 31, 2016 , 2015 and 2014 , respectively. On February 4, 2014, the Company announced that its 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 . As of December 31, 2016 , $33.9 million remained under this authorization. On February 8, 2017, the Company announced that its Board of Directors authorized a new share repurchase program of up to $250 million expected to be completed over the next 24 to 36 months at the discretion of management. 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 2016 and 2015 , the Company repurchased 2,775,297 shares and 3,123,716 shares of Company common stock for $195.1 million and $301.5 million , respectively, pursuant to the terms of the share repurchase program. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Grace is a global producer of specialty chemicals and specialty materials. Grace's two reportable business segments are Grace Catalysts Technologies and Grace Materials Technologies. Grace Catalysts Technologies includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. Advanced Refining Technologies (ART), Grace's joint venture with Chevron Products Company, a division of Chevron U.S.A. Inc. ("Chevron"), is managed in this segment. (See Note 18.) Grace Catalysts Technologies comprises two operating segments, Grace Refining Technologies and Grace Specialty Catalysts, which are aggregated into one reportable segment based upon similar economic characteristics, the nature of the products and production processes, type and class of customer, and channels of distribution. Grace Materials Technologies includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. The table below presents information related to Grace's reportable segments. Only those corporate expenses directly related to the reportable 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 reportable segment performance as defined benefit pension expense is not managed at a reportable segment level. Grace defines Adjusted EBIT to be income from continuing operations attributable to W. R. Grace & Co. shareholders adjusted for interest income and expense; income taxes; costs related to Chapter 11, and legacy product and environmental; 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; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; and certain other items that are not representative of underlying trends. Reportable Segment Data Year Ended December 31, (In millions) 2016 2015 2014 Net Sales Catalysts Technologies $ 1,163.7 $ 1,162.1 $ 1,246.8 Materials Technologies 434.9 466.1 510.5 Total $ 1,598.6 $ 1,628.2 $ 1,757.3 Adjusted EBIT Catalysts Technologies segment operating income $ 367.8 $ 347.3 $ 378.3 Materials Technologies segment operating income 104.0 96.9 101.7 Corporate costs (59.4 ) (79.9 ) (95.3 ) Gain on termination and curtailment of postretirement plans related to current businesses 0.2 1.9 23.6 Certain pension costs (12.3 ) (20.4 ) (24.5 ) Total $ 400.3 $ 345.8 $ 383.8 Depreciation and Amortization Catalysts Technologies $ 77.4 $ 68.1 $ 66.3 Materials Technologies 19.5 23.2 26.2 Corporate 3.4 7.9 10.2 Total $ 100.3 $ 99.2 $ 102.7 Capital Expenditures Catalysts Technologies $ 84.9 $ 66.3 $ 81.6 Materials Technologies 24.0 24.6 30.1 Corporate 8.0 27.9 20.6 Total $ 116.9 $ 118.8 $ 132.3 December 31, (In millions) 2016 2015 Total Assets Catalysts Technologies $ 1,675.1 $ 1,390.8 Materials Technologies 313.1 333.4 Corporate 923.6 1,051.0 Assets of discontinued operations — 870.5 Total $ 2,911.8 $ 3,645.7 Corporate costs include corporate support function costs and other corporate costs such as professional fees and insurance premiums. Certain pension costs include only ongoing costs recognized quarterly, which include service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits. Reconciliation of Reportable Segment Data to Financial Statements Grace Adjusted EBIT for the years ended December 31, 2016 , 2015 and 2014 is reconciled below to income from continuing operations before income taxes presented in the accompanying Consolidated Statements of Operations. Year Ended December 31, (In millions) 2016 2015 2014 Grace Adjusted EBIT $ 400.3 $ 345.8 $ 383.8 Pension MTM adjustment and other related costs, net (60.3 ) (30.5 ) (137.6 ) Restructuring and repositioning expenses (38.6 ) (20.4 ) (4.3 ) Costs related to Chapter 11, and legacy product and environmental, net (35.4 ) (6.1 ) (35.6 ) Amortization of acquired inventory fair value adjustment (8.0 ) — — Third-party acquisition-related costs (2.5 ) — — Gain (loss) on sale of product line 1.7 — 0.2 Gain on termination and curtailment of postretirement plans related to divested businesses 0.3 2.6 15.9 Income and expense items related to divested businesses 0.1 1.5 4.1 Loss on early extinguishment of debt (11.1 ) — — Interest expense, net (80.5 ) (99.1 ) (121.9 ) Net income (loss) attributable to noncontrolling interests — (0.1 ) (0.1 ) Income (loss) from continuing operations before income taxes $ 166.0 $ 193.7 $ 104.5 The table below presents sales of similar products within each reportable segment. Year Ended December 31, (In millions) 2016 2015 2014 Catalysts Technologies: Refining Catalysts $ 724.9 $ 764.5 $ 845.5 Polyolefin and Chemical Catalysts 438.8 397.6 401.3 Total $ 1,163.7 $ 1,162.1 $ 1,246.8 Materials Technologies: Coatings and print media $ 136.5 $ 133.6 $ 151.5 Consumer/Pharma 121.9 125.1 136.8 Chemical process and other 176.5 207.4 222.2 Total $ 434.9 $ 466.1 $ 510.5 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. Year Ended December 31, (In millions) 2016 2015 2014 Net Sales United States $ 446.2 $ 444.7 $ 465.9 Canada and Puerto Rico 44.5 45.3 43.2 Total North America 490.7 490.0 509.1 Europe Middle East Africa 647.8 621.2 706.4 Asia Pacific 348.9 390.9 397.2 Latin America 111.2 126.1 144.6 Total $ 1,598.6 $ 1,628.2 $ 1,757.3 December 31, (In millions) 2016 2015 Long-Lived Assets United States $ 564.5 $ 464.1 Canada and Puerto Rico 13.9 13.0 Total North America 578.4 477.1 Germany 109.7 110.9 Rest of Europe Middle East Africa 39.5 17.4 Total Europe Middle East Africa 149.2 128.3 Asia Pacific 21.5 25.9 Latin America 7.5 5.5 Total $ 756.6 $ 636.8 |
Unconsolidated Affiliate
Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliate | Grace accounts for its 50% ownership interest in ART, its joint venture with Chevron, using the equity method of accounting. Grace's investment in ART amounted to $117.6 million and $103.2 million as of December 31, 2016 and 2015 , respectively, and the amount included in "equity in earnings of unconsolidated affiliate" in the accompanying Consolidated Statements of Operations totaled $29.8 million , $20.4 million and $19.7 million for the years ended December 31, 2016 , 2015 and 2014 , 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) 2016 2015 Summary Balance Sheet information: Current assets $ 249.2 $ 244.1 Noncurrent assets 84.8 69.7 Total assets $ 334.0 $ 313.8 Current liabilities $ 102.0 $ 111.0 Noncurrent liabilities 0.3 — Total liabilities $ 102.3 $ 111.0 Year Ended December 31, (In millions) 2016 2015 2014 Summary Statement of Operations information: Net sales $ 388.9 $ 415.3 $ 409.9 Costs and expenses applicable to net sales 322.1 366.6 358.1 Income before income taxes 60.8 42.8 41.2 Net income 59.3 41.1 39.7 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. Sales to ART are accounted for on a net basis, with a mark-up, in "cost of goods sold" in the Consolidated Statements of Operations. Grace also receives reimbursement from ART for fixed costs, research and development, selling, general and administrative services and depreciation. Grace records reimbursements against the respective line items on Grace's Consolidated Statement of Operations. The table below presents summary financial data related to transactions between Grace and ART. Year Ended December 31, (In millions) 2016 2015 2014 Grace sales of catalysts to ART $ 210.4 $ 258.9 $ 266.4 Mark-up of Grace's sales to ART included in Grace's cost of goods sold 4.2 5.1 5.3 Charges for fixed costs, research and development and selling, general and administrative services, and depreciation to ART 33.8 31.6 35.1 The table below lists Grace balances related to ART. December 31, (in millions) 2016 2015 Trade accounts receivable $ 14.9 $ 6.6 Noncurrent asset 27.0 11.9 Accounts payable 28.7 18.2 Debt payable within one year 7.6 7.2 Debt payable after one year 31.9 26.2 Noncurrent liability 27.0 11.9 The noncurrent asset and noncurrent liability in the table above represent spending to date related to a planned residue hydroprocessing catalyst production plant in Lake Charles, Louisiana. Grace manages the design and construction of the plant, and the asset will be included in "other assets" in Grace's Consolidated Balance Sheets until construction is completed. Grace has likewise recorded a liability for the transfer of the asset to ART upon completion, included in "other liabilities" in the Consolidated Balance Sheets. 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 24, 2017, and are expected to be renewed. No amounts were outstanding at December 31, 2016 and 2015 . |
Chapter 11 Information
Chapter 11 Information | 12 Months Ended |
Dec. 31, 2016 | |
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. On February 3, 2017, Grace made an additional payment of $30.0 million to the ZAI PD Account. 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 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 legacy product and environmental liabilities. |
Quarterly Summary and Statistic
Quarterly Summary and Statistical Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 Net sales $ 362.8 $ 390.5 $ 404.5 $ 440.8 Gross profit 152.7 173.2 168.2 161.8 Net income (loss) 0.3 38.5 39.7 15.6 Net income (loss) attributable to W. R. Grace & Co. shareholders 0.5 38.7 39.6 15.3 Net income (loss) per share:(1) Basic earnings (loss) per share: Net income (loss) $ 0.01 $ 0.55 $ 0.56 $ 0.22 Diluted earnings (loss) per share: Net income (loss) 0.01 0.55 0.56 0.22 Dividends declared per share — 0.17 0.17 0.17 Market price of common stock:(2)(3) High $ 98.15 (4) $ 80.39 $ 80.56 $ 74.38 Low 63.84 70.59 71.47 63.37 Close 71.18 73.21 73.80 67.64 ___________________________________________________________________________________________________________________ (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. (3) Share prices subsequent to February 3, 2016, reflect the Separation and exclude separate trading of GCP common stock. (4) Price is a pre-Separation market price of common stock. (In millions, except per share amounts) March 31 June 30 September 30 December 31 2015 Net sales $ 397.0 $ 407.2 $ 399.2 $ 424.8 Gross profit 147.0 167.8 166.1 170.8 Net income (loss) 52.7 57.4 13.7 20.3 Net income (loss) attributable to W. R. Grace & Co. shareholders 52.7 57.4 13.8 20.3 Net income (loss) per share:(1) Basic earnings (loss) per share: Net income (loss) $ 0.72 $ 0.79 $ 0.19 $ 0.29 Diluted earnings (loss) per share: Net income (loss) 0.72 0.78 0.19 0.29 Market price of common stock:(2)(3) 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. (3) Prices are pre-Separation market prices of common stock. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 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 $ 1.4 $ 2.4 $ (1.1 ) $ 0.1 $ 2.8 Valuation allowance for deferred tax assets(2) 8.4 11.6 (9.1 ) 20.5 31.4 Reserves: Reserves for environmental remediation 55.2 29.2 (18.1 ) — 66.3 Reserves for retained obligations of divested businesses 13.5 — (1.8 ) — 11.7 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 $ 1.0 $ 0.5 $ (0.1 ) $ — $ 1.4 Valuation allowance for deferred tax assets(3) 10.7 0.4 (2.6 ) (0.1 ) 8.4 Reserves: Reserves for environmental remediation 61.1 6.4 (12.3 ) — 55.2 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 $ 2.7 $ 0.4 $ (2.1 ) $ — $ 1.0 Valuation allowance for deferred tax assets(4) 16.7 1.2 (7.0 ) (0.2 ) 10.7 Reserves: Reserves for asbestos-related litigation 2,092.4 — (2,092.4 ) — — Reserves for environmental remediation 134.5 14.7 (88.1 ) — 61.1 Reserves for retained obligations of divested businesses 35.0 — (21.5 ) — 13.5 ___________________________________________________________________________________________________________________ (1) Effects of currency translation and the Separation. (2) The valuation allowance increased $23.0 million from December 31, 2015 , to December 31, 2016 . The increase was primarily due to adoption of ASU 2016-06 as well as the ability to utilize NOL carryforwards as a result of the Separation. (3) The valuation allowance decreased $2.3 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. (4) The valuation allowance decreased $6.0 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. |
Acquisition (Notes)
Acquisition (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On June 30, 2016, Grace acquired the assets of BASF's polyolefin catalysts business for total consideration of $250.6 million , including an estimated $3.3 million holdback liability. The business is included in the Specialty Catalysts operating segment of the Catalysts Technologies reportable segment. The acquisition purchase price has been allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values at the acquisition date in accordance with ASC 805 "Business Combinations." The excess of the purchase price over the fair value of the tangible and intangible assets acquired was recorded as goodwill. The goodwill recognized is attributable to the expected growth and operating synergies that Grace expects to realize from this acquisition. Approximately $43 million of goodwill generated from the acquisition will be deductible for U.S. income tax purposes over a period of 15 years. (In millions) Inventories $ 30.2 Properties and equipment 95.0 Goodwill 63.8 Intangible assets 61.6 Net assets acquired $ 250.6 The table below presents the intangible assets acquired as part of the acquisition of the assets of BASF's polyolefin catalysts business and the periods over which they will be amortized. Amount (In millions) Weighted Average Amortization Period (in years) Customer Lists $ 39.9 20.0 Trademarks 13.4 20.0 Technology 8.3 20.0 Total $ 61.6 20.0 |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | As a result of the Separation and Distribution, GCP is now an independent public company and its common stock is listed under the symbol “GCP” on the New York Stock Exchange. Grace does not beneficially own any shares of GCP common stock and will not consolidate the financial results of GCP in its future financial reporting, as GCP is no longer a related party to Grace subsequent to the Separation. GCP’s historical financial results through the Distribution Date are reflected in Grace’s Consolidated Financial Statements as discontinued operations. Separation and Distribution Agreement Prior to the completion of the Separation and the Distribution, W. R. Grace & Co., Grace–Conn. and GCP entered into a Separation and Distribution Agreement and certain related agreements that govern the post-Separation relationship between Grace and GCP. The Separation and Distribution Agreement identifies the transfer of Grace's assets and liabilities that are specifically identifiable or otherwise allocable to GCP, the elimination of Grace’s equity interest in GCP, the removal of certain non-recurring separation costs directly related to the Separation and Distribution, the cash distribution from GCP to Grace, the reduction in Grace's debt using the cash received from GCP, and it provides for when and how these transfers, assumptions and assignments have occurred or will occur. Tax Sharing Agreement W. R. Grace & Co., Grace–Conn. and GCP entered into a Tax Sharing Agreement that generally governs the parties’ respective rights, responsibilities and obligations after the Distribution with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution and certain related transactions to qualify under Sections 355 and certain other relevant provisions of the Internal Revenue Code (the “Code”)), tax attributes, the preparation and filing of tax returns, tax elections, tax contests, and certain other tax matters. In addition, the Tax Sharing Agreement imposes certain restrictions on GCP and its subsidiaries (including restrictions on share issuances, business combinations, sales of assets and similar transactions) that are designed to preserve the qualification of the Distribution and certain related transactions under Sections 355 and certain other relevant provisions of the Code. The Tax Sharing Agreement provides special rules that allocate tax liabilities in the event the Distribution, together with certain related transactions, does not so qualify. In general, under the Tax Sharing Agreement, each party is expected to be responsible for any taxes imposed on, and certain related amounts payable by, GCP or Grace that arise from the failure of the Distribution and certain related transactions, to qualify under Sections 355 and certain other relevant provisions of the Code, to the extent that the failure to so qualify is attributable to actions, events or transactions relating to such party’s respective stock, assets or business, or a breach of the relevant representations or covenants made by that party in the Tax Sharing Agreement. The foregoing is a summary of the Separation and Distribution Agreement and the Tax Sharing Agreement. Grace has filed the full texts of the Separation and Distribution Agreement and the Tax Sharing Agreement with the SEC, which are readily available on the Internet at www.sec.gov. GCP’s historical financial results through the Distribution Date and other effects of the Separation are presented as discontinued operations as summarized below: Year Ended December 31, (In millions) 2016 2015 2014 Net sales $ 99.6 $ 1,423.3 $ 1,485.7 Cost of goods sold 62.6 907.5 957.2 Gross profit 37.0 515.8 528.5 Selling, general and administrative expenses 21.6 251.2 248.8 Research and development expenses 1.7 22.5 28.1 Loss in Venezuela — 59.6 — Repositioning expenses 22.0 55.1 — Interest expense and related financing costs 0.7 1.5 3.9 Other expense, net 3.9 9.9 17.8 Total costs and expenses 49.9 399.8 298.6 (Loss) Income from discontinued operations before income taxes (12.9 ) 116.0 229.9 Benefit from (provision for) income taxes 0.1 (95.0 ) (69.4 ) (Loss) Income from discontinued operations after income taxes (12.8 ) 21.0 160.5 Less: Net income attributable to noncontrolling interests (0.1 ) (0.8 ) (1.2 ) Net (loss) income from discontinued operations $ (12.9 ) $ 20.2 $ 159.3 The carrying amounts of the major classes of assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2015, related to GCP consisted of the following: (In millions) December 31, ASSETS Current Assets Cash and cash equivalents $ 98.6 Trade accounts receivable, net 203.6 Inventories 105.3 Other current assets 38.9 Total Current Assets 446.4 Properties and equipment, net of accumulated depreciation and amortization 220.7 Goodwill 102.5 Technology and other intangible assets, net 33.3 Deferred income taxes 32.0 Overfunded defined benefit pension plans 26.1 Other assets 9.5 Total Assets $ 870.5 LIABILITIES AND EQUITY Current Liabilities Debt payable within one year $ 26.4 Accounts payable 109.0 Other current liabilities 123.2 Total Current Liabilities 258.6 Deferred income taxes 8.7 Unrecognized tax benefits 11.1 Underfunded and unfunded defined benefit pension plans 79.0 Other liabilities 11.1 Total Liabilities $ 368.5 In January 2016, GCP completed the sale of $525.0 million aggregate principal amount of 9.500% Senior Notes due in 2023. GCP used a portion of these proceeds to fund a $500.0 million distribution to Grace in connection with the Separation and the Distribution. In February 2016, GCP entered into a credit agreement that provides for new senior secured credit facilities in an aggregate principal amount of $525.0 million , consisting of term loans in an aggregate principal amount of $275.0 million maturing in 2022 and of revolving loans in an aggregate principal amount of $250.0 million maturing in 2021, which were undrawn at closing. GCP used a portion of these proceeds to fund a $250.0 million distribution to Grace in connection with the Separation and the Distribution. |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 maintains a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Investments in affiliated companies in which Grace can significantly influence operating and financial policies, but does not have a controlling financial interest, are accounted for under the equity method. 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. |
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. |
Operating Segments | Grace reports financial results of each of its reportable segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by Grace's Chief Executive Officer and Chief Operating 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, which depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 8 ); • Carrying values of goodwill and other intangible assets, which depend on assumptions of future earnings and cash flows (see Note 4 and Note 20), 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. The point at which risk of loss and title transfers to a customer is determined based on delivery terms, which are generally included in customer contracts of sale, order confirmation documents and invoices. |
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 30 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. 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 no impairment charges recorded in 2016, 2015 or 2014. |
Goodwill | Goodwill arises from business combinations, and it is reviewed 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 operating segments as reporting units. 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 at fair value in the Consolidated Balance Sheets as either assets or liabilities. 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 (income) 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 (loss)" 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 are remeasured at an interim period, and the gains or losses on remeasurement are 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) 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 income (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 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 are effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2016. The 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 will adopt the standard when it becomes effective. Grace has begun its preliminary assessment and is identifying specific areas of impact on its Consolidated Financial Statements. Grace has tentatively decided to adopt this standard under the modified retrospective approach and is still evaluating the impact to its financial statements and disclosures. 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 International Accounting Standards Board's ("IASB") measurement of inventory. The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO (first-in, first-out) 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 will adopt this standard in 2017 and does not expect it to have a material effect on the Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)." This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term, including optional payments where they are reasonably certain to occur. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Currently, as a lessee Grace is a party to a number of leases which, under existing guidance, are classified as operating leases and not recorded on the balance sheet but are expensed as incurred (See Note 3). Under the new standard, many of these leases will be recorded on the Consolidated Balance Sheets. Grace is currently evaluating the standard's effect on the financial statements and will adopt the standard in 2019. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments." This update is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It addresses eight specific issues. The amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Grace is currently evaluating the timing of adoption and does not expect it to have a material effect on the Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new requirements are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption is permitted. Grace is currently evaluating the timing of adoption and does not expect the update to have a material effect on the Consolidated Financial Statements. As of December 31, 2016 and 2015, restricted cash included the Consolidated Balance Sheets was $10.0 million and $9.4 million , respectively. In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805)," which provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments in this Update also narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities are required to apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early application is permitted. Grace is currently evaluating the date of application. In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350)." This Update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Because these amendments eliminate Step 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. Public business entities are required to adopt the amendments in this Update for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Recently Adopted 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 IASB's reporting requirements for discontinued operations. Grace adopted this standard in the 2016 first quarter. 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. Grace adopted these standards in the 2016 first quarter and reclassified $30.3 million of capitalized financing fees from other assets to debt payable after one year in the Consolidated Balance Sheet as of December 31, 2015. In September 2015, the FASB issued ASU 2015-16 "Simplifying the Accounting for Measurement-Period Adjustments," which is part of the FASB's Simplification Initiative. The update requires that adjustments to provisional amounts that are identified during the measurement period following a business combination be recognized in the reporting period in which the adjustment amounts are determined. Acquirers must also recognize, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects resulting from the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Grace adopted this standard in the 2016 third quarter. See Note 20. Accounting for Stock Compensation In March 2016, the FASB issued ASU 2016-09 "Compensation—Stock Compensation," which is part of the FASB's Simplification Initiative. The update requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled. It also eliminates the requirement that excess tax benefits be realized (reduce cash taxes payable) before being recognized. Previously, an entity could not recognize excess tax benefits if the tax deduction increased a net operating loss ("NOL") or tax credit carryforward. The updated standard no longer requires cash flows related to excess tax benefits to be presented as a financing activity separate from other income tax cash flows. The update also allows Grace to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments to taxing authorities made on an employee's behalf for withheld shares should be presented as a financing activity on the statement of cash flows, and provides for an accounting policy election to account for forfeitures as they occur. Grace elected to early adopt this update in the 2016 second quarter, which requires any adjustments to be reflected as of January 1, 2016. This resulted in the recognition of excess tax benefits on the Consolidated Balance Sheet that were previously not recognized, as the benefits would have increased Grace's NOL or tax credit carryforwards. The recognition increased Grace's net deferred tax asset by $70.4 million ( $90.9 million net of a $20.5 million valuation allowance) as of January 1, 2016. In addition, Grace will recognize excess tax benefits in the provision for income taxes rather than paid-in capital for 2016 and future periods. Grace has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation expense to be recognized each period. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : December 31, (In millions) 2016 2015 Raw materials $ 57.7 $ 47.1 In process 33.4 33.4 Finished products 115.8 98.2 Other 21.1 20.1 $ 228.0 $ 198.8 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment | December 31, (In millions) 2016 2015 Land $ 10.0 $ 9.8 Buildings 375.4 369.9 Information technology and equipment 125.3 119.4 Machinery, equipment and other 1,445.8 1,329.5 Projects under construction 100.6 79.9 Properties and equipment, gross 2,057.1 1,908.5 Accumulated depreciation and amortization (1,327.5 ) (1,286.8 ) Properties and equipment, net $ 729.6 $ 621.7 |
Schedule of minimum future payments under operating leases | At December 31, 2016 , minimum future non-cancelable payments for operating leases are: (In millions) 2017 $ 9.0 2018 6.0 2019 3.9 2020 2.6 2021 2.1 Thereafter 4.4 $ 28.0 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 reportable segment and the changes in those balances during the years ended December 31, 2016 and 2015 , are as follows: (In millions) Catalysts Technologies Materials Technologies Total Grace Balance, December 31, 2014 $ 293.8 $ 45.1 $ 338.9 Foreign currency translation (1.1 ) (1.3 ) (2.4 ) Balance, December 31, 2015 292.7 43.8 336.5 Goodwill acquired during the year 63.8 — 63.8 Foreign currency translation (3.0 ) (0.6 ) (3.6 ) Write-off related to exited product lines — (2.5 ) (2.5 ) Balance, December 31, 2016 $ 353.5 $ 40.7 $ 394.2 |
Summary of net book value of other intangible assets | Grace's net book value of other intangible assets at December 31, 2016 and 2015 , was $269.1 million and $227.5 million , respectively, detailed as follows: December 31, 2016 December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Technology $ 222.3 $ 38.9 $ 237.5 $ 51.0 Customer lists 69.6 20.3 43.0 29.3 Trademarks 25.3 1.5 22.8 9.4 Other 15.7 3.1 16.6 2.7 Total $ 332.9 $ 63.8 $ 319.9 $ 92.4 |
Summary of estimated amortization expenses | At December 31, 2016 , estimated future annual amortization expense for intangible assets is: (In millions) 2017 $ 15.2 2018 15.1 2019 15.1 2020 14.9 2021 14.7 Thereafter 194.1 $ 269.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of debt | Components of Debt December 31, (In millions) 2016 2015 5.125% senior notes due 2021, net of unamortized debt issuance costs of $7.3 at December 31, 2016 (2015—$8.9) $ 692.7 $ 691.1 U.S. dollar term loan, net of unamortized debt issuance costs and discounts of $5.7 at December 31, 2016 (2015—$15.6) 402.7 919.3 5.625% senior notes due 2024, net of unamortized debt issuance costs of $4.0 at December 31, 2016 (2015—$4.5) 296.0 295.5 Euro term loan, net of unamortized debt issuance costs and discounts of $1.3 at December 31, 2016 (2015—$3.4) 82.5 158.7 Debt payable—unconsolidated affiliate 39.5 33.4 Deferred payment obligation 30.0 29.1 Other borrowings(1) 40.7 42.5 Total debt 1,584.1 2,169.6 Less debt payable within one year 76.5 58.1 Debt payable after one year $ 1,507.6 $ 2,111.5 Weighted average interest rates on total debt 4.6 % 4.1 % ___________________________________________________________________________________________________________________ (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, 2016 , were as follows: (In millions) 2017 $ 76.5 2018 7.9 2019 7.3 2020 6.0 2021 1,182.5 Thereafter 303.9 Total debt $ 1,584.1 |
Fair Value Measurements and R36
Fair Value Measurements and Risk (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | At December 31, 2016 , the carrying amounts and fair values of Grace's debt were as follows: December 31, 2016 December 31, 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.125% senior notes due 2021(1) $ 692.7 $ 721.3 $ 691.1 $ 701.5 U.S. dollar term loan(2) 402.7 408.2 919.3 907.2 5.625% senior notes due 2024(1) 296.0 311.5 295.5 298.1 Euro term loan(2) 82.5 82.0 158.7 157.3 Other borrowings 110.2 110.2 105.0 105.0 Total debt $ 1,584.1 $ 1,633.2 $ 2,169.6 $ 2,169.1 ___________________________________________________________________________________________________________________ (1) Carrying amounts are net of unamortized debt issuance costs of $7.3 million and $4.0 million at December 31, 2016 , and $8.9 million and $4.5 million at December 31, 2015 , related to the 5.125% senior notes due 2021 and 5.625% senior notes due 2024, respectively. (2) Carrying amounts are net of unamortized debt issuance costs and discounts of $5.7 million and $1.3 million at December 31, 2016 and $15.6 million and $3.4 million at December 31, 2015 , related to the U.S. dollar term loan and euro term loan, respectively. |
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, 2016 and 2015 : Fair Value Measurements at December 31, 2016, 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 $ 8.8 $ — $ 8.8 $ — Total Assets $ 8.8 $ — $ 8.8 $ — Liabilities Currency derivatives $ 0.9 $ — $ 0.9 $ — Interest rate derivatives 6.0 — 6.0 — Total Liabilities $ 6.9 $ — $ 6.9 $ — 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 $ 1.0 $ — $ 1.0 $ — Commodity derivatives 0.6 — 0.6 — Total Assets $ 1.6 $ — $ 1.6 $ — Liabilities Currency derivatives $ 0.5 $ — $ 0.5 $ — Interest rate derivatives 7.9 — 7.9 — Commodity derivatives 0.1 — 0.1 — Total Liabilities $ 8.5 $ — $ 8.5 $ — |
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, 2016 and 2015 : Asset Derivatives Liability Derivatives December 31, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 4.0 Other current liabilities $ — Interest rate contracts Other current assets — Other current liabilities 2.8 Currency contracts Other assets 4.0 Other liabilities — Interest rate contracts Other assets — Other liabilities 3.2 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.8 Other current liabilities 0.9 Total derivatives $ 8.8 $ 6.9 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 0.3 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 0.1 Other current liabilities 0.2 Total derivatives $ 1.6 $ 8.5 |
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, 2016 , 2015 , and 2014 : Year Ended December 31, 2016 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 $ (2.2 ) Interest expense $ (4.1 ) Currency contracts (0.1 ) Other expense 0.8 Commodity contracts (0.3 ) Cost of goods sold 0.1 Total derivatives $ (2.6 ) $ (3.2 ) 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 $ (0.8 ) 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 1.4 Other expense 0.7 Commodity contracts (1.4 ) Cost of goods sold (4.6 ) Total derivatives $ (5.6 ) $ (7.7 ) 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 ) Other expense $ — Currency contracts 0.4 Other expense 0.2 Commodity contracts (2.2 ) Cost of goods sold 0.3 Total derivatives $ (7.2 ) $ 0.5 |
Schedule of Net Investment Hedges in ACOI [Table Text Block] | The following tables present the location and amount of gains and losses on derivative and non-derivative 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, 2016 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ 5.6 Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 4.6 Foreign currency denominated deferred intercompany royalties 2.5 $ 7.1 Year Ended December 31, 2015 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 18.3 Year Ended December 31, 2014 Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ 22.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 continuing operations before income taxes and the related provision for income taxes for 2016 , 2015 , and 2014 are as follows: (In millions) 2016 2015 2014 Income from continuing operations before income taxes: Domestic $ 72.7 $ 97.1 $ 77.2 Foreign 93.3 96.6 27.3 Total $ 166.0 $ 193.7 $ 104.5 Benefit from (provision for) income taxes: Federal—current $ — $ — $ 59.4 Federal—deferred (11.8 ) (35.4 ) (23.6 ) State and local—current (0.7 ) 4.1 3.3 State and local—deferred (17.7 ) (6.4 ) (18.0 ) Foreign—current (36.6 ) (23.5 ) (19.8 ) Foreign—deferred 7.8 (8.6 ) 11.1 Total $ (59.0 ) $ (69.8 ) $ 12.4 |
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 benefit from (provision for) income taxes on continuing operations at the U.S. federal income tax rate of 35% and Grace's overall income tax provision is summarized as follows: (In millions) 2016 2015 2014 Tax provision at U.S. federal income tax rate $ (58.1 ) $ (67.8 ) $ (36.6 ) Change in benefit (provision) resulting from: Effect of tax rates in foreign jurisdictions 6.8 3.0 3.0 Stock option exercises (ASU 2016-09) 6.7 — — State and local income taxes, net (4.7 ) (2.9 ) (9.6 ) Adjustments to unrecognized tax benefits 2.6 (1.7 ) 57.9 Decrease (increase) in valuation allowance (2.5 ) 1.6 — Nontaxable income/non-deductible expenses (2.5 ) (0.9 ) (4.1 ) U.S. tax on foreign earnings (0.9 ) (1.7 ) 5.1 Other (6.4 ) 0.6 (3.3 ) Benefit from (provision for) income taxes $ (59.0 ) $ (69.8 ) $ 12.4 |
Summary of tax attributes giving rise to deferred tax assets and liabilities | Deferred Tax Assets and Liabilities At December 31, 2016 and 2015 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items: December 31, (In millions) 2016 2015 Deferred tax assets: U.S. net operating loss carryforwards $ 293.6 $ 359.7 Federal tax credit carryforwards 183.2 124.3 Pension liabilities 120.1 102.1 State net operating loss carryforwards 50.9 52.5 Research and development 35.4 32.9 Reserves and allowances 31.1 40.9 Liability for environmental remediation 24.6 20.6 Prepaid royalties 20.8 — Liability for asbestos-related litigation 11.1 10.8 Foreign net operating loss carryforwards 5.9 4.2 Other 29.0 36.0 Total deferred tax assets $ 805.7 $ 784.0 Deferred tax liabilities: Properties and equipment $ (38.5 ) $ (33.8 ) Intangible assets (18.4 ) (17.6 ) Pension assets (6.1 ) (5.4 ) Other (4.7 ) (5.7 ) Total deferred tax liabilities $ (67.7 ) $ (62.5 ) Valuation allowance: Federal tax credit carryforwards $ (17.7 ) $ (2.2 ) State net operating loss carryforwards (11.2 ) (3.5 ) Foreign net operating loss carryforwards (2.5 ) (2.7 ) Total valuation allowance (31.4 ) (8.4 ) Net deferred tax assets $ 706.6 $ 713.1 |
Summary of information about uncertain tax positions | A reconciliation of the unrecognized tax benefits, excluding interest and penalties, for the three years ended December 31, 2016 , follows: (In millions) Unrecognized Tax Benefits Balance, January 1, 2014 $ 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(1) (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 Additions for current year tax positions 6.8 Additions for prior year tax positions 0.2 Reductions for prior year tax positions and reclassifications (0.2 ) Settlements (3.3 ) Transferred to GCP upon Separation (7.9 ) Balance, December 31, 2016 $ 18.7 ___________________________________________________________________________________________________________________ (1) 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 2010-2015 United States—States 2010-2014 2015 Germany None 2014 Sweden None 2012-2015 France 2014 2015 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. |
Pension Plans and Other Postr38
Pension Plans and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 and 2015 : Defined Benefit Pension Plans Other Post- Retirement Plans (In millions) U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,238.8 $ 1,437.3 $ 238.8 $ 590.4 $ 1,477.6 $ 2,027.7 $ 0.6 $ 2.4 Service cost 17.8 25.7 6.8 11.7 24.6 37.4 — — Interest cost 40.5 55.1 5.1 16.1 45.6 71.2 — 0.1 Plan participants' contributions — — — 0.5 — 0.5 — — Amendments (1.3 ) (3.6 ) — — (1.3 ) (3.6 ) (0.1 ) (2.1 ) Settlements/curtailments — — (2.3 ) (1.0 ) (2.3 ) (1.0 ) — — Actuarial (gain) loss 62.3 (63.0 ) 39.9 (11.4 ) 102.2 (74.4 ) — 0.4 Medicare subsidy receipts — — — — — — — 1.0 Benefits paid (83.9 ) (87.0 ) (7.5 ) (20.7 ) (91.4 ) (107.7 ) — (1.1 ) Currency exchange translation adjustments — — (11.7 ) (49.9 ) (11.7 ) (49.9 ) — — Less: discontinued operations — (125.7 ) — (296.9 ) — (422.6 ) — (0.1 ) Benefit obligation at end of year $ 1,274.2 $ 1,238.8 $ 269.1 $ 238.8 $ 1,543.3 $ 1,477.6 $ 0.5 $ 0.6 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,067.2 $ 1,262.6 $ 18.7 $ 336.1 $ 1,085.9 $ 1,598.7 $ — $ — Actual return on plan assets 95.6 (34.6 ) (0.5 ) 2.9 95.1 (31.7 ) — — Employer contributions 7.5 7.3 8.4 10.5 15.9 17.8 — 0.1 Plan participants' contributions — — — 0.5 — 0.5 — — Settlements — — (1.3 ) (1.5 ) (1.3 ) (1.5 ) — — Medicare subsidy receipts — — — — — — — 1.0 Benefits paid (83.9 ) (87.0 ) (7.5 ) (20.7 ) (91.4 ) (107.7 ) — (1.1 ) Currency exchange translation adjustments — — 0.4 (21.6 ) 0.4 (21.6 ) — — Less: discontinued operations — (81.1 ) — (287.5 ) — (368.6 ) — — Fair value of plan assets at end of year $ 1,086.4 $ 1,067.2 $ 18.2 $ 18.7 $ 1,104.6 $ 1,085.9 $ — $ — Funded status at end of year (PBO basis) $ (187.8 ) $ (171.6 ) $ (250.9 ) $ (220.1 ) $ (438.7 ) $ (391.7 ) $ (0.5 ) $ (0.6 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (7.4 ) $ (7.0 ) $ (7.0 ) $ (7.2 ) $ (14.4 ) $ (14.2 ) $ — $ — Noncurrent liabilities (180.4 ) (164.6 ) (243.9 ) (212.9 ) (424.3 ) (377.5 ) (0.5 ) (0.6 ) Net amount recognized $ (187.8 ) $ (171.6 ) $ (250.9 ) $ (220.1 ) $ (438.7 ) $ (391.7 ) $ (0.5 ) $ (0.6 ) Amounts recognized in Accumulated Other Comprehensive (Income) Loss consist of: Accumulated actuarial loss $ — $ — $ — $ — $ — $ — $ 4.3 $ 5.9 Prior service credit (4.3 ) (3.1 ) (0.1 ) (0.3 ) (4.4 ) (3.4 ) (3.3 ) (7.1 ) Net amount recognized $ (4.3 ) $ (3.1 ) $ (0.1 ) $ (0.3 ) $ (4.4 ) $ (3.4 ) $ 1.0 $ (1.2 ) Defined Benefit Pension Plans Other Post- Retirement Plans (In millions) U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 2016 2015 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.06 % 4.28 % 1.91 % 2.67 % NM NM 4.36 % 4.40 % Rate of compensation increase 4.60 % 4.70 % 3.09 % 3.09 % NM NM NM NM Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.28 % 3.95 % 2.67 % 2.97 % NM NM 4.40 % 4.18 % Expected return on plan assets 5.50 % 5.75 % 5.08 % 4.11 % NM NM NM NM Rate of compensation increase 4.70 % 4.70 % 3.09 % 3.24 % 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) 2016 2015 2014 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 $ 17.8 $ 6.8 $ — $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 Interest cost 40.5 5.1 — 55.1 16.1 0.1 60.0 22.2 1.1 Expected return on plan assets (56.7 ) (1.0 ) — (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — Amortization of prior service cost (credit) (0.2 ) — (2.2 ) 0.3 — (3.4 ) 0.7 — (2.4 ) Amortization of net deferred actuarial loss — — 0.5 — — 0.7 — — — Annual mark-to-market adjustment 23.3 40.1 — 42.0 (0.1 ) — 89.2 45.4 — Gain on termination and curtailment of postretirement plans — — (0.5 ) — — (4.5 ) — — (39.5 ) Net curtailment and settlement gain — (1.0 ) — — — — — — — Net periodic benefit cost (income) 24.7 50.0 (2.2 ) 52.7 14.7 (7.1 ) 103.5 63.1 (40.7 ) Less: discontinued operations — — — (4.0 ) (16.8 ) 1.4 (13.7 ) 14.8 0.7 Net periodic benefit cost (income) from continuing operations $ 24.7 $ 50.0 $ (2.2 ) $ 48.7 $ (2.1 ) $ (5.7 ) $ 89.8 $ 77.9 $ (40.0 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ — $ — $ — $ 0.4 $ — $ — $ (1.0 ) Net prior service credit (1.3 ) — (0.1 ) (3.6 ) — (2.1 ) — — (13.6 ) Amortization of prior service cost (credit) 0.2 — 2.2 (0.3 ) — 3.4 (0.7 ) — 2.4 Amortization of net deferred actuarial loss — — (0.5 ) — — (0.7 ) — — — Loss on termination and curtailment of postretirement plans — — 0.5 — — 4.5 — — 12.2 Total recognized in other comprehensive (income) loss (1.1 ) — 2.1 (3.9 ) — 5.5 (0.7 ) — — Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 23.6 $ 50.0 $ (0.1 ) $ 44.8 $ (2.1 ) $ (0.2 ) $ 89.1 $ 77.9 $ (40.0 ) |
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) 2016 2015 2014 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 $ 17.8 $ 6.8 $ — $ 25.7 $ 11.7 $ — $ 23.5 $ 10.7 $ 0.1 Interest cost 40.5 5.1 — 55.1 16.1 0.1 60.0 22.2 1.1 Expected return on plan assets (56.7 ) (1.0 ) — (70.4 ) (13.0 ) — (69.9 ) (15.2 ) — Amortization of prior service cost (credit) (0.2 ) — (2.2 ) 0.3 — (3.4 ) 0.7 — (2.4 ) Amortization of net deferred actuarial loss — — 0.5 — — 0.7 — — — Annual mark-to-market adjustment 23.3 40.1 — 42.0 (0.1 ) — 89.2 45.4 — Gain on termination and curtailment of postretirement plans — — (0.5 ) — — (4.5 ) — — (39.5 ) Net curtailment and settlement gain — (1.0 ) — — — — — — — Net periodic benefit cost (income) 24.7 50.0 (2.2 ) 52.7 14.7 (7.1 ) 103.5 63.1 (40.7 ) Less: discontinued operations — — — (4.0 ) (16.8 ) 1.4 (13.7 ) 14.8 0.7 Net periodic benefit cost (income) from continuing operations $ 24.7 $ 50.0 $ (2.2 ) $ 48.7 $ (2.1 ) $ (5.7 ) $ 89.8 $ 77.9 $ (40.0 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net deferred actuarial loss (gain) $ — $ — $ — $ — $ — $ 0.4 $ — $ — $ (1.0 ) Net prior service credit (1.3 ) — (0.1 ) (3.6 ) — (2.1 ) — — (13.6 ) Amortization of prior service cost (credit) 0.2 — 2.2 (0.3 ) — 3.4 (0.7 ) — 2.4 Amortization of net deferred actuarial loss — — (0.5 ) — — (0.7 ) — — — Loss on termination and curtailment of postretirement plans — — 0.5 — — 4.5 — — 12.2 Total recognized in other comprehensive (income) loss (1.1 ) — 2.1 (3.9 ) — 5.5 (0.7 ) — — Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 23.6 $ 50.0 $ (0.1 ) $ 44.8 $ (2.1 ) $ (0.2 ) $ 89.1 $ 77.9 $ (40.0 ) |
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 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 1,274.2 $ 1,238.8 $ 249.3 $ 220.5 $ 1,523.5 $ 1,459.3 Accumulated benefit obligation 1,238.8 1,205.6 222.6 195.6 1,461.4 1,401.2 Fair value of plan assets 1,086.4 1,067.2 — 0.8 1,086.4 1,068.0 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending (In millions) Pension Plans Other Post-Retirement Plans Total Payments U.S. Non-U.S.(1) Benefit Payments Benefit Payments Benefit Payments 2017 $ 82.1 $ 7.7 $ — $ 89.8 2018 82.4 8.1 — 90.5 2019 83.1 8.2 — 91.3 2020 83.4 8.6 — 92.0 2021 83.8 8.8 — 92.6 2022 - 2026 419.0 46.5 0.1 465.6 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2017 and future periods have been translated at the applicable December 31, 2016 , exchange rates. |
Pension Plans | |
Pension plans and other postretirement benefit plans | |
Schedule of Net Funded Status | The following table presents the funded status of Grace's underfunded and unfunded pension plans: December 31, (In millions) 2016 2015 Underfunded defined benefit pension plans $ (83.1 ) $ (73.2 ) Unfunded defined benefit pension plans (341.2 ) (304.3 ) Total underfunded and unfunded defined benefit pension plans (424.3 ) (377.5 ) Pension liabilities included in other current liabilities (14.4 ) (14.2 ) Net funded status $ (438.7 ) $ (391.7 ) |
U.S. qualified pension plans | |
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, 2016 , and the actual allocation at December 31, 2016 and 2015 , 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 2016 2016 2015 U.S. equity securities 9 % 8 % 10 % Non-U.S. equity securities 6 % 6 % 6 % Short-term debt securities 4 % 4 % 7 % Intermediate-term debt securities 31 % 32 % 28 % Long-term debt securities 48 % 48 % 47 % 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, 2016 and 2015 . Fair Value Measurements at December 31, 2016, 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 $ 91.5 $ — $ 91.5 $ — Non-U.S. equity group trust funds 62.6 — 62.6 — Corporate bond group trust funds—intermediate-term 342.6 — 342.6 — Corporate bond group trust funds—long-term 521.5 — 521.5 — Other fixed income group trust funds 22.4 — 22.4 — Common/collective trust funds 27.4 — 27.4 — Annuity and immediate participation contracts 18.4 — 18.4 — Total Assets $ 1,086.4 $ — $ 1,086.4 $ — Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. equity group trust funds $ 101.2 $ — $ 101.2 $ — Non-U.S. equity group trust funds 68.9 — 68.9 — Corporate bond group trust funds—intermediate-term 303.2 — 303.2 — Corporate bond group trust funds—long-term 498.0 — 498.0 — Other fixed income group trust funds 21.5 — 21.5 — Common/collective trust funds 56.7 — 56.7 — Annuity and immediate participation contracts 17.7 — 17.7 — Total Assets $ 1,067.2 $ — $ 1,067.2 $ — |
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) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2016 2015 2016 2015 Projected benefit obligation $ 1,167.9 $ 1,139.2 $ 106.3 $ 99.6 Fair value of plan assets 1,086.4 1,067.2 — — Funded status (PBO basis) $ (81.5 ) $ (72.0 ) $ (106.3 ) $ (99.6 ) Funded Status of Non-U.S. Pension Plans (In millions) Underfunded Non-U.S. Pension Plans(1) Unfunded Pay-As-You-Go Non-U.S. Pension Plans(2) 2016 2015 2016 2015 Projected benefit obligation $ 19.8 $ 19.9 $ 249.3 $ 218.9 Fair value of plan assets 18.2 18.7 — — Funded status (PBO basis) $ (1.6 ) $ (1.2 ) $ (249.3 ) $ (218.9 ) ___________________________________________________________________________________________________________________ (1) Plans intended to be advance-funded. (2) Plans intended to be pay-as-you-go. |
Schedule of Allocation 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, 2016 . Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 17.6 $ — $ 17.6 $ — Corporate bonds 0.3 — 0.3 — Insurance contracts and other investments 0.3 — 0.3 — Total Assets $ 18.2 $ — $ 18.2 $ — 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 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 17.2 $ — $ 17.2 $ — Corporate bonds 0.3 — 0.3 — Insurance contracts and other investments 1.2 — 1.2 — Total Assets $ 18.7 $ — $ 18.7 $ — |
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, 2016 , and the actual allocation at December 31, 2016 and 2015 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2016 2016 2015 Equity securities 27 % 28 % 28 % Bonds 58 % 57 % 57 % Other investments 15 % 15 % 15 % Total 100 % 100 % 100 % |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of other balance sheet accounts | December 31, (In millions) 2016 2015 Other Current Liabilities Accrued compensation $ 49.6 $ 51.5 Environmental contingencies 32.5 21.4 Deferred revenue 27.2 24.7 Accrued interest 16.2 18.9 Pension liabilities 14.4 14.2 Income taxes payable 5.7 25.8 Other accrued liabilities 63.3 76.4 $ 208.9 $ 232.9 |
Restructuring Expenses and Re40
Restructuring Expenses and Related Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring expenses and related asset impairments | Year Ended December 31, (In millions) 2016 2015 2014 Catalysts Technologies $ 3.4 $ 4.8 $ 2.1 Materials Technologies 15.1 0.8 0.2 Corporate 5.8 5.7 2.0 Total restructuring expenses $ 24.3 $ 11.3 $ 4.3 |
Schedule of restructuring liability | Restructuring Liability Total Balance, December 31, 2013 $ 1.1 Accruals for severance and other costs 4.3 Payments (3.6 ) Currency translation adjustments and other 0.3 Balance, December 31, 2014 $ 2.1 Accruals for severance and other costs 11.3 Payments (5.6 ) Currency translation adjustments and other (0.2 ) Balance, December 31, 2015 $ 7.6 Accruals for severance and other costs 17.8 Payments (16.0 ) Currency translation adjustments and other 0.2 Balance, December 31, 2016 $ 9.6 |
Other Expense, net (Tables)
Other Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Components of other (income) expense, net | Components of other (income) expense, net are as follows: Year Ended December 31, (In millions) 2016 2015 2014 Loss on early extinguishment of debt $ 11.1 $ — $ — Chapter 11 expenses, net 3.4 5.1 11.0 Third-party acquisition-related costs 2.5 — — Net (gain) loss on sales of investments and disposals of assets (1.4 ) (10.6 ) (2.5 ) Interest income (1.0 ) (0.3 ) (1.4 ) Currency transaction effects (1.0 ) (1.5 ) (1.5 ) Bankruptcy-related charges, net — (8.7 ) 7.1 Other miscellaneous expense (income) (0.3 ) 2.2 (1.8 ) Total other (income) expense, net $ 13.3 $ (13.8 ) $ 10.9 See Note 5 for more information related to Grace's 2016 early extinguishment of debt. |
Other Comprehensive Income (L42
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 income (loss) for the years ended December 31, 2016 , 2015 , and 2014 : Year Ended December 31, 2016 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 $ (2.4 ) $ 0.9 $ (1.5 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.5 (0.2 ) 0.3 Net prior service credit arising during period 1.4 (0.5 ) 0.9 Loss on curtailment of postretirement plans (0.5 ) 0.2 (0.3 ) Benefit plans, net (1.0 ) 0.4 (0.6 ) Currency translation adjustments (1.8 ) — (1.8 ) Gain (loss) from hedging activities 0.6 (0.3 ) 0.3 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (2.2 ) $ 0.1 $ (2.1 ) 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 gain (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 (loss) from hedging activities 2.1 (0.8 ) 1.3 Other comprehensive income (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 (loss) 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 ) Gain (loss) from hedging activities (7.1 ) 2.6 (4.5 ) Other than temporary impairment of investment 0.8 — 0.8 Gain (loss) on securities available for sale (0.1 ) — (0.1 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (33.7 ) $ (0.7 ) $ (34.4 ) |
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, 2016 , 2015 , and 2014 : 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, 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 (loss) (12.0 ) — (1.3 ) 0.8 0.6 (11.9 ) Net current-period other comprehensive income (loss) (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 (loss) (4.5 ) — 0.7 — — (3.8 ) Net current-period other comprehensive income (loss) (1.0 ) (43.3 ) 1.3 — — (43.0 ) Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ — $ — $ (66.8 ) Other comprehensive income (loss) before reclassifications 0.9 (1.8 ) (1.8 ) — — (2.7 ) Amounts reclassified from accumulated other comprehensive income (loss) (1.5 ) — 2.1 — — 0.6 Net current-period other comprehensive income (loss) (0.6 ) (1.8 ) 0.3 — — (2.1 ) Distribution of GCP (0.2 ) 135.5 — — — 135.3 Balance, December 31, 2016 $ 2.2 $ 67.6 $ (3.4 ) $ — $ — $ 66.4 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of information relating to common stock activity | The following table sets forth information relating to common stock activity for 2016 and 2015 : 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 options exercised 745,938 Shares issued 110,953 Shares forfeited through net share exercise (305,678 ) Shares repurchased (2,775,297 ) Balance of outstanding shares, December 31, 2016 68,309,431 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 , 2015 , and 2014 : Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value Balance, January 1, 2014 2,885,055 $ 42.60 Options exercised (793,359 ) 29.53 Options forfeited (42,424 ) 68.07 Options granted 474,518 74.70 $ 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 77.31 19.28 Balance, December 31, 2015 2,320,687 71.01 Options exercised (745,938 ) 36.97 Options forfeited (9,458 ) 73.40 Options terminated (2,426 ) 67.06 Options granted 377,920 68.32 12.90 Balance, December 31, 2016 1,940,785 |
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, 2016 : Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 974,001 $ 20.43 Granted 377,920 12.90 Vested (462,006 ) 19.01 Forfeited (11,884 ) 27.70 Nonvested options outstanding at end of year 878,031 |
Schedule of stock options outstanding and exercisable by exercise price range | A summary of our stock options outstanding and exercisable at December 31, 2016 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $30 - $40 286,495 286,495 0.49 39.02 $50 - $60 7,455 7,455 0.97 54.63 $60 - $70 688,735 316,889 2.85 61.77 $70 - $80 931,510 438,600 2.92 75.81 $80 - $90 26,590 13,315 2.16 80.76 1,940,785 1,062,754 |
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 2016 , 2015 and 2014 , respectively. 2016 2015 2014 Expected volatility 26.2% - 27.5% 23.0% - 27.2% 28.2% - 28.7% Weighted average expected volatility 26.6% 24.5% 28.6% Expected term 3.00 - 4.00 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 1.01% 1.30% 1.25% Dividend yield 1.0% —% —% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Numerators Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders $ 107.0 $ 124.0 $ 117.0 Income (loss) from discontinued operations, net of income taxes (12.9 ) 20.2 159.3 Net income (loss) attributable to W. R. Grace & Co. shareholders $ 94.1 $ 144.2 $ 276.3 Denominators Weighted average common shares—basic calculation 70.1 72.0 75.3 Dilutive effect of employee stock options 0.4 0.6 0.9 Weighted average common shares—diluted calculation 70.5 72.6 76.2 Basic earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 1.53 $ 1.72 $ 1.55 Income (loss) from discontinued operations, net of income taxes (0.19 ) 0.28 2.12 Net income (loss) $ 1.34 $ 2.00 $ 3.67 Diluted earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 1.52 $ 1.71 $ 1.54 Income (loss) from discontinued operations, net of income taxes (0.19 ) 0.28 2.09 Net income (loss) $ 1.33 $ 1.99 $ 3.63 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of operating segment data | Year Ended December 31, (In millions) 2016 2015 2014 Net Sales Catalysts Technologies $ 1,163.7 $ 1,162.1 $ 1,246.8 Materials Technologies 434.9 466.1 510.5 Total $ 1,598.6 $ 1,628.2 $ 1,757.3 Adjusted EBIT Catalysts Technologies segment operating income $ 367.8 $ 347.3 $ 378.3 Materials Technologies segment operating income 104.0 96.9 101.7 Corporate costs (59.4 ) (79.9 ) (95.3 ) Gain on termination and curtailment of postretirement plans related to current businesses 0.2 1.9 23.6 Certain pension costs (12.3 ) (20.4 ) (24.5 ) Total $ 400.3 $ 345.8 $ 383.8 Depreciation and Amortization Catalysts Technologies $ 77.4 $ 68.1 $ 66.3 Materials Technologies 19.5 23.2 26.2 Corporate 3.4 7.9 10.2 Total $ 100.3 $ 99.2 $ 102.7 Capital Expenditures Catalysts Technologies $ 84.9 $ 66.3 $ 81.6 Materials Technologies 24.0 24.6 30.1 Corporate 8.0 27.9 20.6 Total $ 116.9 $ 118.8 $ 132.3 December 31, (In millions) 2016 2015 Total Assets Catalysts Technologies $ 1,675.1 $ 1,390.8 Materials Technologies 313.1 333.4 Corporate 923.6 1,051.0 Assets of discontinued operations — 870.5 Total $ 2,911.8 $ 3,645.7 |
Schedule of reconciliation of operating segment data to financial statements | Grace Adjusted EBIT for the years ended December 31, 2016 , 2015 and 2014 is reconciled below to income from continuing operations before income taxes presented in the accompanying Consolidated Statements of Operations. Year Ended December 31, (In millions) 2016 2015 2014 Grace Adjusted EBIT $ 400.3 $ 345.8 $ 383.8 Pension MTM adjustment and other related costs, net (60.3 ) (30.5 ) (137.6 ) Restructuring and repositioning expenses (38.6 ) (20.4 ) (4.3 ) Costs related to Chapter 11, and legacy product and environmental, net (35.4 ) (6.1 ) (35.6 ) Amortization of acquired inventory fair value adjustment (8.0 ) — — Third-party acquisition-related costs (2.5 ) — — Gain (loss) on sale of product line 1.7 — 0.2 Gain on termination and curtailment of postretirement plans related to divested businesses 0.3 2.6 15.9 Income and expense items related to divested businesses 0.1 1.5 4.1 Loss on early extinguishment of debt (11.1 ) — — Interest expense, net (80.5 ) (99.1 ) (121.9 ) Net income (loss) attributable to noncontrolling interests — (0.1 ) (0.1 ) Income (loss) from continuing operations before income taxes $ 166.0 $ 193.7 $ 104.5 |
Similar products within each operating segment | The table below presents sales of similar products within each reportable segment. Year Ended December 31, (In millions) 2016 2015 2014 Catalysts Technologies: Refining Catalysts $ 724.9 $ 764.5 $ 845.5 Polyolefin and Chemical Catalysts 438.8 397.6 401.3 Total $ 1,163.7 $ 1,162.1 $ 1,246.8 Materials Technologies: Coatings and print media $ 136.5 $ 133.6 $ 151.5 Consumer/Pharma 121.9 125.1 136.8 Chemical process and other 176.5 207.4 222.2 Total $ 434.9 $ 466.1 $ 510.5 |
Schedule of 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. Year Ended December 31, (In millions) 2016 2015 2014 Net Sales United States $ 446.2 $ 444.7 $ 465.9 Canada and Puerto Rico 44.5 45.3 43.2 Total North America 490.7 490.0 509.1 Europe Middle East Africa 647.8 621.2 706.4 Asia Pacific 348.9 390.9 397.2 Latin America 111.2 126.1 144.6 Total $ 1,598.6 $ 1,628.2 $ 1,757.3 December 31, (In millions) 2016 2015 Long-Lived Assets United States $ 564.5 $ 464.1 Canada and Puerto Rico 13.9 13.0 Total North America 578.4 477.1 Germany 109.7 110.9 Rest of Europe Middle East Africa 39.5 17.4 Total Europe Middle East Africa 149.2 128.3 Asia Pacific 21.5 25.9 Latin America 7.5 5.5 Total $ 756.6 $ 636.8 |
Unconsolidated Affiliate Uncons
Unconsolidated Affiliate Unconsolidated Affiliate (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Summary Balance Sheet information: Current assets $ 249.2 $ 244.1 Noncurrent assets 84.8 69.7 Total assets $ 334.0 $ 313.8 Current liabilities $ 102.0 $ 111.0 Noncurrent liabilities 0.3 — Total liabilities $ 102.3 $ 111.0 Year Ended December 31, (In millions) 2016 2015 2014 Summary Statement of Operations information: Net sales $ 388.9 $ 415.3 $ 409.9 Costs and expenses applicable to net sales 322.1 366.6 358.1 Income before income taxes 60.8 42.8 41.2 Net income 59.3 41.1 39.7 |
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) 2016 2015 2014 Grace sales of catalysts to ART $ 210.4 $ 258.9 $ 266.4 Mark-up of Grace's sales to ART included in Grace's cost of goods sold 4.2 5.1 5.3 Charges for fixed costs, research and development and selling, general and administrative services, and depreciation to ART 33.8 31.6 35.1 The table below lists Grace balances related to ART. December 31, (in millions) 2016 2015 Trade accounts receivable $ 14.9 $ 6.6 Noncurrent asset 27.0 11.9 Accounts payable 28.7 18.2 Debt payable within one year 7.6 7.2 Debt payable after one year 31.9 26.2 Noncurrent liability 27.0 11.9 |
Quarterly Summary and Statist48
Quarterly Summary and Statistical Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 Net sales $ 362.8 $ 390.5 $ 404.5 $ 440.8 Gross profit 152.7 173.2 168.2 161.8 Net income (loss) 0.3 38.5 39.7 15.6 Net income (loss) attributable to W. R. Grace & Co. shareholders 0.5 38.7 39.6 15.3 Net income (loss) per share:(1) Basic earnings (loss) per share: Net income (loss) $ 0.01 $ 0.55 $ 0.56 $ 0.22 Diluted earnings (loss) per share: Net income (loss) 0.01 0.55 0.56 0.22 Dividends declared per share — 0.17 0.17 0.17 Market price of common stock:(2)(3) High $ 98.15 (4) $ 80.39 $ 80.56 $ 74.38 Low 63.84 70.59 71.47 63.37 Close 71.18 73.21 73.80 67.64 ___________________________________________________________________________________________________________________ (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. (3) Share prices subsequent to February 3, 2016, reflect the Separation and exclude separate trading of GCP common stock. (4) Price is a pre-Separation market price of common stock. (In millions, except per share amounts) March 31 June 30 September 30 December 31 2015 Net sales $ 397.0 $ 407.2 $ 399.2 $ 424.8 Gross profit 147.0 167.8 166.1 170.8 Net income (loss) 52.7 57.4 13.7 20.3 Net income (loss) attributable to W. R. Grace & Co. shareholders 52.7 57.4 13.8 20.3 Net income (loss) per share:(1) Basic earnings (loss) per share: Net income (loss) $ 0.72 $ 0.79 $ 0.19 $ 0.29 Diluted earnings (loss) per share: Net income (loss) 0.72 0.78 0.19 0.29 Market price of common stock:(2)(3) 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. (3) Prices are pre-Separation market prices of common stock. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (In millions) Inventories $ 30.2 Properties and equipment 95.0 Goodwill 63.8 Intangible assets 61.6 Net assets acquired $ 250.6 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The table below presents the intangible assets acquired as part of the acquisition of the assets of BASF's polyolefin catalysts business and the periods over which they will be amortized. Amount (In millions) Weighted Average Amortization Period (in years) Customer Lists $ 39.9 20.0 Trademarks 13.4 20.0 Technology 8.3 20.0 Total $ 61.6 20.0 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | GCP’s historical financial results through the Distribution Date and other effects of the Separation are presented as discontinued operations as summarized below: Year Ended December 31, (In millions) 2016 2015 2014 Net sales $ 99.6 $ 1,423.3 $ 1,485.7 Cost of goods sold 62.6 907.5 957.2 Gross profit 37.0 515.8 528.5 Selling, general and administrative expenses 21.6 251.2 248.8 Research and development expenses 1.7 22.5 28.1 Loss in Venezuela — 59.6 — Repositioning expenses 22.0 55.1 — Interest expense and related financing costs 0.7 1.5 3.9 Other expense, net 3.9 9.9 17.8 Total costs and expenses 49.9 399.8 298.6 (Loss) Income from discontinued operations before income taxes (12.9 ) 116.0 229.9 Benefit from (provision for) income taxes 0.1 (95.0 ) (69.4 ) (Loss) Income from discontinued operations after income taxes (12.8 ) 21.0 160.5 Less: Net income attributable to noncontrolling interests (0.1 ) (0.8 ) (1.2 ) Net (loss) income from discontinued operations $ (12.9 ) $ 20.2 $ 159.3 The carrying amounts of the major classes of assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2015, related to GCP consisted of the following: (In millions) December 31, ASSETS Current Assets Cash and cash equivalents $ 98.6 Trade accounts receivable, net 203.6 Inventories 105.3 Other current assets 38.9 Total Current Assets 446.4 Properties and equipment, net of accumulated depreciation and amortization 220.7 Goodwill 102.5 Technology and other intangible assets, net 33.3 Deferred income taxes 32.0 Overfunded defined benefit pension plans 26.1 Other assets 9.5 Total Assets $ 870.5 LIABILITIES AND EQUITY Current Liabilities Debt payable within one year $ 26.4 Accounts payable 109.0 Other current liabilities 123.2 Total Current Liabilities 258.6 Deferred income taxes 8.7 Unrecognized tax benefits 11.1 Underfunded and unfunded defined benefit pension plans 79.0 Other liabilities 11.1 Total Liabilities $ 368.5 |
Basis of Presentation and Sum51
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) | 12 Months Ended |
Dec. 31, 2016entitysharessegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | segment | 2 |
Number of Shares Distributed Per Each Share of Stock Held at Close | shares | 1 |
Number of United States subsidiaries and affiliates filed voluntary petitions for reorganization | entity | 61 |
Cash Equivalents | |
Cash Equivalents, Maximum Remaining Maturity Period at Purchase Maximum | 3 months |
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 | 30 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 |
Basis of Presentation and Sum52
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash and cash equivalents | $ 10 | $ 9.4 | |
Debt payable after one year | 1,507.6 | 2,111.5 | |
Deferred income taxes | $ 709.4 | 714.3 | |
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt payable after one year | 30.3 | ||
Debt Issuance Costs, Net | $ 30.3 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred income taxes | $ 70.4 | ||
Deferred Tax Assets, Gross, Noncurrent | 90.9 | ||
Deferred Tax Assets, Valuation Allowance, Noncurrent | $ 20.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 57.7 | $ 47.1 |
In process | 33.4 | 33.4 |
Finished products | 115.8 | 98.2 |
Other | 21.1 | 20.1 |
Total inventories | $ 228 | $ 198.8 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Properties and Equipment | |||
Properties and equipment, gross | $ 2,057.1 | $ 1,908.5 | |
Accumulated depreciation and amortization | (1,327.5) | (1,286.8) | |
Properties and equipment, net | 729.6 | 621.7 | |
Depreciation and lease amortization expense related to properties and equipment | 85.7 | 81.8 | $ 83.9 |
Rental expense for operating leases | 10 | 10.6 | 10.5 |
Land | |||
Properties and Equipment | |||
Properties and equipment, gross | 10 | 9.8 | |
Building [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 375.4 | 369.9 | |
Information technology and equipment [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 125.3 | 119.4 | |
Machinery, equipment and other | |||
Properties and Equipment | |||
Properties and equipment, gross | 1,445.8 | 1,329.5 | |
Projects under construction | |||
Properties and Equipment | |||
Properties and equipment, gross | 100.6 | 79.9 | |
Other Capitalized Property Plant and Equipment [Member] | |||
Properties and Equipment | |||
Properties and equipment, net | $ 1.3 | $ 1 | $ 1.2 |
Properties and Equipment (Det55
Properties and Equipment (Details 2) $ in Millions | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
2,017 | $ 9 |
2,018 | 6 |
2,019 | 3.9 |
2,020 | 2.6 |
2,021 | 2.1 |
Thereafter | 4.4 |
Total | $ 28 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in goodwill balances | ||
Balance at the beginning of the period | $ 336.5 | $ 338.9 |
Goodwill, Acquired During Period | 63.8 | |
Foreign currency translation | (3.6) | (2.4) |
Write-off related to exited product lines | (2.5) | |
Balance at the end of the period | 394.2 | 336.5 |
Grace Catalysts Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 292.7 | 293.8 |
Goodwill, Acquired During Period | 63.8 | |
Foreign currency translation | (3) | (1.1) |
Write-off related to exited product lines | 0 | |
Balance at the end of the period | 353.5 | 292.7 |
Grace Materials Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 43.8 | 45.1 |
Foreign currency translation | (0.6) | (1.3) |
Write-off related to exited product lines | (2.5) | |
Balance at the end of the period | $ 40.7 | $ 43.8 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, net book value | $ 269.1 | $ 227.5 | |
Net book value of other intangible assets | |||
Gross carrying amount | 332.9 | 319.9 | |
Accumulated Amortization | 63.8 | 92.4 | |
Amortization of intangible assets | 13.9 | 16.2 | $ 17 |
Estimated Amortization Expenses | |||
2,017 | 15.2 | ||
2,018 | 15.1 | ||
2,019 | 15.1 | ||
2,020 | 14.9 | ||
2,021 | 14.7 | ||
Thereafter | 194.1 | ||
Total estimated amortization expenses | 269.1 | ||
Technology | |||
Net book value of other intangible assets | |||
Gross carrying amount | 222.3 | 237.5 | |
Accumulated Amortization | 38.9 | 51 | |
Customer Lists [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 69.6 | 43 | |
Accumulated Amortization | 20.3 | 29.3 | |
Trademarks [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 25.3 | 22.8 | |
Accumulated Amortization | 1.5 | 9.4 | |
Other Intangible Assets [Member] | |||
Net book value of other intangible assets | |||
Gross carrying amount | 15.7 | 16.6 | |
Accumulated Amortization | $ 3.1 | $ 2.7 |
Debt (Details)
Debt (Details) € in Millions | Jan. 27, 2016USD ($) | Jan. 30, 2015USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | |
Notes Payable, Related Parties | $ 33,400,000 | $ 39,500,000 | ||||||
Deferred payment obligations | 29,100,000 | 30,000,000 | ||||||
Debt payable within one year | 58,100,000 | 76,500,000 | ||||||
Debt payable after one year | $ 2,111,500,000 | $ 1,507,600,000 | ||||||
Full-year weighted average interest rates on total debt | 4.60% | 4.10% | 4.60% | |||||
2,017 | $ 76,500,000 | |||||||
2,018 | 7,900,000 | |||||||
2,019 | 7,300,000 | |||||||
2,020 | 6,000,000 | |||||||
2,021 | 1,182,500,000 | |||||||
Thereafter | 303,900,000 | |||||||
Total debt | $ 2,169,600,000 | 1,584,100,000 | ||||||
Payments for Repurchase of Warrants | $ 490,000,000 | |||||||
Revised credit facility due to change in covenants following separation | 300,000,000 | |||||||
Distribution to Grace from GCP | $ 750,000,000 | |||||||
Amount of distribution from GCP dividend used to pay down Grace debt | $ 600,000,000 | |||||||
Repayments of Debt | 633,000,000 | 50,000,000 | $ 735,900,000 | |||||
Loss on early extinguishment of debt | $ (11,100,000) | $ 0 | $ 0 | |||||
Debt Instrument, Price as Percent of Par Value | 100.00% | |||||||
Proceeds from Debt, Net of Issuance Costs | $ 985,500,000 | |||||||
Cash paid to settle deferred payment obligation | 632,000,000 | |||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | 100.00% | ||||||
Debt Instrument, Required Redemption Price, Percentage | 101.00% | 101.00% | ||||||
Final Judgment for Payment, Event of Debt Default | 75,000,000 | |||||||
Debt Instrument, Event of Default, Percent Principal Aggregate Outstanding | 25.00% | 25.00% | ||||||
Term Loan B (USD) [Member] | ||||||||
Senior Secured Credit Facilities to Fund Emergence | 700,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | 2.25% | 2.25% | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 15,600,000 | 5,700,000 | ||||||
Term Loan B (EUR) [Member] | ||||||||
Senior Secured Credit Facilities to Fund Emergence | € | € 150 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | 2.50% | 2.50% | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 3,400,000 | 1,300,000 | ||||||
Revolving Credit Facility [Member] | ||||||||
Senior Secured Credit Facilities to Fund Emergence | 400,000,000 | |||||||
Long-term Line of Credit | 0 | |||||||
Letters of Credit Outstanding, Amount | 257,200,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% | 1.75% | |||||
Other Debt Obligations [Member] | ||||||||
Total debt | [1] | $ 42,500,000 | 40,700,000 | |||||
Delayed-Draw Term Loan B [Member] | ||||||||
Senior Secured Credit Facilities to Fund Emergence | $ 250,000,000 | $ 250,000,000 | ||||||
Length of Delayed Draw Term Loan Facility | 12 months | 12 months | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | 2.25% | 2.25% | |||||
Term Loan B (EUR) [Member] | ||||||||
Repayments of Debt | € | € 67.3 | |||||||
Term Loan B (USD) [Member] | ||||||||
Repayments of Debt | $ 526,900,000 | |||||||
Senior Notes [Member] | ||||||||
Senior Notes | 1,000,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 0.50% | 0.50% | |||||
Senior Notes, Due 2021 [Member] | ||||||||
Senior Notes | $ 700,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% | 5.125% | ||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 8,900,000 | $ 7,300,000 | ||||||
Senior Notes, Due 2024 [Member] | ||||||||
Senior Notes | $ 300,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | 5.625% | ||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 4,500,000 | $ 4,000,000 | ||||||
Minimum | Term Loan B (USD) [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | 0.75% | |||||
Minimum | Term Loan B (EUR) [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | 0.75% | |||||
Minimum | Delayed-Draw Term Loan B [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | 0.75% | |||||
[1] | Represents borrowings under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries. |
Fair Value Measurements and R59
Fair Value Measurements and Risk (Details) lb in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($)lbcountry | Dec. 31, 2015USD ($) | Feb. 03, 2015USD ($) | Dec. 31, 2014 | ||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | $ 1,584.1 | $ 2,169.6 | |||
Number of countries where company does business, greater than | country | 60 | ||||
Number of Currencies Used | 30 | ||||
Derivative, Fixed Interest Rate | 2.393% | ||||
Recurring basis | |||||
Assets | |||||
Currency derivatives | $ 8.8 | 1 | |||
Commodity derivatives | 0.6 | ||||
Total Assets | 8.8 | 1.6 | |||
Liabilities | |||||
Currency derivatives | 0.9 | 0.5 | |||
Interest rate derivatives | 6 | 7.9 | |||
Commodity derivatives | 0.1 | ||||
Total Liabilities | 6.9 | 8.5 | |||
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 | ||||
Total Liabilities | 0 | 0 | |||
Recurring basis | Significant Other Observable Inputs (Level 2) | |||||
Assets | |||||
Currency derivatives | 8.8 | 1 | |||
Commodity derivatives | 0.6 | ||||
Total Assets | 8.8 | 1.6 | |||
Liabilities | |||||
Currency derivatives | 0.9 | 0.5 | |||
Interest rate derivatives | 6 | 7.9 | |||
Commodity derivatives | 0.1 | ||||
Total Liabilities | 6.9 | 8.5 | |||
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 | ||||
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 | 15 months | ||||
Derivative, Notional Amount | $ 0 | ||||
Fixed-rate aluminum swaps | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Maximum period of cash flow hedging | 15 months | ||||
Derivative, Nonmonetary Notional Amount | lb | 1.3 | ||||
Derivative, Notional Amount | $ 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, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 7.3 | $ 8.9 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% | ||
Senior Notes, Due 2024 [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 4 | $ 4.5 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | ||
Term Loan B (USD) [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 5.7 | $ 15.6 | |||
Term Loan B (EUR) [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1.3 | 3.4 | |||
Other Debt Obligations [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | [1] | 40.7 | 42.5 | ||
Reported Value Measurement [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | 1,584.1 | 2,169.6 | |||
Reported Value Measurement [Member] | Senior Notes, Due 2021 [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | [2] | 692.7 | 691.1 | ||
Reported Value Measurement [Member] | Senior Notes, Due 2024 [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | [2] | 296 | 295.5 | ||
Reported Value Measurement [Member] | Term Loan B (USD) [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | [3] | 402.7 | 919.3 | ||
Reported Value Measurement [Member] | Term Loan B (EUR) [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | [3] | 82.5 | 158.7 | ||
Reported Value Measurement [Member] | Other Debt Obligations [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | 110.2 | 105 | |||
Estimate of Fair Value Measurement [Member] | |||||
Items measured at Fair Value on a Recurring Basis | |||||
Other borrowings (not subject to compromise) | 1,633.2 | 2,169.1 | |||
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) | 721.3 | 701.5 | |||
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) | 311.5 | 298.1 | |||
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) | 408.2 | 907.2 | |||
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) | 82 | 157.3 | |||
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) | 110.2 | 105 | |||
Other current assets | Designated as Hedging Instrument [Member] | |||||
Assets | |||||
Currency derivatives | 4 | 0.7 | |||
Commodity derivatives | 0.6 | ||||
Interest rate contracts | 0 | 0 | |||
Other current assets | Not Designated as Hedging Instrument [Member] | |||||
Assets | |||||
Currency derivatives | $ 0.8 | $ 0.1 | |||
[1] | Represents borrowings under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries. | ||||
[2] | (1)Carrying amounts are net of unamortized debt issuance costs of $7.3 million and $4.0 million at December 31, 2016, and $8.9 million and $4.5 million at December 31, 2015, related to the 5.125% senior notes due 2021 and 5.625% senior notes due 2024, respectively. | ||||
[3] | (2)Carrying amounts are net of unamortized debt issuance costs and discounts of $5.7 million and $1.3 million at December 31, 2016 and $15.6 million and $3.4 million at December 31, 2015, related to the U.S. dollar term loan and euro term loan, respectively. |
Fair Value Measurements and R60
Fair Value Measurements and Risk (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair values of derivative instruments | ||
Asset Derivatives | $ 8.8 | $ 1.6 |
Liability Derivatives | 6.9 | 8.5 |
Asset Derivatives | 8.8 | 1.6 |
Liability Derivatives | 6.9 | 8.5 |
Not Designated as Hedging Instrument [Member] | Other current assets | ||
Fair values of derivative instruments | ||
Asset Derivatives, Currency contracts | 0.8 | 0.1 |
Asset Derivatives, Currency contracts | 0.8 | 0.1 |
Not Designated as Hedging Instrument [Member] | Other current liabilities | ||
Fair values of derivative instruments | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.9 | 0.2 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.9 | 0.2 |
Derivatives designated as hedging instruments under ASC 815 | Other current assets | ||
Fair values of derivative instruments | ||
Asset Derivatives, Commodity contracts | 0.6 | |
Asset Derivatives, Currency contracts | 4 | 0.7 |
Interest rate contracts | 0 | 0 |
Asset Derivatives, Commodity contracts | 0.6 | |
Asset Derivatives, Currency contracts | 4 | 0.7 |
Interest rate contracts | 0 | 0 |
Derivatives designated as hedging instruments under ASC 815 | Other assets | ||
Fair values of derivative instruments | ||
Asset Derivatives, Currency contracts | 4 | 0.2 |
Interest rate contracts | 0 | 0 |
Asset Derivatives, Currency contracts | 4 | 0.2 |
Interest rate contracts | 0 | 0 |
Derivatives designated as hedging instruments under ASC 815 | Other current liabilities | ||
Fair values of derivative instruments | ||
Price Risk Cash Flow Hedge Liability, at Fair Value | 0.1 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0.3 |
Interest Rate Derivative Liabilities, at Fair Value | 2.8 | 4.1 |
Price Risk Cash Flow Hedge Liability, at Fair Value | 0.1 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0.3 |
Interest Rate Derivative Liabilities, at Fair Value | 2.8 | 4.1 |
Derivatives designated as hedging instruments under ASC 815 | Other liabilities | ||
Fair values of derivative instruments | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | 3.2 | 3.8 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | 3.2 | 3.8 |
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 | (0.8) | (0.5) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (0.8) | $ (0.5) |
Fair Value Measurements and R61
Fair Value Measurements and Risk (Details 3) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | Feb. 03, 2015USD ($) | |
Gains and losses on derivative instruments | |||||
Derivative, Fixed Interest Rate | 2.393% | ||||
Deferred intercompany royalties designated as hedging instrument | € | € 56.2 | ||||
Interest Rate Swap [Member] | |||||
Gains and losses on derivative instruments | |||||
Derivative, Notional Amount | $ 250 | ||||
Currency Swap [Member] | |||||
Gains and losses on derivative instruments | |||||
Cross-currency swaps | € | 170 | ||||
Foreign currency denominated debt [Member] | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | $ 4.6 | ||||
Net Investment Hedging [Member] | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 5.6 | ||||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | 7.1 | $ 18.3 | $ 22.7 | ||
Foreign currency denominated deferred intercompany royalties [Member] | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | 2.5 | ||||
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) | (2.6) | (5.6) | (7.2) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (3.2) | (7.7) | 0.5 | ||
Derivatives in ASC 815 cash flow hedging relationships | Interest Rate Contract [Member] | Interest Expense [Member] | |||||
Gains and losses on derivative instruments | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (2.2) | (5.6) | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (4.1) | (3.8) | |||
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) | (5.4) | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | ||||
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) | (0.1) | 1.4 | 0.4 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0.8 | 0.7 | 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) | (0.3) | (1.4) | (2.2) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0.1 | (4.6) | $ 0.3 | ||
Term Loan B (EUR) [Member] | |||||
Gains and losses on derivative instruments | |||||
Debt, Long-term and Short-term, Combined Amount | € | € 80.1 | ||||
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 | $ (0.8) | $ (0.5) |
Fair Value Measurements and R62
Fair Value Measurements and Risk Fair Value Measurement and Risk (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gains and losses on derivative instruments | |||
Reclassification From Accumulated Other Comprehensive Income, Cumulative Changes in Net Gain (Loss) from Hedges, Current Period Net Of Tax | $ 0 | ||
Foreign currency denominated debt [Member] | |||
Gains and losses on derivative instruments | |||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | 4,600,000 | ||
Foreign currency denominated deferred intercompany royalties [Member] | |||
Gains and losses on derivative instruments | |||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | 2,500,000 | ||
Net Investment Hedging [Member] | |||
Gains and losses on derivative instruments | |||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 5,600,000 | ||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments (Effective Portion) | $ 7,100,000 | $ 18,300,000 | $ 22,700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income taxes: | |||
Domestic | $ 72.7 | $ 97.1 | $ 77.2 |
Foreign | 93.3 | 96.6 | 27.3 |
Income (loss) from continuing operations before income taxes | 166 | 193.7 | 104.5 |
Provision for income taxes: | |||
Federal-current | 59.4 | ||
Federal-deferred | (11.8) | (35.4) | (23.6) |
State and local-current | (0.7) | 4.1 | 3.3 |
State and local - deferred | (17.7) | (6.4) | (18) |
Foreign-current | (36.6) | (23.5) | (19.8) |
Foreign-deferred | 7.8 | (8.6) | 11.1 |
(Provision for) benefit from income taxes | (59) | (69.8) | 12.4 |
Foreign Earnings Repatriated | $ 5.1 | 173.1 | 38.9 |
U.S. federal income tax rate (as a percent) | 35.00% | ||
Income tax provision analysis | |||
Tax provision at U.S. federal income tax rate | $ (58.1) | (67.8) | (36.6) |
Change in provision resulting from: | |||
Nontaxable income/non-deductible expenses | 6.8 | 3 | 3 |
Stock option exercises (ASU 2016-09) | 6.7 | 0 | 0 |
State and local income taxes, net | (4.7) | (2.9) | (9.6) |
Adjustments to unrecognized tax benefits | 2.6 | (1.7) | 57.9 |
Decrease (increase) in valuation allowance | (2.5) | 1.6 | |
Nontaxable income/non-deductible expenses | 2.5 | 0.9 | 4.1 |
U.S. tax on foreign earnings | (0.9) | (1.7) | 5.1 |
Other | (6.4) | 0.6 | (3.3) |
(Provision for) benefit from income taxes | (59) | (69.8) | $ 12.4 |
Deferred tax assets: | |||
U.S. net operating loss carryforwards | 293.6 | 359.7 | |
Federal tax credit carryforwards | 183.2 | 124.3 | |
Pension liabilities | 120.1 | 102.1 | |
State net operating loss carryforwards | 50.9 | 52.5 | |
Research and development | 35.4 | 32.9 | |
Reserves and allowances | 31.1 | 40.9 | |
Liability for environmental remediation | 24.6 | 20.6 | |
Prepaid royalties | 20.8 | 0 | |
Liability for asbestos-related litigation | 11.1 | 10.8 | |
Foreign net operating loss carryforwards | 5.9 | 4.2 | |
Other | 29 | 36 | |
Total deferred tax assets | 805.7 | 784 | |
Deferred tax liabilities: | |||
Properties and equipment | (38.5) | (33.8) | |
Intangible assets | (18.4) | (17.6) | |
Pension assets | (6.1) | (5.4) | |
Other | (4.7) | (5.7) | |
Total deferred tax liabilities | (67.7) | (62.5) | |
Valuation allowance: | |||
Total valuation allowance | (31.4) | (8.4) | |
Undistributed Earnings of Foreign Subsidiaries | 536.6 | ||
Net deferred tax assets | 706.6 | 713.1 | |
Federal tax credit carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | (17.7) | (2.2) | |
State net operating loss carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | (11.2) | (3.5) | |
Foreign net operating loss carryforwards | |||
Valuation allowance: | |||
Total valuation allowance | $ (2.5) | $ (2.7) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Net Operating Losses From Emergence and Settlement of Deferred Payment Obligation | $ 1,800 | ||
Period permitted to carryforward NOLs under federal income tax law (in years) | 20 years | ||
Expected Income Tax Deductions Generated from Deferred Payment Obligation | $ 30 | ||
Taxable Income Required to Realize DTA, Total | 1,800 | ||
Taxable Income Required to Realize DTA, Per Year | 95 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 183.2 | $ 124.3 | |
Deferred Tax Assets, Valuation Allowance | 31.4 | 8.4 | |
Decrease (Increase) in deferred tax assets | 6.5 | ||
Deferred income taxes | 58.9 | ||
Deferred income taxes | 709.4 | 714.3 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance due to Separation, Amount | 2.5 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (23) | ||
Undistributed foreign earnings | 536.6 | ||
Unrecorded deferred tax liability | 27.4 | ||
Foreign Earnings Repatriated | 5.1 | 173.1 | $ 38.9 |
Tax expense for repatriation attributable to current and past earnings | 1.3 | $ 19 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 733 | ||
Operating Loss Carryforwards, Valuation Allowance | 17.3 | ||
Federal Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 857 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards | $ 144.4 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 03, 2016 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||||
Amount of unrecognized tax benefits | $ 18.7 | $ 27 | $ 29.7 | |||
Amount of unrecognized tax benefits, excluding interest and penalties | 18.7 | 23.1 | 26.5 | |||
Unrecognized Tax Benefits, Resulting in Decrease of Deferred Tax Asset | (18.4) | 6.1 | ||||
Roll forward of uncertain tax positions | ||||||
Balance | 18.7 | 23.1 | 26.5 | $ 80.3 | ||
Additions for current year tax positions | 6.8 | 0.1 | 0.9 | |||
Additions for prior year tax positions | 0.2 | 0.8 | 11 | |||
Reductions for prior year tax positions and reclassifications | (0.2) | (1.6) | (5.7) | |||
Reductions for expirations of statute of limitations | (1.5) | (0.4) | ||||
Settlements | (3.3) | (1.2) | (59.6) | [1] | ||
Transferred to GCP upon Separation | $ (7.9) | |||||
Material change to aggregate recorded liabilities for uncertain tax positions in the next twelve months | ||||||
Accrued interest and penalties related to uncertain tax positions | $ 0 | $ 3.9 | $ 3.2 | |||
Unrecognized tax benefits, decrease in income tax penalties and interest accrued upon Separation | $ 3.1 | |||||
[1] | In 2014, $59.6 million of benefits associated with reserves for unrecognized tax benefits were recognized based on the status of examinations in taxing jurisdictions. |
Pension Plans and Other Postr66
Pension Plans and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Underfunded defined benefit pension plans | $ (424.3) | $ (377.5) | |
Pension liabilities included in other current liabilities | 14.4 | 14.2 | |
Defined Benefit Pension Plan Liabilities | $ (438.7) | ||
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 | $ (0.5) | (4.5) | $ (39.5) |
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 | $ 11.1 | 10.4 | 9.3 |
Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | (438.7) | (391.7) | |
Defined Benefit Plan, Benefit Obligation | 1,543.3 | 1,477.6 | 2,027.7 |
U.S. qualified pension plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | (187.8) | (171.6) | |
Defined Benefit Plan, Benefit Obligation | $ 1,274.2 | $ 1,238.8 | 1,437.3 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.06% | 4.28% | |
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: | |||
Net funded status | (250.9) | (220.1) | |
Defined Benefit Plan, Benefit Obligation | $ 269.1 | $ 238.8 | 590.4 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.91% | 2.67% | |
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 | (0.5) | (0.6) | |
Defined Benefit Plan, Benefit Obligation | $ 0.5 | $ 0.6 | 2.4 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.36% | 4.40% | |
Postretirement Benefits Other Than Pensions | |||
Gain on termination and curtailment of postretirement plans | $ (0.5) | $ (4.5) | $ (39.5) |
Underfunded defined benefit pension plans [Member] | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Underfunded defined benefit pension plans | (83.1) | (73.2) | |
Unfunded defined benefit pension plans [Member] | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Underfunded defined benefit pension plans | $ (341.2) | $ (304.3) |
Pension Plans and Other Postr67
Pension Plans and Other Postretirement Benefit Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Periodic Benefit Cost | |||
Annual mark-to-market adjustment | $ 60.3 | $ 30.5 | $ 137.6 |
Gain on termination and curtailment of postretirement plans | 0.5 | 4.5 | 39.5 |
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 | 1.9 | ||
U.S. qualified pension plans | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 1,238.8 | 1,437.3 | |
Service cost | 17.8 | 25.7 | 23.5 |
Interest cost | 40.5 | 55.1 | 60 |
Amendments | (1.3) | (3.6) | |
Actuarial (gain) loss | 62.3 | (63) | |
Benefits paid | (83.9) | (87) | |
Defined Benefit Plan, Divestitures, Benefit Obligation | 0 | (125.7) | |
Benefit obligation at end of year | 1,274.2 | 1,238.8 | 1,437.3 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 1,067.2 | 1,262.6 | |
Actual return on plan assets | 95.6 | (34.6) | |
Employer contributions | 7.5 | 7.3 | |
Benefits paid | (83.9) | (87) | |
Defined Benefit Plan, Divestitures, Plan Assets | (81.1) | ||
Fair value of plan assets at end of year | 1,086.4 | 1,067.2 | 1,262.6 |
Net funded status | (187.8) | (171.6) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | (7.4) | (7) | |
Noncurrent liabilities | (180.4) | (164.6) | |
Net amount recognized | (187.8) | (171.6) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (4.3) | (3.1) | |
Net amount recognized | $ (4.3) | $ (3.1) | |
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||
Discount rate | 4.06% | 4.28% | |
Rate of compensation increase | 4.60% | 4.70% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 4.28% | 3.95% | |
Expected return on plan assets | 5.50% | 5.75% | |
Rate of compensation increase | 4.70% | 4.70% | |
Net Periodic Benefit Cost | |||
Service cost | $ 17.8 | $ 25.7 | 23.5 |
Interest cost | 40.5 | 55.1 | 60 |
Expected return on plan assets | (56.7) | (70.4) | (69.9) |
Amortization of prior service cost (credit) | (0.2) | 0.3 | 0.7 |
Amortization of net deferred actuarial loss | 0 | 0 | |
Annual mark-to-market adjustment | 23.3 | 42 | 89.2 |
Gain on termination and curtailment of postretirement plans | 0 | 0 | 0 |
Net periodic benefit cost | 24.7 | 52.7 | 103.5 |
Less: discontinued operations | 0 | (4) | (13.7) |
Net periodic benefit cost (income) from continuing operations | 24.7 | 48.7 | 89.8 |
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 | (1.3) | (3.6) | |
Amortization of prior service cost (credit) | 0.2 | (0.3) | (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 | (1.1) | (3.9) | (0.7) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 23.6 | 44.8 | 89.1 |
Non-U.S. pension plans | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 238.8 | 590.4 | |
Service cost | 6.8 | 11.7 | 10.7 |
Interest cost | 5.1 | 16.1 | 22.2 |
Plan participants' contributions | 0.5 | ||
Amendments | 0 | ||
Settlements/curtailments | 2.3 | 1 | |
Actuarial (gain) loss | 39.9 | (11.4) | |
Benefits paid | (7.5) | (20.7) | |
Currency exchange translation adjustments | 11.7 | 49.9 | |
Defined Benefit Plan, Divestitures, Benefit Obligation | 0 | (296.9) | |
Benefit obligation at end of year | 269.1 | 238.8 | 590.4 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 18.7 | 336.1 | |
Actual return on plan assets | (0.5) | 2.9 | |
Employer contributions | 8.4 | 10.5 | |
Plan participants' contributions | 0.5 | ||
Settlements | 1.3 | 1.5 | |
Benefits paid | (7.5) | (20.7) | |
Currency exchange translation adjustments | 0.4 | (21.6) | |
Defined Benefit Plan, Divestitures, Plan Assets | (287.5) | ||
Fair value of plan assets at end of year | 18.2 | 18.7 | 336.1 |
Net funded status | (250.9) | (220.1) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | (7) | (7.2) | |
Noncurrent liabilities | (243.9) | (212.9) | |
Net amount recognized | (250.9) | (220.1) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (0.1) | (0.3) | |
Net amount recognized | $ (0.1) | $ (0.3) | |
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||
Discount rate | 1.91% | 2.67% | |
Rate of compensation increase | 3.09% | 3.09% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 2.67% | 2.97% | |
Expected return on plan assets | 5.08% | 4.11% | |
Rate of compensation increase | 3.09% | 3.24% | |
Net Periodic Benefit Cost | |||
Service cost | $ 6.8 | $ 11.7 | 10.7 |
Interest cost | 5.1 | 16.1 | 22.2 |
Expected return on plan assets | (1) | (13) | (15.2) |
Amortization of prior service cost (credit) | 0 | ||
Amortization of net deferred actuarial loss | 0 | ||
Annual mark-to-market adjustment | 40.1 | (0.1) | 45.4 |
Gain on termination and curtailment of postretirement plans | 0 | 0 | 0 |
Net curtailment and settlement loss | (1) | 0 | 0 |
Net periodic benefit cost | 50 | 14.7 | 63.1 |
Less: discontinued operations | 0 | (16.8) | 14.8 |
Net periodic benefit cost (income) from continuing operations | 50 | (2.1) | 77.9 |
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 | $ 50 | (2.1) | 77.9 |
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 | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | $ 1,477.6 | 2,027.7 | |
Service cost | 24.6 | 37.4 | |
Interest cost | 45.6 | 71.2 | |
Plan participants' contributions | 0.5 | ||
Amendments | (1.3) | (3.6) | |
Settlements/curtailments | 2.3 | 1 | |
Actuarial (gain) loss | 102.2 | (74.4) | |
Benefits paid | (91.4) | (107.7) | |
Currency exchange translation adjustments | 11.7 | 49.9 | |
Defined Benefit Plan, Divestitures, Benefit Obligation | 0 | (422.6) | |
Benefit obligation at end of year | 1,543.3 | 1,477.6 | 2,027.7 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 1,085.9 | 1,598.7 | |
Actual return on plan assets | 95.1 | (31.7) | |
Employer contributions | 15.9 | 17.8 | |
Plan participants' contributions | 0.5 | ||
Settlements | 1.3 | 1.5 | |
Benefits paid | (91.4) | (107.7) | |
Currency exchange translation adjustments | 0.4 | (21.6) | |
Defined Benefit Plan, Divestitures, Plan Assets | (368.6) | ||
Fair value of plan assets at end of year | 1,104.6 | 1,085.9 | 1,598.7 |
Net funded status | (438.7) | (391.7) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | (14.4) | (14.2) | |
Noncurrent liabilities | (424.3) | (377.5) | |
Net amount recognized | (438.7) | (391.7) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (4.4) | (3.4) | |
Net amount recognized | (4.4) | (3.4) | |
Net Periodic Benefit Cost | |||
Service cost | 24.6 | 37.4 | |
Interest cost | 45.6 | 71.2 | |
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 | 0.4 | ||
Postretirement Benefits Other Than Pensions | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 0.6 | 2.4 | |
Service cost | 0 | 0.1 | |
Interest cost | 0.1 | 1.1 | |
Amendments | (0.1) | (2.1) | |
Actuarial (gain) loss | 0.4 | ||
Medicare subsidy receipts | 1 | ||
Benefits paid | (1.1) | ||
Defined Benefit Plan, Divestitures, Benefit Obligation | 0 | (0.1) | |
Benefit obligation at end of year | 0.5 | 0.6 | 2.4 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Employer contributions | 0.1 | ||
Medicare subsidy receipts | 1 | ||
Benefits paid | (1.1) | ||
Fair value of plan assets at end of year | 0 | 0 | 0 |
Net funded status | (0.5) | (0.6) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | 0 | ||
Noncurrent liabilities | (0.5) | (0.6) | |
Net amount recognized | (0.5) | (0.6) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Accumulated actuarial loss (gain) | 4.3 | 5.9 | |
Prior service cost (credit) | (3.3) | (7.1) | |
Net amount recognized | $ 1 | $ (1.2) | |
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||
Discount rate | 4.36% | 4.40% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 4.40% | 4.18% | |
Net Periodic Benefit Cost | |||
Service cost | $ 0 | 0.1 | |
Interest cost | 0.1 | 1.1 | |
Amortization of prior service cost (credit) | $ (2.2) | (3.4) | (2.4) |
Amortization of net deferred actuarial loss | 0.5 | 0.7 | 0 |
Annual mark-to-market adjustment | 0 | ||
Gain on termination and curtailment of postretirement plans | 0.5 | 4.5 | 39.5 |
Net periodic benefit cost | (2.2) | (7.1) | (40.7) |
Less: discontinued operations | 0 | 1.4 | 0.7 |
Net periodic benefit cost (income) from continuing operations | (2.2) | (5.7) | (40) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||
Net deferred actuarial (gain) loss | 0.4 | (1) | |
Net prior service credit | (0.1) | (2.1) | (13.6) |
Amortization of prior service cost (credit) | 2.2 | 3.4 | 2.4 |
Amortization of net deferred actuarial loss | 0.5 | 0.7 | 0 |
Loss on termination of postretirement plans | 0.5 | 4.5 | 12.2 |
Total recognized in other comprehensive (income) loss | 2.1 | 5.5 | 0 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (0.1) | $ (0.2) | $ (40) |
Defined Benefit Plan, Future Amortization of Gain (Loss) | $ (0.5) |
Pension Plans and Other Postr68
Pension Plans and Other Postretirement Benefit Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Total Payments Net of Subsidy | ||||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year One | $ 89.8 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Two | 90.5 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Three | 91.3 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Four | 92 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Year Five | 92.6 | |||
Defined Benefit Plan, Benefits Paid, Net of Subsidy Five Fiscal Years Thereafter | 465.6 | |||
Pension Plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | 1,543.3 | $ 1,477.6 | $ 2,027.7 | |
Defined Benefit Plan, Fair Value of Plan Assets | 1,104.6 | 1,085.9 | 1,598.7 | |
Net funded status | (438.7) | (391.7) | ||
Benefits paid | (91.4) | (107.7) | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 1,478 | 1,416 | ||
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 1,523.5 | 1,459.3 | ||
Accumulated benefit obligation | 1,461.4 | 1,401.2 | ||
Fair value of plan assets | $ 1,086.4 | $ 1,068 | ||
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 | $ 1,274.2 | $ 1,238.8 | 1,437.3 | |
Defined Benefit Plan, Fair Value of Plan Assets | 1,086.4 | 1,067.2 | 1,262.6 | |
Net funded status | (187.8) | (171.6) | ||
Benefits paid | (83.9) | (87) | ||
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 1,274.2 | 1,238.8 | ||
Accumulated benefit obligation | 1,238.8 | 1,205.6 | ||
Fair value of plan assets | 1,086.4 | $ 1,067.2 | ||
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 82.1 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 82.4 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 83.1 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 83.4 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 83.8 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 419 | |||
Total Payments Net of Subsidy | ||||
Discount rate | 4.06% | 4.28% | ||
Percentage of high yield bonds in foreign issuers portfolio | 30.00% | |||
Expected return on plan assets | 5.50% | 5.75% | ||
Average annual returns over one year (as a percent) | 9.00% | |||
Average annual returns over three years (as a percent) | 5.00% | |||
Average annual returns over five years (as a percent) | 7.00% | |||
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] | $ 1,167.9 | $ 1,139.2 | |
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 1,086.4 | 1,067.2 | |
Net funded status | [1] | (81.5) | (72) | |
U.S. qualified pension plans | Unfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [2] | 106.3 | 99.6 | |
Net funded status | [2] | (106.3) | (99.6) | |
Non-U.S. pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | 269.1 | 238.8 | 590.4 | |
Defined Benefit Plan, Fair Value of Plan Assets | 18.2 | 18.7 | 336.1 | |
Net funded status | (250.9) | (220.1) | ||
Benefits paid | (7.5) | (20.7) | ||
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | ||||
Projected benefit obligation | 249.3 | 220.5 | ||
Accumulated benefit obligation | 222.6 | 195.6 | ||
Fair value of plan assets | $ 0.8 | |||
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | [3] | 7.7 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | [3] | 8.1 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | [3] | 8.2 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | [3] | 8.6 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | [3] | 8.8 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | [3] | $ 46.5 | ||
Total Payments Net of Subsidy | ||||
Discount rate | 1.91% | 2.67% | ||
Percentage of German pension plans to total non-U.S. pension plans | 92.00% | 90.00% | ||
Expected return on plan assets | 5.08% | 4.11% | ||
Non-U.S. pension plans | Underfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [1] | $ 19.8 | $ 19.9 | |
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 18.2 | 18.7 | |
Net funded status | [1] | (1.6) | (1.2) | |
Non-U.S. pension plans | Unfunded pension plans | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | [2] | 249.3 | 218.9 | |
Net funded status | [2] | $ (249.3) | (218.9) | |
Non-U.S. pension plans | Germany | ||||
Total Payments Net of Subsidy | ||||
Discount rate | 1.78% | |||
Postretirement Benefits Other Than Pensions | ||||
Funded Status of Pension Plans | ||||
Projected benefit obligation | $ 0.5 | 0.6 | 2.4 | |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | $ 0 | |
Net funded status | (0.5) | (0.6) | ||
Benefits paid | $ (1.1) | |||
Benefit Payments | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 0.1 | |||
Total Payments Net of Subsidy | ||||
Discount rate | 4.36% | 4.40% | ||
Equity Securities Domestic [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 9.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 8.00% | 10.00% | ||
Equity Securities Foreign [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% | 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 | 4.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 7.00% | ||
Intermediate Debt Securities [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 31.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 28.00% | ||
Long Term Debt Securities [Member] | U.S. qualified pension plans | ||||
Pension plans and other postretirement benefit plans | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 48.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 48.00% | 47.00% | ||
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. | |||
[3] | Non-U.S. estimated benefit payments for 2017 and future periods have been translated at the applicable December 31, 2016, exchange rates. |
Pension Plans and Other Postr69
Pension Plans and Other Postretirement Benefit Plans (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 1,104.6 | $ 1,085.9 | $ 1,598.7 |
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 | $ 1,086.4 | $ 1,067.2 | 1,262.6 |
Expected return on plan assets | 5.50% | 5.75% | |
U.S. qualified pension plans | Equity Securities Domestic [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 9.00% | ||
Percentage of Plan Assets | 8.00% | 10.00% | |
U.S. qualified pension plans | Equity Securities Foreign [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% | ||
Percentage of Plan Assets | 6.00% | 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 | 4.00% | ||
Percentage of Plan Assets | 4.00% | 7.00% | |
U.S. qualified pension plans | Intermediate Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 31.00% | ||
Percentage of Plan Assets | 32.00% | 28.00% | |
U.S. qualified pension plans | Long Term Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 48.00% | ||
Percentage of Plan Assets | 48.00% | 47.00% | |
U.S. qualified pension plans | Other Investment [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Target Plan Asset Allocations | 2.00% | ||
Percentage of Plan Assets | 2.00% | 2.00% | |
U.S. qualified pension plans | U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 91.5 | $ 101.2 | |
U.S. qualified pension plans | Non-U.S. equity group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 62.6 | 68.9 | |
U.S. qualified pension plans | Corporate bond group trust funds - intermediate-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 342.6 | 303.2 | |
U.S. qualified pension plans | Corporate bond group trust funds - long-term | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 521.5 | 498 | |
U.S. qualified pension plans | Other fixed income group trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 22.4 | 21.5 | |
U.S. qualified pension plans | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 27.4 | 56.7 | |
U.S. qualified pension plans | Annuity and immediate participation contracts | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 18.4 | 17.7 | |
U.S. qualified pension plans | Significant Other Observable Inputs (Level 2) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 1,086.4 | 1,067.2 | |
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 | 91.5 | 101.2 | |
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 | 62.6 | 68.9 | |
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 | 342.6 | 303.2 | |
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 | 521.5 | 498 | |
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 | 22.4 | 21.5 | |
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 | 27.4 | 56.7 | |
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 | 18.4 | 17.7 | |
Non-U.S. pension plans | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 18.2 | $ 18.7 | 336.1 |
Percentage of foreign plan assets to global pension assets | 2.00% | 2.00% | |
Expected return on plan assets | 5.08% | 4.11% | |
Plan contributions and funding | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 8 | ||
Non-U.S. pension plans | Common/collective trust funds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 17.6 | $ 17.2 | |
Non-U.S. pension plans | Corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.3 | 0.3 | |
Non-U.S. pension plans | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.3 | 1.2 | |
Non-U.S. pension plans | Significant Other Observable Inputs (Level 2) | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 18.2 | 18.7 | |
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 | 17.6 | 17.2 | |
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 | 0.3 | 0.3 | |
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 | $ 0.3 | $ 1.2 | |
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 | 97.00% | 92.00% | |
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% | 28.00% | |
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% | 57.00% | |
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 | 3.00% | 8.00% | |
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, 2016 | Dec. 31, 2015 |
Other Current Liabilities | ||
Accrued compensation | $ 49.6 | $ 51.5 |
Environmental contingencies | 32.5 | 21.4 |
Deferred revenue | 27.2 | 24.7 |
Accrued interest | 16.2 | 18.9 |
Pension liabilities included in other current liabilities | 14.4 | 14.2 |
Income taxes payable | 5.7 | 25.8 |
Other accrued liabilities | 63.3 | 76.4 |
Other Liabilities, Current | $ 208.9 | $ 232.9 |
Commitments and Contingent Li71
Commitments and Contingent Liabilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)paymentshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Feb. 03, 2017USD ($) | Feb. 03, 2014USD ($) | |
Environmental remediation | ||||||
ZAI PD Account Funding | $ 34.4 | |||||
Deferred payment obligations | $ 30 | $ 29.1 | ||||
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 | 77,372,257 | ||||
Gain from emergence from bankruptcy | $ 9 | |||||
Estimated liability for environmental investigative and remediation costs | $ 66.3 | 55.2 | ||||
Pre-tax charges for environmental matters | 28.7 | 6.4 | $ 13.8 | |||
Net cash expenditures | 18.1 | 12.3 | 11.7 | |||
Claim payments related to emergence from bankruptcy | 76.5 | |||||
Vermiculite and non vermiculite matters [Member] | ||||||
Environmental remediation | ||||||
Pre-tax charges for environmental matters | 29.2 | 6.4 | 14.7 | |||
Vermiculite Related Matters [Member] | ||||||
Environmental remediation | ||||||
Estimated liability for environmental investigative and remediation costs | 31.2 | 18.7 | ||||
Accrual for Environmental Loss Contingencies, Charges to Expense for New Losses | 24.8 | 6 | $ 7.5 | |||
Non Vermiculite Related Matters [Member] | ||||||
Environmental remediation | ||||||
Estimated liability for environmental investigative and remediation costs | $ 35.1 | $ 36.5 | ||||
Subsequent Event [Member] | ||||||
Environmental remediation | ||||||
ZAI P D Account, Payment on Third Anniversary of Effective Date of Joint Plan | $ 30 |
Commitments and Contingent Li72
Commitments and Contingent Liabilities (Details 2) $ in Millions | Dec. 31, 2016USD ($) |
Financial Guarantee | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 124.3 |
Surety Bonds | |
Financial assurances | |
Gross financial assurances issued and outstanding | 37.2 |
Standby Letters of Credit | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 87.1 |
Restructuring Expenses and Re73
Restructuring Expenses and Related Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring expenses and related asset impairments | |||
Restructuring expenses | $ 24.3 | $ 11.3 | $ 4.3 |
Grace Catalysts Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | 3.4 | 4.8 | 2.1 |
Grace Materials Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | 15.1 | 0.8 | 0.2 |
Corporate, Non-Segment [Member] | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | $ 5.8 | $ 5.7 | $ 2 |
Restructuring Expenses and Re74
Restructuring Expenses and Related Asset Impairments Restructuring Expenses - Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | $ 9.6 | $ 7.6 | $ 2.1 | $ 1.1 |
Accruals for severance and other costs | 17.8 | 11.3 | 4.3 | |
Payments | 16 | 5.6 | 3.6 | |
Currency translation adjustments and other | $ 0.2 | $ (0.2) | $ 0.3 |
Restructuring Expenses and Re75
Restructuring Expenses and Related Asset Impairments Repositioning Expenses - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Repositioning expenses | $ 14.3 | $ 9.1 |
Other Expense, net (Details)
Other Expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Loss on early extinguishment of debt | $ 11.1 | $ 0 | $ 0 |
Chapter 11 expenses, net | 3.4 | 5.1 | 11 |
Third-party acquisition-related costs | 2.5 | 0 | 0 |
Net (gain) loss on sales of investments and disposals of assets | 1.4 | 10.6 | 2.5 |
Interest income | 1 | 0.3 | 1.4 |
Currency transaction effects | (1) | (1.5) | (1.5) |
Bankruptcy-related charges, net | 0 | (8.7) | 7.1 |
Other miscellaneous expense (income) | 0.3 | (2.2) | 1.8 |
Total other (income) expense, net | $ 13.3 | $ (13.8) | $ 10.9 |
Other Comprehensive Income (L77
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | $ (2.4) | $ (3.1) | $ (1.7) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.9 | 1 | 0.6 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.5) | (2.1) | (1.1) |
Defined Benefit Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0.5 | 0.7 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.2) | (0.2) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | 0.5 | |
Net Prior Service Credit arising during period [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1.4 | 5.7 | 13.6 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.5) | (1.9) | (4.8) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.9 | 3.8 | 8.8 |
Net Deferred Actuarial Gain Arising During Period [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (0.4) | 1 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.1 | (0.4) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.3) | 0.6 | |
Gain on Termination of Postretirement Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (12.2) | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1.3 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (10.9) | ||
Gain on Curtailment of Postretirement Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (0.5) | (4.5) | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.2 | 1.6 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.3) | (2.9) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (1) | (1.6) | 0.7 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.4 | 0.6 | (3.3) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.6) | (1) | (2.6) |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (1.8) | (43.3) | (28) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.8) | (43.3) | (28) |
Gain (Loss) from Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0.6 | 2.1 | (7.1) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.3) | (0.8) | 2.6 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | 1.3 | (4.5) |
Unrealized Loss on Investment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0.8 | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.8 | ||
Gain (Loss) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (0.1) | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.1) | ||
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (2.2) | (42.8) | (33.7) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.1 | (0.2) | (0.7) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (2.1) | $ (43) | $ (34.4) |
Other Comprehensive Income (L78
Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 372.4 | $ 212.5 | $ 369 | $ 571.2 |
Other comprehensive income (loss) | 0.5 | (42.8) | (36.6) | |
Defined Benefit Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2.2 | 3 | 4 | 6.6 |
Other comprehensive income (loss) before reclassifications | 0.9 | 3.5 | 9.4 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (1.5) | (4.5) | (12) | |
Other comprehensive income (loss) | (0.6) | (1) | (2.6) | |
Distribution of GCP | (0.2) | |||
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 67.6 | (66.1) | (22.8) | 5.2 |
Other comprehensive income (loss) before reclassifications | (1.8) | (43.3) | (28) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Other comprehensive income (loss) | (1.8) | (43.3) | (28) | |
Distribution of GCP | 135.5 | |||
Gain (Loss) from Hedging Activities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (3.4) | (3.7) | (5) | (0.5) |
Other comprehensive income (loss) before reclassifications | (1.8) | 0.6 | (3.2) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.1 | 0.7 | (1.3) | |
Other comprehensive income (loss) | 0.3 | 1.3 | (4.5) | |
Distribution of GCP | 0 | |||
Unrealized Loss on Investment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | (0.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0.8 | |
Other comprehensive income (loss) | 0 | 0 | 0.8 | |
Distribution of GCP | 0 | |||
Gain (Loss) on Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0.1 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (0.7) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0.6 | |
Other comprehensive income (loss) | 0 | 0 | (0.1) | |
Distribution of GCP | 0 | |||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 66.4 | (66.8) | (23.8) | $ 10.6 |
Other comprehensive income (loss) before reclassifications | (2.7) | (39.2) | (22.5) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.6 | (3.8) | (11.9) | |
Other comprehensive income (loss) | (2.1) | $ (43) | $ (34.4) | |
Distribution of GCP | $ 135.3 |
Shareholders' Equity (Deficit79
Shareholders' Equity (Deficit) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from exercise of stock options | $ 17 | $ 26.9 | $ 23.4 |
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 | 2,951,387 | ||
Stock options exercised | 745,938 | 728,408 | 793,359 |
Common stock activity roll forward | |||
Common stock outstanding at the beginning of the period (in shares) | 70,533,515 | 72,922,565 | |
Stock options exercised | 745,938 | 728,408 | 793,359 |
Shares issued | 110,953 | 9,378 | |
Shares forfeited | (305,678) | (3,120) | |
Shares repurchased | (2,775,297) | (3,123,716) | |
Common stock outstanding at the end of the period (in shares) | 68,309,431 | 70,533,515 | 72,922,565 |
Shares issued to Board of Directors [Member] | |||
Common stock activity roll forward | |||
Shares issued | 7,844 | ||
Net share settlement [Member] | |||
Common stock activity roll forward | |||
Shares issued | 86,045 | ||
Deferred Compensation, Share-based Payments [Member] | |||
Common stock activity roll forward | |||
Shares issued | 16,974 | ||
Restricted Stock [Member] | |||
Common stock activity roll forward | |||
Shares issued | 90 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock incentive plan | |||
Minimum exercise price to fair market value on the date of grant (as a percent) | 100.00% | ||
Separation remeasurement adjustment | $ 0.6 | ||
Stock Option Activity Roll Forward, Number of Shares | |||
Options exercised (in shares) | (745,938) | (728,408) | (793,359) |
Employee nonstatutory stock options | |||
Stock Option Activity Roll Forward, Number of Shares | |||
Options outstanding at the beginning of the period (in shares) | 2,320,687 | 2,523,790 | 2,885,055 |
Options exercised (in shares) | (745,938) | (728,408) | (793,359) |
Options forfeited (in shares) | (9,458) | (25,000) | (42,424) |
Options terminated (in shares) | (2,426) | (500) | |
Options granted (in shares) | 377,920 | 550,805 | 474,518 |
Options outstanding at the end of the period (in shares) | 1,940,785 | 2,320,687 | 2,523,790 |
Stock Option Activity Roll Forward, Average Exercise Price | |||
Average exercise price at the beginning of the period (in dollars per share) | $ 71.01 | $ 55.77 | $ 42.60 |
Options exercised (in dollars per share) | 36.97 | 36.85 | 29.53 |
Options forfeited (in dollars per share) | 73.40 | 92.57 | 68.07 |
Options terminated (in dollars per share) | 67.06 | 100.29 | |
Options granted (in dollars per share) | 68.32 | 77.31 | 74.70 |
Average exercise price at the end of the period (in dollars per share) | 71.01 | 55.77 | |
Stock Option Activity, Additional Disclosures | |||
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 12.90 | $ 19.28 | $ 20.12 |
Stock Option Activity Roll Forward, Non-vested, Number of Shares | |||
Non-vested stock options at the beginning of the period (in shares) | 974,001 | ||
Granted | 377,920 | ||
Vested/exercised (in shares) | (462,006) | ||
Forfeited (in shares) | (11,884) | ||
Non-vested stock options outstanding at the end of the period (in shares) | 878,031 | 974,001 | |
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) | $ 20.43 | ||
Granted (in dollars per share) | 12.90 | ||
Vested/Exercised (in dollars per share) | 19.01 | ||
Forfeited (in dollars per share) | 27.70 | ||
Weighted average grant date fair value of non vested Stock options at the end of the period (in dollars per share) | $ 20.43 | ||
Summary of intrinsic value | |||
Intrinsic value for the options outstanding | $ 10.1 | ||
Intrinsic value for the options exercisable | 10.1 | ||
Total intrinsic value of all options exercised | $ 25.9 | $ 46.1 | $ 53.6 |
Restricted Stock Units (RSUs) [Member] | |||
Stock Option Activity, Additional Disclosures | |||
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 68.65 | $ 67.95 | $ 67.95 |
Minimum | |||
Stock incentive plan | |||
Stock incentive plan vesting period | 1 year | ||
Maximum | |||
Stock incentive plan | |||
Stock incentive plan vesting period | 3 years |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 2) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options Granted | |||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 11.2 | $ 3.3 | $ 2.5 |
Options, additional information | |||
Total unrecognized stock-based compensation expense | $ 4.3 | ||
Weighted-average period over which this expense will be recognized | 11 months 23 days | ||
Minimum | |||
Options, additional information | |||
Performance Based Compensation Payout Target | 0.00% | ||
Maximum | |||
Options, additional information | |||
Performance Based Compensation Payout Target | 200.00% | ||
Employee nonstatutory stock options | |||
Stock Incentive Plans | |||
Number Outstanding (in shares) | 1,940,785 | ||
Number Exercisable (in shares) | 1,062,754 | ||
Weighted-average remaining contractual term of exercisable options (in years) | 2 years 6 months 14 days | ||
Options Granted | |||
Number of nonstatutory stock options granted (in shares) | 377,920 | 550,805 | 474,518 |
Stock or Unit Option Plan Expense | $ 6 | $ 9.9 | $ 12 |
Assumptions used for estimating the fair value of stock options | |||
Weighted average expected volatility (as a percent) | 26.60% | 24.50% | 28.60% |
Risk-free rate | 1.01% | 1.30% | 1.25% |
Dividend yield | 1.00% | 0.00% | 0.00% |
Volatility rate, minimum | 26.20% | 23.00% | 28.20% |
Volatility rate, maximum | 27.50% | 27.20% | 28.70% |
Options, additional information | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.90 | $ 19.28 | $ 20.12 |
Stock or Unit Option Plan Expense | $ 6 | $ 9.9 | $ 12 |
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 | ||
Number Outstanding (in shares) | 286,495 | ||
Number Exercisable (in shares) | 286,495 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 5 months 25 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 39.02 | ||
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 | ||
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 | ||
Number Outstanding (in shares) | 7,455 | ||
Number Exercisable (in shares) | 7,455 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 11 months 19 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 54.63 | ||
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) | 688,735 | ||
Number Exercisable (in shares) | 316,889 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 10 months 5 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 61.77 | ||
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) | 931,510 | ||
Number Exercisable (in shares) | 438,600 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 11 months | ||
Weighted-Average Exercise Price (in dollars per share) | $ 75.81 | ||
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) | 26,590 | ||
Number Exercisable (in shares) | 13,315 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 1 month 27 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 80.76 | ||
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 | ||
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 | ||
Restricted Stock Units (RSUs) [Member] | |||
Options, additional information | |||
Performance Based Units Granted | 77,358 | 123,846 | |
Performance Based Units, Forfeitures | 15,197 | 10,641 | 8,570 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 68.65 | $ 67.95 | $ 67.95 |
Percent of Units Expected to Settle in Common Stock | 67.00% | ||
Percent of Units Expected to Settle in Cash | 33.00% | ||
Performance Based Units [Member] | |||
Options, additional information | |||
Performance Based Units Granted | 124,952 | 1,864 | 110,993 |
Percent of Units Expected to Settle in Common Stock | 53.00% | 53.00% | |
Percent of Units Expected to Settle in Cash | 47.00% | 47.00% | |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) [Member] | |||
Options Granted | |||
Stock or Unit Option Plan Expense | $ 8.6 | $ 5.8 | $ 3.5 |
Options, additional information | |||
Stock or Unit Option Plan Expense | 8.6 | $ 5.8 | $ 3.5 |
Stock or Unit Option Plan Expense, Unrecognized | $ 12.7 | ||
Weighted-Average Remaining Contractual Term (in years) | 1 year 8 months 12 days |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 08, 2017 | Feb. 05, 2015 | Feb. 04, 2014 | |||||||||
Numerators | |||||||||||||||||||||||
Income from continuing operations attributable to W. R. Grace & Co. shareholders | $ 107 | $ 124 | $ 117 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (12.9) | 20.2 | 159.3 | ||||||||||||||||||||
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 15.3 | $ 39.6 | $ 38.7 | $ 0.5 | $ 20.3 | $ 13.8 | $ 57.4 | $ 52.7 | $ 94.1 | $ 144.2 | $ 276.3 | ||||||||||||
Denominators | |||||||||||||||||||||||
Weighted average common shares-basic calculation | 70,100,000 | 72,000,000 | 75,300,000 | ||||||||||||||||||||
Dilutive effect of employee stock options (in shares) | 400,000 | 600,000 | 900,000 | ||||||||||||||||||||
Weighted average common shares-diluted calculation | 70,500,000 | 72,600,000 | 76,200,000 | ||||||||||||||||||||
Basic earnings per share attributable to W. R. Grace & Co. shareholders | |||||||||||||||||||||||
Income (loss) from continuing operations | $ 1.53 | $ 1.72 | $ 1.55 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.19) | 0.28 | 2.12 | ||||||||||||||||||||
Net income (loss) | $ 0.22 | [1] | $ 0.56 | [1] | $ 0.55 | [1] | $ 0.01 | [1] | $ 0.29 | [2] | $ 0.19 | [2] | $ 0.79 | [2] | $ 0.72 | [2] | 1.34 | 2 | 3.67 | ||||
Diluted earnings per share attributable to W. R. Grace & Co. shareholders | |||||||||||||||||||||||
Income (loss) from continuing operations | 1.52 | 1.71 | 1.54 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.19) | 0.28 | 2.09 | ||||||||||||||||||||
Net income attributable to W. R. Grace & Co. shareholders | $ 0.22 | [1] | $ 0.56 | [1] | $ 0.55 | [1] | $ 0.01 | [1] | $ 0.29 | [2] | $ 0.19 | [2] | $ 0.78 | [2] | $ 0.72 | [2] | $ 1.33 | $ 1.99 | $ 3.63 | ||||
Stock options excluded from computation of diluted earnings per share (in shares) | 1,300,000 | 400,000 | 300,000 | ||||||||||||||||||||
Share Repurchase Program [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | $ 500 | |||||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 33.9 | $ 33.9 | |||||||||||||||||||||
Shares repurchased | 2,775,297 | 3,123,716 | |||||||||||||||||||||
Payments for Repurchase of Common Stock | $ 195.1 | $ 301.5 | $ 469.5 | ||||||||||||||||||||
Minimum | |||||||||||||||||||||||
Share Repurchase Program [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Period in Force | 12 months | 24 months | |||||||||||||||||||||
Maximum | |||||||||||||||||||||||
Share Repurchase Program [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Period in Force | 24 months | 36 months | |||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||
Share Repurchase Program [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||||||||||||||||
[1] | (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] | (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. |
Operating Segment Information83
Operating Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Operating segment information | |||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||
Net Sales | |||||||||||
Net sales | $ 440.8 | $ 404.5 | $ 390.5 | $ 362.8 | $ 424.8 | $ 399.2 | $ 407.2 | $ 397 | $ 1,598.6 | $ 1,628.2 | $ 1,757.3 |
Adjusted EBIT | |||||||||||
Gain on termination of postretirement plans related to current businesses | 0.2 | 1.9 | 23.6 | ||||||||
Certain Pension Costs | 12.3 | 20.4 | 24.5 | ||||||||
Adjusted EBIT | 400.3 | 345.8 | 383.8 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and Amortization | 100.3 | 99.2 | 102.7 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 116.9 | 118.8 | 132.3 | ||||||||
Assets | |||||||||||
Total Assets | 2,911.8 | 3,645.7 | 2,911.8 | 3,645.7 | |||||||
Assets of discontinued operations | 0 | 870.5 | 0 | 870.5 | |||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Adjusted EBIT | 400.3 | 345.8 | 383.8 | ||||||||
Pension MTM adjustment and other related costs, net | (60.3) | (30.5) | (137.6) | ||||||||
Restructuring and repositioning expenses | 38.6 | 20.4 | 4.3 | ||||||||
Costs related to Chapter 11, and legacy product and environmental, net | 35.4 | 6.1 | 35.6 | ||||||||
Amortization of Acquired Inventory Fair Value Adjustment | 8 | 0 | 0 | ||||||||
Third-party acquisition-related costs | 2.5 | 0 | 0 | ||||||||
Gain (loss) on sale of product line | 1.7 | 0.2 | |||||||||
Gain on termination and curtailment of postretirement plans related to divested businesses | 0.3 | 2.6 | 15.9 | ||||||||
Income and expense items related to divested businesses | 0.1 | 1.5 | 4.1 | ||||||||
Loss on early extinguishment of debt | (11.1) | 0 | 0 | ||||||||
Interest expense, net | (80.5) | (99.1) | (121.9) | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (0.1) | (0.1) | ||||||||
Income (loss) from continuing operations before income taxes | $ 166 | 193.7 | 104.5 | ||||||||
Catalysts Technologies | |||||||||||
Operating segment information | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Net Sales | |||||||||||
Net sales | $ 1,163.7 | 1,162.1 | 1,246.8 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 367.8 | 347.3 | 378.3 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and Amortization | 77.4 | 68.1 | 66.3 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 84.9 | 66.3 | 81.6 | ||||||||
Materials Technologies | |||||||||||
Net Sales | |||||||||||
Net sales | 434.9 | 466.1 | 510.5 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 104 | 96.9 | 101.7 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and Amortization | 19.5 | 23.2 | 26.2 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 24 | 24.6 | 30.1 | ||||||||
Corporate costs | |||||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | (59.4) | (79.9) | (95.3) | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and Amortization | 3.4 | 7.9 | 10.2 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 8 | 27.9 | $ 20.6 | ||||||||
Operating Segments [Member] | Catalysts Technologies | |||||||||||
Assets | |||||||||||
Total Assets | 1,675.1 | 1,390.8 | 1,675.1 | 1,390.8 | |||||||
Operating Segments [Member] | Materials Technologies | |||||||||||
Assets | |||||||||||
Total Assets | 313.1 | 333.4 | 313.1 | 333.4 | |||||||
Corporate, Non-Segment [Member] | |||||||||||
Assets | |||||||||||
Total Assets | $ 923.6 | $ 1,051 | $ 923.6 | $ 1,051 |
Operating Segment Information84
Operating Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Geographic Area Data | |||||||||||
Net sales | $ 440.8 | $ 404.5 | $ 390.5 | $ 362.8 | $ 424.8 | $ 399.2 | $ 407.2 | $ 397 | $ 1,598.6 | $ 1,628.2 | $ 1,757.3 |
Long-Lived Assets | 756.6 | 636.8 | 756.6 | 636.8 | |||||||
Total North America | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 490.7 | 490 | 509.1 | ||||||||
Long-Lived Assets | 578.4 | 477.1 | 578.4 | 477.1 | |||||||
United States | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 446.2 | 444.7 | 465.9 | ||||||||
Long-Lived Assets | 564.5 | 464.1 | 564.5 | 464.1 | |||||||
Canada and Puerto Rico | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 44.5 | 45.3 | 43.2 | ||||||||
Long-Lived Assets | 13.9 | 13 | 13.9 | 13 | |||||||
Europe Middle East Africa | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 647.8 | 621.2 | 706.4 | ||||||||
Long-Lived Assets | 149.2 | 128.3 | 149.2 | 128.3 | |||||||
Germany | |||||||||||
Geographic Area Data | |||||||||||
Long-Lived Assets | 109.7 | 110.9 | 109.7 | 110.9 | |||||||
EMEA excluding Germany [Member] | |||||||||||
Geographic Area Data | |||||||||||
Long-Lived Assets | 39.5 | 17.4 | 39.5 | 17.4 | |||||||
Asia Pacific | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 348.9 | 390.9 | 397.2 | ||||||||
Long-Lived Assets | 21.5 | 25.9 | 21.5 | 25.9 | |||||||
Latin America | |||||||||||
Geographic Area Data | |||||||||||
Net sales | 111.2 | 126.1 | $ 144.6 | ||||||||
Long-Lived Assets | $ 7.5 | $ 5.5 | $ 7.5 | $ 5.5 |
Operating Segment Information O
Operating Segment Information Operating Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 440.8 | $ 404.5 | $ 390.5 | $ 362.8 | $ 424.8 | $ 399.2 | $ 407.2 | $ 397 | $ 1,598.6 | $ 1,628.2 | $ 1,757.3 |
Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,163.7 | 1,162.1 | 1,246.8 | ||||||||
Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 434.9 | 466.1 | 510.5 | ||||||||
Refining Catalysts [Member] | Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 724.9 | 764.5 | 845.5 | ||||||||
Polyolefin and Chemical Catalysts [Member] | Grace Catalysts Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 438.8 | 397.6 | 401.3 | ||||||||
Coatings and Print Media [Member] | Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 136.5 | 133.6 | 151.5 | ||||||||
Consumer/Pharma [Member] | Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 121.9 | 125.1 | 136.8 | ||||||||
Chemical process and other [Member] | Materials Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 176.5 | $ 207.4 | $ 222.2 |
Unconsolidated Affiliates (Deta
Unconsolidated Affiliates (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity method investment, ownership interest | 50.00% | ||
Investment in unconsolidated affiliate | $ 117,600,000 | $ 103,200,000 | |
Equity in earnings of unconsolidated affiliates | 29,800,000 | 20,400,000 | $ 19,700,000 |
ART's assets, liabilities and results of operations: | |||
Current assets | 249,200,000 | 244,100,000 | |
Noncurrent assets | 84,800,000 | 69,700,000 | |
Total assets | 334,000,000 | 313,800,000 | |
Current liabilities | 102,000,000 | 111,000,000 | |
Noncurrent liabilities | 300,000 | ||
Total liabilities | 102,300,000 | 111,000,000 | |
Net sales | 388,900,000 | 415,300,000 | 409,900,000 |
Costs and expenses applicable to net sales | 322,100,000 | 366,600,000 | 358,100,000 |
Income before income taxes | 60,800,000 | 42,800,000 | 41,200,000 |
Net income | 59,300,000 | 41,100,000 | 39,700,000 |
Related party transactions: | |||
Grace sales of catalysts to ART | 210,400,000 | 258,900,000 | 266,400,000 |
Related Party Transaction, markup of sales included in COGS | 4,200,000 | 5,100,000 | 5,300,000 |
Charges for fixed costs, research and development and selling, general and administrative services to ART | 33,800,000 | 31,600,000 | $ 35,100,000 |
Schedule of Investments [Line Items] | |||
Trade accounts receivable | 14,900,000 | 6,600,000 | |
Noncurrent asset | 27,000,000 | 11,900,000 | |
Accounts payable | 28,700,000 | 18,200,000 | |
Debt payable within one year | 7,600,000 | 7,200,000 | |
Debt payable after one year | 31,900,000 | 26,200,000 | |
Noncurrent liability | 27,000,000 | 11,900,000 | |
Corporate Joint Venture [Member] | |||
Schedule of Investments [Line Items] | |||
Line of credit facility, maximum provided by Grace and Chevron each | $ 15,000,000 | ||
Commitment fee on credit facility | 0.10% | ||
W R Grace & Co. [Member] | |||
Schedule of Investments [Line Items] | |||
Line of credit facility, maximum provided by Grace and Chevron each | $ 15,000,000 | ||
Commitment fee on credit facility | 0.10% | ||
Long-term Line of Credit | $ 0 | $ 0 |
Chapter 11 Information (Details
Chapter 11 Information (Details 2) $ / shares in Units, CAD in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2014USD ($)shares | Feb. 03, 2017USD ($) | Dec. 31, 2016shares | Dec. 31, 2015USD ($) | Feb. 03, 2014USD ($)$ / sharesshares | Feb. 03, 2014CADshares | |
Chapter 11 information | ||||||
Common Stock, Shares, Issued | shares | 77,372,257 | 77,372,257 | ||||
Cash paid to settle deferred payment obligations | $ 632 | |||||
Number of Trust Accounts | 2 | |||||
ZAI PD Account Funding | $ 34.4 | |||||
Duration After Effective Date in Which Claims Payments Were Made | 10 days | |||||
Personal Injury Trust [Member] | ||||||
Chapter 11 information | ||||||
Proceeds from Joint Plan Funds | $ 39.9 | 557.7 | ||||
Portion of PI Trust Funding from Grace Cash | 464.1 | |||||
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 | |||||
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 | 18,000,000 | ||||
Deferred Payments, Each Year for Five Years | $ 110 | |||||
Five Year Period in Which PI Trust Deferred Payments Will be Made | 5 years | |||||
Deferred Payments, Each Year for Ten Years | $ 100 | |||||
Ten Year Period in Which PI Trust Deferred Payments Will be Made | 10 years | |||||
Cash paid to settle deferred payment obligations | $ 632 | |||||
Fresenius Medical Care Holdings [Member] | Personal Injury Trust [Member] | ||||||
Chapter 11 information | ||||||
Proceeds from Joint Plan Funds | 111.4 | |||||
ZAI PD Account Funding | $ 34.4 | |||||
Canada [Member] | Personal Injury Trust [Member] | ||||||
Chapter 11 information | ||||||
ZAI Property Damage Claims Fund | CAD | CAD 8.6 | |||||
Subsequent Event [Member] | ||||||
Chapter 11 information | ||||||
ZAI P D Account, Payment on Third Anniversary of Effective Date of Joint Plan | $ 30 |
Quarterly Summary and Statist88
Quarterly Summary and Statistical Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 440.8 | $ 404.5 | $ 390.5 | $ 362.8 | $ 424.8 | $ 399.2 | $ 407.2 | $ 397 | $ 1,598.6 | $ 1,628.2 | $ 1,757.3 | ||||||||
Gross Profit | 161.8 | 168.2 | 173.2 | 152.7 | 170.8 | 166.1 | 167.8 | 147 | 655.9 | 651.7 | 664 | ||||||||
Net income (loss) | 15.6 | 39.7 | 38.5 | 0.3 | 20.3 | 13.7 | 57.4 | 52.7 | 94.1 | 144.1 | 276.2 | ||||||||
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 15.3 | $ 39.6 | $ 38.7 | $ 0.5 | $ 20.3 | $ 13.8 | $ 57.4 | $ 52.7 | $ 94.1 | $ 144.2 | $ 276.3 | ||||||||
Basic earnings per share: | |||||||||||||||||||
Net income (loss) (in dollars per share) | $ 0.22 | [1] | $ 0.56 | [1] | $ 0.55 | [1] | $ 0.01 | [1] | $ 0.29 | [2] | $ 0.19 | [2] | $ 0.79 | [2] | $ 0.72 | [2] | $ 1.34 | $ 2 | $ 3.67 |
Diluted earnings per share: | |||||||||||||||||||
Net income (loss) (in dollars per share) | 0.22 | [1] | 0.56 | [1] | 0.55 | [1] | 0.01 | [1] | 0.29 | [2] | 0.19 | [2] | 0.78 | [2] | 0.72 | [2] | 1.33 | 1.99 | 3.63 |
Dividends per common share | 0.17 | 0.17 | 0.17 | 0 | $ 0.51 | $ 0 | $ 0 | ||||||||||||
Market price of common stock: | |||||||||||||||||||
High (in dollars per share) | 74.38 | [3],[4] | 80.56 | [3],[4] | 80.39 | [3],[4] | 98.15 | [3],[4],[5] | 101.99 | [6],[7] | 104.94 | [6],[7] | 103.72 | [6],[7] | 104.90 | [6],[7] | |||
Low (in dollars per share) | 63.37 | [3],[4] | 71.47 | [3],[4] | 70.59 | [3],[4] | 63.84 | [3],[4] | 92.66 | [6],[7] | 90.84 | [6],[7] | 95.03 | [6],[7] | 84.25 | [6],[7] | |||
Close (in dollars per share) | $ 67.64 | [3],[4] | $ 73.80 | [3],[4] | $ 73.21 | [3],[4] | $ 71.18 | [3],[4] | $ 99.59 | [6],[7] | $ 93.05 | [6],[7] | $ 100.30 | [6],[7] | $ 98.87 | [6],[7] | |||
[1] | (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] | (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. | ||||||||||||||||||
[3] | (2)Principal market: New York Stock Exchange. | ||||||||||||||||||
[4] | (3)Share prices subsequent to February 3, 2016, reflect the Separation and exclude separate trading of GCP common stock. | ||||||||||||||||||
[5] | (4)Price is a pre-Separation market price of common stock. | ||||||||||||||||||
[6] | (2)Principal market: New York Stock Exchange. | ||||||||||||||||||
[7] | (3)Prices are pre-Separation market prices of common stock. |
SCHEDULE II-VALUATION AND QUA89
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Valuation and qualifying accounts deducted from assets and Reserves: | |||||||
Reduction in valuation allowance | $ 23 | $ (2.3) | $ (6) | ||||
Allowances for notes and accounts receivable | |||||||
Reconciliation of valuation and reserves roll forward | |||||||
Balance at beginning of period | 1.4 | 1 | 2.7 | ||||
Additions charged to costs and expenses | 2.4 | 0.5 | 0.4 | ||||
Deductions | (1.1) | (0.1) | (2.1) | ||||
Other net | [1] | 0.1 | 0 | 0 | |||
Balance at end of period | 2.8 | 1.4 | 1 | ||||
Valuation allowance for deferred tax assets | |||||||
Reconciliation of valuation and reserves roll forward | |||||||
Balance at beginning of period | 8.4 | [2],[3] | 10.7 | [3],[4] | 16.7 | [4] | |
Additions charged to costs and expenses | 11.6 | [2] | 0.4 | [3] | 1.2 | [4] | |
Deductions | (9.1) | [2] | (2.6) | [3] | (7) | [4] | |
Other net | [1] | 20.5 | [2] | (0.1) | [3] | (0.2) | [4] |
Balance at end of period | 31.4 | [2] | 8.4 | [2],[3] | 10.7 | [3],[4] | |
Reserves for asbestos related litigation | |||||||
Reconciliation of valuation and reserves roll forward | |||||||
Balance at beginning of period | 0 | 2,092.4 | |||||
Additions charged to costs and expenses | 0 | ||||||
Deductions | (2,092.4) | ||||||
Other net | [1] | 0 | |||||
Balance at end of period | 0 | ||||||
Reserves for environmental remediation | |||||||
Reconciliation of valuation and reserves roll forward | |||||||
Balance at beginning of period | 55.2 | 61.1 | 134.5 | ||||
Additions charged to costs and expenses | 29.2 | 6.4 | 14.7 | ||||
Deductions | (18.1) | (12.3) | (88.1) | ||||
Other net | [1] | 0 | 0 | 0 | |||
Balance at end of period | 66.3 | 55.2 | 61.1 | ||||
Reserves for retained obligations of divested businesses | |||||||
Reconciliation of valuation and reserves roll forward | |||||||
Balance at beginning of period | 13.5 | 13.5 | 35 | ||||
Additions charged to costs and expenses | 0 | 0 | 0 | ||||
Deductions | (1.8) | 0 | (21.5) | ||||
Other net | [1] | 0 | 0 | 0 | |||
Balance at end of period | $ 11.7 | $ 13.5 | $ 13.5 | ||||
[1] | (1)Effects of currency translation and the Separation | ||||||
[2] | (2)The valuation allowance increased $23.0 million from December 31, 2015, to December 31, 2016. The increase was primarily due to adoption of ASU 2016-06 as well as the ability to utilize NOL carryforwards as a result of the Separation. | ||||||
[3] | (3)The valuation allowance decreased $2.3 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. | ||||||
[4] | (4)The valuation allowance decreased $6.0 million from December 31, 2013, to December 31, 2014. The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards, partially offset by an increase in the valuation allowance on NOLs in certain foreign jurisdictions. |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Net assets acquired | $ 250.6 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 3.3 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 43 | ||
Inventories | 30.2 | ||
Properties and equipment | 95 | ||
Goodwill | 394.2 | $ 336.5 | $ 338.9 |
Intangible assets | $ 61.6 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Polyolefin Catalysts [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 63.8 | ||
Customer Lists [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 39.9 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 13.4 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 8.3 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 29, 2016 | Feb. 03, 2016 | Jan. 31, 2016 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Net sales | $ 440,800,000 | $ 404,500,000 | $ 390,500,000 | $ 362,800,000 | $ 424,800,000 | $ 399,200,000 | $ 407,200,000 | $ 397,000,000 | $ 1,598,600,000 | $ 1,628,200,000 | $ 1,757,300,000 | |||
Cost of goods sold | 942,700,000 | 976,500,000 | 1,093,300,000 | |||||||||||
Gross Profit | 161,800,000 | $ 168,200,000 | $ 173,200,000 | 152,700,000 | 170,800,000 | $ 166,100,000 | $ 167,800,000 | $ 147,000,000 | 655,900,000 | 651,700,000 | 664,000,000 | |||
Selling, general and administrative expenses | 309,300,000 | 323,400,000 | 415,100,000 | |||||||||||
Research and development expenses | 48,800,000 | 47,100,000 | 51,300,000 | |||||||||||
Repositioning expenses | 14,300,000 | 9,100,000 | ||||||||||||
Interest expense and related financing costs | 80,600,000 | 98,600,000 | 57,600,000 | |||||||||||
Other expense, net | 13,300,000 | (13,800,000) | 10,900,000 | |||||||||||
Total costs and expenses | 489,900,000 | 458,000,000 | 559,500,000 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | (12,900,000) | 20,200,000 | 159,300,000 | |||||||||||
Current Assets | ||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | $ 143,400,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 446,400,000 | 0 | 446,400,000 | ||||||||||
Deferred income taxes | 58,900,000 | 58,900,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Assets | 0 | 870,500,000 | 0 | 870,500,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 0 | 258,600,000 | 0 | 258,600,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Distribution from GCP | 750,000,000 | 0 | 0 | |||||||||||
Grace Construction Products [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Net sales | 99,600,000 | 1,423,300,000 | 1,485,700,000 | |||||||||||
Cost of goods sold | 62,600,000 | 907,500,000 | 957,200,000 | |||||||||||
Gross Profit | 37,000,000 | 515,800,000 | 528,500,000 | |||||||||||
Selling, general and administrative expenses | 21,600,000 | 251,200,000 | 248,800,000 | |||||||||||
Research and development expenses | 1,700,000 | 22,500,000 | 28,100,000 | |||||||||||
Loss in Venezuela | 0 | 59,600,000 | 0 | |||||||||||
Repositioning expenses | 22,000,000 | 55,100,000 | 0 | |||||||||||
Interest expense and related financing costs | 700,000 | 1,500,000 | 3,900,000 | |||||||||||
Other expense, net | 3,900,000 | 9,900,000 | 17,800,000 | |||||||||||
Total costs and expenses | 49,900,000 | 399,800,000 | 298,600,000 | |||||||||||
(Loss) Income from discontinued operations before income taxes | (12,900,000) | 116,000,000 | 229,900,000 | |||||||||||
Benefit from (provision for) income taxes | 100,000 | (95,000,000) | (69,400,000) | |||||||||||
(Loss) Income from discontinued operations after income taxes | (12,800,000) | 21,000,000 | 160,500,000 | |||||||||||
Less: Net income attributable to noncontrolling interests | (100,000) | (800,000) | (1,200,000) | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ (12,900,000) | 20,200,000 | $ 159,300,000 | |||||||||||
Current Assets | ||||||||||||||
Cash and cash equivalents | 98,600,000 | 98,600,000 | ||||||||||||
Trade accounts receivable, net | 203,600,000 | 203,600,000 | ||||||||||||
Inventories | 105,300,000 | 105,300,000 | ||||||||||||
Other current assets | 38,900,000 | 38,900,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 446,400,000 | 446,400,000 | ||||||||||||
Properties and equipment, net of accumulated depreciation and amortization | 220,700,000 | 220,700,000 | ||||||||||||
Goodwill | 102,500,000 | 102,500,000 | ||||||||||||
Technology and other intangible assets, net | 33,300,000 | 33,300,000 | ||||||||||||
Deferred income taxes | 32,000,000 | 32,000,000 | ||||||||||||
Overfunded defined benefit pension plans | 26,100,000 | 26,100,000 | ||||||||||||
Other assets | 9,500,000 | 9,500,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Assets | 870,500,000 | 870,500,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||||||||||||||
Debt payable within one year | 26,400,000 | 26,400,000 | ||||||||||||
Accounts payable | 109,000,000 | 109,000,000 | ||||||||||||
Other current liabilities | 123,200,000 | 123,200,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 258,600,000 | 258,600,000 | ||||||||||||
Deferred income taxes | 8,700,000 | 8,700,000 | ||||||||||||
Unrecognized tax benefits | 11,100,000 | 11,100,000 | ||||||||||||
Underfunded and unfunded defined benefit pension plans | 79,000,000 | 79,000,000 | ||||||||||||
Other liabilities | 11,100,000 | 11,100,000 | ||||||||||||
Total Liabilities | $ 368,500,000 | $ 368,500,000 | ||||||||||||
GCP Applied Technologies [Member] | Nine Point Five Percent Senior Notes Due 2023 [Member] | Senior Notes [Member] | Grace Construction Products [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Proceeds from Issuance of Long-term Debt | 525,000,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||||||||||||
Distribution from GCP | 500,000,000 | |||||||||||||
GCP Applied Technologies [Member] | GCP Credit Agreement [Member] | Line of Credit [Member] | Grace Construction Products [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Proceeds from Issuance of Long-term Debt | 525,000,000 | |||||||||||||
Distribution from GCP | $ 250,000,000 | |||||||||||||
Notes Payable, Other Payables [Member] | GCP Applied Technologies [Member] | GCP Credit Agreement [Member] | Line of Credit [Member] | Grace Construction Products [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 275,000,000 | |||||||||||||
Revolving Credit Facility [Member] | GCP Applied Technologies [Member] | GCP Credit Agreement [Member] | Line of Credit [Member] | Grace Construction Products [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 |