Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,383,984,405 | ||
Entity Common Stock, Shares Outstanding | 66,739,557 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 1,932.1 | $ 1,716.5 | $ 1,598.6 |
Cost of goods sold | 1,165.4 | 1,040.4 | 928.8 |
Gross profit | 766.7 | 676.1 | 669.8 |
Selling, general and administrative expenses | 307 | 274 | 271.8 |
Research and development expenses | 62.7 | 56.3 | 51.6 |
Provision for environmental remediation | 73.8 | 24.4 | 28.7 |
Restructuring and repositioning expenses | 46.4 | 26.7 | 38.6 |
Equity in earnings of unconsolidated affiliate | (31.8) | (25.9) | (29.8) |
Interest expense and related financing costs | 80.2 | 79.5 | 81.5 |
Nonoperating Income (Expense) | 16.5 | (30.2) | (61.4) |
Total costs and expenses | 521.8 | 465.2 | 503.8 |
Income (loss) from continuing operations before income taxes | 244.9 | 210.9 | 166 |
(Provision for) benefit from income taxes | (78.1) | (200.5) | (59) |
Income (loss) from continuing operations | 166.8 | 10.4 | 107 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (12.9) |
Net income (loss) | 166.8 | 10.4 | 94.1 |
Less: Net (income) loss attributable to noncontrolling interests | 0.8 | 0.8 | 0 |
Net income (loss) attributable to W. R. Grace & Co. shareholders | 167.6 | 11.2 | 94.1 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders | $ 167.6 | $ 11.2 | $ 107 |
Basic earnings per share attributable to W. R. Grace & Co. shareholders | |||
Income (loss) from continuing operations | $ 2.49 | $ 0.16 | $ 1.53 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (0.19) |
Net income (loss) | $ 2.49 | $ 0.16 | $ 1.34 |
Weighted average number of basic shares | 67.2 | 68.1 | 70.1 |
Diluted earnings per share attributable to W. R. Grace & Co. shareholders | |||
Income (loss) from continuing operations | $ 2.49 | $ 0.16 | $ 1.52 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (0.19) |
Net income (loss) | $ 2.49 | $ 0.16 | $ 1.33 |
Weighted average number of diluted shares | 67.3 | 68.2 | 70.5 |
Dividends per common share | $ 0.96 | $ 0.84 | $ 0.51 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ 166.8 | $ 10.4 | $ 94.1 |
Other comprehensive income (loss): | |||
Defined benefit pension and other postretirement plans | (0.9) | (1.3) | (0.6) |
Currency translation adjustments | 32.4 | (26) | (1.8) |
Gain (loss) from hedging activities | (5.7) | 0.8 | 0.3 |
Total other comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 2.6 |
Total other comprehensive income (loss), net of income taxes | 25.8 | (26.5) | 0.5 |
Comprehensive income (loss) | 192.6 | (16.1) | 94.6 |
Less: comprehensive (income) loss attributable to noncontrolling interests | 0.8 | 0.8 | (2.6) |
Comprehensive income (loss) attributable to W. R. Grace & Co. shareholders | $ 193.4 | $ (15.3) | $ 92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Net income (loss) | $ 166.8 | $ 10.4 | $ 94.1 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 12.9 |
Income (loss) from continuing operations | 166.8 | 10.4 | 107 |
Reconciliation to net cash provided by operating activities: | |||
Depreciation and amortization | 100.8 | 111.5 | 100.3 |
Equity in earnings of unconsolidated affiliate | (31.8) | (25.9) | (29.8) |
Dividends received from unconsolidated affiliate | 0 | 19 | 31 |
Costs related to legacy product, environmental and other claims | 84.6 | 30.8 | 35.4 |
Cash paid for legacy product, environmental and other claims | (22.9) | (54.5) | (24.6) |
Provision for (benefit from) income taxes | 78.1 | 200.5 | 59 |
Income Taxes Paid | (54) | (61.8) | (96.6) |
Proceeds from Income Tax Refunds | 0.7 | 34.2 | 11.4 |
Interest expense and related financing costs | 80.2 | 79.5 | 81.5 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | (78.4) | (70.2) | (75.7) |
Loss on early extinguishment of debt | 4.8 | 0 | 11.1 |
Defined benefit pension expense (income) | 0.7 | 64.1 | 72.6 |
Cash paid under defined benefit pension arrangements | (66.5) | (17.8) | (15.9) |
Accounts receivable reserve—Venezuela | 0 | 10 | 0 |
Share-based Compensation | 18.6 | 11 | 11.6 |
Changes in assets and liabilities, excluding effect of currency translation: | |||
Trade accounts receivable | 2.5 | (4.9) | (15.7) |
Inventories | (26.1) | 4.4 | (0.6) |
Accounts payable | 24.2 | (2.5) | 32 |
Increase (Decrease) in Contract with Customer, Liability | 35.6 | 4.7 | (6.9) |
All other items, net | 24.1 | (23.3) | (19.6) |
Net cash provided by (used for) operating activities from continuing operations | 342 | 319.2 | 267.5 |
INVESTING ACTIVITIES | |||
Capital expenditures | (216.3) | (125.2) | (116.9) |
Business acquired | (418) | (3.5) | (246.5) |
Proceeds from sale of assets | 2.4 | 0.6 | 13.7 |
Other investing activities | 13.4 | (1.1) | 5.3 |
Net cash provided by (used for) investing activities from continuing operations | (618.5) | (129.2) | (344.4) |
FINANCING ACTIVITIES | |||
Borrowings under credit arrangements | 1,024 | 114.4 | 39.4 |
Repayments under credit arrangements | (587.8) | (143.9) | (633) |
Cash paid for debt financing costs | (11.8) | 0 | 0 |
Cash paid for repurchases of common stock | (80) | (65) | (195.1) |
Proceeds from exercise of stock options | 6.7 | 16.4 | 17 |
Dividends paid | (64.6) | (57.3) | (36) |
Distribution from GCP | 0 | 0 | 750 |
Proceeds from Hedge, Financing Activities | 33.1 | 0 | 0 |
Other financing activities | (3.1) | 0.6 | (2.5) |
Net cash provided by (used for) financing activities from continuing operations | 316.5 | (134.8) | (60.2) |
Effect of currency exchange rate changes on cash and cash equivalents | (2.5) | 7.7 | (3) |
Increase (decrease) in cash and cash equivalents from continuing operations | 37.5 | 62.9 | (140.1) |
Cash flows from discontinued operations | |||
Increase (decrease) in cash and cash equivalents from discontinued operations | 0 | 0 | 44.8 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 37.5 | 62.9 | (95.3) |
Less: cash and cash equivalents of discontinued operations | 0 | 0 | (143.4) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 163.5 | 100.6 | 339.3 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 201 | 163.5 | 100.6 |
Supplemental disclosure of cash flow information | |||
Capital expenditures in accounts payable | 31 | 41.4 | 23.8 |
Expenditures for other investing activities included in accounts payable | 16.9 | 2.7 | 1.1 |
Net share settled stock option exercises | $ 8.2 | $ 1.2 | $ 10.5 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 200.5 | $ 152.8 |
Restricted cash and cash equivalents | 0.5 | 10.7 |
Trade accounts receivable, less allowance of $11.7 (2016—$2.2) | 288.5 | 285.2 |
Inventories | 281.1 | 230.9 |
Other current assets | 86.7 | 49 |
Total Current Assets | 857.3 | 728.6 |
Properties and equipment, net of accumulated depreciation and amortization of $1,463.4 (2016—$1,327.5) | 1,011.7 | 799.1 |
Goodwill | 540.4 | 402.4 |
Technology and other intangible assets, net | 356.5 | 255.4 |
Deferred income taxes | 529.4 | 556.5 |
Investment in unconsolidated affiliate | 156.1 | 125.9 |
Other assets | 113.9 | 39.1 |
Total Assets | 3,565.3 | 2,907 |
Current Liabilities | ||
Debt payable within one year | 22.3 | 20.1 |
Accounts payable | 248.6 | 210.3 |
Other current liabilities | 243.5 | 217.8 |
Total Current Liabilities | 514.4 | 448.2 |
Debt payable after one year | 1,961 | 1,523.8 |
Defined Benefit Pension Plan Liabilities Noncurrent Underfunded | 67.1 | 110.5 |
Defined Benefit Pension Plan Liabilities Noncurrent Unfunded | 366 | 391.9 |
Other liabilities | 319.8 | 169.3 |
Total Liabilities | 3,228.3 | 2,643.7 |
Commitments and Contingencies—Note 10 | ||
Equity | ||
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 67,780,410 (2016—68,309,431) | 0.7 | 0.7 |
Paid-in capital | 481.1 | 474.8 |
Retained earnings | 676.7 | 573.1 |
Treasury stock, at cost: shares: 9,676,217 (2016—9,147,196) | (895.5) | (832.1) |
Accumulated other comprehensive income (loss) | 67.9 | 39.9 |
Total W. R. Grace & Co. Shareholders' Equity | 330.9 | 256.4 |
Noncontrolling interests | 6.1 | 6.9 |
Total Equity | 337 | 263.3 |
Total Liabilities and Equity | $ 3,565.3 | $ 2,907 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance (in dollars) | $ 11.6 | $ 11.7 |
Properties and equipment, accumulated depreciation and amortization | $ 1,482.8 | $ 1,463.4 |
Common stock issued, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued, shares authorized | 300,000,000 | 300,000,000 |
Common stock issued, shares outstanding | 66,792,968 | 67,780,410 |
Treasury Stock, Shares | 10,663,659 | 9,676,217 |
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] |
Beginning Balance at Dec. 31, 2015 | $ 212.5 | $ 496.7 | $ 436.3 | $ (658.4) | $ (66.8) | $ 4.7 |
Net income (loss) | 94.1 | 94.1 | 0 | |||
Repurchase of common stock | (195.1) | (195.1) | ||||
Stock-based compensation | 11.6 | 11.6 | ||||
Exercise of stock options | 27.5 | (21.1) | 48.6 | |||
Tax benefit related to stock plans | 70.4 | 0 | 70.4 | |||
Shares issued | 0.8 | 0.8 | ||||
Dividends declared | (36) | (36) | ||||
Other comprehensive income (loss) | 0.5 | (2.1) | ||||
Other comprehensive income (loss) | 2.6 | |||||
Distribution of GCP | 186.1 | 54.5 | 135.3 | (3.7) | ||
Ending Balance at Dec. 31, 2016 | 372.4 | 488 | 619.3 | (804.9) | 66.4 | 3.6 |
Net income (loss) | 10.4 | 11.2 | (0.8) | |||
Repurchase of common stock | (65) | (65) | ||||
Stock-based compensation | 11 | 11 | ||||
Exercise of stock options | 16.1 | (18.9) | 35 | |||
Adjustment to Additional Paid In Capital, Tax Payments Related to Stock-based Compensation | (2.5) | (2.5) | ||||
Shares issued | 0.7 | (2.1) | 2.8 | |||
Dividends declared | (57.4) | (57.4) | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 4.1 | |||||
Other comprehensive income (loss) | (26.5) | (26.5) | ||||
Other comprehensive income (loss) | 0 | |||||
Ending Balance at Dec. 31, 2017 | 263.3 | 475.5 | 573.1 | (832.1) | 39.9 | 6.9 |
Cumulative Effect of New Accounting Principle in Period of Adoption | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | 2.5 | 2.5 | ||||
Net income (loss) | 166.8 | 167.6 | (0.8) | |||
Repurchase of common stock | (80) | (80) | ||||
Stock-based compensation | 18.6 | 18.6 | ||||
Exercise of stock options | 6.4 | (4.2) | 10.6 | |||
Adjustment to Additional Paid In Capital, Tax Payments Related to Stock-based Compensation | (2.9) | (2.9) | ||||
Shares issued | 0.8 | (5.2) | 6 | |||
Dividends declared | (64.3) | (64.3) | ||||
Other comprehensive income (loss) | 25.8 | 25.8 | ||||
Other comprehensive income (loss) | 0 | |||||
Ending Balance at Dec. 31, 2018 | 337 | $ 481.8 | 676.7 | $ (895.5) | 67.9 | $ 6.1 |
Ending Balance (Accounting Standards Update 2018-02 [Member]) at Dec. 31, 2018 | 2.2 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2018-02 [Member] | $ 0 | $ (2.2) | $ 2.2 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 consumer/pharma, chemical process, and coatings 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 shareholders 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. 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. 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 amounts 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 and environmental remediation (see Note 10 ). Revenue Recognition Grace generates revenues predominantly from sales of manufactured products to customers and in part from licensing of technology. Under ASC 606, revenue from customer arrangements is recognized when control is transferred to the customer. Product Sales In its implementation of ASC 606, Grace assessed its customer arrangements at the operating segment level, and based on the similarity of arrangements, Grace elected to use the portfolio method practical expedient. Based on the promises made to customers in product sales arrangements, Grace determined that it has a performance obligation to manufacture and deliver products to its customers. Grace makes certain other promises in its customer arrangements that are immaterial in the context of the contracts. Revenue is recognized at amounts based on agreed-upon prices in sales contracts and/or purchase orders. Grace offers various incentives to its product sales customers that result in variable consideration, including but not limited to volume discounts, which reward bulk purchases by lowering the price for future purchases, and volume rebates, which encourage customers to purchase volume levels that would reduce their current prices. These incentives are immaterial in the context of the contracts. For product sales, control is transferred at the point in time at which risk of loss and title have transferred to the customer, which is determined based on shipping terms. Terms of delivery and terms of payment are generally included in customer contracts of sale, order confirmation documents, and invoices. Payment is generally due within 30 to 60 days of invoicing. Grace defers revenue recognition until no other significant Grace performance obligations remain. Grace’s customer arrangements do not contain significant acceptance provisions. Taxes that Grace collects that are assessed by a governmental authority, and that are both imposed on and concurrent with any of its revenue-producing activities, are excluded from revenue. Grace considers shipping and handling activities that it performs as activities to fulfill the sales of its products. Amounts billed for shipping and handling are included in net sales, while costs incurred for shipping and handling are included in cost of sales, in accordance with the practical expedient provided by ASC 606. Technology Licensing For Grace’s technology licensing business, Grace determined that the customer arrangements contain multiple deliverables to enable licensees to realize the full benefit of the technology. These deliverables include licensing the technology itself; developing engineering design packages; and providing training, consulting, and technical services. Under these arrangements, the license grant is not a distinct performance obligation, as the licensee only can benefit from the license in conjunction with other integral services such as development of the engineering design package, training, consulting, or technical services provided over the contract period. Therefore, Grace accounts for the license grant and integral services as a single performance obligation. Certain deliverables and services not included in the core bundled deliverables are accounted for as separate performance obligations. The transaction price is specified in the technology licensing agreements and is substantially fixed. Some services are priced on a per-diem basis, but these are not material in the context of the contracts. Grace invoices its technology licensing customers as certain project milestones are achieved. Payment terms are similar to those of Grace’s product sales. Revenue for each performance obligation is recognized when control is transferred to the customer, which is generally over a period of time. As a result, Grace generally recognizes revenue for each performance obligation ratably over the period of the contract, which is up to 7 years, depending on the scope of the licensee’s project. Based on the timing of payments, Grace records deferred revenue related to these agreements. See Note 17. 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 net realizable value. 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, 5 to 25 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. During the 2018 first quarter, Grace, with the assistance of an outside accounting firm, completed a study to evaluate the useful lives of its operating machinery and equipment, including a review of historical asset retirement data as well as review and analysis of relevant industry practices. As a result of this study, effective January 1, 2018, Grace revised the accounting useful lives of certain machinery and equipment, which was determined to be a change in accounting estimate and is being applied prospectively. As a result of this change in accounting estimate, Grace’s depreciation expense with respect to such machinery and equipment was reduced by $23.5 million , resulting in an increase to net income of $18.0 million or $0.27 per diluted share for the year ended December 31, 2018. Estimated useful lives for operating machinery and equipment previously ranged from 3 to 10 years. 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 any of the periods presented. 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, 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; currency forward, swap, and/or option contracts; and interest rate swap contracts to manage exposure to fluctuations in commodity prices, currency exchange rates, and interest 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, the gain or loss on the hedge is reported in “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 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. Grace reduces the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard, Grace gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, domestic and foreign source income, the duration of statutory carryforward periods, and Grace’s experience with operating loss and tax credit carryforward expirations. 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 Consolidated 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. The TCJA (see “U.S. Tax Reform,” below) subjects a U.S. entity to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. An entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Because Grace was evaluating the provision of GILTI as of December 31, 2017, it recorded no GILTI-related deferred amounts in 2017. After further consideration in the current year, Grace has elected to account for GILTI as a period expense in the year the tax is incurred. Grace has also adopted the tax law ordering approach for evaluating the impact of GILTI on the assessment of the realizability of US deferred tax assets. 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 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 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. 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 expensed as incurred. Under the new standard, many of these leases will be recorded on the Consolidated Balance Sheets. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Grace will adopt these standards in the 2019 first quarter under the modified retrospective approach permitted by ASU 2018-11. Grace is finalizing its implementation of the new standard and expects to recognize material lease assets and lease liabilities on its Consolidated Balance Sheet upon adoption of Topic 842, but does not expect the standard to have a material impact on the Consolidated Statement of Operations. In January 2018, the FASB issued ASU 2018-01 “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” This update provides an optional transition practical expedient that allows an entity to elect not to evaluate under Topic 842 existing or expired land easements not previously accounted for as leases. All land easements entered into or modified after the adoption of Topic 842 must be evaluated under Topic 842. Grace, which typically does not account for easements under current lease accounting, will use the transition practical expedient when adopting Topic 842 in the 2019 first quarter. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20).” This update adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. Grace is required to adopt the amendments in this update on January 1, 2021. Grace is currently evaluating the timing of adoption and does not expect the update to have a material effect on the Consolidated Financial Statements. In October 2018, the FASB issued ASU 2018-16 “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” This update permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. Grace currently carries debt and derivatives that rely on the London Interbank Offered Rate (“LIBOR”) as a benchmark rate. LIBOR is expected to be phased out as a benchmark rate by the end of 2021. Grace expects its debt and financial instruments to continue to use LIBOR until the rate is no longer available. To the extent LIBOR ceases to exist, Grace may need to renegotiate any credit agreements and/or derivative contracts that utilize LIBOR as a factor in determining the interest rate. Currently, there is not a firm timeframe for this change. This update currently has no foreseeable impact on Grace’s Consolidated Financial Statements; however, it may have an effect in the future. Recently Adopted Accounting Standards Revenue Recognition In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”). This update was 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. Grace adopted ASC 606 with a date of initial application of January 1, 2018. Grace applied the standard to all customer contracts. As a result, Grace has changed its accounting policy for revenue recognition as detailed below. Grace applied ASC 606 using the modified retrospective method, that is, by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to “retained earnings” at the date of initial application. Results for periods beginning after December 31, 2017, are presented under ASC 606, while the comparative information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605 “Revenue Recognition” (“ASC 605”). Impact of Adoption Except for the changes below, Grace has consistently applied its accounting policy for revenue recognition to all periods presented in the Consolidated Financial Statements. Grace recorded a net increase to “retained earnings” of $2.5 million as of January 1, 2018, which represents the cumulative impact of adopting ASC 606, with a $3.2 million reduction to “other liabilities” and a $0.7 million reduction to “deferred income taxes.” The cumulative adjustment results from a change in accounting for contingent revenue related to technology licensing arrangements. Under ASC 605, certain revenue was not realized until a contractual contingency was resolved. Upon adoption of ASC 606, Grace estimates all forms of variable consideration, including contingent amounts, at the inception of the arrangement and recognizes it over the period of performance. The tables below present the effect of the adoption of ASC 606 on Grace’s Consolidated Statements of Operations and Consolidated Balance Sheets. Consolidated Statements of Operations Year Ended December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Net sales $ 1,930.3 $ 1,932.1 $ 1.8 Gross profit 764.9 766.7 1.8 Income (loss) before income taxes 243.1 244.9 1.8 Provision for income taxes (77.7 ) (78.1 ) (0.4 ) Net income (loss) 165.4 166.8 1.4 Net income (loss) attributable to W. R. Grace & Co. Shareholders 166.2 167.6 1.4 Consolidated Balance Sheets December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Deferred income taxes $ 530.5 $ 529.4 $ (1.1 ) Other liabilities 324.8 319.8 (5.0 ) Retained earnings 672.8 676.7 3.9 ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” 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. Grace adopted the update in the 2018 first quarter. The table below presents the effect of the adoption of ASU 2016-18 on previously reported amounts. Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Other investing activities $ (1.8 ) $ (1.1 ) $ 0.7 Net cash provided by (used for) investing activities (129.9 ) (129.2 ) 0.7 Cash, cash equivalents, and restricted cash, beginning of period 90.6 100.6 10.0 Cash, cash equivalents, and restricted cash, end of period 152.8 163.5 10.7 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Other investing activities $ 4.7 $ 5.3 $ 0.6 Net cash provided by (used for) investing activities (345.0 ) (344.4 ) 0.6 Cash, cash equivalents, and restricted cash, beginning of period 329.9 339.3 9.4 Cash, cash equivalents, and restricted cash, end of period 90.6 100.6 10.0 ASU 2017-07 “Compensation—Retirement Benefits (Topic 715)” In March 2017, the FASB issued ASU 2017-07 “Compensation—Retirement Benefits (Topic 715).” This update requires that the service cost component of net benefit cost be presented with other compensation costs arising from services rendered. The remaining net benefit cost is either presented as a line item in the statement of operations outside of a subtotal for income from operations, if presented, or disclosed separately. In addition, only the service cost component of net benefit cost can be capitalized. Grace adopted the update in the 2018 first quarter. The changes in classification of net benefit costs within the Consolidated Statements of Operations have been retrospectively applied to all periods presented. The change in costs capitalizable into inventory was applied prospectively in accordance with the update. The tables below present the effect of the adoption of ASU 2017-07 on previously reported amounts. Consolidated Statements of Operations Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 1,053.2 $ 1,040.4 $ (12.8 ) Gross profit 663.3 676.1 12.8 Selling, general and administrative expenses 302.6 274.0 (28.6 ) Research and development expenses 53.5 56.3 2.8 Other (income) expense (8.4 ) 30.2 38.6 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 942.7 $ 928.8 $ (13.9 ) Gross profit 655.9 669.8 13.9 Selling, general and administrative expenses 308.8 271.8 (37.0 ) Research and development expenses 48.8 51.6 2.8 Other (income) expense 13.3 61.4 48.1 Other Recently Adopted Accounting Standards 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 ASC 606. Grace adopted the update in the 2018 first quarter and applied the new definition of a business to the acquisition closed during the 2018 second quarter. 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 (“Step 2”). Because these amendments eliminate Step 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. Grace adopted the update in the 2018 fourth quarter, and it did not have a material effect on the Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09 “Compensation—Stock Compensation (Topic 718).” This update clarifies the existing definition of the term “modification,” which is currently defined as “a change in any of the terms or conditions of a share-based payment award.” The update requires entities to account for modifications of share-based payment awards unless the (1) fair value, (2) vesting conditions, and (3) classification as an equity instrument or a liability instrument of the modified award are the same as the original award before modification. Grace adopted the update in the 2018 first quarter, and it did not have an effect on the Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220).” This update addresses the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act of 2017 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are stated at the lower of cost or net realizable value, and cost is determined using FIFO. Inventories consisted of the following at December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Raw materials $ 56.3 $ 48.8 In process 49.1 33.0 Finished products 144.5 124.7 Other 31.2 24.4 $ 281.1 $ 230.9 |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | December 31, (In millions) 2018 2017 Land $ 28.4 $ 14.2 Buildings 425.0 404.5 Information technology and equipment 142.9 136.6 Machinery, equipment and other 1,668.9 1,571.8 Projects under construction 229.3 135.4 Properties and equipment, gross 2,494.5 2,262.5 Accumulated depreciation and amortization (1,482.8 ) (1,463.4 ) Properties and equipment, net $ 1,011.7 $ 799.1 Capitalized interest costs amounted to $3.2 million , $1.5 million , and $1.3 million in 2018 , 2017 , and 2016 , respectively. Depreciation and lease amortization expense relating to properties and equipment was $80.9 million , $96.1 million , and $85.7 million in 2018 , 2017 , and 2016 , respectively. Grace’s expense for operating leases was $13.5 million , $11.3 million , and $10.0 million in 2018 , 2017 , and 2016 , respectively. At December 31, 2018 , minimum future non-cancelable payments for operating leases are: (In millions) 2019 $ 8.3 2020 6.2 2021 3.4 2022 1.9 2023 1.3 Thereafter 11.4 $ 32.5 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , are as follows: (In millions) Catalysts Technologies Materials Technologies Total Grace Balance, December 31, 2016 $ 353.5 $ 40.7 $ 394.2 Goodwill acquired during the year — 2.4 2.4 Foreign currency translation 4.2 1.6 5.8 Balance, December 31, 2017 357.7 44.7 402.4 Goodwill acquired during the year 140.6 — 140.6 Foreign currency translation (2.0 ) (0.6 ) (2.6 ) Balance, December 31, 2018 $ 496.3 $ 44.1 $ 540.4 Grace’s net book value of other intangible assets at December 31, 2018 and 2017 , was $356.5 million and $255.4 million , respectively, detailed as follows: 12/31/2018 12/31/2017 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Technology $ 226.2 $ 52.4 $ 214.7 $ 41.5 Customer lists 161.2 15.7 55.8 8.8 Trademarks 29.8 4.0 25.5 2.6 Other 16.1 4.7 16.0 3.7 Total $ 433.3 $ 76.8 $ 312.0 $ 56.6 Amortization expense related to intangible assets was $19.9 million , $15.4 million , and $13.9 million in 2018 , 2017 , and 2016 , respectively. At December 31, 2018 , estimated future annual amortization expense for intangible assets is: (In millions) 2019 $ 21.6 2020 21.6 2021 21.3 2022 21.2 2023 21.1 Thereafter 249.7 $ 356.5 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Components of Debt December 31, (In millions) 2018 2017 2018 U.S. dollar term loan, net of unamortized debt issuance costs of $8.7 $ 938.9 $ — 5.125% senior notes due 2021, net of unamortized debt issuance costs of $4.2 at December 31, 2018 (2017—$5.8) 695.8 694.2 5.625% senior notes due 2024, net of unamortized debt issuance costs of $3.0 at December 31, 2018 (2017—$3.5) 297.0 296.5 Debt payable to unconsolidated affiliate 48.1 42.4 2014 U.S. dollar term loan, net of unamortized debt issuance costs and discounts (2017—$4.3) — 404.1 2014 Euro term loan, net of unamortized debt issuance costs and discounts (2017—$1.0) — 94.0 Other borrowings(1) 3.5 12.7 Total debt 1,983.3 1,543.9 Less debt payable within one year 22.3 20.1 Debt payable after one year $ 1,961.0 $ 1,523.8 Weighted average interest rates on total debt 3.9 % 4.7 % ___________________________________________________________________________________________________________________ (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, 2018 , were as follows: (In millions) 2019 $ 22.3 2020 18.7 2021 713.0 2022 16.3 2023 15.3 Thereafter 1,197.7 Total debt $ 1,983.3 Credit Agreement On April 3, 2018, Grace entered into a Credit Agreement (the “Credit Agreement”), which provides for new senior secured credit facilities, consisting of: (a) a $950 million term loan due in 2025, with interest at LIBOR + 175 basis points, and (b) a $400 million revolving credit facility due in 2023, with interest at LIBOR + 175 basis points. The term loan will amortize in equal quarterly installments in aggregate annual amounts of $9.5 million , with the first payment due on December 31, 2018. The Credit Agreement contains customary affirmative covenants, including, but not limited to: (i) maintenance of existence, and compliance with laws; (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; (v) transactions with affiliates; and (vi) a maximum first lien leverage ratio. 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, Grace and certain of its U.S. subsidiaries have granted security interests in substantially all equity and debt interests in Grace–Conn. or any other Grace subsidiary owned by them and in substantially all their non-real estate assets and property. Grace used a portion of the proceeds to repay in full the borrowings outstanding under its 2014 credit agreement, which was terminated, as well as to make a voluntary $50.0 million accelerated contribution to its U.S. qualified pension plans. In connection with the repayment of debt, Grace recorded a $4.8 million loss on early extinguishment of debt, which is included in “other (income) expense” in the Consolidated Statement of Operations. Grace had no outstanding draws on its revolving credit facility as of December 31, 2018 ; however, the available credit under that facility was reduced to $367.6 million by outstanding letters of credit. During the 2016 first quarter, 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, including the $250 million borrowed under a delayed draw facility, and €67.3 million of its euro term loan. As a result, Grace recorded a loss on early extinguishment of $11.1 million . 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 (as defined in Note 10 ) 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 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, plus 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. Grace is in compliance with these covenants. 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 the 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 foregoing is a summary of the Credit Agreement, the indentures, and the Notes. Grace has filed the full text of such agreements with the SEC, which are readily available on the Internet at www.sec.gov. |
Fair Value Measurements and Ris
Fair Value Measurements and Risk | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the carrying amounts and fair values of Grace’s debt were as follows: 12/31/2018 12/31/2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 2018 U.S. dollar term loan(1) $ 938.9 $ 914.8 $ — $ — 5.125% senior notes due 2021(2) 695.8 697.5 694.2 728.7 5.625% senior notes due 2024(2) 297.0 301.8 296.5 321.3 2014 U.S. dollar term loan(3) — — 404.1 409.7 2014 Euro term loan(3) — — 94.0 93.7 Other borrowings 51.6 51.6 55.1 55.1 Total debt $ 1,983.3 $ 1,965.7 $ 1,543.9 $ 1,608.5 ___________________________________________________________________________________________________________________ (1) Carrying amounts are net of unamortized debt issuance costs and discounts of $8.7 million as of December 31, 2018 . (2) Carrying amounts are net of unamortized debt issuance costs of $4.2 million and $3.0 million at December 31, 2018 , and $5.8 million and $3.5 million as of December 31, 2017 , related to the 5.125% senior notes due 2021 and 5.625% senior notes due 2024, respectively. (3) Carrying amounts are net of unamortized debt issuance costs and discounts of $4.3 million and $1.0 million as of December 31, 2017 , related to the U.S. dollar term loan and euro term loan, respectively. At December 31, 2018 , 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. Currency Derivatives Because Grace operates and/or sells to customers in over 70 countries and in over 30 currencies, its results are exposed to fluctuations in currency exchange rates. Grace seeks to minimize exposure to these fluctuations by matching sales with expenditures in the same currencies, but it is not always possible to do so. From time to time, Grace uses 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. Forward contracts with maturities of not more than 36 months are used and designated as cash flow hedges of forecasted repayments of intercompany loans. The effective portion of gains and losses on these currency hedges is recorded in “accumulated other comprehensive income (loss)” and reclassified into “other (income) expense, net” to offset the remeasurement of the underlying hedged loans. Excluded components (forward points) on these hedges are amortized to income on a systematic basis. Grace also enters into foreign currency forward contracts and swaps to hedge a portion of its net outstanding monetary assets and liabilities. These forward contracts and swaps are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts and swaps are recorded in “other (income) expense, net,” in the Consolidated Statements of Operations. These forward contracts and swaps are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. The valuation of Grace’s currency exchange rate forward contracts and swaps is determined using an income approach. Inputs used to value currency exchange rate forward contracts and swaps 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. Total notional amounts for forward contracts and swaps outstanding at December 31, 2018 , were $171.6 million . Cross-Currency Swap Agreements Grace uses cross-currency swaps designated as cash flow hedges to manage fluctuations in currency exchange rates and interest rates on variable rate debt. The effective portion of gains and losses on these cash flow hedges is recorded in “accumulated other comprehensive income (loss)” and reclassified into “other (income) expense, net” and “interest expense and related financing costs” during the hedged period. In April 2018, in connection with the Credit Agreement (see Note 5), Grace entered into new cross-currency swaps beginning on April 3, 2018, and maturing on March 31, 2023, to synthetically convert $600.0 million of U.S. dollar-denominated floating rate debt into €490.1 million of euro-denominated debt fixed at 2.0231% . These cross-currency swaps were de-designated and terminated on November 5, 2018, and replaced with new, at-market cross-currency swaps beginning on November 5, 2018, and maturing on March 31, 2023, to synthetically convert $600.0 million of U.S. dollar-denominated floating rate debt into €525.9 million of euro-denominated debt fixed at 1.785% . Grace received $33.1 million in cash proceeds from the swap settlement. The valuation of these cross-currency swaps is determined using an income approach, using LIBOR and EURIBOR (Euro Interbank Offered Rate) swap curves, currency basis spreads, and euro/U.S. dollar exchange 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 interest rate swaps beginning on February 3, 2015, and maturing on February 3, 2020, fixing the LIBOR component of the interest on $250.0 million of Grace’s term debt at a rate of 2.393% . These interest rate swaps were de-designated and terminated in April 2018 in connection with Grace’s entry into a new credit agreement. In connection with the Credit Agreement (see Note 5), Grace entered into new interest rate swaps beginning on April 3, 2018, and maturing on March 31, 2023, fixing the LIBOR component of the interest on $100.0 million of term debt at 2.775% . The valuation of these interest rate swaps is determined using an income approach, using prevailing market interest rates and discount rates to present value future cash flows based on the forward LIBOR yield curves. Credit risk is also incorporated into derivative valuations. 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, 2018 and 2017 : Fair Value Measurements at December 31, 2018, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.7 $ — $ 3.7 $ — Total Assets $ 3.7 $ — $ 3.7 $ — Liabilities Currency derivatives $ 10.5 $ — $ 10.5 $ — Interest rate derivatives 0.8 — 0.8 — Variable-to-fixed cross-currency derivatives 3.6 — 3.6 — Total Liabilities $ 14.9 $ — $ 14.9 $ — Fair Value Measurements at December 31, 2017, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.1 $ — $ 3.1 $ — Total Assets $ 3.1 $ — $ 3.1 $ — Liabilities Interest rate derivatives $ 1.8 $ — $ 1.8 $ — Currency derivatives 23.8 — 23.8 — Total Liabilities $ 25.6 $ — $ 25.6 $ — The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of December 31, 2018 and 2017 : Asset Derivatives Liability Derivatives December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.4 Other current assets $ (2.9 ) Interest rate contracts Other current assets — Other current liabilities 0.1 Variable-to-fixed cross-currency swaps Other current assets — Other current assets (15.4 ) Currency contracts Other assets 1.3 Other liabilities 12.9 Interest rate contracts Other assets — Other liabilities 0.7 Variable-to-fixed cross-currency swaps Other assets — Other liabilities 19.0 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current assets (0.1 ) Currency contracts Other current assets — Other current liabilities 0.6 Total derivatives $ 3.7 $ 14.9 Asset Derivatives Liability Derivatives December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.7 Other current liabilities $ 1.4 Interest rate contracts Other current assets — Other current liabilities 1.3 Currency contracts Other assets — Other liabilities 22.2 Interest rate contracts Other assets — Other liabilities 0.5 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.4 Other current liabilities 0.2 Total derivatives $ 3.1 $ 25.6 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, 2018 , 2017 , and 2016 : Year Ended December 31, 2018 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 $ 0.4 Interest expense $ (0.6 ) Currency contracts(1) 6.3 Other expense 6.3 Variable-to-fixed cross-currency swaps (0.6 ) Interest expense 9.7 Variable-to-fixed cross-currency swaps 40.5 Other expense 40.5 Total derivatives $ 46.6 $ 55.9 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 $ (4.0 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.4) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Year Ended December 31, 2017 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 $ 0.9 Interest expense $ (2.7 ) Currency contracts(1) (3.6 ) Other expense (2.9 ) Total derivatives $ (2.7 ) $ (5.6 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ 1.0 ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.6) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. 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 Total derivatives $ (2.3 ) $ (3.3 ) 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 ) The following table presents the total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are reported. Year Ended December 31, 2018 2017 2016 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (80.2 ) $ 16.5 $ (79.5 ) $ (30.2 ) $ (81.5 ) $ (61.4 ) Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Amount of gain or (loss) reclassified from accumulated OCI into income $ (0.6 ) $ — $ (2.7 ) $ — $ (4.1 ) $ — Variable-to-fixed cross-currency swaps Amount of gain (loss) reclassified from accumulated OCI into income 9.7 40.5 — — — — Currency contracts Amount of gain or (loss) reclassified from accumulated OCI into income — 6.3 — (2.9 ) — 0.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — 3.0 — 0.6 — — Net Investment Hedges Grace uses cross-currency swaps as derivative hedging instruments in certain net investment hedges of its non-U.S. subsidiaries. The gains and losses attributable to these net investment hedges, adjusted for the impact of excluded components, are 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. Changes in the fair value of the hedging instrument related to time value, which are excluded from the assessment of hedge effectiveness, are recorded directly to interest expense on a systematic basis. These gains were $2.3 million for the year ended December 31, 2018 . At December 31, 2018 , the notional amount of €170.0 million of Grace’s cross-currency swaps was designated as a hedging instrument of its net investment in its European subsidiaries. Grace also uses foreign currency denominated debt and deferred intercompany royalties as non-derivative hedging instruments in certain net investment hedges. At December 31, 2018 , €11.2 million of Grace’s deferred intercompany royalties was designated as a hedging instrument of its net investment in its European subsidiaries. In April 2018, in connection with the Credit Agreement, Grace de-designated and repaid its euro-denominated term loan principal that had been designated as a hedge of its net investment in its European subsidiaries. The following tables present the amount of gains and losses on derivative and non-derivative instruments designated as net investment hedges recorded to “currency translation adjustments” within “accumulated other comprehensive income (loss)” for the years ended December 31, 2018 , 2017 , and 2016 . 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, (In millions) 2018 2017 2016 Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ 6.0 $ (21.9 ) $ 5.6 Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ (4.4 ) $ (11.2 ) $ 4.6 Foreign currency denominated deferred intercompany royalties 0.5 (6.5 ) 2.5 $ (3.9 ) $ (17.7 ) $ 7.1 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 mitigate credit risk exposures, and it has a history of minimal credit losses. 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, 2018 | |
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 2018 , 2017 , and 2016 are as follows: (In millions) 2018 2017 2016 Income from continuing operations before income taxes: Domestic $ 82.2 $ 28.3 $ 72.7 Foreign 162.7 182.6 93.3 Total $ 244.9 $ 210.9 $ 166.0 Benefit from (provision for) income taxes: Federal—current $ (4.9 ) $ — $ — Federal—deferred (29.3 ) (144.6 ) (11.8 ) State and local—current 1.6 0.2 (0.7 ) State and local—deferred (3.5 ) (1.7 ) (17.7 ) Foreign—current (49.9 ) (50.8 ) (36.6 ) Foreign—deferred 7.9 (3.6 ) 7.8 Total $ (78.1 ) $ (200.5 ) $ (59.0 ) The difference between the benefit from (provision for) income taxes on continuing operations at the U.S. federal income tax rate of 21% for 2018 ( 35% for 2017 and 2016) and Grace’s overall income tax provision is summarized as follows: (In millions) 2018 2017 2016 Tax provision at U.S. federal income tax rate $ (51.4 ) $ (73.8 ) $ (58.1 ) Change in benefit (provision) resulting from: Tax on global intangible low-taxed income (24.1 ) — — Benefits (charges) related to U.S. tax reform 17.1 (143.0 ) — Effect of tax rates in foreign jurisdictions (11.3 ) 13.3 6.8 Research and development credit 9.4 5.1 — U.S. tax on foreign earnings (6.8 ) (1.2 ) (0.9 ) Decrease (increase) in valuation allowance (6.3 ) (0.3 ) (2.5 ) Audit settlements 5.7 — — Prior-period adjustments 2.8 4.5 (2.7 ) Excess compensation (2.7 ) (0.1 ) (0.4 ) State and local income taxes, net (1.9 ) (1.8 ) (4.7 ) Nontaxable income/non-deductible expenses (1.6 ) (2.6 ) (2.5 ) Stock-based compensation (0.7 ) 2.8 6.7 Other (6.3 ) (3.4 ) (0.7 ) Benefit from (provision for) income taxes $ (78.1 ) $ (200.5 ) $ (59.0 ) In 2017 Grace estimated its provision for income taxes in accordance with the TCJA and guidance available at the time and as a result recorded a provisional income tax expense of $143.0 million in the 2017 fourth quarter. The provisional amount related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future, was $120.1 million . The provisional amounts related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings and the state and foreign taxes on the unremitted earnings were $37.4 million and $4.9 million , respectively. Effective December 31, 2017, Grace is no longer indefinitely reinvested with respect to its historical unremitted earnings of its foreign subsidiaries. In the fourth quarter of 2018 Grace finalized the provisional amounts recorded in the fourth quarter of 2017, which resulted in reductions of $9.5 million and $2.7 million in the one-time transition tax of foreign earnings and the state and foreign taxes on the unremitted earnings, respectively. The net reduction of the transition tax was due primarily to additional review of historical tax attributes of Grace’s foreign subsidiaries and changes in estimate based on guidance issued during the year. The adjustment of Grace’s provisional transition tax expense was recorded as a change in estimate in accordance with SAB 118. Despite the completion of Grace’s accounting for the TCJA under SAB 118, many aspects of the law remain uncertain at this time. We expect updates to federal and state guidance and regulations will continue throughout 2019. Grace will monitor and assess the impact of any new guidance as it becomes available. The table below summarizes the provisional amounts related to the TCJA recorded in 2017 and the adjustments recorded in 2018. (In millions) 2017 Provisional Amounts Remeasurement under SAB 118 Total Revaluation of deferred tax assets and liabilities $ 120.1 $ (4.9 ) $ 115.2 Transition tax 37.4 (9.5 ) 27.9 Federal tax credit valuation release (17.4 ) — (17.4 ) State valuation release (2.0 ) — (2.0 ) Foreign and state impact of unremitted earnings 4.9 (2.7 ) 2.2 Total tax reform $ 143.0 $ (17.1 ) $ 125.9 Deferred Tax Assets and Liabilities As of December 31, 2018 and 2017 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items. December 31, (In millions) 2018 2017 Deferred tax assets: Federal tax credit carryforwards $ 291.0 $ 269.6 Pension liabilities 82.7 104.8 State net operating loss carryforwards 52.9 58.2 U.S. net operating loss carryforwards 44.3 89.5 Liability for environmental remediation 29.3 16.4 Research and development 24.6 22.8 Reserves and allowances 22.8 15.2 Unrealized currency gains and losses 12.8 — Stock-based compensation 6.5 4.2 Foreign net operating loss carryforwards 5.7 6.6 Prepaid royalties 3.0 21.4 Other 6.5 10.3 Total deferred tax assets $ 582.1 $ 619.0 Deferred tax liabilities: Intangible assets $ (24.9 ) $ (15.1 ) Properties and equipment (13.2 ) (32.0 ) Other (5.6 ) (11.3 ) Total deferred tax liabilities $ (43.7 ) $ (58.4 ) Valuation allowance: State net operating loss carryforwards $ (6.6 ) $ (9.2 ) Federal tax credit carryforwards (5.2 ) (0.3 ) Foreign net operating loss carryforwards (4.2 ) (2.8 ) Foreign other (3.9 ) — Total valuation allowance (19.9 ) (12.3 ) Net deferred tax assets $ 518.5 $ 548.3 Grace’s net deferred tax assets decreased by $29.8 million from December 31, 2017 , to December 31, 2018 , largely as a result of the utilization of net operating losses, the reduction of pension related deferred tax assets, and a reduction in prepaid royalty deferred tax assets. These reductions were partially offset by an increase in Grace’s federal tax credit carryforwards and unrealized foreign currency gains and losses. Grace reduces the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized (see Note 1). The valuation allowance increased by $7.6 million from December 31, 2017 , to December 31, 2018 , due to increases of $4.9 million related to expected foreign tax credit utilization, $3.9 million related to a foreign deferred tax asset the company is unlikely to utilize, and $1.4 million related to foreign net operating loss carryforwards, offset by a $2.6 million reduction to the valuation allowance for state deferred taxes. U.S. Federal and State Net Operating Losses and Credit Carryforwards Grace has $299.4 million in federal tax credit carryforwards before unrecognized tax benefits. In order to fully utilize the credits before they expire from 2021 to 2028 Grace will need to generate income of approximately $1.4 billion . Grace has U.S. federal and state net operating losses. The deferred tax asset related to federal NOLs is $48.8 million before unrecognized tax benefits. In order to fully utilize the NOLs before they expire in 2035, Grace will need to generate approximately $232 million in U.S. taxable income. The deferred tax asset, net of federal benefit, before valuation allowance related to state NOLs is $54.5 million before unrecognized tax benefits. In order to fully utilize the state NOLs before they expire (from 2018 to 2035), Grace would need to generate approximately $1.9 billion in state taxable income. Unrecognized Tax Benefits The balance of unrecognized tax benefits at December 31, 2018 , was $14.1 million compared with $17.7 million at December 31, 2017 . A rollforward of the unrecognized tax benefits for the three years ended December 31, 2018 , follows. (In millions) Unrecognized Tax Benefits 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 Additions for current year tax positions 0.8 Additions for prior year tax positions 0.7 Reductions for prior year tax positions and reclassifications (2.5 ) Balance, December 31, 2017 17.7 Additions for current year tax positions 0.9 Additions for prior year tax positions 4.0 Reductions for prior year tax positions and reclassifications (2.8 ) Settlements (5.7 ) Balance, December 31, 2018 $ 14.1 The entire balance of unrecognized tax benefits as of December 31, 2018 , of $14.1 million , if recognized, would reduce the effective tax rate. The balance relates to tax positions with an indirect tax benefit that results in a corresponding deferred tax asset as of December 31, 2018 . 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. There were no interest and penalties accrued on unrecognized tax benefits as of December 31, 2018 and 2017 . 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 2016 2017 United States—States 2011-2016 2017 Germany 2014-2016 2017 Sweden None 2013-2017 ___________________________________________________________________________________________________________________ (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 Retirem
Pension Plans and Other Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [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) 2018 2017 Overfunded defined benefit pension plans $ 5.7 $ — Underfunded defined benefit pension plans (67.1 ) (110.5 ) Unfunded defined benefit pension plans (366.0 ) (391.9 ) Total underfunded and unfunded defined benefit pension plans (433.1 ) (502.4 ) Pension liabilities included in other current liabilities (14.7 ) (15.0 ) Net funded status $ (442.1 ) $ (517.4 ) Fully-funded plans include several advance-funded plans where the fair value of the plan assets exceeds the projected benefit obligation ("PBO"). 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. 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. The U.S. salaried plan was closed to new entrants after January 1, 2017. U.S. salaried employees and certain U.S. hourly employees hired on or after January 1, 2017, and employees in Germany hired on or after January 1, 2016, participate in enhanced 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. During 2018, Grace implemented a special lump sum and early commencement window for certain terminated vested participants who terminated employment prior to May 1, 2018, and had not previously commenced their pension benefits. As a result of the transaction, the U.S. qualified pension plans paid $42.2 million in lump sum distributions that reduced the PBO by $43.5 million and resulted in a $1.3 million gain. Additionally, in the 2018 fourth quarter, Grace entered into an agreement with Prudential Financial, Inc. (“Prudential Financial”) to purchase a group annuity contract for $116.4 million that transferred $117.4 million of our U.S. pension plan obligations to Prudential Financial. Prudential Financial assumed responsibility to pay monthly annuities to certain retirees and beneficiaries that were receiving a monthly benefit from certain U.S. pension plans. Grace recognized a $1.0 million gain on the settlement. At the December 31, 2018 , measurement date for Grace’s defined benefit pension plans, the PBO was $1,332.7 million as measured under U.S. GAAP compared with $1,648.7 million as of December 31, 2017 . The PBO basis reflects the present value (using a 4.22% weighted average discount rate for U.S. plans and a 2.17% weighted average discount rate for non-U.S. plans as of December 31, 2018 ) 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. 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 $12.6 million , $11.5 million , and $11.1 million for the years ended December 31, 2018 , 2017 , and 2016 , 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 2018 and 2017 : Defined Benefit Pension Plans (In millions) U.S. Non-U.S. Total 2018 2017 2018 2017 2018 2017 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,325.6 $ 1,274.2 $ 323.1 $ 269.1 $ 1,648.7 $ 1,543.3 Service cost 19.2 17.1 9.5 8.4 28.7 25.5 Interest cost 40.9 42.0 5.0 4.4 45.9 46.4 Settlements (160.9 ) — — — (160.9 ) — Acquisitions — — 0.6 0.4 0.6 0.4 Actuarial (gain) loss (102.6 ) 88.3 (11.9 ) 13.4 (114.5 ) 101.7 Benefits paid (95.1 ) (91.2 ) (8.4 ) (7.8 ) (103.5 ) (99.0 ) Currency exchange translation adjustments — — (12.3 ) 35.2 (12.3 ) 35.2 Other — (4.8 ) — — — (4.8 ) Benefit obligation at end of year $ 1,027.1 $ 1,325.6 $ 305.6 $ 323.1 $ 1,332.7 $ 1,648.7 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,109.8 $ 1,086.4 $ 21.5 $ 18.2 $ 1,131.3 $ 1,104.6 Actual return on plan assets (41.9 ) 112.7 (1.7 ) 1.6 (43.6 ) 114.3 Employer contributions 56.9 9.6 9.6 8.2 66.5 17.8 Settlements (158.6 ) — — — (158.6 ) — Benefits paid (95.1 ) (91.2 ) (8.4 ) (7.8 ) (103.5 ) (99.0 ) Currency exchange translation adjustments — — (1.5 ) 1.3 (1.5 ) 1.3 Other — (7.7 ) — — — (7.7 ) Fair value of plan assets at end of year $ 871.1 $ 1,109.8 $ 19.5 $ 21.5 $ 890.6 $ 1,131.3 Funded status at end of year (PBO basis) $ (156.0 ) $ (215.8 ) $ (286.1 ) $ (301.6 ) $ (442.1 ) $ (517.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ 5.7 $ — $ — $ — $ 5.7 $ — Current liabilities (7.0 ) (7.0 ) (7.7 ) (8.0 ) (14.7 ) (15.0 ) Noncurrent liabilities (154.7 ) (208.8 ) (278.4 ) (293.6 ) (433.1 ) (502.4 ) Net amount recognized $ (156.0 ) $ (215.8 ) $ (286.1 ) $ (301.6 ) $ (442.1 ) $ (517.4 ) Amounts recognized in Accumulated Other Comprehensive (Income) Loss consist of: Prior service credit $ (3.2 ) $ (3.9 ) $ (0.1 ) $ (0.1 ) $ (3.3 ) $ (4.0 ) Net amount recognized $ (3.2 ) $ (3.9 ) $ (0.1 ) $ (0.1 ) $ (3.3 ) $ (4.0 ) Defined Benefit Pension Plans (In millions) U.S. Non-U.S. 2018 2017 2018 2017 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.22 % 3.57 % 2.17 % 1.84 % Rate of compensation increase 4.10 % 4.10 % 2.59 % 2.64 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate for determining service cost 3.77 % 4.41 % 1.99 % 2.09 % Discount rate for determining interest cost 3.20 % 3.42 % 1.57 % 1.69 % Expected return on plan assets 5.25 % 5.50 % 4.69 % 4.69 % Rate of compensation increase 4.10 % 4.10 % 2.64 % 3.09 % The following table presents the components of net periodic benefit cost (income) and other amounts recognized in “other comprehensive (income) loss.” (In millions) 2018 2017 2016 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Net Periodic Benefit Cost (Income) Service cost $ 19.2 $ 9.5 $ 17.1 $ 8.4 $ 17.8 $ 6.8 Interest cost 40.9 5.0 42.0 4.4 40.5 5.1 Expected return on plan assets (57.2 ) (1.0 ) (57.5 ) (0.9 ) (56.7 ) (1.0 ) Amortization of prior service cost (credit) (0.6 ) — (0.4 ) — (0.2 ) — Annual mark-to-market adjustment (gain) loss (3.4 ) (9.2 ) 36.0 13.2 23.3 40.1 Net curtailment and settlement gain (2.3 ) — — — — (1.0 ) Net periodic benefit cost (income) $ (3.4 ) $ 4.3 $ 37.2 $ 25.1 $ 24.7 $ 50.0 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net prior service credit $ — $ — $ — $ — $ (1.3 ) $ — Amortization of prior service cost (credit) 0.6 — 0.4 — 0.2 — Total recognized in OCI 0.6 — 0.4 — (1.1 ) — Total recognized in net periodic benefit cost (income) and OCI $ (2.8 ) $ 4.3 $ 37.6 $ 25.1 $ 23.6 $ 50.0 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 $0.6 million . Funded Status of U.S. Pension Plans (In millions) Fully-Funded U.S. Qualified Pension Plans(1) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 32.4 $ — $ 897.6 $ 1,217.1 $ 97.1 $ 108.5 Fair value of plan assets 38.1 — 833.0 1,109.8 — — Funded status (PBO basis) $ 5.7 $ — $ (64.6 ) $ (107.3 ) $ (97.1 ) $ (108.5 ) 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) 2018 2017 2018 2017 Projected benefit obligation $ 22.7 $ 24.7 $ 282.9 $ 298.4 Fair value of plan assets 19.5 21.5 — — Funded status (PBO basis) $ (3.2 ) $ (3.2 ) $ (282.9 ) $ (298.4 ) ___________________________________________________________________________________________________________________ (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 $1,263 million and $1,570 million as of December 31, 2018 and 2017 , respectively. The following table presents the funded status of defined benefit pension plans that are underfunded or unfunded on an accumulated benefit obligation basis. (In millions) U.S. Non-U.S. Total 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 994.8 $ 1,325.6 $ 284.5 $ 298.4 $ 1,279.3 $ 1,624.0 Accumulated benefit obligation 960.1 1,286.0 253.2 263.6 1,213.3 1,549.6 Fair value of plan assets 833.0 1,109.8 0.7 — 833.7 1,109.8 Estimated Expected Future Benefit Payments Including Future Service for the Fiscal Years Ending (In millions) Pension Plans Total Payments U.S. Non-U.S.(1) Benefit Payments Benefit Payments 2019 $ 72.1 $ 8.5 $ 80.6 2020 71.9 8.4 80.3 2021 71.9 8.6 80.5 2022 72.2 8.8 81.0 2023 71.7 9.1 80.8 2024 - 2028 349.9 50.0 399.9 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2019 and future periods have been translated at the applicable December 31, 2018 , 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 4.22% as of December 31, 2018 , 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, 2018 and 2017 , the German pension plans represented approximately 92% and 91% , respectively, of the benefit obligation of the non-U.S. pension plans. The assumed weighted average discount rate as of December 31, 2018 , for Germany ( 2.05% ) 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. 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. • Return-seeking 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 benchmarks and an allocation to an active portfolio benchmarked to the Russell Mid-Cap and Russell 2000 indices. • Non-U.S. equity securities: the portfolio contains non-U.S. equities in an actively managed strategy benchmarked to the MSCI ACWI ex US index. 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 2018 , the expected long-term rate of return on assets for the U.S. qualified pension plans was 5.25% . Average annual returns over one-, three-, five-, and ten-year periods were approximately (3)% , 6% , 5% , and 8% , respectively. The expected return on plan assets for the U.S. qualified pension plans for 2018 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, 2018 , and the actual allocation at December 31, 2018 and 2017 , 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 2018 2018 2017 U.S. equity securities 9 % 8 % 11 % Non-U.S. equity securities 4 % 4 % 5 % Short-term debt securities 4 % 4 % 10 % Intermediate-term debt securities 36 % 36 % 32 % Long-term debt securities 45 % 46 % 40 % 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, 2018 and 2017 . Fair Value Measurements at December 31, 2018, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 10.5 $ — $ 10.5 $ — Annuity and immediate participation contracts 19.8 — 19.8 — $ 30.3 $ — $ 30.3 $ — Investments measured at net asset value(1) 840.8 Total Assets at Fair Value $ 871.1 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at net asset value (“NAV”) per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Fair Value Measurements at December 31, 2017, 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 $ 10.2 $ — $ 10.2 $ — Annuity and immediate participation contracts 19.0 — 19.0 — $ 29.2 $ — $ 29.2 $ — Investments measured at net asset value(1) 1,080.6 Total Assets at Fair Value $ 1,109.8 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Non-U.S. pension plans accounted for approximately 2% of total global pension assets at December 31, 2018 and 2017 . 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 96% and 97% of the total non-U.S. pension plan assets at December 31, 2018 and 2017 , respectively. The expected long-term rate of return on assets for the Canadian pension plan was 4.75% for 2018 . The target allocation of investment assets at December 31, 2018 , and the actual allocation at December 31, 2018 and 2017 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2018 2018 2017 Equity securities 27 % 28 % 28 % Bonds 58 % 58 % 58 % Other investments 15 % 14 % 14 % Total 100 % 100 % 100 % The plan assets of the other country plans represent approximately 4% and 3% in the aggregate of total non-U.S. pension plan assets at December 31, 2018 and 2017 , 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, 2018 and 2017 . Fair Value Measurements at December 31, 2018, 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) Corporate bonds $ 0.4 $ — $ 0.4 $ — Insurance contracts and other investments 0.4 — 0.4 — Cash 0.1 0.1 — — $ 0.9 $ 0.1 $ 0.8 $ — Investments measured at net asset value(1) 18.6 Total Assets at Fair Value $ 19.5 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Fair Value Measurements at December 31, 2017, 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) Corporate bonds $ 0.4 $ — $ 0.4 $ — Insurance contracts and other investments 0.3 — 0.3 — $ 0.7 $ — $ 0.7 $ — Investments measured at net asset value(1) 20.8 Total Assets at Fair Value $ 21.5 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. 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, 2018 , there is a $0.1 million minimum required payment under ERISA for 2019 . Grace intends to fund non-U.S. pension plans based on applicable legal requirements and actuarial and trustee recommendations. Grace expects to contribute approximately $9 million to its non-U.S. pension plans in 2019 . |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Accounts | December 31, (In millions) 2018 2017 Other Current Liabilities Accrued compensation $ 62.4 $ 60.7 Deferred revenue (see Note 17) 40.6 19.5 Environmental contingencies (see Note 10) 19.5 23.5 Pension liabilities (see Note 8) 14.7 15.0 Accrued interest (see Note 5) 13.3 16.5 Income taxes payable (see Note 7) 11.3 12.2 Other accrued liabilities 81.7 70.4 $ 243.5 $ 217.8 Accrued compensation includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. December 31, (In millions) 2018 2017 Other Liabilities Environmental contingencies (see Note 10) $ 106.9 $ 46.8 Liability to unconsolidated affiliate (see Note 19) 98.8 32.7 Fair value of currency and interest rate contracts (see Note 6) 32.6 22.7 Deferred revenue (see Note 17) 29.2 14.9 Deferred income taxes (see Note 7) 10.9 8.2 Asset retirement obligation 8.8 10.4 Postemployment liability 4.7 5.2 Other noncurrent liabilities 27.9 28.4 $ 319.8 $ 169.3 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Legacy Liabilities Over the years, Grace operated numerous types of businesses that are no longer part of its ongoing operations. As Grace divested or otherwise ceased operating these businesses, it retained certain liabilities and obligations, which Grace refers to as legacy liabilities. These liabilities include product, environmental, and other 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 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 contingent financial obligations remaining to the PD Trust. With respect to property damage claims related to Grace’s former Zonolite 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 $30.0 million on February 3, 2017. Grace is also obligated to make up to 10 contingent deferred payments of $8 million per year to the PD Trust in respect of ZAI PD Claims during the 20 -year period beginning on the fifth anniversary of the Effective Date, with each such payment due only if the assets of the PD Trust in respect of ZAI PD Claims fall below $10 million during the preceding year. As of December 31, 2018, Grace has evaluated the activity in the PD Trust with respect to ZAI PD Claims and other trust expenses. Through December 31, 2018, the PD Trust has paid approximately $15 million in ZAI PD Claims, approximately $6 million in operating and education expenses, and approximately $15 million in one-time attorneys’ fees. The PD Trust balance was approximately $30 million as of December 31, 2018. Grace expects ZAI PD Claims payments to decline over time but has limited information to estimate the amount and timing of future claims payments. It is reasonably possible that one or more contingent deferred payments will be made in the future. Grace estimates the present value of reasonably possible future payments to range between $0 million and $20 million . Grace has not accrued for any contingent deferred payments as it does not believe that payment is probable. Grace will continue to evaluate new information as it becomes available and will revise its estimate of the amount and timing of future claims payments and any contingent deferred payments at that time. 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”). Grace has not paid any Other PD Claims since emergence. Annual expenses have been approximately $0.2 million per year. 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. 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 and are readily available on the internet at www.sec.gov. 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, 2018 , Grace’s estimated liability for legacy environmental response costs totaled $126.4 million , compared with $70.3 million at December 31, 2017 , 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 $73.8 million , $24.4 million , and $29.2 million for legacy environmental matters in 2018 , 2017 , and 2016 , respectively, which is included in “provision for environmental remediation” in the Consolidated Statements of Operations. 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, known as Operable Unit 3 (“OU3”). The RI/FS will determine the specific areas within OU3 requiring remediation and will identify possible remedial action alternatives. Possible remedial actions within OU3 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 accrued $70.2 million , $9.5 million , and $24.8 million in 2018 , 2017 , and 2016 , respectively, for future costs related to vermiculite-related matters. As part of the RI/FS process, Grace contracted an engineering and consulting firm to develop a range of possible remedial alternatives and associated cost estimates for OU3. Based on this work, Grace recorded a pre-tax charge of $70.0 million in the 2018 third quarter for the estimated costs of remediation of OU3. Grace believes that this amount should provide for a protective remedy meeting the statutory requirements of the Comprehensive Environmental Response, Compensation, and Liability Act. The estimated costs of remediation are preliminary and consist of several components, each of which may vary significantly as the remedial alternatives are further developed. It is reasonably possible that the ultimate costs of remediation could range between $30 million and $170 million . Grace is working closely with the EPA, and the ultimate remedy will be determined by the EPA after the RI/FS is finalized. Such remedy will be set forth in a Record of Decision (“ROD”) that is expected to be issued by the EPA during or after 2020. Costs associated with the more active remedial alternatives would be expected to be incurred over a decade or more. Grace will reevaluate its estimated liability as remedial alternatives evolve based on further work by the engineering and consulting firm and discussions with the EPA as the RI/FS process moves toward a ROD. Depending on the remedial alternatives that the EPA selects in the ROD, the total cost of remediating OU3 may exceed Grace’s current estimate by material amounts. 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 estimated 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’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, 2018 and 2017 , was $81.7 million and $25.8 million , respectively. It is possible that Grace’s ultimate liability for these vermiculite-related matters will exceed current estimates by material amounts. Non-Vermiculite-Related Environmental Matters During 2018, Grace accrued $3.6 million to increase non-vermiculite environmental reserves. During 2017, Grace accrued $14.9 million to increase non-vermiculite environmental reserves, including $7.2 million for ten years of operation and maintenance expenses following remediation at a former manufacturing site. At December 31, 2018 and 2017 , Grace’s estimated legacy environmental liability for response costs at sites not related to its former vermiculite mining and processing activities was $44.7 million and $44.5 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. Other Legacy Liabilities As part of the process for renewing Grace’s permit for a dam on the Libby mine site, which expires in March 2019, the Montana Department of Natural Resources and Conservation is expected to require Grace to replace the dam spillway, which is deteriorating, with a new spillway. Grace constructed the dam in 1971 to prevent vermiculite ore tailings from moving into nearby creeks and rivers. Based on information provided by third-party consultants, the cost of the new spillway is estimated to be between $40 million and $45 million . Grace expects to record a liability for this project at the time the permit renewal is approved. Grace anticipates that approval of the renewal of such permit will occur in the first quarter of 2019. Construction of the new spillway is expected to take three to four years. 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. • 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 or spin-off of a former business unit or product line in which Grace has agreed to indemnify the buyer or resulting entity against certain liabilities related to activities prior to the closing of the transaction, including environmental, tax, and employee 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, 2018 , Grace had gross financial assurances issued and outstanding of $145.5 million , composed of $68.7 million of surety bonds issued by various insurance companies and $76.8 million of standby letters of credit and other financial assurances issued by various banks. |
Restructuring Expenses and Repo
Restructuring Expenses and Repositioning Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses and Repositioning Expenses | Restructuring Expenses Restructuring expenses in 2018 primarily related to the closure of two smaller manufacturing plants, the activities from which have been moved to larger, more cost-effective plants as part of our strategy to capture synergies from our recent catalysts acquisitions. Expenses in 2017 primarily related to workforce reduction programs in Grace’s manufacturing, supply chain, finance and IT functions. Expenses in 2016 primarily related to the exit of certain non-strategic product lines in Materials Technologies. The following table presents restructuring expenses by reportable segment for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, (In millions) 2018 2017 2016 Catalysts Technologies $ 13.7 $ 3.7 $ 3.4 Materials Technologies 0.5 (0.1 ) 15.1 Corporate (0.2 ) 7.9 5.8 Total restructuring expenses $ 14.0 $ 11.5 $ 24.3 These costs are not included in segment operating income. Substantially all costs related to the restructuring programs are expected to be paid by December 31, 2021, but could be paid earlier subject to negotiations around certain plant exit costs. The following table presents components of the change in the restructuring liability for the years ended December 31, 2018 , 2017 , and 2016 : (In millions) Total 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 Accruals for severance and other costs 11.4 Payments (14.4 ) Currency translation adjustments and other 0.1 Balance, December 31, 2017 $ 6.7 Accruals for severance and other costs 10.1 Payments (6.1 ) Balance, December 31, 2018 $ 10.7 Repositioning Expenses Repositioning expenses included in continuing operations for the years ended December 31, 2018 , 2017 , and 2016 were $32.4 million , $15.2 million , and $14.3 million respectively. Expenses incurred in 2018 primarily include $13.7 million for a multi-year program to transform Grace’s manufacturing and business processes to extend its competitive advantages and improve its cost position, $11.7 million of severance and stock compensation costs related to employee separations, and write-offs of $8.5 million of previously capitalized plant engineering costs as a result of terminating an expansion project no longer necessary due to the polyolefin catalysts acquisition (see Note 20 ). Expenses incurred in 2017 primarily related to third-party costs associated with productivity and transformation initiatives, as well as costs related to the Separation. Expenses incurred in 2016 primarily related to the Separation. Excluding asset write-offs and stock compensation costs, substantially all of these costs have been or are expected to be settled in cash by December 31, 2019. |
Other Expense, net
Other Expense, net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, net | Components of other (income) expense, net are as follows: Year Ended December 31, (In millions) 2018 2017 2016 Defined benefit pension (income) expense other than service cost $ (27.8 ) $ 38.6 $ 48.0 Third-party acquisition-related costs 7.3 2.9 2.5 Loss on early extinguishment of debt 4.8 — 11.1 Currency transaction effects (4.0 ) 5.0 (1.0 ) Net (gain) loss on sales of investments and disposals of assets 2.6 1.6 (1.4 ) Chapter 11 expenses, net 2.6 1.4 3.4 Business interruption insurance recoveries — (26.6 ) — Accounts receivable reserve—Venezuela — 10.0 — Other miscellaneous expense (income) (2.0 ) (2.7 ) (1.2 ) Total other (income) expense, net $ (16.5 ) $ 30.2 $ 61.4 In January 2017, a Catalysts Technologies customer experienced an explosion and fire resulting in an extended outage. Grace received $25.0 million in payments from its third-party insurer in 2017 under its business interruption insurance policy for profits lost as a result of the outage. The policy has a $25 million limit per event. During the 2017 third quarter, Grace recorded a $10.0 million charge to fully reserve for a trade receivable from a Venezuela-based customer related to increased economic uncertainty and the recent political unrest and sanctions. See Note 5 for more information related to Grace’s early extinguishments of debt in 2018 and 2016. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 , and 2016 : Year Ended December 31, 2018 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 $ (1.6 ) $ 0.4 $ (1.2 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Benefit plans, net (1.2 ) 0.3 (0.9 ) Currency translation adjustments 34.6 (2.2 ) 32.4 Gain (loss) from hedging activities (10.0 ) 4.3 (5.7 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 23.4 $ 2.4 $ 25.8 Year Ended December 31, 2017 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 $ (2.3 ) $ 0.8 $ (1.5 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Net deferred actuarial gain (loss) arising during period (0.1 ) — (0.1 ) Benefit plans, net (2.0 ) 0.7 (1.3 ) Currency translation adjustments (23.1 ) (2.9 ) (26.0 ) Gain (loss) from hedging activities 2.9 (2.1 ) 0.8 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (22.2 ) $ (4.3 ) $ (26.5 ) 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 ) The following table presents the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2018 , 2017 , and 2016 : Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ (66.8 ) OCI before reclassifications 0.9 (1.8 ) (1.8 ) (2.7 ) Amounts reclassified from accumulated OCI (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 OCI before reclassifications (0.1 ) (26.0 ) (2.7 ) (28.8 ) Amounts reclassified from accumulated OCI (1.2 ) — 3.5 2.3 Net current-period other comprehensive income (loss) (1.3 ) (26.0 ) 0.8 (26.5 ) Balance, December 31, 2017 $ 0.9 $ 41.6 $ (2.6 ) $ 39.9 OCI before reclassifications — 32.4 11.1 43.5 Amounts reclassified from accumulated OCI (0.9 ) — (16.8 ) (17.7 ) Net current-period other comprehensive income (loss) (0.9 ) 32.4 (5.7 ) 25.8 Effect of adopting ASU 2018-02 0.2 2.2 (0.2 ) 2.2 Balance, December 31, 2018 $ 0.2 $ 76.2 $ (8.5 ) $ 67.9 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. |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the W. R. Grace & Co. 2018 Stock Incentive Plan (together with the 2014 Stock Incentive Plan, collectively, the “Stock Incentive Plans”) had 7,455,144 shares of unissued stock reserved for issuance in the event of the exercise of stock options or the issuance or settlement of stock-based compensation or awards. Shares issuable upon the exercise of stock options or the issuance or settlement of stock-based compensation or awards are covered by reissuing treasury stock, to the extent available; otherwise they are covered through newly issued shares. For the years ended December 31, 2018 , 2017 , and 2016 , 243,502 , 386,300 , and 745,938 stock options were exercised for aggregate proceeds of $6.7 million , $16.4 million , and $17.0 million , respectively. Additionally in 2018 , 10,346 common shares were issued to members of the Board of Directors, in partial payment of their annual retainer; 7,719 shares were issued through net share settlement; and 54,525 shares were issued to settle vested tranches of Restricted Stock Units (RSUs). The following table sets forth information relating to common stock activity for the years ended December 31, 2018 , 2017 , and 2016 : Balance of outstanding shares, December 31, 2015 70,533,515 Stock options exercised 745,938 Shares issued 110,953 Shares forfeited (305,678 ) Shares repurchased (2,775,297 ) Balance of outstanding shares, December 31, 2016 68,309,431 Stock options exercised 386,300 Shares issued 49,897 Shares forfeited through net share exercise (29,783 ) Shares repurchased (935,435 ) Balance of outstanding shares, December 31, 2017 67,780,410 Stock options exercised 243,502 Shares issued 72,590 Shares forfeited through net share exercise (132,393 ) Shares repurchased (1,171,141 ) Balance of outstanding shares, December 31, 2018 66,792,968 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 November 2028. On May 9, 2018, the Company’s stockholders approved the W. R. Grace & Co. 2018 Stock Incentive Plan. Under this new plan, stock options have a 10 year life. The Company began issuing stock-based compensation awards from this plan in the second half of 2018. The Company’s annual grant made in February 2018 was issued under the previous plan in which options have a 5 year life. 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 in 2016. The following table sets forth information relating to such options during 2018 , 2017 , and 2016 . Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value 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 66.83 Options exercised (386,300 ) 45.21 Options forfeited (34,545 ) 72.97 Options terminated (23,320 ) 75.60 Options granted 316,830 71.37 13.00 Balance, December 31, 2017 1,813,450 72.04 Options exercised (243,502 ) 61.92 Options forfeited (90,862 ) 69.82 Options terminated (33,481 ) 75.07 Options granted 428,190 67.36 12.30 Balance, December 31, 2018 1,873,795 72.34 The following is a summary of nonvested option activity for the year ended December 31, 2018 . Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 719,027 $ 15.47 Granted 428,190 12.30 Vested (358,511 ) 18.14 Forfeited (124,343 ) 14.99 Nonvested options outstanding at end of year 664,363 12.88 As of December 31, 2018 , the intrinsic value (the difference between the exercise price and the market price) for options outstanding was immaterial. The total intrinsic value of all options exercised during the years ended December 31, 2018 , 2017 and 2016 was $1.6 million , $10.3 million and $25.9 million , respectively. A summary of our stock options outstanding and exercisable at December 31, 2018 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $60 - $70 710,321 226,938 3.23 68.27 $70 - $80 1,139,369 958,389 1.46 75.72 $80 - $90 24,105 24,105 0.16 80.76 1,873,795 1,209,432 At December 31, 2018 , the weighted-average remaining contractual term of all options outstanding and exercisable was 2.11 years. Options Granted For the years ended December 31, 2018 , 2017 and 2016 , the Company recognized non-cash stock-based compensation expense with respect to stock option grants of $5.8 million , $4.3 million and $6.0 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 $2.2 million , $7.4 million , and $11.2 million for the years ended December 31, 2018 , 2017 and 2016 , 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. For options granted prior to 2018, 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. For options granted in 2018, Grace actual stock volatility was used. The following summarizes the weighted average assumptions used for estimating the fair value of stock options granted during 2018 , 2017 and 2016 , respectively. 2018 2017 2016 Expected volatility 22.9% - 24.4% 23.8% - 25.1% 26.2% - 27.5% Weighted average expected volatility 23.7% 24.8% 26.6% Expected term 3.00 - 6.50 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 2.55% 1.66% 1.01% Dividend yield 1.4% 1.2% 1.0% Total unrecognized stock-based compensation expense at December 31, 2018 , was $1.8 million , and the weighted-average period over which this expense will be recognized is 0.8 of a year. Restricted Stock and Performance Based Units During 2018 the Company granted 86,698 RSUs and 93,216 PBUs under the Company’s Long-term Incentive Plan (“LTIP”). During 2017 the Company granted 57,600 RSUs and 115,158 PBUs under the LTIP. During 2016 the Company granted 77,358 RSUs and 124,952 PBUs under the LTIP. During 2018 , 2017 , and 2016 , awards covering 44,279 , 16,395 , and 15,197 shares were forfeited, respectively. The PBUs cliff vest after the completion of the performance periods ending December 31, 2020 , 2019, and 2018, and have a weighted average grant date fair value of $67.39 , $71.37 and $68.50 , respectively. The RSUs vest in three equal annual installments and have a weighted average grant date fair value of $67.54 , $71.37 , and $68.90 , respectively. Vesting for all awards is subject to continued employment through the payment date (subject to certain exceptions for retirement, death or disability, change in control scenarios, and in the discretion of the Compensation Committee). The Company anticipates that approximately 64% of the awards granted in 2018 will be settled in common stock and approximately 36% will be settled in cash, assuming full vesting. The Company anticipates that approximately 65% of the awards granted in 2017 will be settled in common stock and approximately 35% will be settled in cash, assuming full vesting. 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. 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 2018 , 2017 , and 2016 , the Company recognized $13.2 million , $10.3 million , and $8.6 million in compensation expense for these awards. As of December 31, 2018 , $9.5 million of total unrecognized compensation expense related to the awards is expected to be recognized over the remaining weighted-average service period of 1.5 years . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Numerators Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders $ 167.6 $ 11.2 $ 107.0 Income (loss) from discontinued operations, net of income taxes — — (12.9 ) Net income (loss) attributable to W. R. Grace & Co. shareholders $ 167.6 $ 11.2 $ 94.1 Denominators Weighted average common shares—basic calculation 67.2 68.1 70.1 Dilutive effect of employee stock options 0.1 0.1 0.4 Weighted average common shares—diluted calculation 67.3 68.2 70.5 Basic earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 2.49 $ 0.16 $ 1.53 Income (loss) from discontinued operations, net of income taxes — — (0.19 ) Net income (loss) $ 2.49 $ 0.16 $ 1.34 Diluted earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 2.49 $ 0.16 $ 1.52 Income (loss) from discontinued operations, net of income taxes — — (0.19 ) Net income (loss) $ 2.49 $ 0.16 $ 1.33 There were approximately 1.7 million , 1.5 million and 1.3 million anti-dilutive options outstanding for the years ended December 31, 2018 , 2017 and 2016 , respectively. On February 5, 2015, the Company announced that its Board of Directors had authorized a share repurchase program of up to $500 million , which it completed on July 10, 2017. On February 8, 2017, the Company announced that its Board of Directors had authorized an additional share repurchase program of up to $250 million . The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company’s shares, the strategic deployment of capital, and general market and economic conditions. During 2018 , 2017 and 2016 , the Company repurchased 1,171,141 ; 935,435 ; and 2,775,297 shares of Company common stock for $80.0 million , $65.0 million and $195.1 million , respectively, pursuant to the terms of the share repurchase programs. As of December 31, 2018 , $138.9 million remained under the current authorization. |
Revenues Revenues (Notes)
Revenues Revenues (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Revenues [Text Block] | Grace generates revenues from customer arrangements primarily by manufacturing and delivering specialty chemicals and specialty materials through its two reportable segments. See Note 18 for additional information about Grace’s reportable segments. Disaggregation of Revenue The following tables present Grace's revenues by geography and product group, within its respective reportable segments, for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, 2018 North America Europe Middle East Africa (EMEA) Asia Pacific Latin America Total Refining Catalysts $ 282.8 $ 266.0 $ 193.4 $ 59.8 $ 802.0 Polyolefin and Chemical Catalysts 192.6 255.4 193.2 20.3 661.5 Total Catalysts Technologies $ 475.4 $ 521.4 $ 386.6 $ 80.1 $ 1,463.5 Coatings $ 28.1 $ 75.3 $ 43.3 $ 8.7 $ 155.4 Consumer/Pharma 36.2 58.0 19.0 19.4 132.6 Chemical process 35.2 81.6 32.2 8.3 157.3 Other 6.8 15.9 0.4 0.2 23.3 Total Materials Technologies $ 106.3 $ 230.8 $ 94.9 $ 36.6 $ 468.6 Total Grace $ 581.7 $ 752.2 $ 481.5 $ 116.7 $ 1,932.1 Year Ended December 31, 2017 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 269.5 $ 236.4 $ 199.3 $ 52.9 $ 758.1 Polyolefin and Chemical Catalysts 117.4 218.1 166.4 16.5 518.4 Total Catalysts Technologies $ 386.9 $ 454.5 $ 365.7 $ 69.4 $ 1,276.5 Coatings $ 26.0 $ 66.9 $ 41.3 $ 8.0 $ 142.2 Consumer/Pharma 38.2 48.3 17.8 19.0 123.3 Chemical process 28.5 83.7 34.8 6.5 153.5 Other 6.4 14.3 0.2 0.1 21.0 Total Materials Technologies $ 99.1 $ 213.2 $ 94.1 $ 33.6 $ 440.0 Total Grace(1) $ 486.0 $ 667.7 $ 459.8 $ 103.0 $ 1,716.5 ___________________________________________________________________________________________________________________ (1) Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605. Year Ended December 31, 2016 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 285.8 $ 235.5 $ 141.2 $ 62.4 $ 724.9 Polyolefin and Chemical Catalysts 100.4 203.3 119.9 15.2 438.8 Total Catalysts Technologies $ 386.2 $ 438.8 $ 261.1 $ 77.6 $ 1,163.7 Coatings $ 25.4 $ 63.9 $ 38.9 $ 8.3 $ 136.5 Consumer/Pharma 43.0 47.3 14.7 16.9 121.9 Chemical process 26.8 78.2 29.3 8.3 142.6 Other 9.3 19.6 4.9 0.1 33.9 Total Materials Technologies $ 104.5 $ 209.0 $ 87.8 $ 33.6 $ 434.9 Total Grace(1) $ 490.7 $ 647.8 $ 348.9 $ 111.2 $ 1,598.6 ___________________________________________________________________________________________________________________ (1) Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605. Contract Balances Grace invoices customers for product sales once performance obligations have been satisfied, generally at the point of delivery, at which point payment becomes unconditional. Accordingly, Grace's product sales contracts generally do not give rise to material contract assets or liabilities under ASC 606; however, from time to time certain customers may pay in advance. In the technology licensing business, Grace invoices licensees based on milestones achieved but has obligations to provide services in future periods, which results in contract liabilities. The following table presents Grace’s deferred revenue balances as of December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Current $ 40.6 $ 19.5 Noncurrent 29.2 14.9 Total $ 69.8 $ 34.4 These amounts are included as deferred revenue in “other current liabilities” and “other liabilities” in Grace's Consolidated Balance Sheets. Grace records deferred revenues when cash payments are received or due in advance of performance. The increase in deferred revenue reflects cash payments from customers received or due in advance of satisfying performance obligations, offset by $16.6 million of revenue recognized that was included in the deferred revenue balance as of December 31, 2017 , and the $3.2 million cumulative adjustment recorded to “retained earnings” as part of the adoption of ASC 606. The noncurrent portion of the technology licensing revenue will be recognized as performance obligations under the technology licensing agreements are satisfied; the noncurrent balance is expected to be recognized over the next four years. Remaining performance obligations represent the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $103 million as of December 31, 2018 , and includes certain amounts reported as deferred revenue above. In accordance with the practical expedient in ASC 606-10-50-14, Grace does not disclose information about remaining performance obligations that have original expected durations of one year or less, which generally relate to customer prepayments on product sales and are generally satisfied in less than one year. Grace expects to recognize revenue related to remaining performance obligations over several years, as follows: Year Approximate percentage of revenue related to remaining performance obligations recognized 2019 31 % 2020 24 % 2021 20 % Thereafter through 2025 25 % 100 % For the years ended December 31, 2018 , 2017 , and 2016 , revenue recognized from performance obligations related to prior periods was not material. Grace has not capitalized any costs to obtain or fulfill contracts with customers under ASC 606. No material impairment losses have been recognized on any receivables or contract assets arising from contracts with customers. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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 19 .) 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 consumer/pharma, chemical process, and coatings 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 legacy product, environmental and other claims; 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) 2018 2017 2016 Net Sales Catalysts Technologies $ 1,463.5 $ 1,276.5 $ 1,163.7 Materials Technologies 468.6 440.0 434.9 Total $ 1,932.1 $ 1,716.5 $ 1,598.6 Adjusted EBIT Catalysts Technologies segment operating income $ 440.5 $ 395.4 $ 367.8 Materials Technologies segment operating income 105.6 100.6 104.0 Corporate costs (73.5 ) (69.0 ) (59.4 ) Gain on termination and curtailment of postretirement plans related to current businesses — — 0.2 Certain pension costs (15.9 ) (13.0 ) (12.3 ) Total $ 456.7 $ 414.0 $ 400.3 Depreciation and Amortization Catalysts Technologies $ 81.7 $ 87.1 $ 77.4 Materials Technologies 15.5 19.6 19.5 Corporate 3.6 4.8 3.4 Total $ 100.8 $ 111.5 $ 100.3 Capital Expenditures Catalysts Technologies $ 150.3 $ 100.9 $ 84.9 Materials Technologies 56.1 20.9 24.0 Corporate 9.9 3.4 8.0 Total $ 216.3 $ 125.2 $ 116.9 Total Assets Catalysts Technologies $ 2,326.6 $ 1,757.1 $ 1,675.1 Materials Technologies 375.9 326.8 313.1 Corporate 862.8 823.1 923.6 Total $ 3,565.3 $ 2,907.0 $ 2,911.8 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. See Note 17 for sales of similar products within each reportable segment. Reconciliation of Reportable Segment Data to Financial Statements Grace Adjusted EBIT for the years ended December 31, 2018 , 2017 and 2016 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) 2018 2017 2016 Grace Adjusted EBIT $ 456.7 $ 414.0 $ 400.3 Costs related to legacy product, environmental and other claims (84.6 ) (30.8 ) (35.4 ) Restructuring and repositioning expenses (46.4 ) (26.7 ) (38.6 ) Pension MTM adjustment and other related costs, net 15.2 (51.1 ) (60.3 ) Third-party acquisition-related costs (7.3 ) (2.9 ) (2.5 ) Amortization of acquired inventory fair value adjustment (6.9 ) — (8.0 ) Loss on early extinguishment of debt (4.8 ) — (11.1 ) Income and expense items related to divested businesses 2.3 (2.3 ) 0.1 Accounts receivable reserve—Venezuela — (10.0 ) — Gain (loss) on sale of product line — — 1.7 Gain on termination and curtailment of postretirement plans related to divested businesses — — 0.3 Interest expense, net (78.5 ) (78.5 ) (80.5 ) Net income (loss) attributable to noncontrolling interests (0.8 ) (0.8 ) — Income (loss) from continuing operations before income taxes $ 244.9 $ 210.9 $ 166.0 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) 2018 2017 2016 Net Sales United States $ 533.8 $ 437.3 $ 446.2 Canada 47.9 48.7 44.5 Total North America 581.7 486.0 490.7 Europe Middle East Africa 752.2 667.7 647.8 Asia Pacific 481.5 459.8 348.9 Latin America 116.7 103.0 111.2 Total $ 1,932.1 $ 1,716.5 $ 1,598.6 Long-Lived Assets(1) United States $ 793.0 $ 599.8 $ 564.5 Canada 16.5 15.5 13.9 Total North America 809.5 615.3 578.4 Germany 172.5 142.2 109.7 Rest of Europe Middle East Africa 48.9 45.3 39.5 Total Europe Middle East Africa 221.4 187.5 149.2 Asia Pacific 72.9 21.1 21.5 Latin America 6.7 7.9 7.5 Total $ 1,110.5 $ 831.8 $ 756.6 ___________________________________________________________________________________________________________________ (1) Long-lived assets include properties and equipment and the noncurrent asset related to a hydroprocessing catalyst plant to be transferred to ART upon completion. (See Note 19 .) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | 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 $156.1 million and $125.9 million as of December 31, 2018 and 2017 , respectively, and the amount included in “equity in earnings of unconsolidated affiliate” in the accompanying Consolidated Statements of Operations totaled $31.8 million , $25.9 million and $29.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. ART is a private, limited liability company, taxed as a partnership, and accordingly does not have a quoted market price available. The table below presents summary financial data related to ART’s balance sheet and results of operations. December 31, (In millions) 2018 2017 Summary Balance Sheet information: Current assets $ 307.4 $ 239.8 Noncurrent assets 160.2 91.5 Total assets $ 467.6 $ 331.3 Current liabilities $ 133.3 $ 82.4 Noncurrent liabilities 25.3 0.3 Total liabilities $ 158.6 $ 82.7 Year Ended December 31, (In millions) 2018 2017 2016 Summary Statement of Operations information: Net sales $ 487.5 $ 447.3 $ 388.9 Costs and expenses applicable to net sales 410.6 379.8 322.1 Income before income taxes 65.5 53.6 60.8 Net income 64.2 52.1 59.3 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. Product manufactured by Grace for ART is 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) 2018 2017 2016 Product manufactured for ART $ 229.1 $ 213.8 $ 210.4 Mark-up on product manufactured for ART included as a reduction of Grace’s cost of goods sold 4.5 4.2 4.2 Charges for fixed costs; research and development; selling, general and administrative services; and depreciation to ART 41.8 41.7 33.8 The table below presents balances in Grace’s Consolidated Financial Statements related to ART. December 31, (in millions) 2018 2017 Accounts receivable $ 16.2 $ 20.1 Noncurrent asset 98.8 32.7 Accounts payable 32.0 22.3 Debt payable within one year 9.8 8.6 Debt payable after one year 38.3 33.8 Noncurrent liability 98.8 32.7 The noncurrent asset and noncurrent liability in the table above represent spending to date related to a residue hydroprocessing catalyst production plant that is under construction in Lake Charles, Louisiana. Grace manages the design and construction of the plant, and the asset will continue to 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 ART maintain an agreement whereby ART loans Grace funds for maintenance capital expenditures at manufacturing facilities used to produce catalysts for ART. Grace makes principal and interest payments on the loans on a monthly basis. These unsecured loans have repayment terms of up to eight years, unless earlier repayment is demanded by ART. The loans bear interest at the three-month LIBOR plus 1.25% . 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 have been approved by the ART Executive Committee for renewal until February 2020. No amounts were outstanding at December 31, 2018 and 2017 . Joint Venture Arrangement In 2018, Grace formed a joint venture in a developing country in Asia. The purpose of the joint venture is to establish a logistics facility and catalyst testing laboratory and to be the exclusive FCC catalysts and additives supplier to certain customers in the country. Grace’s joint venture partner is the parent company of the customers. Grace has an 87.5% ownership interest in the joint venture and consolidates the activities of the entity. Grace’s Consolidated Financial Statements as of and for the year ended December 31, 2018 , include trade accounts receivable and revenues of $3.7 million and $14.0 million , respectively, from these customers. |
Acquisition (Notes)
Acquisition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On April 3, 2018, using cash on hand and borrowings under the Credit Agreement, Grace acquired the assets of the polyolefin catalysts business of Albemarle Corporation. Grace acquired the business for $418.0 million , net of cash acquired and including customary post-closing adjustments. The business is included in the Specialty Catalysts operating segment of the Catalysts Technologies reportable segment. The acquisition is complementary to Grace's existing specialty catalysts business and strengthens Grace's commercial relationships, catalysts technology portfolio, and manufacturing network. The acquisition purchase price has been preliminarily allocated to the tangible and identifiable intangible assets and liabilities 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. The full $140.6 million of goodwill generated from the acquisition will be deductible for U.S. income tax purposes. The purchase price allocation is still preliminary as Grace is waiting for the valuation to be finalized. Grace does not expect any material adjustments to the preliminary valuation. During the six months ended December 31, 2018, Grace recorded adjustments related to deferred taxes, working capital, and intangible assets. The Consolidated Statements of Operations for the year ended December 31, 2018, includes approximately $86 million of sales attributable to this acquisition. Disclosure of earnings attributable to this acquisition is not practicable due to the integration of operations into Grace’s existing business. The table below presents the preliminary allocation of the acquisition purchase price. (In millions) Accounts receivable $ 13.9 Inventories 28.6 Other current assets 0.7 Properties and equipment 119.8 Goodwill 140.6 Intangible assets 121.2 Other assets 0.5 Liabilities assumed (7.3 ) Net assets acquired, net of cash acquired $ 418.0 The table below presents the intangible assets acquired and the periods over which they will be amortized. Amount (In millions) Weighted Average Amortization Period (in years) Customer Lists $ 105.4 20.0 Technology 11.5 15.0 Trademarks 4.3 15.0 Total $ 121.2 19.3 |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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, and 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. The foregoing is a summary of the Separation and Distribution Agreement. Grace has filed the full texts of the Separation and Distribution Agreement and a related 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 for the year ended December 31, 2016, are presented as discontinued operations as summarized below: (In millions) Year Ended December 31, 2016 Net sales $ 99.6 Cost of goods sold 62.6 Gross profit 37.0 Selling, general and administrative expenses 21.6 Research and development expenses 1.7 Repositioning expenses 22.0 Interest expense and related financing costs 0.7 Other expense, net 3.9 Total costs and expenses 49.9 (Loss) Income from discontinued operations before income taxes (12.9 ) Benefit from (provision for) income taxes 0.1 (Loss) Income from discontinued operations after income taxes (12.8 ) Less: Net income attributable to noncontrolling interests (0.1 ) Net (loss) income from discontinued operations $ (12.9 ) (In millions) Year Ended December 31, 2016 Cash flows from discontinued operations Net cash provided by (used for) operating activities $ 23.9 Net cash provided by (used for) investing activities (9.5 ) Net cash provided by (used for) financing activities 31.4 Effect of currency exchange rate changes on cash and cash equivalents (1.0 ) Increase (decrease) in cash and cash equivalents from discontinued operations $ 44.8 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. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary Information (Unaudited) | (In millions, except per share amounts) March 31 June 30 September 30(2) December 31(3) 2018 Net sales $ 431.5 $ 485.7 $ 494.9 $ 520.0 Gross profit 169.5 198.7 202.2 196.3 Net income (loss) 43.4 38.6 15.9 68.9 Net income (loss) attributable to W. R. Grace & Co. shareholders 43.6 38.8 16.1 69.1 Net income (loss) per share:(1) Basic earnings (loss) per share: $ 0.64 $ 0.58 $ 0.24 $ 1.03 Diluted earnings (loss) per share: 0.64 0.58 0.24 1.03 Dividends declared per share 0.24 0.24 0.24 0.24 ___________________________________________________________________________________________________________________ (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) Third quarter “net income (loss)” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of a pre-tax charge of $70.0 million for the estimated costs of future remediation-related activities at the former vermiculite mine site in Libby, Montana. (3) Fourth quarter “gross profit,” “net income (loss),” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of the annual pension mark-to-market adjustment. (In millions, except per share amounts) March 31 June 30 September 30 December 31(2) 2017 Net sales $ 398.0 $ 429.5 $ 429.5 $ 459.5 Gross profit 153.2 167.2 171.3 184.4 Net income (loss) 42.9 43.5 47.1 (123.1 ) Net income (loss) attributable to W. R. Grace & Co. shareholders 42.9 43.9 47.4 (123.0 ) Net income (loss) per share:(1) Basic earnings (loss) per share: $ 0.63 $ 0.64 $ 0.70 $ (1.81 ) Diluted earnings (loss) per share: 0.63 0.64 0.70 (1.81 ) Dividends declared per share 0.21 0.21 0.21 0.21 ___________________________________________________________________________________________________________________ (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) Fourth quarter “gross profit,” “net income (loss),” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of the annual pension mark-to-market adjustment, as well as adjustments related to the estimated impacts of the U.S. Tax Cuts and Jobs Act of 2017. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 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 $ 12.0 $ — $ — $ — $ 12.0 Valuation allowance for deferred tax assets(2) 12.0 10.7 (2.8 ) — 19.9 Reserves: Reserves for environmental remediation(3) 70.3 73.8 (17.7 ) — 126.4 Reserves for retained obligations of divested businesses 12.8 1.0 (1.6 ) — 12.2 For the Year Ended December 31, 2017 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(4) $ 2.8 $ 10.6 $ (1.3 ) $ (0.1 ) $ 12.0 Valuation allowance for deferred tax assets(5) 31.4 0.3 (19.7 ) — 12.0 Reserves: Reserves for environmental remediation 66.3 24.4 (20.4 ) — 70.3 Reserves for retained obligations of divested businesses 11.7 1.5 (0.4 ) — 12.8 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(6) 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 ___________________________________________________________________________________________________________________ (1) Effects of currency translation and, in 2016, the Separation. (2) The valuation allowance increased $7.9 million from December 31, 2017 , to December 31, 2018 . The increase was primarily due to expected foreign tax credit utilization. (3) The increase was primarily related to a pre-tax charge of $70.0 million for the estimated costs of future remediation-related activities at the former vermiculite mine site in Libby, Montana. (4) The allowance for accounts receivable increased primarily due to a $10.0 million charge to fully reserve for a trade receivable from a Venezuela-based customer related to increased economic uncertainty and the recent political unrest and sanctions. (5) The valuation allowance decreased $19.4 million from December 31, 2016 , to December 31, 2017 . The decrease was primarily due to the effects of U.S. tax reform. (6) The valuation allowance increased $23.0 million from December 31, 2015 , to December 31, 2016 . The increase was primarily due to the adoption of ASU 2016-09 as well as the ability to utilize NOL carryforwards as a result of the Separation. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. |
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 amounts 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 and environmental remediation (see Note 10 ). |
Revenue Recognition | Grace generates revenues predominantly from sales of manufactured products to customers and in part from licensing of technology. Under ASC 606, revenue from customer arrangements is recognized when control is transferred to the customer. Product Sales In its implementation of ASC 606, Grace assessed its customer arrangements at the operating segment level, and based on the similarity of arrangements, Grace elected to use the portfolio method practical expedient. Based on the promises made to customers in product sales arrangements, Grace determined that it has a performance obligation to manufacture and deliver products to its customers. Grace makes certain other promises in its customer arrangements that are immaterial in the context of the contracts. Revenue is recognized at amounts based on agreed-upon prices in sales contracts and/or purchase orders. Grace offers various incentives to its product sales customers that result in variable consideration, including but not limited to volume discounts, which reward bulk purchases by lowering the price for future purchases, and volume rebates, which encourage customers to purchase volume levels that would reduce their current prices. These incentives are immaterial in the context of the contracts. For product sales, control is transferred at the point in time at which risk of loss and title have transferred to the customer, which is determined based on shipping terms. Terms of delivery and terms of payment are generally included in customer contracts of sale, order confirmation documents, and invoices. Payment is generally due within 30 to 60 days of invoicing. Grace defers revenue recognition until no other significant Grace performance obligations remain. Grace’s customer arrangements do not contain significant acceptance provisions. Taxes that Grace collects that are assessed by a governmental authority, and that are both imposed on and concurrent with any of its revenue-producing activities, are excluded from revenue. Grace considers shipping and handling activities that it performs as activities to fulfill the sales of its products. Amounts billed for shipping and handling are included in net sales, while costs incurred for shipping and handling are included in cost of sales, in accordance with the practical expedient provided by ASC 606. Technology Licensing For Grace’s technology licensing business, Grace determined that the customer arrangements contain multiple deliverables to enable licensees to realize the full benefit of the technology. These deliverables include licensing the technology itself; developing engineering design packages; and providing training, consulting, and technical services. Under these arrangements, the license grant is not a distinct performance obligation, as the licensee only can benefit from the license in conjunction with other integral services such as development of the engineering design package, training, consulting, or technical services provided over the contract period. Therefore, Grace accounts for the license grant and integral services as a single performance obligation. Certain deliverables and services not included in the core bundled deliverables are accounted for as separate performance obligations. The transaction price is specified in the technology licensing agreements and is substantially fixed. Some services are priced on a per-diem basis, but these are not material in the context of the contracts. Grace invoices its technology licensing customers as certain project milestones are achieved. Payment terms are similar to those of Grace’s product sales. Revenue for each performance obligation is recognized when control is transferred to the customer, which is generally over a period of time. As a result, Grace generally recognizes revenue for each performance obligation ratably over the period of the contract, which is up to 7 years, depending on the scope of the licensee’s project. Based on the timing of payments, Grace records deferred revenue related to these agreements. See Note 17. |
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 net realizable value. 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, 5 to 25 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. During the 2018 first quarter, Grace, with the assistance of an outside accounting firm, completed a study to evaluate the useful lives of its operating machinery and equipment, including a review of historical asset retirement data as well as review and analysis of relevant industry practices. As a result of this study, effective January 1, 2018, Grace revised the accounting useful lives of certain machinery and equipment, which was determined to be a change in accounting estimate and is being applied prospectively. As a result of this change in accounting estimate, Grace’s depreciation expense with respect to such machinery and equipment was reduced by $23.5 million , resulting in an increase to net income of $18.0 million or $0.27 per diluted share for the year ended December 31, 2018. Estimated useful lives for operating machinery and equipment previously ranged from 3 to 10 years. |
Intangible Assets, Finite-Lived | 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. |
Long Lived Assets, Impairment | 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 any of the periods presented. |
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, 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; currency forward, swap, and/or option contracts; and interest rate swap contracts to manage exposure to fluctuations in commodity prices, currency exchange rates, and interest 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, the gain or loss on the hedge is reported in “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 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. Grace reduces the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard, Grace gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, domestic and foreign source income, the duration of statutory carryforward periods, and Grace’s experience with operating loss and tax credit carryforward expirations. 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 Consolidated 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. The TCJA (see “U.S. Tax Reform,” below) subjects a U.S. entity to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. An entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Because Grace was evaluating the provision of GILTI as of December 31, 2017, it recorded no GILTI-related deferred amounts in 2017. After further consideration in the current year, Grace has elected to account for GILTI as a period expense in the year the tax is incurred. Grace has also adopted the tax law ordering approach for evaluating the impact of GILTI on the assessment of the realizability of US deferred tax assets. |
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 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 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. 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 expensed as incurred. Under the new standard, many of these leases will be recorded on the Consolidated Balance Sheets. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides an additional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Grace will adopt these standards in the 2019 first quarter under the modified retrospective approach permitted by ASU 2018-11. Grace is finalizing its implementation of the new standard and expects to recognize material lease assets and lease liabilities on its Consolidated Balance Sheet upon adoption of Topic 842, but does not expect the standard to have a material impact on the Consolidated Statement of Operations. In January 2018, the FASB issued ASU 2018-01 “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” This update provides an optional transition practical expedient that allows an entity to elect not to evaluate under Topic 842 existing or expired land easements not previously accounted for as leases. All land easements entered into or modified after the adoption of Topic 842 must be evaluated under Topic 842. Grace, which typically does not account for easements under current lease accounting, will use the transition practical expedient when adopting Topic 842 in the 2019 first quarter. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20).” This update adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. Grace is required to adopt the amendments in this update on January 1, 2021. Grace is currently evaluating the timing of adoption and does not expect the update to have a material effect on the Consolidated Financial Statements. In October 2018, the FASB issued ASU 2018-16 “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” This update permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. Grace currently carries debt and derivatives that rely on the London Interbank Offered Rate (“LIBOR”) as a benchmark rate. LIBOR is expected to be phased out as a benchmark rate by the end of 2021. Grace expects its debt and financial instruments to continue to use LIBOR until the rate is no longer available. To the extent LIBOR ceases to exist, Grace may need to renegotiate any credit agreements and/or derivative contracts that utilize LIBOR as a factor in determining the interest rate. Currently, there is not a firm timeframe for this change. This update currently has no foreseeable impact on Grace’s Consolidated Financial Statements; however, it may have an effect in the future. Recently Adopted Accounting Standards Revenue Recognition In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”). This update was 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. Grace adopted ASC 606 with a date of initial application of January 1, 2018. Grace applied the standard to all customer contracts. As a result, Grace has changed its accounting policy for revenue recognition as detailed below. Grace applied ASC 606 using the modified retrospective method, that is, by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to “retained earnings” at the date of initial application. Results for periods beginning after December 31, 2017, are presented under ASC 606, while the comparative information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605 “Revenue Recognition” (“ASC 605”). Impact of Adoption Except for the changes below, Grace has consistently applied its accounting policy for revenue recognition to all periods presented in the Consolidated Financial Statements. Grace recorded a net increase to “retained earnings” of $2.5 million as of January 1, 2018, which represents the cumulative impact of adopting ASC 606, with a $3.2 million reduction to “other liabilities” and a $0.7 million reduction to “deferred income taxes.” The cumulative adjustment results from a change in accounting for contingent revenue related to technology licensing arrangements. Under ASC 605, certain revenue was not realized until a contractual contingency was resolved. Upon adoption of ASC 606, Grace estimates all forms of variable consideration, including contingent amounts, at the inception of the arrangement and recognizes it over the period of performance. The tables below present the effect of the adoption of ASC 606 on Grace’s Consolidated Statements of Operations and Consolidated Balance Sheets. Consolidated Statements of Operations Year Ended December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Net sales $ 1,930.3 $ 1,932.1 $ 1.8 Gross profit 764.9 766.7 1.8 Income (loss) before income taxes 243.1 244.9 1.8 Provision for income taxes (77.7 ) (78.1 ) (0.4 ) Net income (loss) 165.4 166.8 1.4 Net income (loss) attributable to W. R. Grace & Co. Shareholders 166.2 167.6 1.4 Consolidated Balance Sheets December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Deferred income taxes $ 530.5 $ 529.4 $ (1.1 ) Other liabilities 324.8 319.8 (5.0 ) Retained earnings 672.8 676.7 3.9 ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” 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. Grace adopted the update in the 2018 first quarter. The table below presents the effect of the adoption of ASU 2016-18 on previously reported amounts. Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Other investing activities $ (1.8 ) $ (1.1 ) $ 0.7 Net cash provided by (used for) investing activities (129.9 ) (129.2 ) 0.7 Cash, cash equivalents, and restricted cash, beginning of period 90.6 100.6 10.0 Cash, cash equivalents, and restricted cash, end of period 152.8 163.5 10.7 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Other investing activities $ 4.7 $ 5.3 $ 0.6 Net cash provided by (used for) investing activities (345.0 ) (344.4 ) 0.6 Cash, cash equivalents, and restricted cash, beginning of period 329.9 339.3 9.4 Cash, cash equivalents, and restricted cash, end of period 90.6 100.6 10.0 ASU 2017-07 “Compensation—Retirement Benefits (Topic 715)” In March 2017, the FASB issued ASU 2017-07 “Compensation—Retirement Benefits (Topic 715).” This update requires that the service cost component of net benefit cost be presented with other compensation costs arising from services rendered. The remaining net benefit cost is either presented as a line item in the statement of operations outside of a subtotal for income from operations, if presented, or disclosed separately. In addition, only the service cost component of net benefit cost can be capitalized. Grace adopted the update in the 2018 first quarter. The changes in classification of net benefit costs within the Consolidated Statements of Operations have been retrospectively applied to all periods presented. The change in costs capitalizable into inventory was applied prospectively in accordance with the update. The tables below present the effect of the adoption of ASU 2017-07 on previously reported amounts. Consolidated Statements of Operations Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 1,053.2 $ 1,040.4 $ (12.8 ) Gross profit 663.3 676.1 12.8 Selling, general and administrative expenses 302.6 274.0 (28.6 ) Research and development expenses 53.5 56.3 2.8 Other (income) expense (8.4 ) 30.2 38.6 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 942.7 $ 928.8 $ (13.9 ) Gross profit 655.9 669.8 13.9 Selling, general and administrative expenses 308.8 271.8 (37.0 ) Research and development expenses 48.8 51.6 2.8 Other (income) expense 13.3 61.4 48.1 Other Recently Adopted Accounting Standards 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 ASC 606. Grace adopted the update in the 2018 first quarter and applied the new definition of a business to the acquisition closed during the 2018 second quarter. 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 (“Step 2”). Because these amendments eliminate Step 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. Grace adopted the update in the 2018 fourth quarter, and it did not have a material effect on the Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09 “Compensation—Stock Compensation (Topic 718).” This update clarifies the existing definition of the term “modification,” which is currently defined as “a change in any of the terms or conditions of a share-based payment award.” The update requires entities to account for modifications of share-based payment awards unless the (1) fair value, (2) vesting conditions, and (3) classification as an equity instrument or a liability instrument of the modified award are the same as the original award before modification. Grace adopted the update in the 2018 first quarter, and it did not have an effect on the Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220).” This update addresses the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act of 2017 impacting income from continuing operations, even if the initial income tax effects were recognized in other comprehensive income. The update allows entities to reclassify the tax effects that were originally in other comprehensive income from accumulated other comprehensive income to retained earnings. The update requires entities to disclose whether the election was made and a description of the income tax effects. The update can be: (a) applied to the period of adoption, or (b) applied retrospectively to each period in which the Tax Cuts and Jobs Act of 2017 is in effect. Grace adopted the update in the 2018 fourth quarter and reclassified $2.2 million from “accumulated other comprehensive income (loss)” to “retained earnings” as of December 31, 2018. U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law, making significant changes to the Internal Revenue Code. Changes include a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. In 2017 and the first nine months of 2018, Grace recorded provisional amounts for certain enactment-date effects of the TCJA by applying the guidance in SAB 118 because it had not yet completed its enactment-date accounting for these effects. During the fourth quarter of 2018, Grace completed its accounting for all of the enactment-date income tax effects of the TCJA. As further discussed below, during 2018, Grace recognized a benefit of $17.1 million from adjustments to the provisional amounts recorded at December 31, 2017, and included these adjustments as a component of income tax expense from continuing operations. The provisional amount related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future, was a charge of $120.1 million at December 31, 2017. Upon further analysis of certain aspects of the TCJA and refinement of its calculations during the year ended December 31, 2018, Grace reduced the provisional amount by $4.9 million . The provisional amounts related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings and the state and foreign taxes on the unremitted earnings were $37.4 million and $4.9 million , respectively, at December 31, 2017. Upon further analyses of the TCJA and notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service, Grace finalized its calculation of the transition tax liability during 2018. Grace decreased the December 31, 2017, provisional amount by $9.5 million for the deemed repatriation of foreign earnings and by $2.7 million for the state and foreign taxes on unremitted earnings. These amounts are included as a component of income tax expense from continuing operations. Additionally, in 2017, Grace provisionally released valuation allowances on a portion of its state net operating losses and federal tax credits of $2.0 million and $17.4 million . Grace made no adjustments to these provisional amounts in 2018. See Note 7 for more information related to income taxes and U.S. tax reform. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies Recently Adopted Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles 2017-17 [Table Text Block] | The tables below present the effect of the adoption of ASC 606 on Grace’s Consolidated Statements of Operations and Consolidated Balance Sheets. Consolidated Statements of Operations Year Ended December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Net sales $ 1,930.3 $ 1,932.1 $ 1.8 Gross profit 764.9 766.7 1.8 Income (loss) before income taxes 243.1 244.9 1.8 Provision for income taxes (77.7 ) (78.1 ) (0.4 ) Net income (loss) 165.4 166.8 1.4 Net income (loss) attributable to W. R. Grace & Co. Shareholders 166.2 167.6 1.4 Consolidated Balance Sheets December 31, 2018 (In millions) Under ASC 605 As Reported (ASC 606) Effect of Change Deferred income taxes $ 530.5 $ 529.4 $ (1.1 ) Other liabilities 324.8 319.8 (5.0 ) Retained earnings 672.8 676.7 3.9 |
Accounting Standards Update 2016-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles 2017-17 [Table Text Block] | The table below presents the effect of the adoption of ASU 2016-18 on previously reported amounts. Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Other investing activities $ (1.8 ) $ (1.1 ) $ 0.7 Net cash provided by (used for) investing activities (129.9 ) (129.2 ) 0.7 Cash, cash equivalents, and restricted cash, beginning of period 90.6 100.6 10.0 Cash, cash equivalents, and restricted cash, end of period 152.8 163.5 10.7 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Other investing activities $ 4.7 $ 5.3 $ 0.6 Net cash provided by (used for) investing activities (345.0 ) (344.4 ) 0.6 Cash, cash equivalents, and restricted cash, beginning of period 329.9 339.3 9.4 Cash, cash equivalents, and restricted cash, end of period 90.6 100.6 10.0 |
Accounting Standards Update 2017-07 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles 2017-17 [Table Text Block] | The tables below present the effect of the adoption of ASU 2017-07 on previously reported amounts. Consolidated Statements of Operations Year Ended December 31, 2017 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 1,053.2 $ 1,040.4 $ (12.8 ) Gross profit 663.3 676.1 12.8 Selling, general and administrative expenses 302.6 274.0 (28.6 ) Research and development expenses 53.5 56.3 2.8 Other (income) expense (8.4 ) 30.2 38.6 Year Ended December 31, 2016 (In millions) Previously Reported Revised Effect of Change Cost of goods sold $ 942.7 $ 928.8 $ (13.9 ) Gross profit 655.9 669.8 13.9 Selling, general and administrative expenses 308.8 271.8 (37.0 ) Research and development expenses 48.8 51.6 2.8 Other (income) expense 13.3 61.4 48.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories are stated at the lower of cost or net realizable value, and cost is determined using FIFO. Inventories consisted of the following at December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Raw materials $ 56.3 $ 48.8 In process 49.1 33.0 Finished products 144.5 124.7 Other 31.2 24.4 $ 281.1 $ 230.9 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment | December 31, (In millions) 2018 2017 Land $ 28.4 $ 14.2 Buildings 425.0 404.5 Information technology and equipment 142.9 136.6 Machinery, equipment and other 1,668.9 1,571.8 Projects under construction 229.3 135.4 Properties and equipment, gross 2,494.5 2,262.5 Accumulated depreciation and amortization (1,482.8 ) (1,463.4 ) Properties and equipment, net $ 1,011.7 $ 799.1 |
Schedule of minimum future payments under operating leases | At December 31, 2018 , minimum future non-cancelable payments for operating leases are: (In millions) 2019 $ 8.3 2020 6.2 2021 3.4 2022 1.9 2023 1.3 Thereafter 11.4 $ 32.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , are as follows: (In millions) Catalysts Technologies Materials Technologies Total Grace Balance, December 31, 2016 $ 353.5 $ 40.7 $ 394.2 Goodwill acquired during the year — 2.4 2.4 Foreign currency translation 4.2 1.6 5.8 Balance, December 31, 2017 357.7 44.7 402.4 Goodwill acquired during the year 140.6 — 140.6 Foreign currency translation (2.0 ) (0.6 ) (2.6 ) Balance, December 31, 2018 $ 496.3 $ 44.1 $ 540.4 |
Summary of net book value of other intangible assets | Grace’s net book value of other intangible assets at December 31, 2018 and 2017 , was $356.5 million and $255.4 million , respectively, detailed as follows: 12/31/2018 12/31/2017 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Technology $ 226.2 $ 52.4 $ 214.7 $ 41.5 Customer lists 161.2 15.7 55.8 8.8 Trademarks 29.8 4.0 25.5 2.6 Other 16.1 4.7 16.0 3.7 Total $ 433.3 $ 76.8 $ 312.0 $ 56.6 |
Summary of estimated amortization expenses | At December 31, 2018 , estimated future annual amortization expense for intangible assets is: (In millions) 2019 $ 21.6 2020 21.6 2021 21.3 2022 21.2 2023 21.1 Thereafter 249.7 $ 356.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of debt | Components of Debt December 31, (In millions) 2018 2017 2018 U.S. dollar term loan, net of unamortized debt issuance costs of $8.7 $ 938.9 $ — 5.125% senior notes due 2021, net of unamortized debt issuance costs of $4.2 at December 31, 2018 (2017—$5.8) 695.8 694.2 5.625% senior notes due 2024, net of unamortized debt issuance costs of $3.0 at December 31, 2018 (2017—$3.5) 297.0 296.5 Debt payable to unconsolidated affiliate 48.1 42.4 2014 U.S. dollar term loan, net of unamortized debt issuance costs and discounts (2017—$4.3) — 404.1 2014 Euro term loan, net of unamortized debt issuance costs and discounts (2017—$1.0) — 94.0 Other borrowings(1) 3.5 12.7 Total debt 1,983.3 1,543.9 Less debt payable within one year 22.3 20.1 Debt payable after one year $ 1,961.0 $ 1,523.8 Weighted average interest rates on total debt 3.9 % 4.7 % ___________________________________________________________________________________________________________________ (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, 2018 , were as follows: (In millions) 2019 $ 22.3 2020 18.7 2021 713.0 2022 16.3 2023 15.3 Thereafter 1,197.7 Total debt $ 1,983.3 |
Fair Value Measurements and R_2
Fair Value Measurements and Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | At December 31, 2018 , the carrying amounts and fair values of Grace’s debt were as follows: 12/31/2018 12/31/2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 2018 U.S. dollar term loan(1) $ 938.9 $ 914.8 $ — $ — 5.125% senior notes due 2021(2) 695.8 697.5 694.2 728.7 5.625% senior notes due 2024(2) 297.0 301.8 296.5 321.3 2014 U.S. dollar term loan(3) — — 404.1 409.7 2014 Euro term loan(3) — — 94.0 93.7 Other borrowings 51.6 51.6 55.1 55.1 Total debt $ 1,983.3 $ 1,965.7 $ 1,543.9 $ 1,608.5 ___________________________________________________________________________________________________________________ (1) Carrying amounts are net of unamortized debt issuance costs and discounts of $8.7 million as of December 31, 2018 . (2) Carrying amounts are net of unamortized debt issuance costs of $4.2 million and $3.0 million at December 31, 2018 , and $5.8 million and $3.5 million as of December 31, 2017 , related to the 5.125% senior notes due 2021 and 5.625% senior notes due 2024, respectively. (3) Carrying amounts are net of unamortized debt issuance costs and discounts of $4.3 million and $1.0 million as of December 31, 2017 , 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, 2018 and 2017 : Fair Value Measurements at December 31, 2018, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.7 $ — $ 3.7 $ — Total Assets $ 3.7 $ — $ 3.7 $ — Liabilities Currency derivatives $ 10.5 $ — $ 10.5 $ — Interest rate derivatives 0.8 — 0.8 — Variable-to-fixed cross-currency derivatives 3.6 — 3.6 — Total Liabilities $ 14.9 $ — $ 14.9 $ — Fair Value Measurements at December 31, 2017, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 3.1 $ — $ 3.1 $ — Total Assets $ 3.1 $ — $ 3.1 $ — Liabilities Interest rate derivatives $ 1.8 $ — $ 1.8 $ — Currency derivatives 23.8 — 23.8 — Total Liabilities $ 25.6 $ — $ 25.6 $ — |
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, 2018 and 2017 : Asset Derivatives Liability Derivatives December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.4 Other current assets $ (2.9 ) Interest rate contracts Other current assets — Other current liabilities 0.1 Variable-to-fixed cross-currency swaps Other current assets — Other current assets (15.4 ) Currency contracts Other assets 1.3 Other liabilities 12.9 Interest rate contracts Other assets — Other liabilities 0.7 Variable-to-fixed cross-currency swaps Other assets — Other liabilities 19.0 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current assets (0.1 ) Currency contracts Other current assets — Other current liabilities 0.6 Total derivatives $ 3.7 $ 14.9 Asset Derivatives Liability Derivatives December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.7 Other current liabilities $ 1.4 Interest rate contracts Other current assets — Other current liabilities 1.3 Currency contracts Other assets — Other liabilities 22.2 Interest rate contracts Other assets — Other liabilities 0.5 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets 0.4 Other current liabilities 0.2 Total derivatives $ 3.1 $ 25.6 |
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, 2018 , 2017 , and 2016 : Year Ended December 31, 2018 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 $ 0.4 Interest expense $ (0.6 ) Currency contracts(1) 6.3 Other expense 6.3 Variable-to-fixed cross-currency swaps (0.6 ) Interest expense 9.7 Variable-to-fixed cross-currency swaps 40.5 Other expense 40.5 Total derivatives $ 46.6 $ 55.9 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 $ (4.0 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.4) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Year Ended December 31, 2017 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 $ 0.9 Interest expense $ (2.7 ) Currency contracts(1) (3.6 ) Other expense (2.9 ) Total derivatives $ (2.7 ) $ (5.6 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ 1.0 ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.6) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. 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 Total derivatives $ (2.3 ) $ (3.3 ) 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 ) The following table presents the total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are reported. Year Ended December 31, 2018 2017 2016 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (80.2 ) $ 16.5 $ (79.5 ) $ (30.2 ) $ (81.5 ) $ (61.4 ) Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Amount of gain or (loss) reclassified from accumulated OCI into income $ (0.6 ) $ — $ (2.7 ) $ — $ (4.1 ) $ — Variable-to-fixed cross-currency swaps Amount of gain (loss) reclassified from accumulated OCI into income 9.7 40.5 — — — — Currency contracts Amount of gain or (loss) reclassified from accumulated OCI into income — 6.3 — (2.9 ) — 0.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — 3.0 — 0.6 — — |
Schedule of Net Investment Hedges in ACOI [Table Text Block] | The following tables present the amount of gains and losses on derivative and non-derivative instruments designated as net investment hedges recorded to “currency translation adjustments” within “accumulated other comprehensive income (loss)” for the years ended December 31, 2018 , 2017 , and 2016 . 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, (In millions) 2018 2017 2016 Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ 6.0 $ (21.9 ) $ 5.6 Non-derivatives in ASC 815 net investment hedging relationships: Foreign currency denominated debt $ (4.4 ) $ (11.2 ) $ 4.6 Foreign currency denominated deferred intercompany royalties 0.5 (6.5 ) 2.5 $ (3.9 ) $ (17.7 ) $ 7.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 , 2017 , and 2016 are as follows: (In millions) 2018 2017 2016 Income from continuing operations before income taxes: Domestic $ 82.2 $ 28.3 $ 72.7 Foreign 162.7 182.6 93.3 Total $ 244.9 $ 210.9 $ 166.0 Benefit from (provision for) income taxes: Federal—current $ (4.9 ) $ — $ — Federal—deferred (29.3 ) (144.6 ) (11.8 ) State and local—current 1.6 0.2 (0.7 ) State and local—deferred (3.5 ) (1.7 ) (17.7 ) Foreign—current (49.9 ) (50.8 ) (36.6 ) Foreign—deferred 7.9 (3.6 ) 7.8 Total $ (78.1 ) $ (200.5 ) $ (59.0 ) |
Summary of tax attributes giving rise to deferred tax assets and liabilities | Deferred Tax Assets and Liabilities As of December 31, 2018 and 2017 , the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items. December 31, (In millions) 2018 2017 Deferred tax assets: Federal tax credit carryforwards $ 291.0 $ 269.6 Pension liabilities 82.7 104.8 State net operating loss carryforwards 52.9 58.2 U.S. net operating loss carryforwards 44.3 89.5 Liability for environmental remediation 29.3 16.4 Research and development 24.6 22.8 Reserves and allowances 22.8 15.2 Unrealized currency gains and losses 12.8 — Stock-based compensation 6.5 4.2 Foreign net operating loss carryforwards 5.7 6.6 Prepaid royalties 3.0 21.4 Other 6.5 10.3 Total deferred tax assets $ 582.1 $ 619.0 Deferred tax liabilities: Intangible assets $ (24.9 ) $ (15.1 ) Properties and equipment (13.2 ) (32.0 ) Other (5.6 ) (11.3 ) Total deferred tax liabilities $ (43.7 ) $ (58.4 ) Valuation allowance: State net operating loss carryforwards $ (6.6 ) $ (9.2 ) Federal tax credit carryforwards (5.2 ) (0.3 ) Foreign net operating loss carryforwards (4.2 ) (2.8 ) Foreign other (3.9 ) — Total valuation allowance (19.9 ) (12.3 ) Net deferred tax assets $ 518.5 $ 548.3 |
Schedule of Tax Reform Components [Table Text Block] | The table below summarizes the provisional amounts related to the TCJA recorded in 2017 and the adjustments recorded in 2018. (In millions) 2017 Provisional Amounts Remeasurement under SAB 118 Total Revaluation of deferred tax assets and liabilities $ 120.1 $ (4.9 ) $ 115.2 Transition tax 37.4 (9.5 ) 27.9 Federal tax credit valuation release (17.4 ) — (17.4 ) State valuation release (2.0 ) — (2.0 ) Foreign and state impact of unremitted earnings 4.9 (2.7 ) 2.2 Total tax reform $ 143.0 $ (17.1 ) $ 125.9 |
Summary of information about uncertain tax positions | A rollforward of the unrecognized tax benefits for the three years ended December 31, 2018 , follows. (In millions) Unrecognized Tax Benefits 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 Additions for current year tax positions 0.8 Additions for prior year tax positions 0.7 Reductions for prior year tax positions and reclassifications (2.5 ) Balance, December 31, 2017 17.7 Additions for current year tax positions 0.9 Additions for prior year tax positions 4.0 Reductions for prior year tax positions and reclassifications (2.8 ) Settlements (5.7 ) Balance, December 31, 2018 $ 14.1 |
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 2016 2017 United States—States 2011-2016 2017 Germany 2014-2016 2017 Sweden None 2013-2017 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. |
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 21% for 2018 ( 35% for 2017 and 2016) and Grace’s overall income tax provision is summarized as follows: (In millions) 2018 2017 2016 Tax provision at U.S. federal income tax rate $ (51.4 ) $ (73.8 ) $ (58.1 ) Change in benefit (provision) resulting from: Tax on global intangible low-taxed income (24.1 ) — — Benefits (charges) related to U.S. tax reform 17.1 (143.0 ) — Effect of tax rates in foreign jurisdictions (11.3 ) 13.3 6.8 Research and development credit 9.4 5.1 — U.S. tax on foreign earnings (6.8 ) (1.2 ) (0.9 ) Decrease (increase) in valuation allowance (6.3 ) (0.3 ) (2.5 ) Audit settlements 5.7 — — Prior-period adjustments 2.8 4.5 (2.7 ) Excess compensation (2.7 ) (0.1 ) (0.4 ) State and local income taxes, net (1.9 ) (1.8 ) (4.7 ) Nontaxable income/non-deductible expenses (1.6 ) (2.6 ) (2.5 ) Stock-based compensation (0.7 ) 2.8 6.7 Other (6.3 ) (3.4 ) (0.7 ) Benefit from (provision for) income taxes $ (78.1 ) $ (200.5 ) $ (59.0 ) |
Pension Plans and Other Retir_2
Pension Plans and Other Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 and 2017 : Defined Benefit Pension Plans (In millions) U.S. Non-U.S. Total 2018 2017 2018 2017 2018 2017 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year $ 1,325.6 $ 1,274.2 $ 323.1 $ 269.1 $ 1,648.7 $ 1,543.3 Service cost 19.2 17.1 9.5 8.4 28.7 25.5 Interest cost 40.9 42.0 5.0 4.4 45.9 46.4 Settlements (160.9 ) — — — (160.9 ) — Acquisitions — — 0.6 0.4 0.6 0.4 Actuarial (gain) loss (102.6 ) 88.3 (11.9 ) 13.4 (114.5 ) 101.7 Benefits paid (95.1 ) (91.2 ) (8.4 ) (7.8 ) (103.5 ) (99.0 ) Currency exchange translation adjustments — — (12.3 ) 35.2 (12.3 ) 35.2 Other — (4.8 ) — — — (4.8 ) Benefit obligation at end of year $ 1,027.1 $ 1,325.6 $ 305.6 $ 323.1 $ 1,332.7 $ 1,648.7 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,109.8 $ 1,086.4 $ 21.5 $ 18.2 $ 1,131.3 $ 1,104.6 Actual return on plan assets (41.9 ) 112.7 (1.7 ) 1.6 (43.6 ) 114.3 Employer contributions 56.9 9.6 9.6 8.2 66.5 17.8 Settlements (158.6 ) — — — (158.6 ) — Benefits paid (95.1 ) (91.2 ) (8.4 ) (7.8 ) (103.5 ) (99.0 ) Currency exchange translation adjustments — — (1.5 ) 1.3 (1.5 ) 1.3 Other — (7.7 ) — — — (7.7 ) Fair value of plan assets at end of year $ 871.1 $ 1,109.8 $ 19.5 $ 21.5 $ 890.6 $ 1,131.3 Funded status at end of year (PBO basis) $ (156.0 ) $ (215.8 ) $ (286.1 ) $ (301.6 ) $ (442.1 ) $ (517.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ 5.7 $ — $ — $ — $ 5.7 $ — Current liabilities (7.0 ) (7.0 ) (7.7 ) (8.0 ) (14.7 ) (15.0 ) Noncurrent liabilities (154.7 ) (208.8 ) (278.4 ) (293.6 ) (433.1 ) (502.4 ) Net amount recognized $ (156.0 ) $ (215.8 ) $ (286.1 ) $ (301.6 ) $ (442.1 ) $ (517.4 ) Amounts recognized in Accumulated Other Comprehensive (Income) Loss consist of: Prior service credit $ (3.2 ) $ (3.9 ) $ (0.1 ) $ (0.1 ) $ (3.3 ) $ (4.0 ) Net amount recognized $ (3.2 ) $ (3.9 ) $ (0.1 ) $ (0.1 ) $ (3.3 ) $ (4.0 ) Defined Benefit Pension Plans (In millions) U.S. Non-U.S. 2018 2017 2018 2017 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.22 % 3.57 % 2.17 % 1.84 % Rate of compensation increase 4.10 % 4.10 % 2.59 % 2.64 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate for determining service cost 3.77 % 4.41 % 1.99 % 2.09 % Discount rate for determining interest cost 3.20 % 3.42 % 1.57 % 1.69 % Expected return on plan assets 5.25 % 5.50 % 4.69 % 4.69 % Rate of compensation increase 4.10 % 4.10 % 2.64 % 3.09 % |
Schedule of Net Benefit Costs [Table Text Block] | The following table presents the components of net periodic benefit cost (income) and other amounts recognized in “other comprehensive (income) loss.” (In millions) 2018 2017 2016 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Net Periodic Benefit Cost (Income) Service cost $ 19.2 $ 9.5 $ 17.1 $ 8.4 $ 17.8 $ 6.8 Interest cost 40.9 5.0 42.0 4.4 40.5 5.1 Expected return on plan assets (57.2 ) (1.0 ) (57.5 ) (0.9 ) (56.7 ) (1.0 ) Amortization of prior service cost (credit) (0.6 ) — (0.4 ) — (0.2 ) — Annual mark-to-market adjustment (gain) loss (3.4 ) (9.2 ) 36.0 13.2 23.3 40.1 Net curtailment and settlement gain (2.3 ) — — — — (1.0 ) Net periodic benefit cost (income) $ (3.4 ) $ 4.3 $ 37.2 $ 25.1 $ 24.7 $ 50.0 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net prior service credit $ — $ — $ — $ — $ (1.3 ) $ — Amortization of prior service cost (credit) 0.6 — 0.4 — 0.2 — Total recognized in OCI 0.6 — 0.4 — (1.1 ) — Total recognized in net periodic benefit cost (income) and OCI $ (2.8 ) $ 4.3 $ 37.6 $ 25.1 $ 23.6 $ 50.0 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table presents the funded status of defined benefit pension plans that are underfunded or unfunded on an accumulated benefit obligation basis. (In millions) U.S. Non-U.S. Total 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 994.8 $ 1,325.6 $ 284.5 $ 298.4 $ 1,279.3 $ 1,624.0 Accumulated benefit obligation 960.1 1,286.0 253.2 263.6 1,213.3 1,549.6 Fair value of plan assets 833.0 1,109.8 0.7 — 833.7 1,109.8 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated Expected Future Benefit Payments Including Future Service for the Fiscal Years Ending (In millions) Pension Plans Total Payments U.S. Non-U.S.(1) Benefit Payments Benefit Payments 2019 $ 72.1 $ 8.5 $ 80.6 2020 71.9 8.4 80.3 2021 71.9 8.6 80.5 2022 72.2 8.8 81.0 2023 71.7 9.1 80.8 2024 - 2028 349.9 50.0 399.9 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2019 and future periods have been translated at the applicable December 31, 2018 , 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) 2018 2017 Overfunded defined benefit pension plans $ 5.7 $ — Underfunded defined benefit pension plans (67.1 ) (110.5 ) Unfunded defined benefit pension plans (366.0 ) (391.9 ) Total underfunded and unfunded defined benefit pension plans (433.1 ) (502.4 ) Pension liabilities included in other current liabilities (14.7 ) (15.0 ) Net funded status $ (442.1 ) $ (517.4 ) Funded Status of U.S. Pension Plans (In millions) Fully-Funded U.S. Qualified Pension Plans(1) Underfunded U.S. Qualified Pension Plans(1) Unfunded Pay-As-You-Go U.S. Nonqualified Plans(2) 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 32.4 $ — $ 897.6 $ 1,217.1 $ 97.1 $ 108.5 Fair value of plan assets 38.1 — 833.0 1,109.8 — — Funded status (PBO basis) $ 5.7 $ — $ (64.6 ) $ (107.3 ) $ (97.1 ) $ (108.5 ) 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) 2018 2017 2018 2017 Projected benefit obligation $ 22.7 $ 24.7 $ 282.9 $ 298.4 Fair value of plan assets 19.5 21.5 — — Funded status (PBO basis) $ (3.2 ) $ (3.2 ) $ (282.9 ) $ (298.4 ) ___________________________________________________________________________________________________________________ (1) Plans intended to be advance-funded. (2) Plans intended to be pay-as-you-go. |
Foreign Plan [Member] | Pension Plans | |
Pension plans and other postretirement benefit plans | |
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, 2018 and 2017 . Fair Value Measurements at December 31, 2018, 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) Corporate bonds $ 0.4 $ — $ 0.4 $ — Insurance contracts and other investments 0.4 — 0.4 — Cash 0.1 0.1 — — $ 0.9 $ 0.1 $ 0.8 $ — Investments measured at net asset value(1) 18.6 Total Assets at Fair Value $ 19.5 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Fair Value Measurements at December 31, 2017, 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) Corporate bonds $ 0.4 $ — $ 0.4 $ — Insurance contracts and other investments 0.3 — 0.3 — $ 0.7 $ — $ 0.7 $ — Investments measured at net asset value(1) 20.8 Total Assets at Fair Value $ 21.5 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Qualified Plan [Member] | Domestic Plan [Member] | 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, 2018 , and the actual allocation at December 31, 2018 and 2017 , 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 2018 2018 2017 U.S. equity securities 9 % 8 % 11 % Non-U.S. equity securities 4 % 4 % 5 % Short-term debt securities 4 % 4 % 10 % Intermediate-term debt securities 36 % 36 % 32 % Long-term debt securities 45 % 46 % 40 % 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, 2018 and 2017 . Fair Value Measurements at December 31, 2018, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common/collective trust funds $ 10.5 $ — $ 10.5 $ — Annuity and immediate participation contracts 19.8 — 19.8 — $ 30.3 $ — $ 30.3 $ — Investments measured at net asset value(1) 840.8 Total Assets at Fair Value $ 871.1 ___________________________________________________________________________________________________________________ (1) In accordance with ASC 820-10, certain investments that are measured at net asset value (“NAV”) per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Fair Value Measurements at December 31, 2017, 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 $ 10.2 $ — $ 10.2 $ — Annuity and immediate participation contracts 19.0 — 19.0 — $ 29.2 $ — $ 29.2 $ — Investments measured at net asset value(1) 1,080.6 Total Assets at Fair Value $ 1,109.8 |
Canada | 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, 2018 , and the actual allocation at December 31, 2018 and 2017 , for the Canadian pension plan are as follows: Target Allocation Percentage of Plan Assets December 31, Canadian Pension Plan Asset Category 2018 2018 2017 Equity securities 27 % 28 % 28 % Bonds 58 % 58 % 58 % Other investments 15 % 14 % 14 % Total 100 % 100 % 100 % |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of other balance sheet accounts | December 31, (In millions) 2018 2017 Other Current Liabilities Accrued compensation $ 62.4 $ 60.7 Deferred revenue (see Note 17) 40.6 19.5 Environmental contingencies (see Note 10) 19.5 23.5 Pension liabilities (see Note 8) 14.7 15.0 Accrued interest (see Note 5) 13.3 16.5 Income taxes payable (see Note 7) 11.3 12.2 Other accrued liabilities 81.7 70.4 $ 243.5 $ 217.8 Accrued compensation includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. December 31, (In millions) 2018 2017 Other Liabilities Environmental contingencies (see Note 10) $ 106.9 $ 46.8 Liability to unconsolidated affiliate (see Note 19) 98.8 32.7 Fair value of currency and interest rate contracts (see Note 6) 32.6 22.7 Deferred revenue (see Note 17) 29.2 14.9 Deferred income taxes (see Note 7) 10.9 8.2 Asset retirement obligation 8.8 10.4 Postemployment liability 4.7 5.2 Other noncurrent liabilities 27.9 28.4 $ 319.8 $ 169.3 |
Restructuring Expenses and Re_2
Restructuring Expenses and Repositioning Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring expenses and related asset impairments | The following table presents restructuring expenses by reportable segment for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, (In millions) 2018 2017 2016 Catalysts Technologies $ 13.7 $ 3.7 $ 3.4 Materials Technologies 0.5 (0.1 ) 15.1 Corporate (0.2 ) 7.9 5.8 Total restructuring expenses $ 14.0 $ 11.5 $ 24.3 |
Schedule of restructuring liability | The following table presents components of the change in the restructuring liability for the years ended December 31, 2018 , 2017 , and 2016 : (In millions) Total 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 Accruals for severance and other costs 11.4 Payments (14.4 ) Currency translation adjustments and other 0.1 Balance, December 31, 2017 $ 6.7 Accruals for severance and other costs 10.1 Payments (6.1 ) Balance, December 31, 2018 $ 10.7 |
Other Expense, net (Tables)
Other Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Defined benefit pension (income) expense other than service cost $ (27.8 ) $ 38.6 $ 48.0 Third-party acquisition-related costs 7.3 2.9 2.5 Loss on early extinguishment of debt 4.8 — 11.1 Currency transaction effects (4.0 ) 5.0 (1.0 ) Net (gain) loss on sales of investments and disposals of assets 2.6 1.6 (1.4 ) Chapter 11 expenses, net 2.6 1.4 3.4 Business interruption insurance recoveries — (26.6 ) — Accounts receivable reserve—Venezuela — 10.0 — Other miscellaneous expense (income) (2.0 ) (2.7 ) (1.2 ) Total other (income) expense, net $ (16.5 ) $ 30.2 $ 61.4 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 , and 2016 : Year Ended December 31, 2018 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 $ (1.6 ) $ 0.4 $ (1.2 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Benefit plans, net (1.2 ) 0.3 (0.9 ) Currency translation adjustments 34.6 (2.2 ) 32.4 Gain (loss) from hedging activities (10.0 ) 4.3 (5.7 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 23.4 $ 2.4 $ 25.8 Year Ended December 31, 2017 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 $ (2.3 ) $ 0.8 $ (1.5 ) Amortization of net deferred actuarial loss included in net periodic benefit cost 0.4 (0.1 ) 0.3 Net deferred actuarial gain (loss) arising during period (0.1 ) — (0.1 ) Benefit plans, net (2.0 ) 0.7 (1.3 ) Currency translation adjustments (23.1 ) (2.9 ) (26.0 ) Gain (loss) from hedging activities 2.9 (2.1 ) 0.8 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (22.2 ) $ (4.3 ) $ (26.5 ) 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 ) |
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, 2018 , 2017 , and 2016 : Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2015 $ 3.0 $ (66.1 ) $ (3.7 ) $ (66.8 ) OCI before reclassifications 0.9 (1.8 ) (1.8 ) (2.7 ) Amounts reclassified from accumulated OCI (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 OCI before reclassifications (0.1 ) (26.0 ) (2.7 ) (28.8 ) Amounts reclassified from accumulated OCI (1.2 ) — 3.5 2.3 Net current-period other comprehensive income (loss) (1.3 ) (26.0 ) 0.8 (26.5 ) Balance, December 31, 2017 $ 0.9 $ 41.6 $ (2.6 ) $ 39.9 OCI before reclassifications — 32.4 11.1 43.5 Amounts reclassified from accumulated OCI (0.9 ) — (16.8 ) (17.7 ) Net current-period other comprehensive income (loss) (0.9 ) 32.4 (5.7 ) 25.8 Effect of adopting ASU 2018-02 0.2 2.2 (0.2 ) 2.2 Balance, December 31, 2018 $ 0.2 $ 76.2 $ (8.5 ) $ 67.9 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of information relating to common stock activity | The following table sets forth information relating to common stock activity for the years ended December 31, 2018 , 2017 , and 2016 : Balance of outstanding shares, December 31, 2015 70,533,515 Stock options exercised 745,938 Shares issued 110,953 Shares forfeited (305,678 ) Shares repurchased (2,775,297 ) Balance of outstanding shares, December 31, 2016 68,309,431 Stock options exercised 386,300 Shares issued 49,897 Shares forfeited through net share exercise (29,783 ) Shares repurchased (935,435 ) Balance of outstanding shares, December 31, 2017 67,780,410 Stock options exercised 243,502 Shares issued 72,590 Shares forfeited through net share exercise (132,393 ) Shares repurchased (1,171,141 ) Balance of outstanding shares, December 31, 2018 66,792,968 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 , 2017 , and 2016 . Stock Option Activity Number Of Shares Average Exercise Price Weighted- Average Grant Date Fair Value 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 66.83 Options exercised (386,300 ) 45.21 Options forfeited (34,545 ) 72.97 Options terminated (23,320 ) 75.60 Options granted 316,830 71.37 13.00 Balance, December 31, 2017 1,813,450 72.04 Options exercised (243,502 ) 61.92 Options forfeited (90,862 ) 69.82 Options terminated (33,481 ) 75.07 Options granted 428,190 67.36 12.30 Balance, December 31, 2018 1,873,795 72.34 |
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, 2018 . Stock Option Activity Number Of Shares Weighted- Average Grant Date Fair Value Nonvested options outstanding at beginning of year 719,027 $ 15.47 Granted 428,190 12.30 Vested (358,511 ) 18.14 Forfeited (124,343 ) 14.99 Nonvested options outstanding at end of year 664,363 12.88 |
Schedule of stock options outstanding and exercisable by exercise price range | A summary of our stock options outstanding and exercisable at December 31, 2018 , follows: Exercise Price Range Number Outstanding Number Exercisable Outstanding Weighted- Average Remaining Contractual Life (Years) Exercisable Weighted- Average Exercise Price $60 - $70 710,321 226,938 3.23 68.27 $70 - $80 1,139,369 958,389 1.46 75.72 $80 - $90 24,105 24,105 0.16 80.76 1,873,795 1,209,432 |
Schedule of the assumptions used for estimating the fair value of stock options granted during the period | The following summarizes the weighted average assumptions used for estimating the fair value of stock options granted during 2018 , 2017 and 2016 , respectively. 2018 2017 2016 Expected volatility 22.9% - 24.4% 23.8% - 25.1% 26.2% - 27.5% Weighted average expected volatility 23.7% 24.8% 26.6% Expected term 3.00 - 6.50 years 3.00 - 4.00 years 3.00 - 4.00 years Risk-free rate 2.55% 1.66% 1.01% Dividend yield 1.4% 1.2% 1.0% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Numerators Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders $ 167.6 $ 11.2 $ 107.0 Income (loss) from discontinued operations, net of income taxes — — (12.9 ) Net income (loss) attributable to W. R. Grace & Co. shareholders $ 167.6 $ 11.2 $ 94.1 Denominators Weighted average common shares—basic calculation 67.2 68.1 70.1 Dilutive effect of employee stock options 0.1 0.1 0.4 Weighted average common shares—diluted calculation 67.3 68.2 70.5 Basic earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 2.49 $ 0.16 $ 1.53 Income (loss) from discontinued operations, net of income taxes — — (0.19 ) Net income (loss) $ 2.49 $ 0.16 $ 1.34 Diluted earnings per share attributable to W. R. Grace & Co. shareholders Income (loss) from continuing operations $ 2.49 $ 0.16 $ 1.52 Income (loss) from discontinued operations, net of income taxes — — (0.19 ) Net income (loss) $ 2.49 $ 0.16 $ 1.33 |
Revenues Revenues (Tables)
Revenues Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables present Grace's revenues by geography and product group, within its respective reportable segments, for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, 2018 North America Europe Middle East Africa (EMEA) Asia Pacific Latin America Total Refining Catalysts $ 282.8 $ 266.0 $ 193.4 $ 59.8 $ 802.0 Polyolefin and Chemical Catalysts 192.6 255.4 193.2 20.3 661.5 Total Catalysts Technologies $ 475.4 $ 521.4 $ 386.6 $ 80.1 $ 1,463.5 Coatings $ 28.1 $ 75.3 $ 43.3 $ 8.7 $ 155.4 Consumer/Pharma 36.2 58.0 19.0 19.4 132.6 Chemical process 35.2 81.6 32.2 8.3 157.3 Other 6.8 15.9 0.4 0.2 23.3 Total Materials Technologies $ 106.3 $ 230.8 $ 94.9 $ 36.6 $ 468.6 Total Grace $ 581.7 $ 752.2 $ 481.5 $ 116.7 $ 1,932.1 Year Ended December 31, 2017 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 269.5 $ 236.4 $ 199.3 $ 52.9 $ 758.1 Polyolefin and Chemical Catalysts 117.4 218.1 166.4 16.5 518.4 Total Catalysts Technologies $ 386.9 $ 454.5 $ 365.7 $ 69.4 $ 1,276.5 Coatings $ 26.0 $ 66.9 $ 41.3 $ 8.0 $ 142.2 Consumer/Pharma 38.2 48.3 17.8 19.0 123.3 Chemical process 28.5 83.7 34.8 6.5 153.5 Other 6.4 14.3 0.2 0.1 21.0 Total Materials Technologies $ 99.1 $ 213.2 $ 94.1 $ 33.6 $ 440.0 Total Grace(1) $ 486.0 $ 667.7 $ 459.8 $ 103.0 $ 1,716.5 ___________________________________________________________________________________________________________________ (1) Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605. Year Ended December 31, 2016 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 285.8 $ 235.5 $ 141.2 $ 62.4 $ 724.9 Polyolefin and Chemical Catalysts 100.4 203.3 119.9 15.2 438.8 Total Catalysts Technologies $ 386.2 $ 438.8 $ 261.1 $ 77.6 $ 1,163.7 Coatings $ 25.4 $ 63.9 $ 38.9 $ 8.3 $ 136.5 Consumer/Pharma 43.0 47.3 14.7 16.9 121.9 Chemical process 26.8 78.2 29.3 8.3 142.6 Other 9.3 19.6 4.9 0.1 33.9 Total Materials Technologies $ 104.5 $ 209.0 $ 87.8 $ 33.6 $ 434.9 Total Grace(1) $ 490.7 $ 647.8 $ 348.9 $ 111.2 $ 1,598.6 ___________________________________________________________________________________________________________________ (1) Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605. |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The following table presents Grace’s deferred revenue balances as of December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Current $ 40.6 $ 19.5 Noncurrent 29.2 14.9 Total $ 69.8 $ 34.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Grace expects to recognize revenue related to remaining performance obligations over several years, as follows: Year Approximate percentage of revenue related to remaining performance obligations recognized 2019 31 % 2020 24 % 2021 20 % Thereafter through 2025 25 % 100 % |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of operating segment data | Reportable Segment Data Year Ended December 31, (In millions) 2018 2017 2016 Net Sales Catalysts Technologies $ 1,463.5 $ 1,276.5 $ 1,163.7 Materials Technologies 468.6 440.0 434.9 Total $ 1,932.1 $ 1,716.5 $ 1,598.6 Adjusted EBIT Catalysts Technologies segment operating income $ 440.5 $ 395.4 $ 367.8 Materials Technologies segment operating income 105.6 100.6 104.0 Corporate costs (73.5 ) (69.0 ) (59.4 ) Gain on termination and curtailment of postretirement plans related to current businesses — — 0.2 Certain pension costs (15.9 ) (13.0 ) (12.3 ) Total $ 456.7 $ 414.0 $ 400.3 Depreciation and Amortization Catalysts Technologies $ 81.7 $ 87.1 $ 77.4 Materials Technologies 15.5 19.6 19.5 Corporate 3.6 4.8 3.4 Total $ 100.8 $ 111.5 $ 100.3 Capital Expenditures Catalysts Technologies $ 150.3 $ 100.9 $ 84.9 Materials Technologies 56.1 20.9 24.0 Corporate 9.9 3.4 8.0 Total $ 216.3 $ 125.2 $ 116.9 Total Assets Catalysts Technologies $ 2,326.6 $ 1,757.1 $ 1,675.1 Materials Technologies 375.9 326.8 313.1 Corporate 862.8 823.1 923.6 Total $ 3,565.3 $ 2,907.0 $ 2,911.8 |
Schedule of reconciliation of operating segment data to financial statements | Grace Adjusted EBIT for the years ended December 31, 2018 , 2017 and 2016 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) 2018 2017 2016 Grace Adjusted EBIT $ 456.7 $ 414.0 $ 400.3 Costs related to legacy product, environmental and other claims (84.6 ) (30.8 ) (35.4 ) Restructuring and repositioning expenses (46.4 ) (26.7 ) (38.6 ) Pension MTM adjustment and other related costs, net 15.2 (51.1 ) (60.3 ) Third-party acquisition-related costs (7.3 ) (2.9 ) (2.5 ) Amortization of acquired inventory fair value adjustment (6.9 ) — (8.0 ) Loss on early extinguishment of debt (4.8 ) — (11.1 ) Income and expense items related to divested businesses 2.3 (2.3 ) 0.1 Accounts receivable reserve—Venezuela — (10.0 ) — Gain (loss) on sale of product line — — 1.7 Gain on termination and curtailment of postretirement plans related to divested businesses — — 0.3 Interest expense, net (78.5 ) (78.5 ) (80.5 ) Net income (loss) attributable to noncontrolling interests (0.8 ) (0.8 ) — Income (loss) from continuing operations before income taxes $ 244.9 $ 210.9 $ 166.0 |
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) 2018 2017 2016 Net Sales United States $ 533.8 $ 437.3 $ 446.2 Canada 47.9 48.7 44.5 Total North America 581.7 486.0 490.7 Europe Middle East Africa 752.2 667.7 647.8 Asia Pacific 481.5 459.8 348.9 Latin America 116.7 103.0 111.2 Total $ 1,932.1 $ 1,716.5 $ 1,598.6 Long-Lived Assets(1) United States $ 793.0 $ 599.8 $ 564.5 Canada 16.5 15.5 13.9 Total North America 809.5 615.3 578.4 Germany 172.5 142.2 109.7 Rest of Europe Middle East Africa 48.9 45.3 39.5 Total Europe Middle East Africa 221.4 187.5 149.2 Asia Pacific 72.9 21.1 21.5 Latin America 6.7 7.9 7.5 Total $ 1,110.5 $ 831.8 $ 756.6 ___________________________________________________________________________________________________________________ (1) Long-lived assets include properties and equipment and the noncurrent asset related to a hydroprocessing catalyst plant to be transferred to ART upon completion. (See Note 19 .) |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information of equity method investee | The table below presents summary financial data related to ART’s balance sheet and results of operations. December 31, (In millions) 2018 2017 Summary Balance Sheet information: Current assets $ 307.4 $ 239.8 Noncurrent assets 160.2 91.5 Total assets $ 467.6 $ 331.3 Current liabilities $ 133.3 $ 82.4 Noncurrent liabilities 25.3 0.3 Total liabilities $ 158.6 $ 82.7 Year Ended December 31, (In millions) 2018 2017 2016 Summary Statement of Operations information: Net sales $ 487.5 $ 447.3 $ 388.9 Costs and expenses applicable to net sales 410.6 379.8 322.1 Income before income taxes 65.5 53.6 60.8 Net income 64.2 52.1 59.3 |
Summary of related party transactions - unconsolidated affiliate | The table below presents summary financial data related to transactions between Grace and ART. Year Ended December 31, (In millions) 2018 2017 2016 Product manufactured for ART $ 229.1 $ 213.8 $ 210.4 Mark-up on product manufactured for ART included as a reduction of Grace’s cost of goods sold 4.5 4.2 4.2 Charges for fixed costs; research and development; selling, general and administrative services; and depreciation to ART 41.8 41.7 33.8 The table below presents balances in Grace’s Consolidated Financial Statements related to ART. December 31, (in millions) 2018 2017 Accounts receivable $ 16.2 $ 20.1 Noncurrent asset 98.8 32.7 Accounts payable 32.0 22.3 Debt payable within one year 9.8 8.6 Debt payable after one year 38.3 33.8 Noncurrent liability 98.8 32.7 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The table below presents the preliminary allocation of the acquisition purchase price. (In millions) Accounts receivable $ 13.9 Inventories 28.6 Other current assets 0.7 Properties and equipment 119.8 Goodwill 140.6 Intangible assets 121.2 Other assets 0.5 Liabilities assumed (7.3 ) Net assets acquired, net of cash acquired $ 418.0 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The table below presents the intangible assets acquired and the periods over which they will be amortized. Amount (In millions) Weighted Average Amortization Period (in years) Customer Lists $ 105.4 20.0 Technology 11.5 15.0 Trademarks 4.3 15.0 Total $ 121.2 19.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 for the year ended December 31, 2016, are presented as discontinued operations as summarized below: (In millions) Year Ended December 31, 2016 Net sales $ 99.6 Cost of goods sold 62.6 Gross profit 37.0 Selling, general and administrative expenses 21.6 Research and development expenses 1.7 Repositioning expenses 22.0 Interest expense and related financing costs 0.7 Other expense, net 3.9 Total costs and expenses 49.9 (Loss) Income from discontinued operations before income taxes (12.9 ) Benefit from (provision for) income taxes 0.1 (Loss) Income from discontinued operations after income taxes (12.8 ) Less: Net income attributable to noncontrolling interests (0.1 ) Net (loss) income from discontinued operations $ (12.9 ) (In millions) Year Ended December 31, 2016 Cash flows from discontinued operations Net cash provided by (used for) operating activities $ 23.9 Net cash provided by (used for) investing activities (9.5 ) Net cash provided by (used for) financing activities 31.4 Effect of currency exchange rate changes on cash and cash equivalents (1.0 ) Increase (decrease) in cash and cash equivalents from discontinued operations $ 44.8 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Summary Information (Unaudited) | (In millions, except per share amounts) March 31 June 30 September 30(2) December 31(3) 2018 Net sales $ 431.5 $ 485.7 $ 494.9 $ 520.0 Gross profit 169.5 198.7 202.2 196.3 Net income (loss) 43.4 38.6 15.9 68.9 Net income (loss) attributable to W. R. Grace & Co. shareholders 43.6 38.8 16.1 69.1 Net income (loss) per share:(1) Basic earnings (loss) per share: $ 0.64 $ 0.58 $ 0.24 $ 1.03 Diluted earnings (loss) per share: 0.64 0.58 0.24 1.03 Dividends declared per share 0.24 0.24 0.24 0.24 ___________________________________________________________________________________________________________________ (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) Third quarter “net income (loss)” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of a pre-tax charge of $70.0 million for the estimated costs of future remediation-related activities at the former vermiculite mine site in Libby, Montana. (3) Fourth quarter “gross profit,” “net income (loss),” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of the annual pension mark-to-market adjustment. (In millions, except per share amounts) March 31 June 30 September 30 December 31(2) 2017 Net sales $ 398.0 $ 429.5 $ 429.5 $ 459.5 Gross profit 153.2 167.2 171.3 184.4 Net income (loss) 42.9 43.5 47.1 (123.1 ) Net income (loss) attributable to W. R. Grace & Co. shareholders 42.9 43.9 47.4 (123.0 ) Net income (loss) per share:(1) Basic earnings (loss) per share: $ 0.63 $ 0.64 $ 0.70 $ (1.81 ) Diluted earnings (loss) per share: 0.63 0.64 0.70 (1.81 ) Dividends declared per share 0.21 0.21 0.21 0.21 ___________________________________________________________________________________________________________________ (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) Fourth quarter “gross profit,” “net income (loss),” and “net income (loss) attributable to W. R. Grace & Co. shareholders” include the effects of the annual pension mark-to-market adjustment, as well as adjustments related to the estimated impacts of the U.S. Tax Cuts and Jobs Act of 2017. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)segment$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Feb. 03, 2016shares | |
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 | |||||||||||
Cash Equivalents | ||||||||||||
Cash Equivalents, Maximum Remaining Maturity Period at Purchase Maximum | 3 months | |||||||||||
Long-lived assets | ||||||||||||
Effective Income Tax Rate Reconciliation, GILTI, Amount | $ 24.1 | $ 0 | $ 0 | |||||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||||||||
Tangible Asset Impairment Charges | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 100.8 | 111.5 | 100.3 | |||||||||
Net income (loss) | $ 68.9 | $ 15.9 | $ 38.6 | $ 43.4 | $ (123.1) | $ 47.1 | $ 43.5 | $ 42.9 | $ 166.8 | $ 10.4 | $ 94.1 | |
Net income (loss) | $ / shares | $ 1.03 | $ 0.24 | $ 0.58 | $ 0.64 | $ (1.81) | $ 0.70 | $ 0.64 | $ 0.63 | $ 2.49 | $ 0.16 | $ 1.33 | |
Minimum | ||||||||||||
Long-lived assets | ||||||||||||
Revenue, Performance Obligation, Description of Payment Terms | 30 | |||||||||||
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 | 5 years | 3 years | ||||||||||
Minimum | Furniture and fixtures [Member] | ||||||||||||
Long-lived assets | ||||||||||||
Long lived assets, estimated useful life | 5 years | |||||||||||
Maximum | ||||||||||||
Long-lived assets | ||||||||||||
Revenue, Performance Obligation, Description of Payment Terms | 60 | |||||||||||
Finite lived intangible assets, estimated useful life | 30 years | |||||||||||
Revenue from Contract with Customer, Contract Term | 7 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 | 25 years | 10 years | ||||||||||
Maximum | Furniture and fixtures [Member] | ||||||||||||
Long-lived assets | ||||||||||||
Long lived assets, estimated useful life | 10 years | |||||||||||
Service Life [Member] | Operating machinery and equipment [Member] | ||||||||||||
Long-lived assets | ||||||||||||
Depreciation and amortization | $ 23.5 | |||||||||||
Net income (loss) | $ 18 | |||||||||||
Net income (loss) | $ / shares | $ 0.27 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Other investing activities | $ 13.4 | $ (1.1) | $ 5.3 | |||||||||||
Cost of goods sold | 1,165.4 | 1,040.4 | 928.8 | |||||||||||
Selling, general and administrative expenses | 307 | 274 | 271.8 | |||||||||||
Research and development expenses | 62.7 | 56.3 | 51.6 | |||||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | 1,932.1 | 1,716.5 | $ 1,598.6 | |||
Retained Earnings (Accumulated Deficit) | (676.7) | (573.1) | (676.7) | (573.1) | $ (676.7) | |||||||||
Other liabilities | 319.8 | 169.3 | 319.8 | 169.3 | 319.8 | |||||||||
Deferred Income Tax Assets, Net | 529.4 | 529.4 | 529.4 | |||||||||||
Restricted cash and cash equivalents | 0.5 | 10.7 | $ 0.5 | $ 10.7 | 0.5 | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% | |||||||||||
Effective Income Tax Rate Reconciliation, Tax Reform, Amount | $ 17.1 | $ (143) | $ 0 | (125.9) | ||||||||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 4.9 | (120.1) | (115.2) | |||||||||||
Income tax expense, repatriation of foreign earnings | 9.5 | (37.4) | (27.9) | |||||||||||
Income tax expense, state and foreign taxes on unremitted earnings | (2.7) | 4.9 | 2.2 | |||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (7.6) | |||||||||||||
Gross profit | 196.3 | 202.2 | 198.7 | 169.5 | 184.4 | 171.3 | 167.2 | 153.2 | 766.7 | 676.1 | 669.8 | |||
Income (loss) from continuing operations before income taxes | 244.9 | 210.9 | 166 | |||||||||||
Income Tax Expense (Benefit) | (78.1) | (200.5) | (59) | |||||||||||
Net income (loss) | 68.9 | 15.9 | 38.6 | 43.4 | (123.1) | 47.1 | 43.5 | 42.9 | 166.8 | 10.4 | 94.1 | |||
Net income (loss) attributable to W. R. Grace & Co. shareholders | 69.1 | $ 16.1 | $ 38.8 | $ 43.6 | (123) | $ 47.4 | $ 43.9 | $ 42.9 | 167.6 | 11.2 | 94.1 | |||
Other expense, net | (16.5) | 30.2 | 61.4 | |||||||||||
Net Cash Provided by (Used in) Investing Activities | (129.2) | (344.4) | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 201 | 163.5 | 201 | 163.5 | 100.6 | 201 | $ 339.3 | |||||||
Deferred Tax Asset Deferred Federal Credits [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | 17.4 | 17.4 | |||||||||||
State and Local Jurisdiction [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2.6 | |||||||||||||
State and Local Jurisdiction [Member] | Net Operating Loss [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | 2 | 2 | |||||||||||
Accounting Standards Update 2018-02 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | 0 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenues | 1,930.3 | |||||||||||||
Retained Earnings (Accumulated Deficit) | (672.8) | (672.8) | (672.8) | |||||||||||
Other liabilities | 324.8 | 324.8 | 324.8 | |||||||||||
Deferred Income Tax Assets, Net | 530.5 | 530.5 | 530.5 | |||||||||||
Gross profit | 764.9 | |||||||||||||
Income (loss) from continuing operations before income taxes | 243.1 | |||||||||||||
Income Tax Expense (Benefit) | (77.7) | |||||||||||||
Net income (loss) | 165.4 | |||||||||||||
Net income (loss) attributable to W. R. Grace & Co. shareholders | 166.2 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenues | 1.8 | |||||||||||||
Retained Earnings (Accumulated Deficit) | (3.9) | (3.9) | (3.9) | $ (2.5) | ||||||||||
Other liabilities | (5) | (5) | (5) | 3.2 | ||||||||||
Deferred Income Tax Assets, Net | (1.1) | (1.1) | (1.1) | $ 0.7 | ||||||||||
Gross profit | 1.8 | |||||||||||||
Income (loss) from continuing operations before income taxes | 1.8 | |||||||||||||
Income Tax Expense (Benefit) | (0.4) | |||||||||||||
Net income (loss) | 1.4 | |||||||||||||
Net income (loss) attributable to W. R. Grace & Co. shareholders | 1.4 | |||||||||||||
Retained Earnings [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Net income (loss) | 167.6 | 11.2 | 94.1 | |||||||||||
Retained Earnings [Member] | Accounting Standards Update 2018-02 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2.2 | 2.2 | 2.2 | |||||||||||
AOCI Attributable to Parent [Member] | Accounting Standards Update 2018-02 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (2.2) | $ (2.2) | $ (2.2) | |||||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2017-07 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cost of goods sold | (12.8) | (13.9) | ||||||||||||
Selling, general and administrative expenses | (28.6) | (37) | ||||||||||||
Research and development expenses | 2.8 | 2.8 | ||||||||||||
Gross profit | 12.8 | 13.9 | ||||||||||||
Other expense, net | 38.6 | 48.1 | ||||||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2016-18 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Other investing activities | 0.7 | (0.6) | ||||||||||||
Net Cash Provided by (Used in) Investing Activities | 0.7 | 0.6 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 10.7 | 10.7 | 10 | 9.4 | ||||||||||
Previously Reported [Member] | Accounting Standards Update 2017-07 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cost of goods sold | 1,053.2 | 942.7 | ||||||||||||
Selling, general and administrative expenses | 302.6 | 308.8 | ||||||||||||
Research and development expenses | 53.5 | 48.8 | ||||||||||||
Gross profit | 663.3 | 655.9 | ||||||||||||
Other expense, net | (8.4) | 13.3 | ||||||||||||
Previously Reported [Member] | Accounting Standards Update 2016-18 [Member] | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Other investing activities | (1.8) | (4.7) | ||||||||||||
Net Cash Provided by (Used in) Investing Activities | (129.9) | (345) | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 152.8 | $ 152.8 | $ 90.6 | $ 329.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 56.3 | $ 48.8 |
In process | 49.1 | 33 |
Finished products | 144.5 | 124.7 |
Other | 31.2 | 24.4 |
Total inventories | $ 281.1 | $ 230.9 |
Properties and Equipment - Leas
Properties and Equipment - Leases Table (Details) $ in Millions | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2,019 | $ 8.3 |
2,020 | 6.2 |
2,021 | 3.4 |
2,022 | 1.9 |
2,023 | 1.3 |
Thereafter | 11.4 |
Total | $ 32.5 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Properties and Equipment | |||
Properties and equipment, gross | $ 2,494.5 | $ 2,262.5 | |
Accumulated depreciation and amortization | (1,482.8) | (1,463.4) | |
Interest Costs Capitalized | 3.2 | 1.5 | $ 1.3 |
Depreciation and lease amortization expense related to properties and equipment | 100.8 | 111.5 | 100.3 |
Rental expense for operating leases | 13.5 | 11.3 | 10 |
Property, Plant and Equipment [Member] | |||
Properties and Equipment | |||
Depreciation and lease amortization expense related to properties and equipment | 80.9 | 96.1 | $ 85.7 |
Land | |||
Properties and Equipment | |||
Properties and equipment, gross | 28.4 | 14.2 | |
Building [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 425 | 404.5 | |
Information technology and equipment [Member] | |||
Properties and Equipment | |||
Properties and equipment, gross | 142.9 | 136.6 | |
Machinery, equipment and other | |||
Properties and Equipment | |||
Properties and equipment, gross | 1,668.9 | 1,571.8 | |
Projects under construction | |||
Properties and Equipment | |||
Properties and equipment, gross | $ 229.3 | $ 135.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in goodwill balances | ||
Balance at the beginning of the period | $ 402.4 | $ 394.2 |
Goodwill, Acquired During Period | 140.6 | 2.4 |
Foreign currency translation | (2.6) | 5.8 |
Balance at the end of the period | 540.4 | 402.4 |
Grace Catalysts Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 357.7 | 353.5 |
Goodwill, Acquired During Period | 140.6 | 0 |
Foreign currency translation | (2) | 4.2 |
Balance at the end of the period | 496.3 | 357.7 |
Grace Materials Technologies | ||
Changes in goodwill balances | ||
Balance at the beginning of the period | 44.7 | 40.7 |
Goodwill, Acquired During Period | 0 | 2.4 |
Foreign currency translation | (0.6) | 1.6 |
Balance at the end of the period | $ 44.1 | $ 44.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, net book value | $ 356.5 | $ 255.4 | |
Other intangible assets | |||
Finite-Lived Intangible Assets, Gross | 433.3 | 312 | |
Net book value of other intangible assets | |||
Accumulated Amortization | 76.8 | 56.6 | |
Amortization of intangible assets | 19.9 | 15.4 | $ 13.9 |
Estimated Amortization Expenses | |||
2,019 | 21.6 | ||
2,020 | 21.6 | ||
2,021 | 21.3 | ||
2,022 | 21.2 | ||
2,023 | 21.1 | ||
Thereafter | 249.7 | ||
Total estimated amortization expenses | 356.5 | ||
Technology | |||
Other intangible assets | |||
Finite-Lived Intangible Assets, Gross | 226.2 | 214.7 | |
Net book value of other intangible assets | |||
Accumulated Amortization | 52.4 | 41.5 | |
Customer Lists [Member] | |||
Other intangible assets | |||
Finite-Lived Intangible Assets, Gross | 161.2 | 55.8 | |
Net book value of other intangible assets | |||
Accumulated Amortization | 15.7 | 8.8 | |
Trademarks [Member] | |||
Other intangible assets | |||
Finite-Lived Intangible Assets, Gross | 29.8 | 25.5 | |
Net book value of other intangible assets | |||
Accumulated Amortization | 4 | 2.6 | |
Other Intangible Assets [Member] | |||
Other intangible assets | |||
Finite-Lived Intangible Assets, Gross | 16.1 | 16 | |
Net book value of other intangible assets | |||
Accumulated Amortization | $ 4.7 | $ 3.7 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Apr. 03, 2018USD ($) | Jan. 27, 2016USD ($) | Sep. 16, 2014USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Jan. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Event of Default, Percent Principal Aggregate Outstanding | 25.00% | ||||||||
Final Judgment for Payment, Event of Debt Default | $ 75,000,000 | ||||||||
Debt Instrument, Required Redemption Price, Percentage | 101.00% | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Cash paid to settle deferred payment obligations | $ 632,000,000 | ||||||||
Proceeds from Debt, Net of Issuance Costs | $ 985,500,000 | ||||||||
Debt Instrument, Price as Percent of Par Value | 100.00% | ||||||||
Repayments of Debt | 587,800,000 | $ 143,900,000 | $ 633,000,000 | ||||||
Amount of distribution from GCP dividend used to pay down Grace debt | 600,000,000 | ||||||||
Distribution to Grace from GCP | $ 750,000,000 | ||||||||
Loss on early extinguishment of debt | $ 4,800,000 | $ 0 | 11,100,000 | ||||||
Senior Notes, Due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | ||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||||
Senior Notes, Due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% | ||||||
Debt Instrument, Face Amount | $ 700,000,000 | ||||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes | $ 1,000,000,000 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||
Term Loan B (EUR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Debt | € | € 67.3 | ||||||||
Term Loan B (USD) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Debt | $ 526,900,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||
Debt Instrument, Face Amount | $ 400,000,000 | ||||||||
2025 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Periodic Payment | $ 9,500,000 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||
Debt Instrument, Face Amount | $ 950,000,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 367,600,000 | ||||||||
Long-term Line of Credit | 0 | ||||||||
Delayed Draw Term Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facilities to Fund Emergence | $ 250,000,000 | ||||||||
Accelerated Payment [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 50,000,000 |
Debt Debt - Components of Debt
Debt Debt - Components of Debt (Details) (Details) - USD ($) $ in Millions | Apr. 03, 2018 | Sep. 16, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 1,983.3 | $ 1,543.9 | ||
Notes Payable, Related Parties | 48.1 | 42.4 | ||
Debt payable within one year | 22.3 | 20.1 | ||
Debt payable after one year | $ 1,961 | $ 1,523.8 | ||
Debt, Weighted Average Interest Rate | 3.90% | 4.70% | ||
2025 Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 8.7 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Senior Notes, Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 4.2 | $ 5.8 | ||
Debt, Long-term and Short-term, Combined Amount | $ 695.8 | $ 694.2 | ||
Senior Notes, Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 3 | $ 3.5 | ||
Debt, Long-term and Short-term, Combined Amount | 297 | 296.5 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
2025 Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | 938.9 | 0 | ||
Other Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 3.5 | $ 12.7 |
Debt Debt- Maturity Schedule (D
Debt Debt- Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 22.3 | |
2,020 | 18.7 | |
2,021 | 713 | |
2,022 | 16.3 | |
2,023 | 15.3 | |
Thereafter | 1,197.7 | |
Debt, Long-term and Short-term, Combined Amount | $ 1,983.3 | $ 1,543.9 |
Fair Value Measurements and R_3
Fair Value Measurements and Risk Fair Value Measurements and Risk - Narrative (Details) € in Millions | Nov. 05, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€)country | Dec. 31, 2018USD ($)country | Nov. 05, 2018EUR (€) | Nov. 05, 2018USD ($) | Apr. 03, 2018EUR (€) | Apr. 03, 2018USD ($) | Feb. 03, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 36 months | ||||||||||
Number of Countries in which Entity Operates | country | 70 | 70 | |||||||||
Number of Currencies Used | 30 | 30 | |||||||||
Interest Rate Swap [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative, Amount of Hedged Item | $ 100,000,000 | $ 250,000,000 | |||||||||
Derivative, Fixed Interest Rate | 2.775% | 2.775% | 2.393% | ||||||||
Foreign Exchange Contract [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative, Notional Amount | $ 171,600,000 | ||||||||||
2025 Term Loan [Member] | Cross Currency Interest Rate Contract [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative, Amount of Hedged Item | $ 600,000,000 | $ 600,000,000 | |||||||||
Derivative, Cash Received on Hedge | $ 33,100,000 | ||||||||||
Derivative, Notional Amount | € | € 525.9 | € 490.1 | |||||||||
Derivative, Fixed Interest Rate | 1.785% | 1.785% | 2.0231% | 2.0231% | |||||||
Net Investment Hedging [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 | ||||||||
Deferred intercompany royalties designated as hedging instrument | € | € 11.2 | ||||||||||
Net Investment Hedging [Member] | Currency Swap [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative, Notional Amount | € | € 170 | ||||||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 2,300,000 |
Fair Value Measurements and R_4
Fair Value Measurements and Risk - Carrying Amounts and Fair Values of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 16, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,983.3 | $ 1,543.9 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 1,983.3 | 1,543.9 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 1,965.7 | 1,608.5 | |
Term Loan B (EUR) [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 0 | 94 | |
2025 Term Loan [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 8.7 | ||
2025 Term Loan [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 938.9 | 0 | |
2025 Term Loan [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 914.8 | 0 | |
Senior Notes, Due 2024 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 3 | $ 3.5 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% |
Debt, Long-term and Short-term, Combined Amount | $ 297 | $ 296.5 | |
Senior Notes, Due 2024 [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 297 | 296.5 | |
Senior Notes, Due 2024 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 301.8 | 321.3 | |
Term Loan B (USD) [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 0 | 404.1 | |
Senior Notes, Due 2021 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 4.2 | $ 5.8 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | 5.125% |
Debt, Long-term and Short-term, Combined Amount | $ 695.8 | $ 694.2 | |
Senior Notes, Due 2021 [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 695.8 | 694.2 | |
Senior Notes, Due 2021 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 697.5 | 728.7 | |
Other borrowings [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 51.6 | 55.1 | |
Other borrowings [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 51.6 | 55.1 | |
Term Loan B (EUR) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | 1 | |
Debt, Long-term and Short-term, Combined Amount | 0 | 94 | |
Term Loan B (EUR) [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 0 | 93.7 | |
Term Loan B (USD) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | 4.3 | |
Debt, Long-term and Short-term, Combined Amount | 0 | 404.1 | |
Term Loan B (USD) [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 409.7 |
Fair Value Measurements and R_5
Fair Value Measurements and Risk - Financial Assets and Liabilities (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 14.9 | $ 25.6 |
Derivative Asset, Fair Value, Gross Asset | 3.7 | 3.1 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 14.9 | 25.6 |
Derivative Asset, Fair Value, Gross Asset | 3.7 | 3.1 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 14.9 | 25.6 |
Derivative Asset, Fair Value, Gross Asset | 3.7 | 3.1 |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 10.5 | 23.8 |
Derivative Asset, Fair Value, Gross Asset | 3.7 | 3.1 |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 10.5 | 23.8 |
Derivative Asset, Fair Value, Gross Asset | 3.7 | 3.1 |
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0.8 | 1.8 |
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0.8 | $ 1.8 |
Cross Currency Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 3.6 | |
Cross Currency Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 3.6 |
Fair Value Measurements and R_6
Fair Value Measurements and Risk Fair Value Measurements and Risk - Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 3.7 | $ 3.1 |
Derivative Liability, Fair Value, Gross Liability | 14.9 | 25.6 |
Interest Rate Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Interest Rate Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Interest Rate Contract [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0.1 | 1.3 |
Interest Rate Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0.7 | 0.5 |
Cross Currency Interest Rate Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Gross Liability | (15.4) | |
Cross Currency Interest Rate Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Cross Currency Interest Rate Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 19 | |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.4 | 2.7 |
Derivative Liability, Fair Value, Gross Liability | (2.9) | |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.4 |
Derivative Liability, Fair Value, Gross Liability | (0.1) | |
Foreign Exchange Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.3 | 0 |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1.4 | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.2 |
Foreign Exchange Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 12.9 | $ 22.2 |
Fair Value Measurements and R_7
Fair Value Measurements and Risk - Gain (Loss) on Derivative Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gains and losses on derivative instruments | |||
Interest and Debt Expense | $ (80.2) | $ (79.5) | $ (81.5) |
Nonoperating Income (Expense) | 16.5 | (30.2) | (61.4) |
Derivatives in ASC 815 cash flow hedging relationships | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 55.9 | (5.6) | (3.3) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 46.6 | (2.7) | (2.3) |
Derivatives in ASC 815 cash flow hedging relationships | Cross Currency Interest Rate Contract [Member] | Interest Expense [Member] | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 9.7 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (0.6) | ||
Derivatives in ASC 815 cash flow hedging relationships | Cross Currency Interest Rate Contract [Member] | Nonoperating Income (Expense) [Member] | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 40.5 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 40.5 | ||
Derivatives in ASC 815 cash flow hedging relationships | Currency contracts | |||
Gains and losses on derivative instruments | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 6.3 | (3.6) | (0.1) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.4) | (0.6) | |
Derivatives in ASC 815 cash flow hedging relationships | Currency contracts | Nonoperating Income (Expense) [Member] | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 6.3 | (2.9) | 0.8 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 3 | 0.6 | |
Derivatives in ASC 815 cash flow hedging relationships | Interest Rate Contract [Member] | |||
Gains and losses on derivative instruments | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 0.4 | 0.9 | (2.2) |
Derivatives in ASC 815 cash flow hedging relationships | Interest Rate Contract [Member] | Interest Expense [Member] | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.6) | (2.7) | (4.1) |
Not Designated as Hedging Instrument [Member] | Currency contracts | Nonoperating Income (Expense) [Member] | |||
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (4) | $ 1 | $ (0.8) |
Fair Value Measurements and R_8
Fair Value Measurements and Risk Fair Value Measurement and Risk - Gain (Loss) on Derivatives and Non-derivatives Designated as Net Investment Hedges (Details 4) - Net Investment Hedging [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gains and losses on derivative instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 |
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments | (3,900,000) | (17,700,000) | 7,100,000 |
Foreign currency denominated debt [Member] | |||
Gains and losses on derivative instruments | |||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments | (4,400,000) | (11,200,000) | 4,600,000 |
Currency Swap [Member] | |||
Gains and losses on derivative instruments | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 6,000,000 | (21,900,000) | 5,600,000 |
Foreign currency denominated deferred intercompany royalties [Member] | |||
Gains and losses on derivative instruments | |||
Amount of Gain (Loss) Recognized in OCI in Currency Translation Adjustments | $ 500,000 | $ (6,500,000) | $ 2,500,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Income before income taxes: | ||||
Domestic | $ 82.2 | $ 28.3 | $ 72.7 | |
Foreign | 162.7 | 182.6 | 93.3 | |
Income (loss) from continuing operations before income taxes | 244.9 | 210.9 | 166 | |
Provision for income taxes: | ||||
Federal-current | (4.9) | |||
Federal-deferred | (29.3) | (144.6) | (11.8) | |
State and local-current | 1.6 | 0.2 | (0.7) | |
State and local - deferred | (3.5) | (1.7) | (17.7) | |
Foreign-current | (49.9) | (50.8) | (36.6) | |
Foreign-deferred | 7.9 | (3.6) | 7.8 | |
(Provision for) benefit from income taxes | $ (78.1) | $ (200.5) | $ (59) | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% | |
Income tax provision analysis | ||||
Tax provision at U.S. federal income tax rate | $ (51.4) | $ (73.8) | $ (58.1) | |
Effective Income Tax Rate Reconciliation, Tax Reform, Amount | (17.1) | 143 | 0 | $ 125.9 |
Change in provision resulting from: | ||||
Effective Income Tax Rate Reconciliation, GILTI, Amount | (24.1) | 0 | 0 | |
Effective Income Tax Rate Reconciliation, Tax Reform, Amount | 17.1 | (143) | 0 | (125.9) |
Effect of tax rates in foreign jurisdictions | (11.3) | 13.3 | 6.8 | |
Research and development credit | 9.4 | 5.1 | 0 | |
U.S. tax on foreign earnings | (6.8) | (1.2) | (0.9) | |
Decrease (increase) in valuation allowance | (6.3) | (0.3) | (2.5) | |
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Amount | 5.7 | 0 | 0 | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 2.8 | 4.5 | (2.7) | |
Effective income tax rate reconciliation, Limitation on executive compensation, Amount | (2.7) | (0.1) | (0.4) | |
State and local income taxes, net | (1.9) | (1.8) | (4.7) | |
Nontaxable income/non-deductible expenses | (1.6) | (2.6) | (2.5) | |
Stock option exercises | (0.7) | 2.8 | 6.7 | |
Other | (6.3) | (3.4) | (0.7) | |
(Provision for) benefit from income taxes | (78.1) | (200.5) | $ (59) | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | (4.9) | 120.1 | 115.2 | |
Income tax expense, repatriation of foreign earnings | (9.5) | 37.4 | 27.9 | |
Income tax expense, state and foreign taxes on unremitted earnings | 2.7 | (4.9) | (2.2) | |
Deferred tax assets: | ||||
Federal tax credit carryforwards | 291 | 269.6 | 291 | |
Pension liabilities | 82.7 | 104.8 | 82.7 | |
U.S. net operating loss carryforwards | 44.3 | 89.5 | 44.3 | |
State net operating loss carryforwards | 52.9 | 58.2 | 52.9 | |
Research and development | 24.6 | 22.8 | 24.6 | |
Prepaid royalties | 3 | 21.4 | 3 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 6.5 | 4.2 | 6.5 | |
Deferred Tax Assets, Unrealized Currency Losses | 12.8 | 0 | 12.8 | |
Liability for environmental remediation | 29.3 | 16.4 | 29.3 | |
Reserves and allowances | 22.8 | 15.2 | 22.8 | |
Foreign net operating loss carryforwards | 5.7 | 6.6 | 5.7 | |
Other | 6.5 | 10.3 | 6.5 | |
Total deferred tax assets | 582.1 | 619 | 582.1 | |
Deferred tax liabilities: | ||||
Properties and equipment | (13.2) | (32) | (13.2) | |
Intangible assets | (24.9) | (15.1) | (24.9) | |
Other | (5.6) | (11.3) | (5.6) | |
Total deferred tax liabilities | (43.7) | (58.4) | (43.7) | |
Valuation allowance: | ||||
Decrease (Increase) in deferred tax assets | 29.8 | |||
Total valuation allowance | (19.9) | (12.3) | (19.9) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (7.6) | |||
Net deferred tax assets | 518.5 | 548.3 | 518.5 | |
State and Local Jurisdiction [Member] | ||||
Valuation allowance: | ||||
Total valuation allowance | (6.6) | (9.2) | (6.6) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2.6 | |||
Domestic Tax Authority [Member] | ||||
Valuation allowance: | ||||
Total valuation allowance | (5.2) | (0.3) | (5.2) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (4.9) | |||
Foreign Tax Authority- NOLs [Member] | ||||
Valuation allowance: | ||||
Total valuation allowance | (4.2) | (2.8) | (4.2) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (1.4) | |||
Foreign Tax Authority- Other Deferred Tax Assets [Member] | ||||
Valuation allowance: | ||||
Total valuation allowance | (3.9) | (3.9) | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (3.9) | |||
Deferred Tax Asset Deferred Federal Credits [Member] | ||||
Valuation allowance: | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | 17.4 | 17.4 | |
Net Operating Loss [Member] | State and Local Jurisdiction [Member] | ||||
Valuation allowance: | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0 | $ 2 | $ 2 |
Income Taxes (Details 2)
Income Taxes (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 48.8 |
State net operating loss carryforwards | 54.5 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (7.6) |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Tax Credit Carryforwards | 299.4 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (4.9) |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2.6 |
Tax Credit Carryforward [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Taxable Income Required to Realize DTA, Total | 1,400 |
Net Operating Loss [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Taxable Income Required to Realize DTA, Total | 232 |
Net Operating Loss [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Taxable Income Required to Realize DTA, Total | $ 1,900 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | ||
Roll forward of uncertain tax positions | ||||
Balance | 14.1 | 17.7 | $ 18.7 | $ 23.1 |
Additions for current year tax positions | 0.9 | 0.8 | 6.8 | |
Additions for prior year tax positions | 4 | 0.7 | 0.2 | |
Reductions for prior year tax positions and reclassifications | (2.8) | $ (2.5) | (0.2) | |
Settlements | $ (5.7) | (3.3) | ||
Transferred to GCP upon Separation | $ 7.9 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,016 | |||
Open Tax Year | 2,017 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2011 2012 2013 2014 2015 2016 | |||
Open Tax Year | 2,017 | |||
Federal Ministry of Finance, Germany [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2014 2015 2016 | |||
Open Tax Year | 2,017 | |||
SWEDEN | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2013 2014 2015 2016 2017 |
Pension Plans and Other Retir_3
Pension Plans and Other Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Overfunded defined benefit pension plans | $ 5.7 | $ 0 | |
Unfunded defined benefit pension plans | (433.1) | (502.4) | |
Pension liabilities included in other current liabilities | (14.7) | (15) | |
Net funded status | $ (442.1) | (517.4) | |
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 | $ 12.6 | 11.5 | $ 11.1 |
Pension Plans | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 160.9 | 0 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Overfunded defined benefit pension plans | 5.7 | 0 | |
Net funded status | (442.1) | (517.4) | |
Defined Benefit Plan, Benefit Obligation | 1,332.7 | 1,648.7 | 1,543.3 |
Underfunded Plan [Member] | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Unfunded defined benefit pension plans | (67.1) | (110.5) | |
Unfunded Plan [Member] | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Unfunded defined benefit pension plans | (366) | (391.9) | |
Domestic Plan [Member] | Pension Plans | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 160.9 | 0 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Overfunded defined benefit pension plans | 5.7 | 0 | |
Net funded status | (156) | (215.8) | |
Defined Benefit Plan, Benefit Obligation | $ 1,027.1 | $ 1,325.6 | 1,274.2 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.22% | 3.57% | |
Domestic Plan [Member] | Underfunded Plan [Member] | Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | $ (64.6) | $ (107.3) | |
Defined Benefit Plan, Benefit Obligation | 897.6 | 1,217.1 | |
Domestic Plan [Member] | Unfunded Plan [Member] | Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | (97.1) | (108.5) | |
Defined Benefit Plan, Benefit Obligation | 97.1 | 108.5 | |
Domestic Plan [Member] | Overfunded Plan [Member] | Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | 5.7 | ||
Defined Benefit Plan, Benefit Obligation | 32.4 | ||
Foreign Plan [Member] | Pension Plans | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Overfunded defined benefit pension plans | 0 | 0 | |
Net funded status | (286.1) | (301.6) | |
Defined Benefit Plan, Benefit Obligation | $ 305.6 | $ 323.1 | $ 269.1 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.17% | 1.84% | |
Foreign Plan [Member] | Underfunded Plan [Member] | Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | $ (3.2) | $ (3.2) | |
Defined Benefit Plan, Benefit Obligation | 22.7 | 24.7 | |
Foreign Plan [Member] | Unfunded Plan [Member] | Pension Plans | |||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||
Net funded status | (282.9) | (298.4) | |
Defined Benefit Plan, Benefit Obligation | 282.9 | $ 298.4 | |
Lump Sum Distribution [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 42.2 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 43.5 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement, Gain | 1.3 | ||
Annuity Settlement [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 116.4 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 117.4 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement, Gain | $ 1 |
Pension Plans and Other Retir_4
Pension Plans and Other Retirement Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Plan Assets: | |||
Net funded status | $ (442.1) | $ (517.4) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 5.7 | 0 | |
Net Periodic Benefit Cost | |||
Annual mark-to-market adjustment | (15.2) | 51.1 | $ 60.3 |
Pension Plans | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 1,648.7 | 1,543.3 | |
Service cost | 28.7 | 25.5 | |
Interest cost | 45.9 | 46.4 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (160.9) | 0 | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0.6 | 0.4 | |
Actuarial (gain) loss | (114.5) | 101.7 | |
Benefits paid | (103.5) | (99) | |
Currency exchange translation adjustments | (12.3) | 35.2 | |
Defined Benefit Plan, Benefit Obligation, Divestiture | 0 | (4.8) | |
Benefit obligation at end of year | 1,332.7 | 1,648.7 | 1,543.3 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 1,131.3 | 1,104.6 | |
Actual return on plan assets | (43.6) | 114.3 | |
Employer contributions | 66.5 | 17.8 | |
Settlements | (158.6) | 0 | |
Benefits paid | (103.5) | (99) | |
Currency exchange translation adjustments | (1.5) | 1.3 | |
Defined Benefit Plan, Plan Assets, Divestiture | 0 | (7.7) | |
Fair value of plan assets at end of year | 890.6 | 1,131.3 | 1,104.6 |
Net funded status | (442.1) | (517.4) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 5.7 | 0 | |
Current liabilities | (14.7) | (15) | |
Noncurrent liabilities | (433.1) | (502.4) | |
Net amount recognized | (442.1) | (517.4) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (3.3) | (4) | |
Net amount recognized | (3.3) | (4) | |
Net Periodic Benefit Cost | |||
Service cost | 28.7 | 25.5 | |
Interest cost | 45.9 | 46.4 | |
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 | 0.6 | ||
Domestic Plan [Member] | Pension Plans | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 1,325.6 | 1,274.2 | |
Service cost | 19.2 | 17.1 | 17.8 |
Interest cost | 40.9 | 42 | 40.5 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (160.9) | 0 | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 0 | |
Actuarial (gain) loss | (102.6) | 88.3 | |
Benefits paid | (95.1) | (91.2) | |
Defined Benefit Plan, Benefit Obligation, Divestiture | 0 | (4.8) | |
Benefit obligation at end of year | 1,027.1 | 1,325.6 | 1,274.2 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 1,109.8 | 1,086.4 | |
Actual return on plan assets | (41.9) | 112.7 | |
Employer contributions | 56.9 | 9.6 | |
Settlements | (158.6) | 0 | |
Benefits paid | (95.1) | (91.2) | |
Defined Benefit Plan, Plan Assets, Divestiture | 0 | (7.7) | |
Fair value of plan assets at end of year | 871.1 | 1,109.8 | 1,086.4 |
Net funded status | (156) | (215.8) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 5.7 | 0 | |
Current liabilities | (7) | (7) | |
Noncurrent liabilities | (154.7) | (208.8) | |
Net amount recognized | (156) | (215.8) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (3.2) | (3.9) | |
Net amount recognized | $ (3.2) | $ (3.9) | |
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||
Discount rate | 4.22% | 3.57% | |
Rate of compensation increase | 4.10% | 4.10% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Expected return on plan assets | 5.25% | 5.50% | |
Rate of compensation increase | 4.10% | 4.10% | |
Net Periodic Benefit Cost | |||
Service cost | $ 19.2 | $ 17.1 | 17.8 |
Interest cost | 40.9 | 42 | 40.5 |
Expected return on plan assets | (57.2) | (57.5) | (56.7) |
Amortization of prior service cost (credit) | (0.6) | (0.4) | (0.2) |
Annual mark-to-market adjustment | (3.4) | 36 | 23.3 |
Net curtailment and settlement gain | (2.3) | 0 | 0 |
Net periodic benefit cost | (3.4) | 37.2 | 24.7 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||
Net prior service credit | (1.3) | ||
Amortization of prior service cost (credit) | 0.6 | 0.4 | 0.2 |
Total recognized in other comprehensive (income) loss | 0.6 | 0.4 | (1.1) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (2.8) | 37.6 | 23.6 |
Foreign Plan [Member] | Pension Plans | |||
Change in Projected Benefit Obligation (PBO): | |||
Benefit obligation at beginning of year | 323.1 | 269.1 | |
Service cost | 9.5 | 8.4 | 6.8 |
Interest cost | 5 | 4.4 | 5.1 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0.6 | 0.4 | |
Actuarial (gain) loss | (11.9) | 13.4 | |
Benefits paid | (8.4) | (7.8) | |
Currency exchange translation adjustments | (12.3) | 35.2 | |
Defined Benefit Plan, Benefit Obligation, Divestiture | 0 | 0 | |
Benefit obligation at end of year | 305.6 | 323.1 | 269.1 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 21.5 | 18.2 | |
Actual return on plan assets | (1.7) | 1.6 | |
Employer contributions | 9.6 | 8.2 | |
Settlements | 0 | 0 | |
Benefits paid | (8.4) | (7.8) | |
Currency exchange translation adjustments | (1.5) | 1.3 | |
Defined Benefit Plan, Plan Assets, Divestiture | 0 | 0 | |
Fair value of plan assets at end of year | 19.5 | 21.5 | 18.2 |
Net funded status | (286.1) | (301.6) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (7.7) | (8) | |
Noncurrent liabilities | (278.4) | (293.6) | |
Net amount recognized | (286.1) | (301.6) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service cost (credit) | (0.1) | (0.1) | |
Net amount recognized | $ (0.1) | $ (0.1) | |
Weighted Average Assumptions Used to Determine Benefit Obligations as of the period | |||
Discount rate | 2.17% | 1.84% | |
Rate of compensation increase | 2.59% | 2.64% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Expected return on plan assets | 4.69% | 4.69% | |
Rate of compensation increase | 2.64% | 3.09% | |
Net Periodic Benefit Cost | |||
Service cost | $ 9.5 | $ 8.4 | 6.8 |
Interest cost | 5 | 4.4 | 5.1 |
Expected return on plan assets | (1) | (0.9) | (1) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Annual mark-to-market adjustment | (9.2) | 13.2 | 40.1 |
Net curtailment and settlement gain | 0 | 0 | (1) |
Net periodic benefit cost | 4.3 | 25.1 | 50 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||
Net prior service credit | 0 | ||
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | 0 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 4.3 | $ 25.1 | $ 50 |
Service Cost [Member] | Domestic Plan [Member] | Pension Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 3.77% | 4.41% | |
Service Cost [Member] | Foreign Plan [Member] | Pension Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 1.99% | 2.09% | |
Interest cost [Member] | Domestic Plan [Member] | Pension Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 3.20% | 3.42% | |
Interest cost [Member] | Foreign Plan [Member] | Pension Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended | |||
Discount rate | 1.57% | 1.69% |
Pension Plans and Other Retir_5
Pension Plans and Other Retirement Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Funded Status of Pension Plans | |||
Net funded status | $ (442.1) | $ (517.4) | |
Benefit Payments | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 80.6 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 80.3 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 80.5 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 81 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 80.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 399.9 | ||
Pension Plans | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | 1,332.7 | 1,648.7 | $ 1,543.3 |
Defined Benefit Plan, Plan Assets, Amount | 890.6 | 1,131.3 | 1,104.6 |
Net funded status | (442.1) | (517.4) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,263 | 1,570 | |
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | |||
Projected benefit obligation | 1,279.3 | 1,624 | |
Accumulated benefit obligation | 1,213.3 | 1,549.6 | |
Fair value of plan assets | $ 833.7 | $ 1,109.8 | |
Pension Plans | Domestic Plan [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% | |
Funded Status of Pension Plans | |||
Projected benefit obligation | $ 1,027.1 | $ 1,325.6 | 1,274.2 |
Defined Benefit Plan, Plan Assets, Amount | 871.1 | 1,109.8 | 1,086.4 |
Net funded status | (156) | (215.8) | |
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | |||
Projected benefit obligation | 994.8 | 1,325.6 | |
Accumulated benefit obligation | 960.1 | 1,286 | |
Fair value of plan assets | 833 | $ 1,109.8 | |
Benefit Payments | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 72.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 71.9 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 71.9 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 72.2 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 71.7 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 349.9 | ||
Discount rate | 4.22% | 3.57% | |
Percentage of high yield bonds in foreign issuers portfolio | 30.00% | ||
Expected return on plan assets | 5.25% | 5.50% | |
Average annual returns over one year (as a percent) | (3.00%) | ||
Average annual returns over three years (as a percent) | 6.00% | ||
Average annual returns over five years (as a percent) | 5.00% | ||
Average annual returns over ten years (as a percent) | 8.00% | ||
Pension Plans | Foreign Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | $ 305.6 | $ 323.1 | 269.1 |
Defined Benefit Plan, Plan Assets, Amount | 19.5 | 21.5 | $ 18.2 |
Net funded status | (286.1) | (301.6) | |
Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation | |||
Projected benefit obligation | 284.5 | 298.4 | |
Accumulated benefit obligation | 253.2 | $ 263.6 | |
Fair value of plan assets | 0.7 | ||
Benefit Payments | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 8.5 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 8.4 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 8.6 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 8.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 9.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 50 | ||
Discount rate | 2.17% | 1.84% | |
Expected return on plan assets | 4.69% | 4.69% | |
Pension Plans | Germany | Foreign Plan [Member] | |||
Benefit Payments | |||
Discount rate | 2.05% | ||
Percentage of German pension plans to total non-U.S. pension plans | 92.00% | 91.00% | |
Pension Plans | Overfunded Plan [Member] | Domestic Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | $ 32.4 | ||
Defined Benefit Plan, Plan Assets, Amount | 38.1 | ||
Net funded status | 5.7 | ||
Pension Plans | Unfunded Plan [Member] | Domestic Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | 97.1 | $ 108.5 | |
Net funded status | (97.1) | (108.5) | |
Pension Plans | Unfunded Plan [Member] | Foreign Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | 282.9 | 298.4 | |
Net funded status | (282.9) | (298.4) | |
Pension Plans | Underfunded Plan [Member] | Domestic Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | 897.6 | 1,217.1 | |
Defined Benefit Plan, Plan Assets, Amount | 833 | 1,109.8 | |
Net funded status | (64.6) | (107.3) | |
Pension Plans | Underfunded Plan [Member] | Foreign Plan [Member] | |||
Funded Status of Pension Plans | |||
Projected benefit obligation | 22.7 | 24.7 | |
Defined Benefit Plan, Plan Assets, Amount | 19.5 | 21.5 | |
Net funded status | $ (3.2) | $ (3.2) |
Pension Plans and Other Retir_6
Pension Plans and Other Retirement Plans (Details 4) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 890.6 | $ 1,131.3 | $ 1,104.6 |
Domestic Plan [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Percentage of Plan Assets | 100.00% | 100.00% | |
Assets Measured at Fair value | $ 871.1 | $ 1,109.8 | 1,086.4 |
Expected return on plan assets | 5.25% | 5.50% | |
Plan contributions and funding | |||
Defined Benefit Plan, Mandatory Future Employer Contributions, Next Fiscal Year | $ 0.1 | ||
Domestic Plan [Member] | Defined Benefit Plan, Equity Securities, US [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 9.00% | ||
Percentage of Plan Assets | 8.00% | 11.00% | |
Domestic Plan [Member] | Defined Benefit Plan, Equity Securities, Non-US [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 4.00% | ||
Percentage of Plan Assets | 4.00% | 5.00% | |
Domestic Plan [Member] | Short Term Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 4.00% | ||
Percentage of Plan Assets | 4.00% | 10.00% | |
Domestic Plan [Member] | Intermediate Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 36.00% | ||
Percentage of Plan Assets | 36.00% | 32.00% | |
Domestic Plan [Member] | Long Term Debt Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45.00% | ||
Percentage of Plan Assets | 46.00% | 40.00% | |
Domestic Plan [Member] | Other Investment [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2.00% | ||
Percentage of Plan Assets | 2.00% | 2.00% | |
Domestic Plan [Member] | Defined Benefit Plan, Common Collective Trust [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 10.5 | $ 10.2 | |
Domestic Plan [Member] | Annuity and immediate participation contracts | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 19.8 | 19 | |
Domestic Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 30.3 | 29.2 | |
Domestic Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 30.3 | 29.2 | |
Domestic Plan [Member] | Fair Value, Inputs, Level 2 [Member] | Defined Benefit Plan, Common Collective Trust [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 10.5 | 10.2 | |
Domestic Plan [Member] | Fair Value, Inputs, Level 2 [Member] | Annuity and immediate participation contracts | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 19.8 | 19 | |
Domestic Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 840.8 | 1,080.6 | |
Foreign Plan [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 19.5 | $ 21.5 | $ 18.2 |
Percentage of foreign plan assets to global pension assets | 2.00% | 2.00% | |
Expected return on plan assets | 4.69% | 4.69% | |
Plan contributions and funding | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 9 | ||
Foreign Plan [Member] | Corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.4 | $ 0.4 | |
Foreign Plan [Member] | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.4 | 0.3 | |
Foreign Plan [Member] | Cash | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.1 | ||
Foreign Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.9 | 0.7 | |
Foreign Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.8 | 0.7 | |
Foreign Plan [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.4 | 0.4 | |
Foreign Plan [Member] | Fair Value, Inputs, Level 2 [Member] | Insurance contracts and other investments | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.4 | 0.3 | |
Foreign Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.1 | ||
Foreign Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Cash | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | 0.1 | ||
Foreign Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Pension plans and other postretirement benefit plans | |||
Assets Measured at Fair value | $ 18.6 | $ 20.8 | |
Foreign Plan [Member] | Canada | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 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 | 96.00% | 97.00% | |
Expected return on plan assets | 4.75% | ||
Foreign Plan [Member] | Canada | Defined Benefit Plan, Equity Securities [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 27.00% | ||
Percentage of Plan Assets | 28.00% | 28.00% | |
Foreign Plan [Member] | Canada | Defined Benefit Plan, Debt Security [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 58.00% | ||
Percentage of Plan Assets | 58.00% | 58.00% | |
Foreign Plan [Member] | Canada | Other Investment [Member] | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | ||
Percentage of Plan Assets | 14.00% | 14.00% | |
Foreign Plan [Member] | Other country | |||
Pension plans and other postretirement benefit plans | |||
Defined Benefit Plan Percentage of Certain Specified foreign Plan Assets to Total Foreign Plan Assets | 4.00% | 3.00% |
Other Balance Sheet Accounts (D
Other Balance Sheet Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current Liabilities | ||
Accrued compensation | $ 62.4 | $ 60.7 |
Deferred Revenue, Current | 40.6 | 19.5 |
Environmental contingencies | 19.5 | 23.5 |
Pension liabilities included in other current liabilities | 14.7 | 15 |
Accrued interest | 13.3 | 16.5 |
Income taxes payable | 11.3 | 12.2 |
Other accrued liabilities | 81.7 | 70.4 |
Other Liabilities, Current | 243.5 | 217.8 |
Other Liabilities, Noncurrent [Abstract] | ||
Environmental contingencies | 106.9 | 46.8 |
Noncurrent liability | 98.8 | 32.7 |
Fair value of currency and interest rate contracts | 32.6 | 22.7 |
Deferred revenue | 29.2 | 14.9 |
Deferred income taxes | 10.9 | 8.2 |
Asset Retirement Obligation | 8.8 | 10.4 |
Postemployment liability | 4.7 | 5.2 |
Other noncurrent liabilities | 27.9 | 28.4 |
Other Liabilities, Noncurrent | $ 319.8 | $ 169.3 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 59 Months Ended | ||||
Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)paymentshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)shares | Feb. 03, 2017USD ($) | Feb. 03, 2014USD ($) | |
Environmental remediation | |||||||
ZAI PD Account Funding | $ 34.4 | ||||||
ZAI P D Account, Payment on Third Anniversary of Effective Date of Joint Plan | $ 30 | ||||||
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 | $ 10 | |||||
ZAI PD Claims paid by the Trust | 15 | ||||||
ZAI PD Operating and Education Expenses paid by the Trust | 6 | ||||||
ZAI PD Trust Balance | $ 30 | 30 | |||||
ZAI PD Attorney's fees paid by the Trust | $ 15 | ||||||
Frequency of PD Trust Payments | 6 months | ||||||
Estimated annual expenses related to PD Trust | $ 0.2 | ||||||
Number of Shares Issuable under Warrant | shares | 77,372,257 | 77,372,257 | |||||
Estimated liability for environmental investigative and remediation costs | $ 126.4 | $ 70.3 | $ 126.4 | ||||
Pre-tax charges for environmental matters | 73.8 | 24.4 | $ 28.7 | ||||
Vermiculite and non vermiculite matters [Member] | |||||||
Environmental remediation | |||||||
Pre-tax charges for environmental matters | 73.8 | 24.4 | 29.2 | ||||
Vermiculite Related Matters [Member] | |||||||
Environmental remediation | |||||||
Estimated liability for environmental investigative and remediation costs | 81.7 | 25.8 | 81.7 | ||||
Pre-tax charges for environmental matters | 70.2 | 9.5 | $ 24.8 | ||||
Operable Unit 3 [Member] | |||||||
Environmental remediation | |||||||
Pre-tax charges for environmental matters | $ 70 | ||||||
Non Vermiculite Related Matters [Member] | |||||||
Environmental remediation | |||||||
Estimated liability for environmental investigative and remediation costs | 44.7 | 44.5 | 44.7 | ||||
Pre-tax charges for environmental matters | $ 3.6 | 14.9 | |||||
Accrual for Environmental Loss Contingencies, Charges to Expense for New Losses | $ 7.2 | ||||||
Environmental Exit Costs, Nature of Costs | P10Y | ||||||
Minimum | Operable Unit 3 [Member] | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | $ 30 | 30 | |||||
Minimum | Spillway [Member] | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | 40 | 40 | |||||
Maximum | Operable Unit 3 [Member] | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | 170 | 170 | |||||
Maximum | Spillway [Member] | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | 45 | 45 | |||||
Net Present Value [Member] | ZAI PD Trust [Member] | Minimum | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | 0 | 0 | |||||
Net Present Value [Member] | ZAI PD Trust [Member] | Maximum | |||||||
Environmental remediation | |||||||
Loss Contingency, Estimate of Possible Loss | $ 20 | $ 20 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details 2) $ in Millions | Dec. 31, 2018USD ($) |
Financial Guarantee | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 145.5 |
Surety Bonds | |
Financial assurances | |
Gross financial assurances issued and outstanding | 68.7 |
Standby Letters of Credit | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 76.8 |
Restructuring Expenses and Re_3
Restructuring Expenses and Repositioning Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring expenses and related asset impairments | |||
Restructuring expenses | $ 14 | $ 11.5 | $ 24.3 |
Grace Catalysts Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | 13.7 | 3.7 | 3.4 |
Grace Materials Technologies | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | 0.5 | (0.1) | 15.1 |
Corporate, Non-Segment [Member] | |||
Restructuring expenses and related asset impairments | |||
Restructuring expenses | $ (0.2) | $ 7.9 | $ 5.8 |
Restructuring Expenses and Re_4
Restructuring Expenses and Repositioning Expenses Restructuring Expenses - Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | $ 10.7 | $ 6.7 | $ 9.6 | $ 7.6 |
Accruals for severance and other costs | 10.1 | 11.4 | 17.8 | |
Payments | $ (6.1) | (14.4) | (16) | |
Currency translation adjustments and other | $ 0.1 | $ 0.2 |
Restructuring Expenses and Re_5
Restructuring Expenses and Repositioning Expenses Repositioning Expenses - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Manufacturing Plants Closed | 2 | ||
Repositioning expenses | $ 32.4 | $ 15.2 | $ 14.3 |
Productivity Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | 13.7 | ||
Severance and stock compensation costs related to employee separations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | 11.7 | ||
Write-Off of previously capitalized plant engineering costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | $ 8.5 |
Other Expense, net (Details)
Other Expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (27.8) | $ 38.6 | $ 48 |
Third-party acquisition-related costs | 7.3 | 2.9 | 2.5 |
Loss on early extinguishment of debt | 4.8 | 0 | 11.1 |
Currency transaction effects | (4) | 5 | (1) |
Net (gain) loss on sales of investments and disposals of assets | 2.6 | 1.6 | (1.4) |
Chapter 11 expenses, net | 2.6 | 1.4 | 3.4 |
Gain on Business Interruption Insurance Recovery | 0 | (26.6) | 0 |
Accounts receivable reserve—Venezuela | 0 | 10 | 0 |
Other Nonoperating Income (Expense) | (2) | (2.7) | (1.2) |
Nonoperating Income (Expense) | (16.5) | 30.2 | $ 61.4 |
Business interruption insurance recoveries | $ 25 | ||
Business Interruption Insurance Policy Limit | $ 25 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | $ 23.4 | $ (22.2) | $ (2.2) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 2.4 | (4.3) | 0.1 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 25.8 | (26.5) | (2.1) |
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 | (1.6) | (2.3) | (2.4) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.4 | 0.8 | 0.9 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.2) | (1.5) | (1.5) |
Defined Benefit Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0.4 | 0.4 | 0.5 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.1) | (0.1) | (0.2) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | 0.3 | 0.3 |
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 | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.5) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.9 | ||
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 | (0.1) | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.1) | ||
Gain on Termination of Postretirement Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (0.5) | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.2 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.3) | ||
Defined Benefit Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (1.2) | (2) | (1) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.3 | 0.7 | 0.4 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.9) | (1.3) | (0.6) |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 34.6 | (23.1) | (1.8) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (2.2) | (2.9) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 32.4 | (26) | (1.8) |
Gain (Loss) from Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (10) | 2.9 | 0.6 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 4.3 | (2.1) | (0.3) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (5.7) | $ 0.8 | $ 0.3 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 337 | $ 263.3 | $ 372.4 | $ 212.5 |
Other comprehensive income (loss) | 25.8 | (26.5) | 0.5 | |
Defined Benefit Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0.2 | 0.9 | 2.2 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | (0.1) | 0.9 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.9) | (1.2) | (1.5) | |
Other comprehensive income (loss) | (0.9) | (1.3) | (0.6) | |
Distribution of GCP | (0.2) | |||
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 76.2 | 41.6 | 67.6 | (66.1) |
Other comprehensive income (loss) before reclassifications | 32.4 | (26) | (1.8) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Other comprehensive income (loss) | 32.4 | (26) | (1.8) | |
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 | (8.5) | (2.6) | (3.4) | (3.7) |
Other comprehensive income (loss) before reclassifications | 11.1 | (2.7) | (1.8) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (16.8) | 3.5 | 2.1 | |
Other comprehensive income (loss) | (5.7) | 0.8 | 0.3 | |
Distribution of GCP | 0 | |||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 67.9 | 39.9 | 66.4 | $ (66.8) |
Other comprehensive income (loss) before reclassifications | 43.5 | (28.8) | (2.7) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (17.7) | 2.3 | 0.6 | |
Other comprehensive income (loss) | 25.8 | $ (26.5) | (2.1) | |
Distribution of GCP | $ 135.3 | |||
Accounting Standards Update 2018-02 [Member] | Defined Benefit Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0.2 | |||
Accounting Standards Update 2018-02 [Member] | Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2.2 | |||
Accounting Standards Update 2018-02 [Member] | Gain (Loss) from Hedging Activities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (0.2) | |||
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2.2 |
Shareholders' Equity (Deficit_2
Shareholders' Equity (Deficit) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 7,455,144 | ||
Stock options exercised | 243,502 | 386,300 | 745,938 |
Proceeds from exercise of stock options | $ 6.7 | $ 16.4 | $ 17 |
Common stock activity roll forward | |||
Common stock outstanding at the beginning of the period (in shares) | 67,780,410 | 68,309,431 | 70,533,515 |
Stock options exercised | 243,502 | 386,300 | 745,938 |
Shares issued | 72,590 | 49,897 | 110,953 |
Shares forfeited | (132,393) | (29,783) | (305,678) |
Shares repurchased | (1,171,141) | (935,435) | (2,775,297) |
Common stock outstanding at the end of the period (in shares) | 66,792,968 | 67,780,410 | 68,309,431 |
Shares issued to Board of Directors [Member] | |||
Common stock activity roll forward | |||
Shares issued | 10,346 | ||
Net share settlement [Member] | |||
Common stock activity roll forward | |||
Shares issued | 7,719 | ||
Deferred Compensation, Share-based Payments [Member] | |||
Common stock activity roll forward | |||
Shares issued | 54,525 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
May 08, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock incentive plan | |||||
Minimum exercise price to fair market value on the date of grant (as a percent) | 100.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 0.6 | ||||
Stock Option Activity Roll Forward, Number of Shares | |||||
Options exercised (in shares) | (243,502) | (386,300) | (745,938) | ||
Employee nonstatutory stock options | |||||
Stock incentive plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.30 | $ 13 | $ 12.90 | ||
Stock Option Activity Roll Forward, Number of Shares | |||||
Options outstanding at the beginning of the period (in shares) | 1,813,450 | 1,813,450 | 1,940,785 | 2,320,687 | |
Options exercised (in shares) | (243,502) | (386,300) | (745,938) | ||
Options forfeited (in shares) | (90,862) | (34,545) | (9,458) | ||
Options terminated (in shares) | (33,481) | (23,320) | (2,426) | ||
Options granted (in shares) | 428,190 | 316,830 | 377,920 | ||
Options outstanding at the end of the period (in shares) | 1,873,795 | 1,873,795 | 1,813,450 | 1,940,785 | |
Stock Option Activity Roll Forward, Average Exercise Price | |||||
Average exercise price at the beginning of the period (in dollars per share) | $ 72.04 | $ 72.04 | $ 66.83 | $ 71.01 | |
Options exercised (in dollars per share) | 61.92 | 45.21 | 36.97 | ||
Options forfeited (in dollars per share) | 69.82 | 72.97 | 73.40 | ||
Options terminated (in dollars per share) | 75.07 | 75.60 | 67.06 | ||
Options granted (in dollars per share) | 67.36 | 71.37 | 68.32 | ||
Average exercise price at the end of the period (in dollars per share) | $ 72.34 | $ 72.34 | $ 72.04 | $ 66.83 | |
Stock Option Activity Roll Forward, Non-vested, Number of Shares | |||||
Nonvested options outstanding at the beginning of the period (in shares) | 664,363 | 664,363 | 719,027 | ||
Options granted (in shares) | 428,190 | 316,830 | 377,920 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (358,511) | ||||
Forfeited (in shares) | (124,343) | ||||
Stock Option Activity Roll Forward, Non-vested, Weighted-Average Grant Date Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 12.88 | $ 12.88 | $ 15.47 | ||
Vested/Exercised (in dollars per share) | 18.14 | ||||
Forfeited (in dollars per share) | $ 14.99 | ||||
Summary of intrinsic value | |||||
Total intrinsic value of all options exercised | $ 1.6 | $ 10.3 | $ 25.9 | ||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options Granted | |||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 2.2 | $ 7.4 | $ 11.2 |
Options, additional information | |||
Total unrecognized stock-based compensation expense | $ 1.8 | ||
Weighted-average period over which this expense will be recognized | 9 months 18 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) | 1,873,795 | ||
Number Exercisable (in shares) | 1,209,432 | ||
Weighted-average remaining contractual term of exercisable options (in years) | 2 years 1 month 9 days | ||
Options Granted | |||
Options granted (in shares) | 428,190 | 316,830 | 377,920 |
Stock or Unit Option Plan Expense | $ 5.8 | $ 4.3 | $ 6 |
Assumptions used for estimating the fair value of stock options | |||
Weighted average expected volatility (as a percent) | 23.70% | 24.80% | 26.60% |
Risk-free rate | 2.55% | 1.66% | 1.01% |
Dividend yield | 1.40% | 1.20% | 1.00% |
Volatility rate, minimum | 22.90% | 23.80% | 26.20% |
Volatility rate, maximum | 24.40% | 25.10% | 27.50% |
Options, additional information | |||
Stock or Unit Option Plan Expense | $ 5.8 | $ 4.3 | $ 6 |
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 | 6 years 6 months | 4 years | 4 years |
Employee nonstatutory stock options | Exercise Price Range One [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | $ 0 | ||
Exercise price, high | 10 | ||
Employee nonstatutory stock options | Exercise Price Range Two [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 10 | ||
Exercise price, high | 20 | ||
Employee nonstatutory stock options | Exercise Price Range Three [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 20 | ||
Exercise price, high | 30 | ||
Employee nonstatutory stock options | Exercise Price Range Four [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 30 | ||
Exercise price, high | 40 | ||
Employee nonstatutory stock options | Exercise Price Range Five [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 40 | ||
Exercise price, high | 50 | ||
Employee nonstatutory stock options | Exercise Price Range Six [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 50 | ||
Exercise price, high | 60 | ||
Employee nonstatutory stock options | Exercise Price Range Seven [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 60 | ||
Exercise price, high | $ 70 | ||
Number Outstanding (in shares) | 710,321 | ||
Number Exercisable (in shares) | 226,938 | ||
Outstanding Weighted- Average Remaining Contractual Life (Years) | 3 years 2 months 23 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 68.27 | ||
Employee nonstatutory stock options | Exercise Price Range Eight [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 70 | ||
Exercise price, high | $ 80 | ||
Number Outstanding (in shares) | 1,139,369 | ||
Number Exercisable (in shares) | 958,389 | ||
Outstanding Weighted- Average Remaining Contractual Life (Years) | 1 year 5 months 16 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 75.72 | ||
Employee nonstatutory stock options | Exercise Price Range Nine [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 80 | ||
Exercise price, high | $ 90 | ||
Number Outstanding (in shares) | 24,105 | ||
Number Exercisable (in shares) | 24,105 | ||
Outstanding Weighted- Average Remaining Contractual Life (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 | 90 | ||
Exercise price, high | 100 | ||
Employee nonstatutory stock options | Exercise Price Range Eleven [Member] | |||
Stock Incentive Plans | |||
Exercise price, low | 100 | ||
Exercise price, high | $ 110 | ||
Restricted Stock Units (RSUs) [Member] | |||
Options, additional information | |||
Performance Based Units Granted | 86,698 | 57,600 | 77,358 |
Granted (in dollars per share) | $ 67.54 | $ 71.37 | $ 68.90 |
Performance Based Units [Member] | |||
Options, additional information | |||
Performance Based Units Granted | 93,216 | 115,158 | 124,952 |
Granted (in dollars per share) | $ 67.39 | $ 71.37 | $ 68.50 |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) [Member] | |||
Options Granted | |||
Stock or Unit Option Plan Expense | $ 13.2 | $ 10.3 | $ 8.6 |
Options, additional information | |||
Performance Based Units, Forfeitures | 44,279 | 16,395 | 15,197 |
Percent of Units Expected to Settle in Common Stock | 64.00% | 65.00% | 67.00% |
Percent of Units Expected to Settle in Cash | 36.00% | 35.00% | 33.00% |
Stock or Unit Option Plan Expense | $ 13.2 | $ 10.3 | $ 8.6 |
Stock or Unit Option Plan Expense, Unrecognized | $ 9.5 | ||
Weighted-Average Remaining Contractual Term (in years) | 1 year 6 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 08, 2017 | Feb. 05, 2015 | |
Numerators | |||||||||||||
Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders | $ 167.6 | $ 11.2 | $ 107 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (12.9) | ||||||||||
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 69.1 | $ 16.1 | $ 38.8 | $ 43.6 | $ (123) | $ 47.4 | $ 43.9 | $ 42.9 | $ 167.6 | $ 11.2 | $ 94.1 | ||
Denominators | |||||||||||||
Weighted average common shares-basic calculation | 67,200,000 | 68,100,000 | 70,100,000 | ||||||||||
Dilutive effect of employee stock options (in shares) | 100,000 | 100,000 | 400,000 | ||||||||||
Weighted average common shares-diluted calculation | 67,300,000 | 68,200,000 | 70,500,000 | ||||||||||
Basic earnings per share attributable to W. R. Grace & Co. shareholders | |||||||||||||
Income (loss) from continuing operations | $ 2.49 | $ 0.16 | $ 1.53 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (0.19) | ||||||||||
Net income (loss) | $ 1.03 | $ 0.24 | $ 0.58 | $ 0.64 | $ (1.81) | $ 0.70 | $ 0.64 | $ 0.63 | 2.49 | 0.16 | 1.34 | ||
Diluted earnings per share attributable to W. R. Grace & Co. shareholders | |||||||||||||
Income (loss) from continuing operations | 2.49 | 0.16 | 1.52 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (0.19) | ||||||||||
Net income (loss) | $ 1.03 | $ 0.24 | $ 0.58 | $ 0.64 | $ (1.81) | $ 0.70 | $ 0.64 | $ 0.63 | $ 2.49 | $ 0.16 | $ 1.33 | ||
Stock options excluded from computation of diluted earnings per share (in shares) | 1,700,000 | 1,500,000 | 1,300,000 | ||||||||||
Share Repurchase Program [Line Items] | |||||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | $ 500 | |||||||||||
Shares repurchased | 1,171,141 | 935,435 | 2,775,297 | ||||||||||
Payments for Repurchase of Common Stock | $ 80 | $ 65 | $ 195.1 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 138.9 | $ 138.9 |
Revenues Revenues - Narrative (
Revenues Revenues - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with Customer, Liability, Revenue Recognized | $ 16.6 | ||
Number of Reportable Segments | segment | 2 | ||
Increase (Decrease) in Contract with Customer, Liability | $ 35.6 | $ 4.7 | $ (6.9) |
Contract With Customer Liability, Noncurrent, Recognition Period | 4 years | ||
Revenue, Remaining Performance Obligation, Amount | $ 103 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Increase (Decrease) in Contract with Customer, Liability | $ 3.2 |
Revenues Schedule of Disaggrega
Revenues Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | $ 1,932.1 | $ 1,716.5 | $ 1,598.6 |
Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 581.7 | 486 | 490.7 | ||||||||
Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 752.2 | 667.7 | 647.8 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 481.5 | 459.8 | 348.9 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 116.7 | 103 | 111.2 | ||||||||
Grace Catalysts Technologies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,463.5 | 1,276.5 | 1,163.7 | ||||||||
Grace Catalysts Technologies | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 475.4 | 386.9 | 386.2 | ||||||||
Grace Catalysts Technologies | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 521.4 | 454.5 | 438.8 | ||||||||
Grace Catalysts Technologies | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 386.6 | 365.7 | 261.1 | ||||||||
Grace Catalysts Technologies | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 80.1 | 69.4 | 77.6 | ||||||||
Grace Catalysts Technologies | Refining Catalysts [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 802 | 758.1 | 724.9 | ||||||||
Grace Catalysts Technologies | Refining Catalysts [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 282.8 | 269.5 | 285.8 | ||||||||
Grace Catalysts Technologies | Refining Catalysts [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 266 | 236.4 | 235.5 | ||||||||
Grace Catalysts Technologies | Refining Catalysts [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 193.4 | 199.3 | 141.2 | ||||||||
Grace Catalysts Technologies | Refining Catalysts [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 59.8 | 52.9 | 62.4 | ||||||||
Grace Catalysts Technologies | Polyolefin and Chemical Catalysts [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 661.5 | 518.4 | 438.8 | ||||||||
Grace Catalysts Technologies | Polyolefin and Chemical Catalysts [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 192.6 | 117.4 | 100.4 | ||||||||
Grace Catalysts Technologies | Polyolefin and Chemical Catalysts [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 255.4 | 218.1 | 203.3 | ||||||||
Grace Catalysts Technologies | Polyolefin and Chemical Catalysts [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 193.2 | 166.4 | 119.9 | ||||||||
Grace Catalysts Technologies | Polyolefin and Chemical Catalysts [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 20.3 | 16.5 | 15.2 | ||||||||
Grace Materials Technologies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 468.6 | 440 | 434.9 | ||||||||
Grace Materials Technologies | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 106.3 | 99.1 | 104.5 | ||||||||
Grace Materials Technologies | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 230.8 | 213.2 | 209 | ||||||||
Grace Materials Technologies | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 94.9 | 94.1 | 87.8 | ||||||||
Grace Materials Technologies | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 36.6 | 33.6 | 33.6 | ||||||||
Grace Materials Technologies | Coatings [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 155.4 | 142.2 | 136.5 | ||||||||
Grace Materials Technologies | Coatings [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 28.1 | 26 | 25.4 | ||||||||
Grace Materials Technologies | Coatings [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 75.3 | 66.9 | 63.9 | ||||||||
Grace Materials Technologies | Coatings [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 43.3 | 41.3 | 38.9 | ||||||||
Grace Materials Technologies | Coatings [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 8.7 | 8 | 8.3 | ||||||||
Grace Materials Technologies | Consumer/Pharma [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 132.6 | 123.3 | 121.9 | ||||||||
Grace Materials Technologies | Consumer/Pharma [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 36.2 | 38.2 | 43 | ||||||||
Grace Materials Technologies | Consumer/Pharma [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 58 | 48.3 | 47.3 | ||||||||
Grace Materials Technologies | Consumer/Pharma [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 19 | 17.8 | 14.7 | ||||||||
Grace Materials Technologies | Consumer/Pharma [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 19.4 | 19 | 16.9 | ||||||||
Grace Materials Technologies | Chemical process [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 157.3 | 153.5 | 142.6 | ||||||||
Grace Materials Technologies | Chemical process [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 35.2 | 28.5 | 26.8 | ||||||||
Grace Materials Technologies | Chemical process [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 81.6 | 83.7 | 78.2 | ||||||||
Grace Materials Technologies | Chemical process [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 32.2 | 34.8 | 29.3 | ||||||||
Grace Materials Technologies | Chemical process [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 8.3 | 6.5 | 8.3 | ||||||||
Grace Materials Technologies | Other materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 23.3 | 21 | 33.9 | ||||||||
Grace Materials Technologies | Other materials [Member] | Total North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6.8 | 6.4 | 9.3 | ||||||||
Grace Materials Technologies | Other materials [Member] | Europe Middle East Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 15.9 | 14.3 | 19.6 | ||||||||
Grace Materials Technologies | Other materials [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0.4 | 0.2 | 4.9 | ||||||||
Grace Materials Technologies | Other materials [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 0.2 | $ 0.1 | $ 0.1 |
Revenues Schedule of Deferred R
Revenues Schedule of Deferred Revenues (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Deferred Revenue [Abstract] | ||
Contract with Customer, Liability, Current | $ 40.6 | $ 19.5 |
Contract with Customer, Liability, Noncurrent | 29.2 | 14.9 |
Contract with Customer, Liability | $ 69.8 | $ 34.4 |
Revenues Schedule of Remaining
Revenues Schedule of Remaining Performance Obligations (Details) | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 31.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 24.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 20.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 4 years |
Revenue, Remaining Performance Obligation, Percentage | 100.00% |
Operating Segment Information -
Operating Segment Information - Segment Info and Reconciliation (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating segment information | |||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||
Net Sales | |||||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | $ 1,932.1 | $ 1,716.5 | $ 1,598.6 |
Adjusted EBIT | |||||||||||
Gain on termination of postretirement plans related to current businesses | 0 | 0 | 0.2 | ||||||||
Certain Pension Costs | (15.9) | (13) | (12.3) | ||||||||
Adjusted EBIT | 456.7 | 414 | 400.3 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 100.8 | 111.5 | 100.3 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 216.3 | 125.2 | 116.9 | ||||||||
Assets | |||||||||||
Total Assets | 3,565.3 | 2,907 | 3,565.3 | 2,907 | 2,911.8 | ||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Adjusted EBIT | 456.7 | 414 | 400.3 | ||||||||
Costs related to legacy product, environmental and other claims | (84.6) | (30.8) | (35.4) | ||||||||
Restructuring and repositioning expenses | (46.4) | (26.7) | (38.6) | ||||||||
Pension MTM adjustment and other related costs, net | 15.2 | (51.1) | (60.3) | ||||||||
Third-party acquisition-related costs | (7.3) | (2.9) | (2.5) | ||||||||
Amortization of Acquired Inventory Fair Value Adjustment | (6.9) | 0 | (8) | ||||||||
Loss on early extinguishment of debt | (4.8) | 0 | (11.1) | ||||||||
Income and expense items related to divested businesses | 2.3 | (2.3) | 0.1 | ||||||||
Accounts receivable reserve-Venezuela | 0 | (10) | 0 | ||||||||
Gain (loss) on sale of product line | 0 | 0 | 1.7 | ||||||||
Gain on termination and curtailment of postretirement plans related to divested businesses | 0 | 0 | 0.3 | ||||||||
Interest expense, net | (78.5) | (78.5) | (80.5) | ||||||||
Net income (loss) attributable to noncontrolling interests | (0.8) | (0.8) | 0 | ||||||||
Income (loss) from continuing operations before income taxes | $ 244.9 | 210.9 | 166 | ||||||||
Catalysts Technologies | |||||||||||
Operating segment information | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Net Sales | |||||||||||
Revenues | $ 1,463.5 | 1,276.5 | 1,163.7 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 440.5 | 395.4 | 367.8 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 81.7 | 87.1 | 77.4 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 150.3 | 100.9 | 84.9 | ||||||||
Materials Technologies | |||||||||||
Net Sales | |||||||||||
Revenues | 468.6 | 440 | 434.9 | ||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | 105.6 | 100.6 | 104 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 15.5 | 19.6 | 19.5 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 56.1 | 20.9 | 24 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Adjusted EBIT | |||||||||||
Operating income (loss) | (73.5) | (69) | (59.4) | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 3.6 | 4.8 | 3.4 | ||||||||
Payments to Acquire Productive Assets [Abstract] | |||||||||||
Capital Expenditures | 9.9 | 3.4 | 8 | ||||||||
Operating Segments [Member] | Catalysts Technologies | |||||||||||
Assets | |||||||||||
Total Assets | 2,326.6 | 1,757.1 | 2,326.6 | 1,757.1 | 1,675.1 | ||||||
Operating Segments [Member] | Materials Technologies | |||||||||||
Assets | |||||||||||
Total Assets | 375.9 | 326.8 | 375.9 | 326.8 | 313.1 | ||||||
Corporate, Non-Segment [Member] | |||||||||||
Assets | |||||||||||
Total Assets | $ 862.8 | $ 823.1 | $ 862.8 | $ 823.1 | $ 923.6 |
Operating Segment Information_2
Operating Segment Information - Sales and Long-Lived Assets by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Geographic Area Data | |||||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | $ 1,932.1 | $ 1,716.5 | $ 1,598.6 |
Long-Lived Assets | 1,110.5 | 831.8 | 1,110.5 | 831.8 | 756.6 | ||||||
Total North America | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 581.7 | 486 | 490.7 | ||||||||
Long-Lived Assets | 809.5 | 615.3 | 809.5 | 615.3 | 578.4 | ||||||
United States | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 533.8 | 437.3 | 446.2 | ||||||||
Long-Lived Assets | 793 | 599.8 | 793 | 599.8 | 564.5 | ||||||
Canada | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 47.9 | 48.7 | 44.5 | ||||||||
Long-Lived Assets | 16.5 | 15.5 | 16.5 | 15.5 | 13.9 | ||||||
Europe Middle East Africa | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 752.2 | 667.7 | 647.8 | ||||||||
Long-Lived Assets | 221.4 | 187.5 | 221.4 | 187.5 | 149.2 | ||||||
Germany | |||||||||||
Geographic Area Data | |||||||||||
Long-Lived Assets | 172.5 | 142.2 | 172.5 | 142.2 | 109.7 | ||||||
EMEA excluding Germany [Member] | |||||||||||
Geographic Area Data | |||||||||||
Long-Lived Assets | 48.9 | 45.3 | 48.9 | 45.3 | 39.5 | ||||||
Asia Pacific | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 481.5 | 459.8 | 348.9 | ||||||||
Long-Lived Assets | 72.9 | 21.1 | 72.9 | 21.1 | 21.5 | ||||||
Latin America | |||||||||||
Geographic Area Data | |||||||||||
Revenues | 116.7 | 103 | 111.2 | ||||||||
Long-Lived Assets | $ 6.7 | $ 7.9 | $ 6.7 | $ 7.9 | $ 7.5 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Apr. 03, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Equity method investment, ownership interest | 50.00% | |||
Investment in unconsolidated affiliate | $ 156,100,000 | $ 125,900,000 | ||
Equity in earnings of unconsolidated affiliates | 31,800,000 | 25,900,000 | $ 29,800,000 | |
ART's assets, liabilities and results of operations: | ||||
Current assets | 307,400,000 | 239,800,000 | ||
Noncurrent assets | 160,200,000 | 91,500,000 | ||
Total assets | 467,600,000 | 331,300,000 | ||
Current liabilities | 133,300,000 | 82,400,000 | ||
Noncurrent liabilities | 25,300,000 | 300,000 | ||
Total liabilities | 158,600,000 | 82,700,000 | ||
Net sales | 487,500,000 | 447,300,000 | 388,900,000 | |
Costs and expenses applicable to net sales | 410,600,000 | 379,800,000 | 322,100,000 | |
Income before income taxes | 65,500,000 | 53,600,000 | 60,800,000 | |
Net income | 64,200,000 | 52,100,000 | 59,300,000 | |
Related party transactions: | ||||
Product manufactured for ART | 229,100,000 | 213,800,000 | 210,400,000 | |
Related Party Transaction, markup of product manufactured for ART reducing COGS | 4,500,000 | 4,200,000 | 4,200,000 | |
Charges for fixed costs, research and development and selling, general and administrative services to ART | $ 41,800,000 | 41,700,000 | $ 33,800,000 | |
Schedule of Investments [Line Items] | ||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||
Debt Instrument, Maturity Date Range, End | 8 years | |||
Noncurrent liability | $ 98,800,000 | 32,700,000 | ||
Grace LOC to ART [Member] | ||||
Schedule of Investments [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Commitment fee on credit facility | 0.10% | |||
Long-term Line of Credit | $ 0 | 0 | ||
Chevron LOC to ART [Member] | ||||
Schedule of Investments [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Commitment fee on credit facility | 0.10% | |||
Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Accounts receivable | $ 3,700,000 | |||
Noncontrolling Interest, Ownership Percentage by Parent | 87.50% | |||
Revenue from Related Parties | $ 14,000,000 | |||
ART [Member] | ||||
Schedule of Investments [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Accounts receivable | 16,200,000 | 20,100,000 | ||
Noncurrent asset | 98,800,000 | 32,700,000 | ||
Accounts payable | 32,000,000 | 22,300,000 | ||
Debt payable within one year | 9,800,000 | 8,600,000 | ||
Debt payable after one year | 38,300,000 | 33,800,000 | ||
Noncurrent liability | $ 98,800,000 | $ 32,700,000 |
Acquisition Acquisition - Asset
Acquisition Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 540.4 | $ 402.4 | $ 394.2 |
Polyolefin Catalysts Business of Albemarle Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 13.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 28.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 0.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 119.8 | ||
Goodwill | 140.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 121.2 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (7.3) | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 418 |
Acquisition Acquisition- Narrat
Acquisition Acquisition- Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 418 | $ 3.5 | $ 246.5 |
Goodwill | 540.4 | $ 402.4 | $ 394.2 |
Polyolefin Catalysts Business of Albemarle Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 418 | ||
Goodwill | 140.6 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 86 |
Acquisition Acquisition - Intan
Acquisition Acquisition - Intangible Assets Acquired (Details) - Polyolefin Catalysts Business of Albemarle Corporation [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 121.2 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years 3 months |
Customer Lists [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 105.4 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Technology-Based Intangible Assets [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11.5 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Trademarks [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4.3 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 03, 2016 | Jan. 31, 2016 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | $ 1,932.1 | $ 1,716.5 | $ 1,598.6 | |||
Selling, general and administrative expenses | 307 | 274 | 271.8 | |||||||||||
Cost of goods sold | 1,165.4 | 1,040.4 | 928.8 | |||||||||||
Gross Profit | $ 196.3 | $ 202.2 | $ 198.7 | $ 169.5 | $ 184.4 | $ 171.3 | $ 167.2 | $ 153.2 | 766.7 | 676.1 | 669.8 | |||
Research and development expenses | 62.7 | 56.3 | 51.6 | |||||||||||
Repositioning expenses | 32.4 | 15.2 | 14.3 | |||||||||||
Interest expense and related financing costs | 80.2 | 79.5 | 81.5 | |||||||||||
Other expense, net | (16.5) | 30.2 | 61.4 | |||||||||||
Total costs and expenses | 521.8 | 465.2 | 503.8 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | (12.9) | |||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Increase (decrease) in cash and cash equivalents from discontinued operations | 0 | 0 | 44.8 | |||||||||||
Distribution from GCP | $ 0 | $ 0 | 750 | |||||||||||
Grace Construction Products [Member] | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Revenues | 99.6 | |||||||||||||
Selling, general and administrative expenses | 21.6 | |||||||||||||
Cost of goods sold | 62.6 | |||||||||||||
Gross Profit | 37 | |||||||||||||
Research and development expenses | 1.7 | |||||||||||||
Repositioning expenses | 22 | |||||||||||||
Interest expense and related financing costs | 0.7 | |||||||||||||
Other expense, net | 3.9 | |||||||||||||
Total costs and expenses | 49.9 | |||||||||||||
(Loss) Income from discontinued operations before income taxes | (12.9) | |||||||||||||
Benefit from (provision for) income taxes | 0.1 | |||||||||||||
(Loss) Income from discontinued operations after income taxes | (12.8) | |||||||||||||
Less: Net income attributable to noncontrolling interests | (0.1) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | (12.9) | |||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 23.9 | |||||||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (9.5) | |||||||||||||
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 31.4 | |||||||||||||
Effect of Exchange Rate on Cash and Cash Equivalents, Discontinued Operations | (1) | |||||||||||||
Increase (decrease) in cash and cash equivalents from discontinued operations | $ 44.8 | |||||||||||||
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 Means Other than Sale, Spinoff [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Proceeds from Issuance of Long-term Debt | $ 525 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||||||||||||
Distribution from GCP | 500 | |||||||||||||
GCP Applied Technologies [Member] | GCP Credit Agreement [Member] | Line of Credit [Member] | Grace Construction Products [Member] | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Proceeds from Issuance of Long-term Debt | 525 | |||||||||||||
Distribution from GCP | $ 250 | |||||||||||||
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 Means Other than Sale, Spinoff [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Debt Instrument, Face Amount | $ 275 | |||||||||||||
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 Means Other than Sale, Spinoff [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||
Debt Instrument, Face Amount | $ 250 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Environmental remediation | |||||||||||
Provision for environmental remediation | $ 73.8 | $ 24.4 | $ 28.7 | ||||||||
Revenues | $ 520 | $ 494.9 | $ 485.7 | $ 431.5 | $ 459.5 | $ 429.5 | $ 429.5 | $ 398 | 1,932.1 | 1,716.5 | 1,598.6 |
Gross Profit | 196.3 | 202.2 | 198.7 | 169.5 | 184.4 | 171.3 | 167.2 | 153.2 | 766.7 | 676.1 | 669.8 |
Net income (loss) | 68.9 | 15.9 | 38.6 | 43.4 | (123.1) | 47.1 | 43.5 | 42.9 | 166.8 | 10.4 | 94.1 |
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 69.1 | $ 16.1 | $ 38.8 | $ 43.6 | $ (123) | $ 47.4 | $ 43.9 | $ 42.9 | $ 167.6 | $ 11.2 | $ 94.1 |
Basic earnings per share: | |||||||||||
Net income (loss) (in dollars per share) | $ 1.03 | $ 0.24 | $ 0.58 | $ 0.64 | $ (1.81) | $ 0.70 | $ 0.64 | $ 0.63 | $ 2.49 | $ 0.16 | $ 1.34 |
Diluted earnings per share: | |||||||||||
Net income (loss) (in dollars per share) | 1.03 | 0.24 | 0.58 | 0.64 | (1.81) | 0.70 | 0.64 | 0.63 | 2.49 | 0.16 | 1.33 |
Dividends per common share | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.96 | $ 0.84 | $ 0.51 |
Operable Unit 3 [Member] | |||||||||||
Environmental remediation | |||||||||||
Provision for environmental remediation | $ 70 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation and qualifying accounts deducted from assets and Reserves: | ||||
Accounts receivable reserve—Venezuela | $ 0 | $ 10 | $ 0 | |
Change in valuation allowance | 7.9 | (19.4) | 23 | |
Pre-tax charges for environmental matters | 73.8 | 24.4 | 28.7 | |
Allowances for notes and accounts receivable [Member] | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 12 | 2.8 | 1.4 | |
Additions charged to costs and expenses | 0 | 10.6 | 2.4 | |
Deductions | 0 | (1.3) | (1.1) | |
Other net | 0 | (0.1) | 0.1 | |
Balance at end of period | 12 | 12 | 2.8 | |
Valuation allowance for deferred tax assets | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 12 | 31.4 | 8.4 | |
Additions charged to costs and expenses | 10.7 | 0.3 | 11.6 | |
Deductions | (2.8) | (19.7) | (9.1) | |
Other net | 0 | 0 | 20.5 | |
Balance at end of period | 19.9 | 12 | 31.4 | |
Reserves for environmental remediation | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 70.3 | 66.3 | 55.2 | |
Additions charged to costs and expenses | 73.8 | 24.4 | 29.2 | |
Deductions | (17.7) | (20.4) | (18.1) | |
Other net | 0 | 0 | 0 | |
Balance at end of period | 126.4 | 70.3 | 66.3 | |
Reserves for retained obligations of divested businesses | ||||
Reconciliation of valuation and reserves roll forward | ||||
Balance at beginning of period | 12.8 | 11.7 | 13.5 | |
Additions charged to costs and expenses | 1 | 1.5 | 0 | |
Deductions | (1.6) | (0.4) | (1.8) | |
Other net | 0 | 0 | 0 | |
Balance at end of period | $ 12.2 | $ 12.8 | $ 11.7 | |
Operable Unit 3 [Member] | ||||
Valuation and qualifying accounts deducted from assets and Reserves: | ||||
Pre-tax charges for environmental matters | $ 70 |