Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 27, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GCP Applied Technologies Inc. | ||
Entity Central Index Key | 1,644,440 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 71,185,929 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 1,844,781,249 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 |
Cost of goods sold | 827.1 | 902.4 | 949.9 |
Gross profit | 528.7 | 516.2 | 530.5 |
Selling, general and administrative expenses | 312.8 | 296.4 | 288.9 |
Research and development expenses | 23 | 22.3 | 27.9 |
Interest expense and related financing costs | 65.8 | 1.5 | 3.9 |
Interest expense, net - related party | 0 | 1.2 | 0.9 |
Repositioning expenses | 15.3 | 0 | 0 |
Restructuring expenses and asset impairments | 1.9 | 11.6 | 18.3 |
Loss in Venezuela | 0 | 59.6 | 1 |
Other expense (income), net | 3.9 | (1.6) | (1.5) |
Total costs and expenses | 422.7 | 391 | 339.4 |
Income before income taxes | 106 | 125.2 | 191.1 |
Provision for income taxes | (32.2) | (84.3) | (55.6) |
Net income | 73.8 | 40.9 | 135.5 |
Less: Net income attributable to noncontrolling interests | (1) | (0.8) | (1.2) |
Net income attributable to GCP shareholders | $ 72.8 | $ 40.1 | $ 134.3 |
Basic earnings per share: | |||
Net income attributable to GCP shareholders (in usd per share) | $ 1.03 | $ 0.57 | $ 1.90 |
Weighted average number of basic shares | 70.8 | 70.5 | 70.5 |
Diluted earnings per share: | |||
Net income attributable to GCP shareholders (in usd per share) | $ 1.02 | $ 0.57 | $ 1.90 |
Weighted average number of diluted shares | 71.7 | 70.5 | 70.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 163.3 | $ 98.6 |
Trade accounts receivable, less allowance of $4.9 (2015—$6.2) | 217.1 | 203.6 |
Inventories | 121.6 | 105.3 |
Other current assets | 51.8 | 38.9 |
Total Current Assets | 553.8 | 446.4 |
Properties and equipment, net | 232.2 | 197.1 |
Goodwill | 119.3 | 102.5 |
Technology and other intangible assets, net | 53 | 33.3 |
Deferred income taxes | 83.3 | 17.6 |
Overfunded defined benefit pension plans | 21.2 | 26.1 |
Other assets | 27 | 10.1 |
Total Assets | 1,089.8 | 833.1 |
Current Liabilities | ||
Debt payable within one year | 47.9 | 25.7 |
Accounts payable | 122.6 | 109 |
Loans payable - related party | 0 | 42.3 |
Other current liabilities | 141 | 125.5 |
Total Current Liabilities | 311.5 | 302.5 |
Debt payable after one year | 783 | 0 |
Deferred income taxes | 8.9 | 8.7 |
Unrecognized tax benefits | 9.7 | 5.2 |
Underfunded and unfunded defined benefit pension plans | 98 | 34 |
Other liabilities | 17.7 | 8.6 |
Total Liabilities | 1,228.8 | 359 |
Commitments and Contingencies - Note 9 | ||
Stockholders' (Deficit) Equity | ||
Net parent investment | 0 | 598.3 |
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 71,081,764 | 0.7 | 0 |
Paid-in capital | 11 | 0 |
Accumulated deficit | (4.7) | 0 |
Accumulated other comprehensive loss | (147.6) | (127.7) |
Treasury stock | (2.1) | 0 |
Total GCP Stockholders' (Deficit) Equity | (142.7) | 470.6 |
Noncontrolling interests | 3.7 | 3.5 |
Total Stockholders' (Deficit) Equity | (139) | 474.1 |
Total Liabilities and Stockholders' (Deficit) Equity | $ 1,089.8 | $ 833.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 4.9 | $ 6.2 |
Common stock issued, par value (in usd per share) | $ 0.01 | |
Common stock, number of shares authorized | 300,000,000 | |
Common stock, number of shares outstanding | 71,081,764 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 73.8 | $ 40.9 | $ 135.5 |
Other comprehensive income (loss): | |||
Defined benefit pension and other postretirement plans, net of income taxes | 0 | 0.4 | 0.1 |
Currency translation adjustments | (19.9) | (62.3) | (41.4) |
Gain from hedging activities, net of income taxes | 0 | 0.2 | 0.2 |
Other than temporary impairment of investment | 0 | 0 | 0.8 |
Loss on securities available for sale, net of income taxes | 0 | 0 | (0.1) |
Total other comprehensive income (loss) attributable to noncontrolling interests | 0.2 | (0.1) | (2.5) |
Total other comprehensive loss | (19.7) | (61.8) | (42.9) |
Comprehensive income (loss) | 54.1 | (20.9) | 92.6 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (1.2) | (0.7) | 1.3 |
Comprehensive income (loss) attributable to GCP shareholders | $ 52.9 | $ (21.6) | $ 93.9 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Accumulated Deficit | Net Parent Investment | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance at Dec. 31, 2013 | $ 609.7 | $ 624.9 | $ (25.6) | $ 10.4 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 135.5 | 134.3 | 1.2 | |||||
Other comprehensive loss | (42.9) | (40.4) | (2.5) | |||||
Purchase of noncontrolling investment | (6.3) | (6.3) | ||||||
Net transfer to (from) parent | (88.6) | (88.6) | ||||||
Ending balance at Dec. 31, 2014 | 607.4 | 670.6 | (66) | 2.8 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 40.9 | 40.1 | 0.8 | |||||
Other comprehensive loss | (61.8) | (61.7) | (0.1) | |||||
Net transfer to (from) parent | (112.4) | (112.4) | ||||||
Ending balance at Dec. 31, 2015 | 474.1 | 598.3 | (127.7) | 3.5 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 73.8 | $ 65.6 | 7.2 | 1 | ||||
Other comprehensive loss | (19.7) | (19.9) | 0.2 | |||||
Net transfer to (from) parent | (675.1) | (675.1) | ||||||
Issuance of common stock and reclassification of net parent investment in connection with Separation | 0 | $ 0.7 | (70.3) | 69.6 | ||||
Issuance of common stock and reclassification of net parent investment in connection with Separation, shares | 70,500,000 | |||||||
Issuance of common stock in connection with stock plans, shares | 100,000 | |||||||
Share based compensation | 6.4 | $ 6.4 | ||||||
Exercise of stock options | 4.6 | 4.6 | ||||||
Exercise of stock options, shares | 600,000 | |||||||
Treasury stock purchased under GCP 2016 Stock Incentive Plan | $ (2.1) | $ (2.1) | ||||||
Treasury stock purchased under GCP 2016 Stock Incentive Plan, shares | 112,205 | 100,000 | ||||||
Noncontrolling interest dividend | $ (1) | (1) | ||||||
Ending balance at Dec. 31, 2016 | $ (139) | $ 0.7 | $ (2.1) | $ 11 | $ (4.7) | $ 0 | $ (147.6) | $ 3.7 |
Ending balance, shares at Dec. 31, 2016 | 71,200,000 | 100,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ 73.8 | $ 40.9 | $ 135.5 |
Reconciliation to net cash provided by operating activities: | |||
Depreciation and amortization | 36.2 | 31.8 | 34 |
Impairments of certain assets | 0 | 0 | 13.4 |
Amortization of debt discount and financing costs | 2.8 | 0 | 0 |
Stock-based compensation expense | 6.8 | 3.7 | 4.1 |
Gain on termination and curtailment of pension and other postretirement plans | (0.8) | 0 | 0 |
Currency and other losses in Venezuela | 4.4 | 73.2 | 1 |
Deferred income taxes | (14.1) | 8.7 | 13.9 |
Excess tax benefits from stock-based compensation | 0 | (8.2) | (7.1) |
Loss on disposal of property and equipment | 0.9 | 1.3 | 0.1 |
Changes in assets and liabilities, excluding effect of currency translation: | |||
Trade accounts receivable | (16.4) | (20.9) | (1) |
Inventories | (9.3) | (5.2) | (24.5) |
Accounts payable | 9.2 | 1.9 | 5.5 |
Pension assets and liabilities, net | 21.5 | 13.4 | (19.7) |
Other assets and liabilities, net | 12.9 | 11.2 | 5.8 |
Net cash provided by operating activities | 127.9 | 151.8 | 161 |
INVESTING ACTIVITIES | |||
Capital expenditures | (45.3) | (36) | (37.5) |
Transfer from restricted cash and cash equivalents | 0 | 0 | 5.3 |
Purchase of bonds | 0 | 0 | (2.8) |
Proceeds from sale of bonds | 0 | 0 | 9.3 |
Increase in lending to related party | 0 | 0 | (51.7) |
Receipt of payment on loan from related party | 0 | 43.1 | 2.4 |
Businesses acquired, net of cash acquired | (47) | 0 | 0 |
Other investing activities | 1.6 | 3.6 | (0.6) |
Net cash (used in) provided by investing activities | (90.7) | 10.7 | (75.6) |
FINANCING ACTIVITIES | |||
Borrowings under credit arrangements | 321.1 | 51.2 | 26.6 |
Repayments under credit arrangements | (32.9) | (56.5) | (34.4) |
Borrowings under related party loans | 0 | 2.4 | 9.2 |
Repayments under related party loans | 0 | (12.9) | (8.9) |
Proceeds from issuance of notes | 525 | 0 | 0 |
Cash paid for debt financing costs | (18.2) | 0 | 0 |
Share repurchase under GCP 2016 Stock Incentive Plan | (2.1) | 0 | 0 |
Proceeds from exercise of stock options | 4.4 | 0 | 0 |
Purchase of non-controlling interest in consolidated joint venture | 0 | 0 | (6.3) |
Excess tax benefits from stock-based compensation | 0 | 8.2 | 7.1 |
Noncontrolling interest dividend | (1) | 0 | 0 |
Transfers to parent, net | (764.6) | (120.6) | (100.2) |
Net cash provided by (used in) financing activities | 31.7 | (128.2) | (106.9) |
Effect of currency exchange rate changes on cash and cash equivalents | (4.2) | (56.6) | (15.4) |
Increase (decrease) in cash and cash equivalents | 64.7 | (22.3) | (36.9) |
Cash and cash equivalents, beginning of period | 98.6 | 120.9 | 157.8 |
Cash and cash equivalents, end of period | 163.3 | 98.6 | 120.9 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes, net of refunds | 46.3 | 22.8 | 19.5 |
Cash paid for income taxes, net of refunds--former Parent | 0 | 52.8 | 22.2 |
Cash paid for interest on notes and credit arrangements | $ 39.3 | $ 2.4 | $ 4.4 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies On January 27, 2016, GCP entered into a Separation and Distribution Agreement pursuant to which Grace agreed to transfer its Grace Construction Products operating segment and the packaging technologies business, operated under the “Darex” name, of its Grace Materials Technologies operating segment to GCP (the "Separation"). The Separation occurred on February 3, 2016 by means of a pro rata distribution to Grace stockholders of all of the then-outstanding shares of Company common stock (the "Distribution"). Under the Distribution, one share of Company common stock was distributed for each share of Grace common stock held by Grace stockholders. No fractional shares were distributed. As a result of the Distribution, GCP is now an independent public company and its common stock is listed under the symbol "GCP" on the New York Stock Exchange. GCP is engaged in the production and sale of specialty construction chemicals, specialty building materials and packaging products through three operating segments. Specialty Construction Chemicals ("SCC") manufactures and markets concrete admixtures and cement additives. Specialty Building Materials ("SBM") manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, fireproofing products and a flooring barrier system that protects surface flooring from moisture and alkalinity damage, as well as flooring installation products and other products designed to protect the building envelope. Darex Packaging Technologies ("Darex") manufactures and markets packaging materials for use in beverage and food containers, industrial containers and other consumer and industrial applications. Prior to the Separation, the Company operated as the Grace Construction Products operating segment and the Darex Packaging Technologies business. The Separation was completed pursuant to various agreements with Grace related to the Separation. These agreements govern the relationship between GCP and Grace following the Separation and provided for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided on a temporary basis by both parties. Basis of Presentation The financial statements for periods prior to the Separation have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Grace, as the Company's business operated as a combination of entities under common control of Grace. These financial statements reflect the historical basis and carrying values established when the Company was part of Grace. Subsequent to the Separation, the accompanying Consolidated Financial Statements are presented on a consolidated basis and include all of the accounts and operations of GCP and its majority-owned subsidiaries. All transactions between GCP and Grace have been included in these financial statements. Prior to the Separation, all such transactions, other than intercompany loan transactions, are effectively considered to be settled for cash, in the Consolidated Financial Statements at the time the transactions were recorded . The intercompany loans payable to Grace and the related interest and cash flows, as presented in Note 5 "Debt and Other Financial Instruments", are reflected as "Borrowings under related party loans" and "Repayments under related party loans" in the Consolidated Statements of Cash Flows, as "Loans payable-related party" in the Consolidated Balance Sheets and as "Interest expense, net-related party" in the Consolidated Statements of Operations. Subsequent to the Separation, Grace is no longer a related party of the Company. Prior to the Separation, the financial statements included expenses of Grace allocated to GCP for certain functions provided by Grace, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, environment health and safety, supply chain, shared services, employee benefits and incentives, insurance and stock-based compensation. These expenses were allocated to GCP on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. These cost allocations were included in "Selling, general and administrative expenses" in the Statements of Operations. Most of these costs were included in segment operating income with only a portion included in corporate costs. Both GCP and Grace consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to, or the benefit received by, GCP during the periods presented. Subsequent to the Separation, GCP has performed most of these functions using its own resources or purchased services. However, Grace has continued to provide certain of these functions under a transition services agreement, which will remain in place for a period generally up to 18 months from the Separation. As of December 31, 2016, the activities subject to the transition services agreement were substantially complete. See Note 12, "Related Party Transactions and Transactions with Grace," for further description of the transition services agreement between GCP and Grace. Prior to the Separation, the financial statements also included the assets and liabilities that were historically held at the Grace corporate level but were specifically identifiable or otherwise pushed down to GCP. The cash and cash equivalents held by Grace at the corporate level were not specifically identifiable to GCP and therefore were not allocated to GCP for any of the periods presented. Prior to the Separation, cash and cash equivalents in the Balance Sheets represent primarily cash held locally by entities included in the financial statements. Third-party debt and the related interest expense of Grace were not allocated to GCP for any of the periods presented as GCP was not the legal obligor of the debt and the Grace borrowings were not directly attributable to GCP's business. The financial statements exclude all assets, liabilities, income, gains, costs and expenses reported by Grace related to asbestos and bankruptcy matters. Prior to the Separation, these matters were not allocated to GCP as Grace was the legal obligor for those liabilities and Grace is expected to pay all future liabilities and costs related to such matters as such matters were not historically managed by GCP. Grace retained full responsibility for these matters following the Separation and GCP has not indemnified Grace for any losses or payments associated with these matters. Prior to the Separation, Grace used a centralized approach to cash management and financing of its operations and Grace funded GCP's operating and investing activities as needed. Prior to the Separation, cash transfers to and from the cash management accounts of Grace are reflected in the Statements of Cash Flows as “Transfers to parent, net.” Noncontrolling Interests GCP conducts certain of its business through joint ventures with unaffiliated third parties. For joint ventures in which GCP has a controlling financial interest, GCP consolidates the results of such joint ventures in the Consolidated Financial Statements. GCP deducts the amount of income attributable to noncontrolling interests in the measurement of its consolidated net income. During the 2014 fourth quarter, GCP acquired the remaining 50% equity interest in its joint venture in Turkey for $11.7 million , making the business a wholly owned subsidiary of GCP. Operating Segments GCP reports financial results of each of its operating segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by GCP's chief operating decision maker. Earnings per Share GCP computes basic earnings per share ("EPS") attributable to GCP shareholders by dividing net income attributable to GCP shareholders by weighted-average common shares outstanding during the period. GCP's diluted EPS calculation reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in GCP's earnings. GCP calculated its earnings per share for 2015 and 2014 using the shares that were distributed to Grace shareholders immediately following the Separation. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments, as there were no equity awards in GCP outstanding prior to the Separation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, 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. GCP's accounting measurements that are most affected by management's estimates of future events are: • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate resolution cost, that may arise from circumstances such as legal disputes, environmental remediation, product liability claims, material commitments (see Note 9, "Commitments and Contingent Liabilities,") and income taxes (see Note 6, "Income Taxes"); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 7, "Pension Plans and Other Postretirement Benefit Plans); and • Realization values of net deferred tax assets, which depend on projections of future taxable income (see Note 6, "Income Taxes"). Reclassifications Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts. Certain amounts within "Net cash provided by operating activities" in the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2015 and 2014 have been reclassified to conform to current period presentation. These reclassifications had no effect on the previously reported cash flows from operating, investing and financing activities. Revenue Recognition GCP recognizes revenue when all of the following criteria are satisfied: risk of loss and title transfer to the customer; the price is fixed and determinable; persuasive evidence of a sales arrangement exists; and collectability is reasonably assured. Risk of loss and title transfers to customers are based on individual contractual terms. Terms of delivery are generally included in customer contracts of sale, order confirmation documents and invoices. Certain customer arrangements include conditions for volume rebates. GCP accrues a rebate allowance and reduces recorded sales for anticipated selling price adjustments at the time of sale. GCP regularly reviews rebate accruals based on actual and anticipated sales patterns. Cash Equivalents Cash equivalents consist of liquid instruments and investments with maturities of three months or less when purchased. The recorded amounts approximate fair value. Inventories Inventories are stated at the lower of cost or market. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. Long-Lived Assets Properties and equipment are stated at cost. Depreciation of properties and equipment is generally computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives range from 20 to 40 years for buildings, 3 to 7 years for information technology equipment, 3 to 10 years for operating machinery and equipment and 5 to 10 years for furniture and fixtures. Interest is capitalized in connection with major project expenditures. Fully depreciated assets are retained in properties and equipment and related accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged or credited to earnings. Obligations for costs associated with asset retirements, such as requirements to restore a site to its original condition, are accrued at net present value and amortized along with the related asset. 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 20 years. GCP 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. No impairment charges were required in 2016 and 2015 ; however, there were impairment charges recorded in 2014 (see Note 10, "Restructuring Expenses, Asset Impairments and Repositioning Expenses"). Goodwill Goodwill arises from certain business combinations. GCP reviews its goodwill for impairment on an annual basis in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Recoverability is assessed at the reporting unit level most directly associated with the business combination that generated the goodwill. For the purpose of measuring impairment under the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, " Intangibles—Goodwill and Other ," GCP has identified its reporting units as its operating segments. GCP has evaluated its goodwill annually with no impairment charge required in any of the periods presented in its accompanying Consolidated Statements of Operations. Income Tax As a global enterprise, GCP is subject to a complex array of tax regulations and must make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. After the Separation, income tax expense and income tax balances represent GCP’s federal, state and foreign income taxes as an independent company. GCP will file a U.S. consolidated income tax return, along with foreign and state corporate income tax filings, as required. GCP's deferred taxes and effective tax rate may not be comparable to those of historical periods prior to the Separation. See Note 6, "Income Taxes," for details regarding estimates used in accounting for income tax matters including unrecognized tax benefits. In the financial statements for periods prior to the Separation, income tax expense and tax balances were calculated using the separate return method as if GCP was a separate taxpayer, although GCP was included in tax returns filed by Grace. The separate return method applies ASC 740, Income Taxes , to the standalone financial statements of each member of a consolidated group as if the group member were a separate taxpayer and standalone enterprise. As a result, actual tax transactions included in the Consolidated Financial Statements of GCP may not be included in the separate financial statements of Grace. Further, the tax treatment of certain items reflected in the separate financial statements of Grace may not be reflected in the Consolidated Financial Statements and tax returns of GCP. For example, certain items such as net operating losses, credit carryforwards and valuation allowances that exist within Grace's financial statements may or may not exist in GCP's standalone financial statements. With the exception of certain dedicated foreign entities, GCP did not maintain taxes payable to and from Grace and GCP was deemed to settle the annual current tax balances immediately with the legal entities liable for the taxes in the respective jurisdictions. These settlements are reflected as changes in net parent investment. The Consolidated Statements of Cash Flows reflect cash paid for income taxes, including GCP’s cash taxes paid to taxing authorities, as well as tax payments that are deemed settled with Grace as the taxpayer during these time periods. Deferred tax assets and liabilities are recognized with respect to the expected future tax consequences of events that have been recorded in the Consolidated Financial Statements. If it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is provided against such deferred tax assets. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. GCP evaluates such likelihood based on relevant facts and tax law. Pension Benefits GCP'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, GCP'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, GCP's pension obligation and plan assets would be remeasured at an interim period and the gains or losses on remeasurement would be recognized in that period. Stock-Based Compensation Expense Prior to the Separation, GCP was allocated stock-based compensation expense from Grace related to GCP employees receiving awards denominated in Grace equity instruments. In accordance with an employee matters agreement entered into between Grace and GCP on January 27, 2016 in connection with the Separation (the "Employee Matters Agreement"), previously outstanding stock-based compensation awards granted under Grace's equity compensation programs prior to the Separation and held by certain executives and employees of GCP and Grace were adjusted to reflect the impact of the Separation on these awards. To preserve the aggregate intrinsic value of these stock-based compensation awards, as measured immediately before and immediately after the Separation, each holder of Grace stock-based compensation awards generally received an adjusted award consisting of either (i) both a stock-based compensation award denominated in Grace 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 the equity of the company at which the person was employed following the Separation. In the Separation, the determination as to which type of adjustment applied to a holder’s previously outstanding Grace award was based upon the type of stock-based compensation award that was to be adjusted and the date on which the award was originally granted under the Grace equity compensation programs prior to the Separation. Under the Employee Matters Agreement, GCP retains certain obligations related to all stock- and cash-settled stock-based compensation awards denominated in GCP equity, regardless of whether the holder is a GCP or Grace employee. Following the Separation, the Company records stock-based compensation expense for equity awards in accordance with the applicable authoritative accounting guidance. The Company recognizes expenses related to stock-based compensation payment transactions in which it receives employee services in exchange for equity instruments of the Company or 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 Company’s common stock price on the date of grant. Cash-settled PBUs are remeasured at the end of each reporting period based on the closing fair market value of the Company’s common stock. The Company recognizes stock-based compensation cost as expense over the requisite service period, generally the vesting period of the award. 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 currency translation adjustments are included in accumulated other comprehensive loss in the Consolidated Balance Sheets. The financial statements of any subsidiaries located in countries with highly inflationary economies are remeasured as if the functional currency were the U.S. dollar; the remeasurement creates translation adjustments that are reflected in net income in the Consolidated Statements of Operations. Effective January 1, 2010, GCP began to account for its Venezuela subsidiary as a highly inflationary economy. As a result, the functional currency of its Venezuelan subsidiary became the U.S. dollar; therefore, all translation adjustments are reflected in net income in the accompanying Consolidated Statements of Operations. The official exchange rate (CENCOEX) of 4.3 was used to remeasure GCP's financial statements from bolivars to U.S. dollars upon Venezuela's designation as a highly inflationary economy. On February 8, 2013, the Venezuelan government announced that, effective February 13, 2013, the official exchange rate of the bolivar to U.S. dollar would devalue from 4.3 to 6.3 . GCP continued to account for its results in Venezuela at the official exchange rate of 6.3 bolivars to one U.S. dollar until September 30, 2015. Based on developments in the third quarter of 2015, including changed expectations about GCP's ability to import raw materials into Venezuela at the official exchange rate and increased inflation, the Company determined that it was no longer appropriate to use the official exchange rate. Effective September 30, 2015, the Company began accounting for its results in Venezuela at the SIMADI rate. The Company recorded a pre-tax charge of $73.2 million in the third quarter of 2015 to reflect the devaluation of monetary assets and the impairment of non-monetary assets at the SIMADI rate of 199 bolivars to one U.S. dollar. The Company recorded $13.6 million of this amount related to inventory to cost of goods sold and $59.6 million related to other assets and liabilities as a separate line item in its Consolidated Statements of Operations for the year ended December 31, 2015, referred to as "Loss in Venezuela." In mid-February 2016, changes to the currency exchange systems were announced that eliminated the SICAD exchange rate and replaced the name SIMADI rate with DICOM, a floating exchange rate. The DICOM rate of 675 bolivars to one U.S. dollar at December 31, 2016 has increased approximately 240% from the rate at December 31, 2015 . Accordingly, the Company has recorded a $4.4 million loss within "Other expense (income), net" in its Consolidated Statements of Operations for the year ended December 31, 2016 to reflect the remeasurement of its Venezuela subsidiary's net monetary assets to U.S. dollars. Recently Issued Accounting Standards Business Combinations In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The standard is effective for the Company on January 1, 2018, with early application permitted for certain transactions. GCP is currently evaluating the allowed transition methods and potential impact on its Consolidated Financial Statements and related disclosures. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) . This ASU 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, which eliminates Step 2 from the goodwill impairment test. The standard is effective for the Company for annual or any interim goodwill impairment tests beginning on or after January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires recognition of the current and deferred income tax effects of an intra-entity asset transfer, other than inventory, when the transfer occurs, as opposed to current GAAP, which requires companies to defer the income tax effects until the asset has been sold to an outside party . The standard is effective for the Company on January 1, 2018, with early adoption permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Payments, which addresses eight specific cash flow presentation issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for the Company on January 1, 2018 and requires a retrospective approach to adoption. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update is intended to remove inconsistencies and weaknesses in revenue requirements; provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; provide more useful information to users of financial statements through improved disclosure requirements; and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new requirements were to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers—Deferral of the Effective Date , deferring the effective date by one year but permitting adoption as of the original effective date. The revised standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The standard will be effective for the Company on January 1, 2018 and requires either a retrospective or a modified retrospective approach to adoption. In addition to the expanded disclosures regarding revenue, this guidance may impact timing of revenue recognition in some arrangements with variable consideration or contracts for the sale of goods and services. GCP is currently evaluating the available transition methods and, given the diversity of the Company's business segments, the potential impact of the standard on its Consolidated Financial Statements and related disclosures. As a result, GCP will not adopt the standard early. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which clarifies aspects of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , including non-cash consideration and provides a practical expedient for reflecting contract modifications upon transition. The Company is currently evaluating the impact of adopting ASU 2016-12, which will occur in conjunction with its adoption of the new revenue recognition standard promulgated in Topic 606. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which clarifies aspects of ASU 2014-09 pertaining to the identification of performance obligations and the licensing implementation guidance, while retaining the core principles for those areas. GCP is currently evaluating the impact of adopting ASU 2016-10, which will occur in conjunction with its adoption of Topic 606. In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) , which amends the principal-versus-agent implementation guidance in Topic 606 and will affect whether an entity reports revenue on a gross or net basis. GCP is currently evaluating the impact of adopting ASU 2016-08, which will occur in conjunction with its adoption of Topic 606. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term, including optional payments where they are reasonably certain to occur. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO or average cost methods. The new requirements are effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted. GCP will adopt this standard for the 2017 first quarter and does not expect it to have a material effect on the Consolidated Financial Statements. Recently Adopted Accounting Standards Accounting for Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The update requires that excess tax benefits and deficiencies be recorded i |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market. GCP determines cost using the FIFO methodology. Inventories presented on GCP's Consolidated Balance Sheets consisted of the below. December 31, (In millions) 2016 2015 Raw materials $ 45.6 $ 39.1 In process 7.0 6.2 Finished products and other 69.0 60.0 Total inventories $ 121.6 $ 105.3 Included above as "other" within "Finished products and other" are finished products purchased rather than produced by GCP of $11.4 million and $8.7 million as of December 31, 2016 and December 31, 2015 , respectively. |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | Properties and Equipment December 31, (In millions) 2016 2015 Land $ 8.4 $ 9.2 Buildings 165.5 159.1 Machinery, equipment and other 448.1 425.3 Information technology and equipment 67.6 18.9 Projects under construction 28.4 14.7 Properties and equipment, gross 718.0 627.2 Accumulated depreciation and amortization (485.8 ) (430.1 ) Properties and equipment, net $ 232.2 $ 197.1 As discussed in Note 12, "Related Party Transactions and Transactions with Grace," the 2016 amounts above reflect the impact of a non-cash transfer from parent in connection with the Separation of approximately $23 million . Depreciation and amortization expense relating to properties and equipment was $32.2 million , $27.3 million and $28.1 million , in 2016 , 2015 and 2014 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill attributable to each operating segment and the changes in those balances during the years ended December 31, 2016 and 2015 , are as presented below. (In millions) SCC SBM Darex Total Balance, December 31, 2014 $ 49.3 $ 59.4 $ 5.3 $ 114.0 Foreign currency translation (5.1 ) (5.8 ) (0.5 ) (11.4 ) Other adjustments — (0.1 ) — (0.1 ) Balance, December 31, 2015 $ 44.2 $ 53.5 $ 4.8 $ 102.5 Foreign currency translation (0.5 ) (0.6 ) (0.3 ) (1.4 ) Acquisitions 2.1 16.1 — 18.2 Balance, December 31, 2016 $ 45.8 $ 69.0 $ 4.5 $ 119.3 GCP's net book value of other intangible assets at December 31, 2016 and 2015 was $53.0 million and $33.3 million , respectively, detailed below. December 31, 2016 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 56.1 $ 21.0 Technology 24.3 11.6 Trademarks 13.5 9.4 Other 11.9 10.8 Total $ 105.8 $ 52.8 December 31, 2015 (In millions) Gross Carrying Accumulated Customer lists $ 39.2 $ 19.4 Technology 17.9 10.2 Trademarks 13.7 9.3 Other 12.3 10.9 Total $ 83.1 $ 49.8 Total indefinite-lived trademarks included above at December 31, 2016 and 2015 were $3.7 million and $3.9 million , respectively. Amortization expense related to intangible assets was $4.0 million , $4.6 million and $5.9 million in 2016 , 2015 and 2014 , respectively. At December 31, 2016 , estimated future annual amortization expense for intangible assets is presented below. (In millions) 2017 $ 4.4 2018 4.3 2019 4.2 2020 4.2 2021 3.6 Thereafter 28.6 Total $ 49.3 In 2016, GCP acquired the intellectual property and related assets of Sensocrete and 100% of the stock of Halex Corporation. Refer to Note 16, "Acquisitions," for further discussion of the related intangible assets and goodwill. |
Debt and Other Financial Instru
Debt and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Other Financial Instruments | Debt and Other Financial Instruments Components of Debt December 31, (In millions, except interest rate amounts) 2016 2015 9.5% Senior Notes due 2023, net of unamortized debt issuance costs of $7.3 at December 31, 2016 $ 517.7 $ — Term Loan due 2022, net of unamortized discount of $2.4 and unamortized debt issuance costs of $4.3 at December 31, 2016 (1) 266.2 — Revolving credit facility due 2021 (2) 25.0 — Related party — 42.3 Other borrowings (3) 22.0 25.7 Total debt 830.9 68.0 Less debt payable within one year 47.9 68.0 Debt payable after one year $ 783.0 $ — Weighted average interest rates on related party debt — % 3.3 % Weighted average interest rates on total debt 7.5 % 11.9 % __________________________ (1) Interest at LIBOR + 325 bps with a 75 bps LIBOR floor at December 31, 2016 . (2) Interest at LIBOR +200 bps at December 31, 2016 . (3) Represents borrowings under various lines of credit, primarily by non-U.S. subsidiaries. The principal maturities of debt outstanding (net of unamortized discounts and debt issuance costs) at December 31, 2016 are presented below. (In millions) 2017 $ 47.9 2018 3.4 2019 3.4 2020 3.4 2021 2.8 Thereafter 770.0 Total debt $ 830.9 Credit Agreement On February 3, 2016, GCP entered into a credit agreement (the “Credit Agreement”) that provides for new senior secured credit facilities (the “Credit Facilities”) in an aggregate principal amount of $525.0 million , consisting of: (a) term loan (the “Term Loan”) in an aggregate principal amount of $275.0 million maturing in 2022; and (b) $250.0 million revolving credit facility (the "Revolving Loan") due in 2021. The Term Loan principal balance is scheduled to be repaid in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount. The Credit Agreement contains customary affirmative covenants, including, but not limited to (i) maintenance of legal existence and compliance with laws and regulations; (ii) delivery of consolidated financial statements and other information; (iii) payment of taxes; (iv) delivery of notices of defaults and certain other material events; and (v) maintenance of adequate insurance. The Credit Agreement also contains customary negative covenants, including but not limited to restrictions on (i) dividends on and redemptions of, equity interests and other restricted payments; (ii) liens; (iii) loans and investments; (iv) the sale, transfer or disposition of assets and businesses; (v) transactions with affiliates; and (vi) a maximum total leverage ratio. Certain debt covenants may restrict the entity's ability as it relates to dividends, acquisitions and other borrowings. The Credit Agreement contains conditions that would require mandatory principal payments in advance of the maturity date of the Term Loan and Revolving Credit Facility; the Company was in compliance with all terms as of December 31, 2016 . Events of default under the Credit Agreement include, but are not limited to: (i) failure to pay principal, interest, fees or other amounts under the Credit Agreement when due, taking into account any applicable grace period; (ii) any representation or warranty proving to have been incorrect in any material respect when made; (iii) failure to perform or observe covenants or other terms of the Credit Agreement subject to certain grace periods; (iv) a cross-default and cross-acceleration with certain other material debt; (v) bankruptcy events; (vi) certain defaults under ERISA and (vii) the invalidity or impairment of security interests. There are no events of default as of December 31, 2016 . The Credit Facilities are secured on a first priority basis by a perfected security interest in and mortgages on substantially all U.S. tangible and intangible personal property, financial assets, and real property owned by the Company in Chicago, Illinois and Mount Pleasant, Tennessee; a pledge of 100% of the equity of each material U.S. subsidiary of the Company; and 65% of the equity of the United Kingdom holding company. The carrying value of pledged assets to our Credit Facilities is approximately $461 million as of December 31, 2016. On August 25, 2016, GCP refinanced the existing Credit Agreement with a syndicate of banks (the “Amended Credit Agreement”). The Amended Credit Agreement reduced the interest rate margins applicable to the Term Loan from base rate plus a margin of 3.5% or LIBOR plus a margin of 4.5% to a base rate plus a margin of 2.25% or LIBOR plus a margin of 3.25% at GCP’s option. The $274.3 million outstanding principal balance was replaced by a like aggregate $274.3 million principal balance with substantially similar terms to the Credit Agreement. In conjunction with the refinancing, the Company recognized accelerated amortization of $0.1 million for a portion of the associated previously deferred debt issuance costs and expensed $1.2 million of related third-party financing costs. These amounts are included in "Interest expense and related financing costs" in the Consolidated Statements of Operations for the year ended December 31, 2016 . The interest rate per annum applicable to the Revolving Loan is equal to, at GCP’s option, either a base rate plus a margin ranging from 0.5% to 1.0% or LIBOR plus a margin ranging from 1.5% to 2.0% , in either case based upon the total leverage ratio of GCP and its restricted subsidiaries. On October 31, 2016, GCP borrowed on its Revolving Loan and used the funds, together with cash on hand, to acquire Halex Corporation. The $25.0 million draw was outstanding as of December 31, 2016 alongside approximately $9 million in outstanding letters of credit, as such available credit under that facility was reduced to $216.0 million . Senior Notes On January 27, 2016, GCP issued $525.0 million aggregate principal amount of 9.5% Senior Notes due 2023 (the “Notes”). Interest is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2016. The Notes were issued subject to covenants that limit the Company's and certain of its subsidiaries’ ability, subject to certain exceptions and qualifications, to (i) create or incur liens on assets, (ii) incur additional debt (iii) sell certain assets (iv) make certain investments and acquisitions, merge or sell or otherwise dispose of all or substantially all assets. During the first quarter 2016, GCP incurred debt issuance costs relating to issuance of the Notes, Term Loan and Revolving Loan of $8.0 million , $5.0 million and $5.2 million , respectively. GCP deducted the debt issuance costs relating to the Notes and the Term Loan from the carrying amounts presented on its Consolidated Balance Sheet and is amortizing those costs over the terms of the underlying obligations. GCP classified debt issuance costs relating to the Revolving Loan in "Other assets" on its Consolidated Balance Sheet and is amortizing those costs over the term of the Revolving Loan. The unamortized portion of these costs as of December 31, 2016 was $4.2 million . During the first quarter 2016, GCP used certain proceeds from the Notes and Credit Facilities to fund a distribution to Grace in an amount of $750.0 million related to the Separation. Approximately $50 million was retained to meet operating requirements and to pay fees associated with the debt financing and other post-Separation costs. Related party debt of approximately $42 million and related interest was settled with Grace in connection with the Separation. Debt Fair Value At December 31, 2016 , the carrying amounts and fair values of GCP's debt are presented below. December 31, 2016 December 31, 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 9.5% Senior Notes due 2023 $ 517.7 $ 603.1 $ — $ — Term Loan due 2022 266.2 274.6 — — Revolving credit facility due 2021 25.0 25.0 — — Other borrowings 22.0 22.0 68.0 68.0 Total debt $ 830.9 $ 924.7 $ 68.0 $ 68.0 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. The increase in fair value of the Notes since issuance was driven by favorable demands in the marketplace. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision for the years ended December 31, 2016 , 2015 , and 2014 was $32.2 million , $84.3 million , and $55.6 million respectively, representing effective tax rates of 30.4% , 67.3% , and 29.1% respectively. The decrease in the Company's effective tax rate for the year ended December 31, 2016 compared to the same period in 2015 was primarily due to a 2015 repatriation of foreign earnings and the nondeductible loss in Venezuela recorded in 2015. The early adoption of ASU 2016-09 in 2016 reduced the effective tax rate by 1.9 percentage points, or $2.0 million , for the year ended December 31, 2016 . The effects of early adoption of ASU 2016-09 are further discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies." The increase in the Company's effective tax rate for the year ended December 31, 2015 compared to the same period in 2014 primarily resulted from the effect of Separation-related repatriation of foreign earnings, a higher percentage of earnings in jurisdictions with higher statutory rates, the effect of mark-to-market pension adjustments in jurisdictions with lower statutory rates and the 2015 nondeductible Venezuela charge, partially offset by a tax benefit in 2015 for a return to provision change in estimate. Provision for Income Taxes The components of income before income taxes and the related provision for income taxes for 2016 , 2015 and 2014 are presented below. (In millions) 2016 2015 2014 Income before income taxes: Domestic $ 37.1 $ 97.2 $ 65.6 Foreign 68.9 28.0 125.5 Total $ 106.0 $ 125.2 $ 191.1 Benefit from (provision for) income taxes: Federal—current $ 6.1 $ 50.5 $ 23.3 Federal—deferred 3.9 1.0 (3.6 ) State and local—current 2.3 9.5 4.7 State and local—deferred (0.2 ) 0.2 (0.6 ) Foreign—current 19.6 25.6 29.2 Foreign—deferred 0.5 (2.5 ) 2.6 Total $ 32.2 $ 84.3 $ 55.6 The income by jurisdiction above does not reflect $15.5 million , $173.1 million and $7.9 million of domestic income resulting from repatriated earnings in 2016 , 2015 and 2014 , respectively. The difference between the provision for income taxes at the U.S. federal income tax rate of 35.0% and GCP's overall income tax provision is summarized below. (In millions) 2016 2015 2014 Tax provision at U.S. federal income tax rate $ 37.1 $ 43.8 $ 66.9 Change in provision resulting from: Nondeductible Venezuela charge — 24.7 — Cost (benefit) from U.S. taxes on repatriation foreign earnings — 19.9 (0.1 ) Effect of tax rates in foreign jurisdictions (5.3 ) (8.0 ) (12.3 ) State and local income taxes, net 1.6 6.3 2.7 Benefit from domestic production activities (0.4 ) (2.7 ) (2.2 ) Return to provision – change in estimate — (2.5 ) — Nondeductible expenses 1.4 2.5 2.5 Research and other state credits (0.6 ) — — Adjustments to uncertain tax positions and other (1.6 ) 0.3 (1.9 ) Provision for income taxes $ 32.2 $ 84.3 $ 55.6 For 2015, (cost) benefit from U.S. taxes on foreign earnings includes repatriation of current and prior year earnings pursuant to the Separation and is discussed in further detail below under "Unrepatriated Foreign Earnings." The nondeductible Venezuela charge is the tax effect of the $73.2 million nondeductible charge recorded during the third quarter of 2015. As also discussed in Note 1, on February 3, 2016, the Separation of Grace and GCP was completed. In conjunction with the Separation, GCP has increased its deferred tax assets and prepaid taxes in the U.S. by approximately $76 million , which primarily relates to the step up in tax basis and transfer of a net pension liability. Deferred Tax Assets and Liabilities At December 31, 2016 and 2015 , the deferred tax assets and liabilities consisted of the below items. (In millions) December 31, 2016 December 31, 2015 Deferred tax assets: Foreign net operating loss carryforwards $ 12.0 $ 11.3 Research and development 6.3 9.2 Reserves and allowances 14.6 7.9 Pension benefits 27.1 2.9 Intangible assets/goodwill 24.5 — Stock compensation 4.4 6.0 Foreign tax credits 3.5 — Other 2.8 1.6 Total deferred tax assets $ 95.2 $ 38.9 Deferred tax liabilities: Properties and equipment $ (14.6 ) $ (14.4 ) Intangible assets/goodwill — (12.7 ) Other (3.8 ) (0.9 ) Total deferred tax liabilities $ (18.4 ) $ (28.0 ) Valuation Allowance: Foreign net operating loss carryforwards (2.3 ) (2.0 ) Net deferred tax assets (liabilities) $ 74.5 $ 8.9 In evaluating GCP's ability to realize its deferred tax assets ("DTAs"), GCP considers all reasonably available positive and negative evidence, including recent earnings experience, expectations of future taxable income and the tax character of that income, the period of time over which the temporary differences become deductible and the carryforward and/or carryback periods available to GCP for tax reporting purposes in the related jurisdiction. In estimating future taxable income, GCP relies upon assumptions and estimates about future activities, including the amount of future federal, state and foreign pretax operating income that GCP will generate; the reversal of temporary differences; and the implementation of feasible and prudent tax planning strategies. GCP records a valuation allowance to reduce deferred tax assets to the amount that it believes is more likely than not to be realized. At December 31, 2016 and 2015 , GCP has recorded a valuation allowance of $2.3 million and $2.0 million respectively, to reduce its net deferred tax assets to the amount that is more likely than not to be realized. The realization of deferred tax assets is dependent on the generation of sufficient taxable income in the appropriate tax jurisdictions. GCP believes it is more likely than not that the remaining deferred tax assets will be realized. If GCP were to determine that it would not be able to realize a portion of its deferred tax assets in the future, for which there is currently no valuation allowance, an adjustment to the deferred tax assets would be charged to earnings in the period such determination was made. Conversely, if GCP were to make a determination that it is more likely than not that deferred tax assets, for which there is currently a valuation allowance, would be realized, the related valuation allowance would be reduced and a benefit to earnings would be recorded. Grace Brasil Ltda. (“Grace Brasil”), a wholly-owned subsidiary of the Company, holds a DTA equal to approximately $11.2 million (tax-effected) as of December 31, 2016. Due to the challenging economic and political climate in Brazil from the fourth quarter of 2015 to date, Grace Brasil incurred significant net operating losses ("NOLs") in 2015 and a small net operating loss in 2016. Based on these factors, the Company has evaluated its ability to utilize Grace Brasil’s DTA in future years. In evaluating the recoverability of Grace Brasil's DTA at December 31, 2016 and 2015, the Company has considered all available evidence, both positive and negative, including but not limited to the following: • Under Brazilian tax law, net operating losses are carried forward indefinitely; • Grace Brasil is forecasting pretax income in 2017 despite being in an economic trough; • Grace Brasil has a demonstrated history of core earnings; • Brazil is a critical market for GCP Applied Technologies and, as a result, the Company has a strong commitment to sustained long-term profitability in Brazil; • The continuing challenge of Brazil’s economic and political climate. As of December 31, 2016 and 2015, the Company believes that the weight of the positive evidence outweighed the negative evidence regarding the realization of the net deferred tax assets in Grace Brasil. The Company will continue to evaluate the ability to realize Grace Brasil’s net deferred tax assets on a quarterly basis. The Company has a U.S. net capital loss carryforward of $4.5 million that will expire at December 31, 2021 if not utilized. The Company has recorded a deferred tax asset of $1.6 million reflecting the benefit of such loss carryforward. Management believes it is more likely than not that such benefit will be recognized and accordingly has not recorded a valuation allowance against such asset. The Company has $28.6 million of NOL carryforwards, the majority of which is in Brazil with an unlimited carryforward period. The Company has $3.5 million of foreign tax credits that will begin to expire in 2025 if not utilized. The Company has $0.2 million of state research credits and $0.1 million of state investment tax credits that will expire in 2031 and 2019 respectively if not utilized. The Company believes it is more likely than not that such benefits will be recognized and accordingly has not recorded a valuation allowance against such asset. Unrepatriated Foreign Earnings As of December 31, 2016 , the Company has the intent and ability to indefinitely reinvest undistributed earnings of its foreign subsidiaries outside the United States. GCP has not provided for U.S. federal, state and foreign deferred income taxes on $272.4 million of undistributed earnings of foreign subsidiaries. The unrecorded deferred tax liability associated with these earnings is $4.0 million . Earnings of $15.5 million , $173.1 million and $7.9 million were repatriated from non-U.S. GCP subsidiaries in 2016, 2015 and 2014, respectively, resulting in an insignificant amount of U.S. income tax expense or benefit in 2016 and 2014. The tax effect of the repatriation of foreign earnings in 2015 is discussed in detail below. The tax effect of the repatriation is determined by several variables, including the tax rate applicable to the entity making the distribution, the cumulative earnings and associated foreign taxes of the entity and the extent to which those earnings may have already been taxed in the U.S. In 2015, Grace repatriated a total of $173.1 million of foreign earnings from foreign subsidiaries transferred to GCP pursuant to the Separation. Such amount was determined based on an analysis of each non-U.S. subsidiary's requirements for working capital, debt repayment and strategic initiatives. In 2015, on a stand-alone basis (see Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies"), GCP incurred $19.9 million in tax expense as a result of such repatriation, increasing the Company's 2015 effective tax rate by 15.9 percentage points when compared to the U.S. federal statutory rate. GCP believes that the Separation is a one-time, non-recurring event and that recognition of deferred taxes of undistributed earnings during 2015 would not have occurred if not for the Separation. Subsequent to the Separation, GCP expects undistributed prior year earnings of its foreign subsidiaries to remain permanently reinvested except in certain instances where repatriation of such earnings would result in minimal or no tax. GCP bases this assertion on: (1) the expectation that it will satisfy its U.S. cash obligations in the foreseeable future without requiring the repatriation of prior year foreign earnings; (2) plans for significant and continued reinvestment of foreign earnings in organic and inorganic growth initiatives outside the U.S.; and (3) remittance restrictions imposed by local governments. GCP will continually analyze and evaluate its cash needs to determine the appropriateness of its indefinite reinvestment assertion. In connection with the Separation, GCP and Grace entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement (the "Tax Sharing Agreement"). Under the Tax Sharing Agreement, which was entered into on the distribution date, GCP and Grace will indemnify and hold each other harmless in accordance with the principles outlined therein. Unrecognized Tax Benefits A reconciliation of the unrecognized tax benefits, excluding interest and penalties, for the three years ended December 31, 2016 , are presented below. (In millions) Unrecognized Tax Benefits Balance, January 1, 2014 $ 7.7 Additions for prior year tax positions 0.7 Reductions for prior year tax positions and reclassifications (0.4 ) Reductions for expirations of statute of limitations (0.3 ) Settlements (2.4 ) Balance, December 31, 2014 5.3 Additions for prior year tax positions 0.3 Reductions for prior year tax positions and reclassifications (0.8 ) Settlements (0.9 ) Balance, December 31, 2015 3.9 Transfers from Parent 4.1 Additions for prior year tax positions 2.5 Reductions for prior year tax positions and reclassifications — Reductions for expirations of statute of limitations (1.1 ) Settlements (2.0 ) Balance, December 31, 2016 $ 7.4 The balance of unrecognized tax benefits as of December 31, 2016 , 2015 and 2014 of $7.4 million , $3.9 million and $5.3 million , respectively, if recognized, would affect the effective tax rate. GCP accrues potential interest and any associated penalties related to uncertain tax positions within "Provision for income taxes" in the Consolidated Statements of Operations. The balances of unrecognized tax benefits in the preceding table do not include accrued interest and penalties. The total amount of interest and penalties accrued on uncertain tax positions and included in the Consolidated Balance Sheets as of December 31, 2016 and 2015 was $2.3 million and $1.3 million , respectively, net of applicable federal income tax benefits. Unrecognized tax benefits from GCP's operations are included in the Consolidated Financial Statements including those that in certain jurisdictions have historically been included in tax returns filed by Grace. In such instances, uncertain tax positions related to GCP's operations may be indemnified by Grace. As of December 31, 2016 , 2015 and 2014 , the amount of unrecognized tax benefits considered obligations of Grace (including both interest and penalties) were $3.7 million , $2.1 million and $2.1 million , respectively. GCP believes it is reasonably possible that in the next 12 months the amount of the liability for unrecognized tax benefits could decrease by approximately $1.1 million , of which $0.5 million is indemnified by Grace. GCP files U.S. federal income tax returns as well as income tax returns in various state and foreign jurisdictions. Unrecognized tax benefits relate to income tax returns for tax years that remain subject to examination by the relevant tax authorities. Since GCP's operations have historically been included in federal and state returns filed by Grace, the information reflected below for the U.S. relates to historical Grace returns. The following table summarizes open tax years by major jurisdiction. Tax Jurisdiction (1) Examination in Progress Examination Not Initiated United States—Federal None None United States—States None 2015 Italy None 2009-2014 France None 2014-2015 Germany None 2014-2015 India 2013-2014 2015 Malaysia None 2014-2015 Argentina 2002-2007 2008-2015 China None None Russia 2015 None Canada None 2014-2015 Indonesia 2013 2014-2015 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Other Postretirement Benefit Plans | Pension Plans and Other Postretirement Benefit Plans Multiemployer Benefit Plans Prior to the Separation, Grace sponsored funded and unfunded defined benefit pension and other postretirement benefit plans in which GCP employees and employees from other Grace businesses participated in (the “Shared Plans”). These Shared Plans were accounted for as multiemployer benefit plans. Accordingly, GCP did not record an asset or liability to recognize the funded status of these Shared Plans in the Balance Sheet prior to the Separation. In the fourth quarter of 2015 , in preparation for the Separation, certain international pension plans were legally separated resulting in an approximate $4 million increase to net pension liabilities. GCP recorded the funded status for these international plans as of December 31, 2015 . During the first quarter of 2016, certain Shared Plans in the U.S. were legally separated, resulting in an approximate $44 million increase to net pension liabilities on the Consolidated Balance Sheet. The funded status of these plans as of December 31, 2016 is included in the Net Funded Status table below. GCP’s allocated pension expense for the Shared Plans was $3.8 million and $5.3 million for the years ended December 31, 2015 and 2014, respectively. The related expense for the year ended December 31, 2016 is included in the Components of Net Periodic Benefit Cost (Income) table below. Postretirement Benefits Other Than Pensions Grace provided postretirement life insurance benefits for retired employees of certain U.S. business units and certain divested business units. GCP’s allocated income for these postretirement life insurance benefits plan was $1.4 million and $0.7 million for the years ended December 31, 2015 and 2014 , respectively. In the first quarter of 2016, the postretirement life insurance benefits plan liability related to GCP employees who were participants in this plan at the time of Separation was legally transferred to GCP, resulting in an increase of $0.1 million to other liabilities. Additionally as part of the Separation, GCP assumed $0.8 million of prior service credit and $0.7 million of actuarial losses, both net of tax. During 2016, GCP entered into an agreement to eliminate retiree life insurance benefits for its two remaining bargaining locations. The net impact of these curtailment and termination plan changes amounted to a $0.2 million gain recognized in operating income for the year ended December 31, 2016 . Pension Plans GCP sponsors certain defined benefit pension plans, primarily in the U.S . and the U.K. in which GCP employees participate. These plans cover 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. GCP funds its U.S. qualified pension plans in accordance with U.S. federal laws and regulations. Non-U.S. pension plans are funded under a variety of methods, as required under local laws and customs. GCP records an asset or liability to recognize the funded status of these pension plans in its Consolidated Balance Sheets. Net funded status and net periodic benefit cost as of December 31, 2016 are shown below. The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans: (In millions) December 31, December 31, Overfunded defined benefit pension plans $ 21.2 $ 26.1 Underfunded defined benefit pension plans (58.5 ) (8.0 ) Unfunded defined benefit pension plans (39.5 ) (26.0 ) Total underfunded and unfunded defined benefit pension plans (98.0 ) (34.0 ) Pension liabilities included in other current liabilities (1.2 ) (1.1 ) Net funded status $ (78.0 ) $ (9.0 ) Overfunded plans include several advance-funded plans for which the fair value of the plan assets exceeds the projected benefit obligation ("PBO"). This group of plans was overfunded by $21.2 million as of December 31, 2016 and the overfunded status is reflected as assets in "Overfunded defined benefit pension plans" in the Consolidated Balance Sheets. Underfunded plans include a group of advance-funded plans that are underfunded on a PBO basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis and therefore, the entire PBO is unfunded. As of December 31, 2016 , the combined balance of $99.2 million for the underfunded and unfunded plans included as liabilities in the Consolidated Balance Sheet is comprised of current and non-current components of $1.2 million in "Other current liabilities" and $98.0 million in "Underfunded and unfunded defined benefit pension plans," respectively. During 2016, pension plans at certain non-U.S. locations were curtailed or terminated. For the year ended December 31, 2016, GCP recognized a total net gain of $0.6 million in operating income relating to non-U.S. pension plan curtailment and termination gains and losses. At the December 31, 2016 measurement date for GCP's defined benefit pension plans, the PBO was $423.6 million compared to $306.2 million as of December 31, 2015 . The increase is primarily due to the exclusion of approximately $116 million of PBO for certain Shared Plans as of December 31, 2015. These plans were accounted for as multiemployer plans and, therefore, GCP did not record an asset or liability for these plans as of December 31, 2015. The PBO basis reflects the present value (based on weighted average discount rate of 4.27% for U.S. plans and 2.42% for non-U.S. plans as of December 31, 2016 ) of vested and non-vested benefits earned from employee service to date, based upon current services and estimated future pay increases for active employees. A full remeasurement of pension assets and pension liabilities is performed annually based on GCP'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. Analysis of Plan Accounting and Funded Status The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2016 and 2015 : Defined Benefit Pension Plans U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year (1) $ 125.7 $ 12.9 $ 296.8 $ 285.7 $ 422.5 $ 298.6 Service cost 6.1 0.3 3.3 3.1 9.4 3.4 Interest cost 4.7 0.5 7.8 9.2 12.5 9.7 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements/curtailments — — (7.1 ) (1.0 ) (7.1 ) (1.0 ) Actuarial loss (gain) 14.0 (0.9 ) 33.9 5.4 47.9 4.5 Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan liabilities — — — 19.0 — 19.0 Currency exchange translation adjustments — — (43.6 ) (16.2 ) (43.6 ) (16.2 ) Benefit obligation at end of year $ 147.6 $ 12.3 $ 276.0 $ 293.9 $ 423.6 $ 306.2 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 81.1 $ 12.2 $ 287.5 $ 294.8 $ 368.6 $ 307.0 Actual return on plan assets 7.1 (0.4 ) 32.2 1.2 39.3 0.8 Employer contributions 1.0 — 6.4 2.4 7.4 2.4 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements — — (5.1 ) (1.5 ) (5.1 ) (1.5 ) Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan assets — — — 14.9 — 14.9 Currency exchange translation adjustments — — (46.6 ) (14.6 ) (46.6 ) (14.6 ) Fair value of plan assets at end of year $ 86.3 $ 11.3 $ 259.3 $ 285.9 $ 345.6 $ 297.2 Funded status at end of year (PBO basis) $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ — $ — $ 21.2 $ 26.1 $ 21.2 $ 26.1 Current liabilities (0.2 ) — (1.0 ) (1.1 ) (1.2 ) (1.1 ) Noncurrent liabilities (61.1 ) (1.0 ) (36.9 ) (33.0 ) (98.0 ) (34.0 ) Net amount recognized $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.1 ) (0.2 ) (0.1 ) (0.2 ) Net amount recognized $ — $ — $ (0.1 ) $ (0.2 ) $ (0.1 ) $ (0.2 ) ___________________________________________________________________________________________________________________ (1) As discussed above, the beginning balances for 2016 include $113.4 million (U.S.) and $2.9 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. (2) The beginning balances for 2016 include $69.8 million (U.S.) and $1.6 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. Defined Benefit Pension Plans U.S. Non-U.S. 2016 2015 2016 2015 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.27 % 4.40 % 2.42 % 3.24 % Rate of compensation increase 4.70 % NM 3.78 % 3.60 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.53 % 3.95 % 3.26 % 3.39 % Expected return on plan assets 6.25 % 5.75 % 3.50 % 3.87 % Rate of compensation increase 4.70 % NM 3.78 % 3.12 % ___________________________________________________________________________________________________________________ NM Not meaningful Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) 2016 2015 2014 (In millions) U.S. Non-U.S. Other U.S. Non-U.S. Other U.S. Non-U.S. Other Net Periodic Benefit Cost (Income) (1) Service cost $ 6.1 $ 3.3 $ — $ 0.3 $ 3.1 $ — $ 0.2 $ 3.2 $ — Interest cost 4.7 7.8 — 0.5 9.2 — 0.5 12.0 — Expected return on plan assets (5.0 ) (8.6 ) — (0.8 ) (11.0 ) — (0.6 ) (12.9 ) — Amortization of prior service cost (credit) 0.1 — (0.1 ) 0.1 — — 0.1 — — Amortization of net deferred actuarial loss — — 0.1 — — — — — — Gain on termination and curtailment of pension and other postretirement plans — (0.6 ) (0.2 ) — — — — — — Annual mark-to-market adjustment 11.9 8.6 — 0.2 14.2 — 0.9 (18.7 ) — Net periodic benefit cost (income) (1) $ 17.8 $ 10.5 $ (0.2 ) $ 0.3 $ 15.5 $ — $ 1.1 $ (16.4 ) $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) Amortization of prior service cost $ (0.1 ) $ — $ — $ (0.1 ) $ — $ — $ (0.1 ) $ — $ — Assumption of prior service credit — — — — (0.5 ) — — — — Total recognized in other comprehensive income (0.1 ) — — (0.1 ) (0.5 ) — (0.1 ) — — Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) $ 17.7 $ 10.5 $ (0.2 ) $ 0.2 $ 15.0 $ — $ 1.0 $ (16.4 ) $ — ___________________________________________________________________________________________________________________ (1) Includes expense that was allocated to Grace of $0.1 million and $0.4 million for the years ended December 31, 2015 and 2014 , respectively. GCP allocates such expense excluding any mark-to-market adjustment. GCP will not amortize any prior service cost for the defined benefit pension plans from accumulated other comprehensive income into net periodic benefit cost (income) over the next fiscal year. The accumulated benefit obligation for all defined benefit pension plans was approximately $388 million and $289 million as of December 31, 2016 and 2015 , respectively. Pension Plans with Underfunded or U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 147.4 $ 12.1 $ 42.1 $ 40.4 $ 189.5 $ 52.5 Accumulated benefit obligation 124.5 12.1 36.2 33.4 160.7 45.5 Fair value of plan assets 86.2 11.1 5.0 6.6 91.2 17.7 Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending Pension Plans Total U.S. Non-U.S. (1) Benefit Benefit 2017 5.5 11.2 16.7 2018 5.9 11.6 17.5 2019 6.3 11.3 17.6 2020 7.1 11.6 18.7 2021 7.9 11.7 19.6 2022 - 2026 48.9 63.0 111.9 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2017 and future periods have been translated at the applicable December 31, 2016 exchange rates. Discount Rate Assumption The assumed discount rate for pension plans reflects the market rates for high-quality corporate bonds currently available and is subject to change based on changes in overall market interest rates. For the U.S. qualified pension plans, the assumed weighted average discount rate of 4.27% as of December 31, 2016 was selected in consultation with independent actuaries based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan. As of December 31, 2016 and 2015 , the U.K. pension plan represented approximately 78% and 80% , respectively, of the benefit obligation of the non-U.S. pension plans. The assumed weighted average discount rate as of December 31, 2016 , for the U.K., 2.06% , was selected in consultation with independent actuaries based on a yield curve constructed from a portfolio of sterling-denominated high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan. The assumed discount rates for the remaining non-U.S. pension plans were determined based on the nature of the liabilities, local economic environments and available bond indices. As of December 31, 2015, GCP changed its approach to measuring the service and interest cost components of the Company's defined benefit pension expense. Previously, GCP estimated service and interest costs using a single weighted-average discount rate derived from the same yield curve that was used to measure the projected benefit obligation. For 2016, GCP elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans' liability cash flows, which enhances the precision of the Company's measurement by aligning the timing of the plans' liability cash flows to the corresponding spot rates on the yield curve. GCP applied this change in accounting estimate prospectively for 2016, resulting in an immaterial impact to the Company’s financial condition and results of operations as of and for the year ended December 31, 2016. Investment Guidelines for Advance-Funded Pension Plans The investment goal for the U.S. qualified pension plans subject to advance funding is to earn a long-term rate of return consistent with the related cash flow profile of the underlying benefit obligation. The plans are pursuing a well-defined risk management strategy designed to reduce investment risks as their funded status improves. The U.S. qualified pension plans have adopted a diversified set of portfolio management strategies to optimize the risk reward profile of the plans: • Liability hedging portfolio: primarily invested in intermediate-term and long-term investment grade corporate bonds in actively managed strategies. • Growth portfolio: invested in a diversified set of assets designed to deliver performance in excess of the underlying liabilities with controls regarding the level of risk. • U.S. equity securities: the portfolio contains domestic equities that are passively managed to the S&P 500 and Russell 2000 benchmark and an allocation to an active portfolio benchmarked to the Russell 2000. • Non-U.S. equity securities: the portfolio contains non-U.S. equities in an actively managed strategy. Currency futures and forward contracts may be held for the sole purpose of hedging existing currency risk in the portfolio. • Other investments: may include (a) high yield bonds: fixed income portfolio of securities below investment grade; and (b) global real estate securities: portfolio of diversified REIT and other liquid real estate related securities. These portfolios combine income generation and capital appreciation opportunities from developed markets globally. • Liquidity portfolio: invested in short-term assets intended to pay periodic plan benefits and expenses. For 2016 , the expected long-term rate of return on assets for the U.S. qualified pension plans was 6.25% . The expected return on plan assets for the U.S. qualified pension plans for 2016 was selected, in consultation with GCP's independent actuaries, using an expected return model. The model determines the weighted average return for an investment portfolio based on the target asset allocation and expected future returns for each asset class, which were developed using a building block approach based on observable inflation, available interest rate information, current market characteristics and historical results. The target allocation of investment assets at December 31, 2016 and the actual allocation at December 31, 2016 and 2015 for GCP's U.S. qualified pension plans were as follows: Target Percentage of Plan Assets U.S. Qualified Pension Plans Asset Category 2016 2016 2015 U.S. equity securities 25 % 25 % 11 % Non-U.S. equity securities 11 % 15 % 7 % Short-term debt securities 1 % 1 % 6 % Intermediate-term debt securities 5 % 4 % 28 % Long-term debt securities 50 % 50 % 46 % Other investments 8 % 5 % 2 % Total 100 % 100 % 100 % The following tables present the fair value hierarchy for GCP's proportionate share of the U.S. qualified pension plan assets measured at fair value, which are held in a trust by GCP, as of December 31, 2016 and 2015 . December 31, 2016 Total Quoted Prices in Significant Significant U.S. equity group trust funds $ 21.8 $ — $ 21.8 $ — Non-U.S. equity group trust funds 13.1 — 13.1 — Corporate bond group trust funds—intermediate-term 3.2 — 3.2 — Corporate bond group trust funds—long-term 42.7 — 42.7 — Other fixed income group trust funds 4.3 — 4.3 — Common/collective trust funds 1.2 — 1.2 — Annuity and immediate participation contracts — — — — Total Assets $ 86.3 $ — $ 86.3 $ — December 31, 2015 Total Quoted Prices in Significant Significant U.S. equity group trust funds $ 1.2 $ — $ 1.2 $ — Non-U.S. equity group trust funds 0.8 — 0.8 — Corporate bond group trust funds—intermediate-term 3.1 — 3.1 — Corporate bond group trust funds—long-term 5.2 — 5.2 — Other fixed income group trust funds 0.2 — 0.2 — Common/collective trust funds 0.6 — 0.6 — Annuity and immediate participation contracts 0.2 — 0.2 — Total Assets $ 11.3 $ — $ 11.3 $ — Non-U.S. pension plans accounted for approximately 75% and 96% of total global pension assets at December 31, 2016 and 2015 , respectively. 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 U.K. pension plan represent approximately 91% of the total non-U.S. pension plan assets at December 31, 2016 and 2015 . In determining the expected rate of return for the U.K. pension plan, the trustees' strategic investment policy has been considered together with long-term historical returns and investment community forecasts for each asset class. The expected return by sector has been combined with the actual asset allocation to determine the 2016 expected long-term return assumption of 3.24% . The target allocation of investment assets at December 31, 2016 and the actual allocation at December 31, 2016 and 2015 , for the U.K. pension plan are as follows: Target Percentage of Plan Assets United Kingdom Pension Plan Asset Category 2016 2016 2015 Diversified growth funds 9 % 8 % 10 % U.K. gilts 31 % 31 % 29 % U.K. corporate bonds 10 % 11 % 8 % Insurance contracts 50 % 50 % 53 % Total 100 % 100 % 100 % The plan assets for the other countries represent approximately 9% in the aggregate of total non-U.S. pension plan assets at December 31, 2016 and 2015 , respectively. The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2016 : Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices Significant Significant Common/collective trust funds $ 130.1 $ — $ 130.1 $ — Government and agency securities 1.8 — 1.8 — Corporate bonds 8.1 — 8.1 — Insurance contracts and other investments (1) 116.5 — — 116.5 Cash 2.8 2.8 — — Total Assets $ 259.3 $ 2.8 $ 140.0 $ 116.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2016, the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. The following table presents a summary of the changes in the fair value of the plans' Level 3 assets for the year ended December 31, 2016 . (In millions) Insurance Contracts Balance, December 31, 2015 $ 138.5 Actual return on plan assets relating to assets still held at year-end 10.0 Purchases, sales and settlements, net — Transfers out for benefit payments (7.7 ) Currency exchange translation adjustments (24.3 ) Balance, December 31, 2016 $ 116.5 The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2015 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices Significant Significant Common/collective trust funds $ 142.3 $ — $ 142.3 $ — Government and agency securities 1.3 — 1.3 — Corporate bonds 1.1 — 1.1 — Insurance contracts and other investments (1) 140.6 — 2.1 138.5 Cash 0.6 0.6 — — Total Assets $ 285.9 $ 0.6 $ 146.8 $ 138.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2015 , the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Plan Contributions and Funding GCP 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, as amended ("ERISA"). For ERISA purposes, funded status is calculated on a different basis than under GAAP. In 2016, GCP made an accelerated contribution to the trusts that hold assets of the U.S. qualified pension plans of approximately $1 million . Based on the U.S. qualified pension plans' status as of December 31, 2016, there are no minimum requirements under ERISA for 2017. GCP intends to fund non-U.S. pension plans based on applicable legal requirements as well as actuarial and trustee recommendations. GCP expects to contribute approximately $3 million to non-U.S. pension plans in 2017. Defined Contribution Retirement Plan As part of the Separation, GCP established a defined contribution retirement plan for its employees in the United States, similar in design to the Grace defined contribution retirement plan. This plan is qualified under section 401(k) of the U.S. tax code. Currently, GCP contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee's salary or wages. GCP's cost included in selling, general and administrative expenses related to this benefit plan for the year ended December 31, 2016 was $4.6 million , compared with GCP's allocated cost related to this benefit plan of $4.8 million and $4.5 million for the years ending December 31, 2015 and 2014 , respectively. |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Accounts | Other Balance Sheet Accounts (In millions) December 31, December 31, Other Current Assets: Non-trade receivables $ 27.8 $ 25.5 Prepaid expenses 13.4 8.9 Income tax receivable (2) 10.6 4.4 Marketable securities — 0.1 Total other current assets $ 51.8 $ 38.9 (In millions) December 31, December 31, Other Current Liabilities: Customer volume rebates $ 34.8 $ 33.5 Accrued compensation (1) 36.3 27.1 Income tax payable (2) 8.0 23.3 Accrued interest 20.8 3.9 Pension liabilities 1.2 1.1 Other accrued liabilities 39.9 36.6 Total other current liabilities $ 141.0 $ 125.5 ________________________________ (1) Accrued compensation in the table above includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. (2) Income tax items above do not include amounts due from/to Grace. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Purchase Commitments GCP uses purchase commitments to ensure supply and to minimize the volatility of certain key raw materials including lignins, polycarboxylates, amines and other materials. Such commitments are for quantities that GCP fully expects to use in its normal operations. Guarantees and Indemnification Obligations GCP 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. GCP accrues a general warranty liability at the time of sale based on historical experience and on a transaction-specific basis according to individual facts and circumstances. Both the liability and annual expense related to product warranties are immaterial to the Consolidated Financial Statements. • Performance guarantees offered to customers. GCP has not established a liability for these arrangements based on past performance. • Contracts providing for the sale of a former business unit or product line in which GCP has agreed to indemnify the buyer against liabilities arising prior to the closing of the transaction, including environmental liabilities. • The Tax Sharing Agreement, which may require GCP, in certain circumstances, to indemnify Grace if the Separation, together with certain related transactions, does not qualify under Section 355 and certain other relevant provisions of the Internal Revenue Code (the "Code"). If GCP is required to indemnify Grace under the Tax Sharing Agreement, it could be subject to significant tax liabilities. Environmental Matters GCP is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to the generation, storage, handling, discharge, disposition and stewardship of hazardous waste and other materials. GCP accrues for anticipated costs associated with response efforts where an assessment has indicated that a probable liability has been incurred and the cost can be reasonably estimated. As of December 31, 2016 , GCP did not have any material environmental liabilities. GCP's environmental liabilities are reassessed whenever circumstances become better defined or response efforts and their costs can be better estimated. These liabilities are evaluated based on currently available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the method and extent of remediation at each site, existing technology, prior experience in contaminated site remediation and the apportionment of costs among potentially responsible parties. Financial Assurances Financial assurances have been established for a variety of purposes, including insurance and environmental matters and other matters. At December 31, 2016 , GCP had gross financial assurances issued and outstanding of approximately $9 million , composed of standby letters of credit. Lawsuits and Investigations From time to time, GCP and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations and proceedings which are managed and defended in the ordinary course of business. While GCP is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of such pending matters will have a material adverse effect on its overall financial condition, results of operations or cash flows. Accounting for Contingencies Although the outcome of each of the matters discussed above cannot be predicted with certainty, GCP has assessed its risk and has made accounting estimates and disclosures as required under GAAP. At December 31, 2016 , minimum future non-cancelable payments for operating leases are summarized below. (In millions) 2017 $ 11.2 2018 8.3 2019 5.3 2020 3.6 2021 2.5 Thereafter 13.6 $ 44.5 GCP's rental expense for operating leases was $15.4 million , $21.6 million and $22.6 million in 2016 , 2015 and 2014 , respectively. |
Restructuring and Repositioning
Restructuring and Repositioning Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Repositioning Expenses | Restructuring and Repositioning Expenses Restructuring Expenses and Asset Impairments GCP's Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, GCP takes additional restructuring actions, including involuntary terminations that are not part of a major program. GCP accounts for these costs, which are reflected in "Restructuring expenses and asset impairments" in its Consolidated Statements of Operations, in the period that the related liabilities are incurred. In 2016 , GCP incurred 1.9 million ( $1.2 million in SCC and $0.7 million in SBM) of restructuring expenses comprised of severance-related costs associated with the Separation, as well as costs incurred for plant closures during the fourth quarter. In 2015 , GCP incurred restructuring expenses of $11.5 million ( $6.5 million in SCC, $3.2 million in SBM and $1.8 million in Darex), which were the result of changes in the business environment and the business structure. During 2014, GCP's concrete production management systems product line was not meeting performance expectations, resulting in reduced cash flow and increasing obligations. GCP evaluated its concrete production management systems product line long-lived assets for impairment. After reviewing undiscounted cash flow information, GCP determined that the fair value of these long-lived assets was less than their carrying value and recorded an impairment charge of $9.8 million ( $3.8 million of equipment, $5.5 million of technology and $0.5 million of intellectual property). The remaining fair value of these assets subsequent to impairment was $8.2 million ( $5.6 million of equipment, $2.3 million of technology and $0.3 million of intellectual property). During 2014, GCP also recorded an impairment charge of $4.5 million related to an unconsolidated investment. The remaining fair value of this investment subsequent to impairment was zero . GCP had restructuring liabilities of $1.1 million , $1.4 million and $0.8 million as of December 31, 2016 , 2015 and 2014 , respectively, related to severance actions taken during the years then ended. Substantially all remaining costs related to the 2015 and 2016 programs are expected to be paid by December 31, 2017. Year Ended December 31, Restructuring Expenses and Asset Impairments 2016 2015 2014 Severance and other $ 1.9 $ 11.5 $ 4.0 Asset impairments — 0.1 14.3 Total restructuring expenses and asset impairments $ 1.9 $ 11.6 $ 18.3 December 31, Restructuring Liability 2016 2015 2014 Beginning balance $ 1.4 $ 0.8 $ 1.1 Accruals for severance and other costs 1.9 11.5 4.0 Payments (3.6 ) (10.9 ) (4.3 ) Impact of foreign currency and other 1.4 — — Ending balance $ 1.1 $ 1.4 $ 0.8 Repositioning Expenses Post-Separation, GCP has incurred expenses related to its transition to a stand-alone public company. The Company expects to incur these repositioning expenses, ranging from $18.0 million to $20.0 million , within 18 months of the Separation. Repositioning expenses primarily relate to the following: • accounting, tax, legal and other professional costs pertaining to the Separation and establishment as a stand-alone public company; • costs relating to information technology systems and marketing expense for repackaging and re-branding; • employee-related costs that would not be incurred absent the Separation primarily relating to compensation, benefits, retention bonuses related to new or transitioning employees; and • recruitment and relocation costs associated with hiring and relocating employees. Due to the scope and complexity of these activities, the range of estimated repositioning expenses could increase or decrease and the timing of incurrence could change. For the year ended December 31, 2016 , GCP incurred repositioning expenses as presented below. Repositioning Expenses 2016 Professional fees $ 7.8 Software and IT implementation fees 3.0 Employee-related costs 4.5 Total repositioning expenses $ 15.3 GCP accounts for these costs, which are reflected in "Repositioning expenses" in the accompanying Consolidated Statement of Operations, in the period incurred. Substantially all of these costs have been or are expected to be settled in cash. Total cash payments for the year ended December 31, 2016 were $17.7 million for professional fees and employee-related costs, $6.9 million for capital expenditures and $2.5 million for taxes. GCP did not incur any repositioning expenses for the years ended December 31, 2015 and 2014 . |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss The following tables present the pre-tax, tax and after-tax components of GCP's other comprehensive loss for the years ended December 31, 2016 , 2015 and 2014 . Year Ended December 31, 2016 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service credit $ (0.1 ) $ — $ (0.1 ) Amortization of net actuarial gain 0.1 — 0.1 Assumption of net prior service credit 1.2 (0.4 ) 0.8 Assumption of net actuarial loss (1.1 ) 0.4 (0.7 ) Other changes in funded status (0.1 ) — (0.1 ) Benefit plans, net — — — Currency translation adjustments (19.9 ) — (19.9 ) Other comprehensive loss attributable to GCP shareholders $ (19.9 ) $ — $ (19.9 ) Year Ended December 31, 2015 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.1 $ (0.1 ) $ — Assumption of net prior service credit 0.5 (0.1 ) 0.4 Benefit plans, net 0.6 (0.2 ) 0.4 Currency translation adjustments (62.3 ) — (62.3 ) Gain from hedging activities 0.4 (0.2 ) 0.2 Other comprehensive loss attributable to GCP shareholders $ (61.3 ) $ (0.4 ) $ (61.7 ) Year Ended December 31, 2014 Pre-Tax Tax (Expense)/Benefit After-Tax Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.1 $ — $ 0.1 Benefit plans, net 0.1 — 0.1 Currency translation adjustments (41.4 ) — (41.4 ) Gain from hedging activities 0.2 — 0.2 Other than temporary impairment of investment 0.8 — 0.8 Loss on securities available for sale (0.1 ) — (0.1 ) Other comprehensive loss attributable to GCP shareholders $ (40.4 ) $ — $ (40.4 ) The following tables present the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2016 , 2015 and 2014 . Year Ended December 31, 2016 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ 0.1 $ (127.8 ) $ — $ — $ — $ (127.7 ) Other comprehensive loss before reclassifications — (19.9 ) (1.2 ) — — (21.1 ) Amounts reclassified from accumulated other comprehensive income — — 1.2 — — 1.2 Net current-period other comprehensive loss — (19.9 ) — — — (19.9 ) Ending balance $ 0.1 $ (147.7 ) $ — $ — $ — $ (147.6 ) Year Ended December 31, 2015 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ (0.3 ) $ (65.5 ) $ (0.2 ) $ — $ — $ (66.0 ) Other comprehensive income (loss) before reclassifications 0.4 (62.3 ) 0.2 — — (61.7 ) Amounts reclassified from accumulated other comprehensive income — — — — — — Net current-period other comprehensive income (loss) 0.4 (62.3 ) 0.2 — — (61.7 ) Ending balance $ 0.1 $ (127.8 ) $ — $ — $ — $ (127.7 ) Year Ended December 31, 2014 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ (0.4 ) $ (24.1 ) $ (0.4 ) $ (0.8 ) $ 0.1 $ (25.6 ) Other comprehensive loss before reclassifications — (41.4 ) (0.4 ) — (0.7 ) (42.5 ) Amounts reclassified from accumulated other comprehensive income 0.1 — 0.6 0.8 0.6 2.1 Net current-period other comprehensive income (loss) 0.1 (41.4 ) 0.2 0.8 (0.1 ) (40.4 ) Ending balance $ (0.3 ) $ (65.5 ) $ (0.2 ) $ — $ — $ (66.0 ) GCP is a global enterprise operating in approximately 35 countries with local currency generally deemed to be the functional currency for accounting purposes. The currency translation adjustments reflect translation of the balance sheets valued in local currencies to the U.S. dollar as of the end of each period presented and translation of revenues and expenses at average exchange rates for each period presented. See Note 7 to the Consolidated Financial Statements for a discussion of pension plans and other postretirement benefit plans. |
Related Party Transactions and
Related Party Transactions and Transactions with Grace | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Transactions with Grace | Related Party Transactions and Transactions with Grace Related Parties All contracts with related parties are at rates and terms that GCP believes are comparable with those that could be entered into with independent third parties. Subsequent to the Separation, transactions with Grace represent third-party transactions. Allocation of General Corporate Expenses Prior to the Separation, the financial statements included expense allocations for certain functions provided by Grace as well as other Grace employees not solely dedicated to GCP, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, shared services, employee benefits and incentives and stock-based compensation. These expenses were allocated to GCP on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. Between January 1, 2016 and the Separation, GCP was allocated $2.0 million of general corporate expenses, which is primarily included within "Selling, general and administrative expenses" in the accompanying Consolidated Statement of Operations. For the years ended December 31, 2015 and 2014, Grace allocated $54.8 million and $52.1 million , respectively, of general corporate expenses to GCP. The expense allocations from Grace prior to the Separation included costs associated with defined benefit pension and other postretirement benefit plans (the “Shared Plans”) sponsored by Grace in which certain of GCP's employees participated. GCP accounted for such Shared Plans as multiemployer benefit plans. Accordingly, GCP did not record an asset or liability to recognize the funded status of the Shared Plans. As part of the Separation, Grace has split certain Shared Plans and transferred the assets and liabilities of such plans related to GCP employees to GCP. The expense allocations were determined on a basis that GCP considered to be a reasonable reflection of the utilization of or benefit received by GCP for the services provided by Grace. The allocations may not, however, reflect the expense GCP would have incurred as an independent company for the periods presented. Transition Services Agreement In connection with the Separation, the Company entered into a transition services agreement pursuant to which GCP and Grace provide various services to each other on a temporary, transitional basis. The services provided by Grace to GCP for periods prior to the Separation primarily included information technology, treasury, tax administration, accounting, financial reporting and human resources. Following the Separation, Grace has continued to provide some of these services on a transitional basis, which the Company generally expects to occur for a period of up to 18 months from the date of Separation. Tax Sharing Agreement The Tax Sharing Agreement governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. In general and subject to the terms of the Tax Sharing Agreement, GCP is responsible for all U.S. federal, state and foreign taxes (and any related interest, penalties or audit adjustments) reportable on a GCP separate return (a return that does not include Grace or any of its subsidiaries); and Grace is responsible for all U.S. federal, state and foreign income taxes (and any related interest, penalties or audit adjustments) reportable on a consolidated, combined or unitary return that includes Grace or any of its subsidiaries and GCP or any of its subsidiaries. As of the balance sheet date, GCP has included $3.7 million of indemnified receivables in other assets. In addition, the Tax Sharing Agreement imposes certain restrictions on GCP and its subsidiaries (including restrictions on share issuances, business combinations, sales of assets and similar transactions) that are designed to preserve the qualification of the Distribution, together with certain related transactions, under Section 355 and certain other relevant provisions of the Code. The Tax Sharing Agreement provides special rules that allocate tax liabilities in the event the Distribution, together with certain related transactions, does not so qualify. In general, under the Tax Sharing Agreement, each party is expected to be responsible for any taxes imposed on and certain related amounts payable by, GCP or Grace that arise from the failure of the Distribution and certain related transactions, to qualify under Section 355 and certain other relevant provisions of the Code, to the extent that the failure to so qualify is attributable to actions, events or transactions relating to such party’s respective stock, assets or business, or a breach of the relevant representations or covenants made by such party in the Tax Sharing Agreement. Parent Company Equity Net transfers to parent are included within "Net parent investment" on the Consolidated Statements of Stockholders' (Deficit) Equity. The components of the "Net transfer to parent" as of December 31, 2016 , 2015 and 2014 are presented below. Year Ended December 31, (In millions) 2016 2015 2014 Cash pooling and general financing activities $ (688.0 ) $ (306.1 ) $ (259.7 ) GCP expenses funded by parent 6.6 54.6 63.4 Corporate costs allocations 2.0 54.8 52.1 Provision for income taxes 4.3 84.3 55.6 Total net transfers to parent (675.1 ) (112.4 ) (88.6 ) Share-based compensation — (3.7 ) (4.1 ) Other, net (89.5 ) (4.5 ) (7.5 ) Transfers to parent, net per Consolidated Statements of Cash Flows $ (764.6 ) $ (120.6 ) $ (100.2 ) Other, net for the year ended December 31, 2016 , amounted to $89.5 million and includes primarily the non-cash transfer from parent of approximately $44 million of net pension liabilities, approximately $23 million of fixed assets and the non-cash settlement of approximately $42 million of related-party debt, deferred tax items, and other items. As discussed in Note 5, GCP used proceeds from the Notes and Credit Facilities to fund a distribution to Grace in an amount of $750.0 million related to the Separation. This distribution is reflected as a component of transfers to parent in the table above. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans GCP has provided certain key employees equity awards in the form of stock options, PBUs and RSUs under the GCP 2016 Stock Incentive Plan, which was adopted at Separation. Certain employees and members of the Board of Directors are eligible to receive stock-based compensation, including stock, stock options, RSUs and PBUs. Prior to the Separation, GCP employees participated in the Grace share-based compensation plans. For periods prior to the Separation, the following sections disclose certain activity of these awards granted to direct employees of GCP. Awards to Grace’s corporate staff that provided services to GCP are excluded from the following disclosures; however, the expense for those awards is included in expense allocated to GCP for certain corporate functions historically performed by Grace. In accordance with the Employee Matters Agreement, previously outstanding stock-based compensation awards granted under Grace’s equity compensation programs prior to the Separation and held by certain executives and employees of GCP and Grace were adjusted to reflect the impact of the Separation on these awards. To preserve the aggregate intrinsic value of Grace awards held prior to the Separation, as measured immediately before and immediately after the Separation, each holder of Grace stock-based compensation awards generally received an adjusted award consisting of either (i) both a stock-based compensation award denominated in Grace 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 the equity of the company at which the person was employed following the Separation. In the Separation, the determination as to which type of adjustment applied to a holder’s previously outstanding Grace award was based upon the type of stock-based compensation award that was to be adjusted and the date on which the award was originally granted under the Grace equity compensation programs prior to the Separation. Adjusted awards consisting of stock-based compensation awards denominated in GCP equity are considered issued under the GCP 2016 Stock Incentive Plan. These adjusted awards generally will be subject to the same vesting conditions and other terms that applied to the original Grace award to which these adjusted awards relate, before the Separation. Under the Employee Matters Agreement, GCP is obligated to settle all of the stock-based compensation awards denominated in GCP equity, regardless of whether the holders are employees of GCP or Grace. Likewise, Grace is obligated to settle all of the stock-based compensation awards denominated in Grace shares, regardless of whether the holders are employees of GCP or Grace. As a result, GCP has recorded a liability for cash-settled awards held by Grace employees. The adjustment of the original Grace awards that resulted in the issuance of GCP stock-based compensation awards resulted in an immaterial charge in the first quarter of 2016. In accordance with certain provisions of the GCP 2016 Stock Incentive Plan, GCP repurchases shares issued to certain holders of GCP awards in order to fulfill statutory tax withholding requirements for the employee. In the year ended December 31, 2016 , GCP repurchased approximately 112,205 shares under these provisions. These purchases are reflected as "Treasury stock purchased under 2016 Stock Incentive Plan" in the Consolidated Statements of (Deficit) Equity. As of December 31, 2016 , 1,637,301 shares of common stock were available for issuance under the GCP 2016 Stock Incentive Plan. Total stock-based compensation cost included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations is $7.5 million , $4.7 million and $4.8 million for the years ended December 31, 2016 , 2015 and 2014, respectively. Stock-based compensation expense prior to the Separation was allocated to GCP based on the portion of Grace’s equity compensation programs in which GCP employees participated. The total income tax benefit recognized for stock‐based compensation arrangements was $4.8 million , $1.7 million and $1.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. The Company early adopted ASU 2016-9 during 2016 and as a result recognized an additional $2.0 million of tax benefit for the year ended December 31, 2016. Stock Options Stock options are non-qualified and are set at exercise prices not less than 100% of the market value on the date of grant (market value is the average of the high price and low price from that trading day). Stock option awards that relate to Grace stock options originally granted prior to the Separation have a contractual term of five years from the original date of grant. Stock option awards granted post-Separation have a contractual term of seven years from the original date of grant. Generally, stock options vest in substantially equal amounts each year over three years from the date of grant. GCP and Grace, to the extent awards were granted prior to the Separation, value stock 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. GCP and Grace estimate the expected term of the options according to the simplified method as allowed by ASC 718-20, Awards Classified as Equity, whereby the average between the vesting period and contractual term is used. GCP estimated the expected volatility using an industry peer group. The following summarizes GCP's and Grace's assumptions for estimating the fair value of stock options granted during 2016 , 2015 and 2014: Year Ended December 31, Assumptions used to calculate expense for stock option 2016 2015 2014 Risk-free interest rate 0.93 - 1.24% 1.3% 1.25% Average life of options (years) 4 - 5 3 - 4 3 - 4 Volatility 29.6 – 33.2% 23.0 – 27.2% 28.2 – 28.7% Dividend yield — — — Average fair value per stock option $4.89 $18.43 $21.08 The following table sets forth information relating to such options denominated in GCP stock during 2016 . Stock Option Activity Number Of Weighted Weighted Aggregated Outstanding, December 31, 2015 — $ — Converted on February 3, 2016 2,236 14.36 Options exercised 811 10.08 Options forfeited 52 16.58 Options expired — — Options granted 749 17.23 Outstanding, December 31, 2016 2,122 16.92 3.57 $ 20,748 Exercisable December 31, 2016 895 $ 15.43 1.75 $ 20,748 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between GCP's closing stock price on the last trading day of December 31, 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at period end. The amount changes based on the fair market value of GCP's stock. The intrinsic value of all options exercised in the year s ended December 31, 2016 , 2015 2014 was $9.3 million , $8.4 million and $3.1 million , respectively. Total unrecognized stock-based compensation expense for stock options outstanding at December 31, 2016 , was $1.6 million and the weighted-average period over which this expense will be recognized is approximately one year. Restricted Stock Units and Performance Based Units Upon Separation, certain previously outstanding RSUs and PBUs granted under Grace's equity compensation programs prior to the Separation were adjusted, in accordance with the Employee Matters Agreement, such that holders of these original Grace RSUs and PBUs received RSUs denominated in GCP equity. RSUs generally vest over a three year period, with vesting in substantially equal amounts each year over three years and some vesting 100% after the third year from the date of grant. A smaller number of RSUs were designated as sign-on awards and used for purposes of attracting key employees and to cover outstanding awards from a prior employer and vest 100% after two years . GCP’s RSU activity for the year ended December 31, 2016 is presented below. RSU Activity Number Of Weighted Outstanding, December 31, 2015 — $ — Converted on February 3, 2016 265 17.00 RSUs settled 31 16.90 RSUs forfeited 23 17.29 RSUs granted 327 17.36 RSUs outstanding, December 31, 2016 538 $ 17.22 RSUs vested and outstanding 77 $ 17.23 During 2016, 101,046 RSUs with an average grant date fair value of $17.15 vested. During 2016 , GCP distributed approximately 25,000 shares and $0.5 million of cash to settle RSUs. GCP expects that approximately 42% of the 76,636 RSUs that vested and remain outstanding as of December 31, 2016 , none of the 67,050 RSUs vesting in 2017 , 34% of the 158,887 RSUs vesting in 2018 and none of the 235,275 RSUs vesting in 2019 , will be settled in cash, with the remaining percentages of these RSUs to be settled in GCP stock. During the year ended December 31, 2016 , GCP granted 155,501 PBUs under the GCP 2016 Stock Incentive Plan to Company employees. These awards vest in February 2019 subject to continued employment through the payment date and have a weighted average grant date fair value of $17.04 . GCP anticipates that 100% of the PBUs will be settled in GCP common stock upon vesting. During 2016, 8,695 PBUs were forfeited. PBUs granted in 2016 are based on a three year cumulative adjusted earnings per share measure. The number of shares ultimately provided to an employee who received a 2016 PBU grant will be based on Company performance against this measure and can range from 0% to 200% of the target award based upon the level of achievement of this measure. The awards will be settled in 2019 once actual performance against the measure, which is measured over fiscal years 2016 - 2018 , is certified by the Compensation Committee. PBUs and RSUs are recorded at fair value at the date of grant. The common stock-settled portion of each such award is considered an equity award, with the stock compensation expense being determined based on GCP’s stock price on the grant date. The cash settled portion of the award is considered a liability award with the liability being remeasured each reporting period based on GCP’s then current stock price. PBU 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. As of December 31, 2016 , $7.2 million of total unrecognized compensation expense related to the RSU and PBU awards is expected to be recognized over the remaining weighted-average service period of 1.6 years. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information GCP is engaged in the production and sale of specialty construction chemicals, specialty building materials and packaging products through three operating segments. SCC manufactures and markets concrete admixtures and cement additives. SBM manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, fireproofing and other products designed to protect the building envelope. Darex manufactures and markets packaging materials for use in beverage and food containers, industrial containers and other consumer and industrial applications. The table below presents information related to GCP's operating segments. Only those corporate expenses directly related to the operating segments are allocated for reporting purposes. GCP excludes certain functional costs, impacts of foreign exchange (related primarily to Venezuela) and other corporate costs such as certain performance-based incentive compensation and public company costs from segment operating income. GCP also excludes pension costs, including certain ongoing defined benefit pension costs recognized quarterly, which include service and interest costs, the effect of expected returns on plan assets and amortization of prior service costs/credits, from the calculation of segment operating income. GCP believes that the exclusion of certain corporate costs and pension costs provides a better indicator of its operating segment performance as such costs are not managed at an operating segment level. Operating Segment Data (In millions) 2016 2015 2014 Net Sales Specialty Construction Chemicals $ 623.8 $ 694.3 $ 726.3 Specialty Building Materials 422.7 398.1 379.3 Darex Packaging Technologies 309.3 326.2 374.8 Total $ 1,355.8 $ 1,418.6 $ 1,480.4 Segment Operating Income Specialty Construction Chemicals segment operating income $ 72.6 $ 83.7 $ 72.4 Specialty Building Materials segment operating income 114.0 99.6 75.7 Darex Packaging Technologies segment operating income 64.8 72.8 74.1 Total segment operating income $ 251.4 $ 256.1 $ 222.2 Depreciation and Amortization Specialty Construction Chemicals $ 20.0 $ 18.0 $ 18.5 Specialty Building Materials 9.6 7.8 8.6 Darex Packaging Technologies 6.4 4.8 5.5 Corporate 0.2 1.2 1.4 Total $ 36.2 $ 31.8 $ 34.0 Capital Expenditures Specialty Construction Chemicals $ 23.6 $ 21.8 $ 24.3 Specialty Building Materials 5.7 7.0 6.3 Darex Packaging Technologies 4.4 5.9 6.7 Corporate 11.6 1.3 0.2 Total $ 45.3 $ 36.0 $ 37.5 Total Assets Specialty Construction Chemicals $ 335.9 $ 318.4 $ 329.0 Specialty Building Materials 273.3 227.4 247.3 Darex Packaging Technologies 148.6 121.2 157.4 Corporate 332.0 166.1 247.8 Total $ 1,089.8 $ 833.1 $ 981.5 Corporate costs include certain functional costs and other corporate costs such as certain performance-based compensation and public company costs. Reconciliation of Operating Segment Data to Financial Statements Total segment operating income for the years ended December 31, 2016 , 2015 and 2014 are reconciled below to "Income before income taxes" presented in the accompanying Consolidated Statements of Operations. Year Ended December 31, (In millions) 2016 2015 2014 Total segment operating income $ 251.4 $ 256.1 $ 222.2 Corporate costs (29.2 ) (24.3 ) (19.3 ) Certain pension costs (8.4 ) (5.1 ) (7.5 ) Currency and other financial losses in Venezuela — (73.2 ) (1.0 ) Repositioning expenses (15.3 ) — — Restructuring expenses and asset impairments (1.9 ) (11.6 ) (18.3 ) Pension MTM adjustment and other related costs, net (23.2 ) (15.0 ) 18.6 Gain on termination and curtailment of pension and other postretirement plans 0.8 — — Third-party acquisition-related costs (2.1 ) — — Other financing costs (1.2 ) — — Amortization of acquired inventory fair value adjustment (1.3 ) — — Interest expense, net (64.6 ) (2.5 ) (4.8 ) Net income attributable to noncontrolling interests 1.0 0.8 1.2 Income before income taxes $ 106.0 $ 125.2 $ 191.1 Sales by Product Group Year Ended December 31, (In millions) 2016 2015 2014 Specialty Construction Chemicals: Concrete $ 469.1 $ 532.7 $ 541.9 Cement 154.7 161.6 184.4 Total SCC Sales $ 623.8 $ 694.3 $ 726.3 Specialty Building Materials: Building Envelope $ 236.3 $ 234.7 $ 236.3 Residential Building Products 89.2 79.3 59.2 Specialty Construction Products 97.2 84.1 83.8 Total SBM Sales $ 422.7 $ 398.1 $ 379.3 Darex Packaging Technologies: Sealants $ 211.7 $ 221.2 $ 254.8 Coatings 97.6 105.0 120.0 Total Darex Sales $ 309.3 $ 326.2 $ 374.8 Total Sales $ 1,355.8 $ 1,418.6 $ 1,480.4 Geographic Area Data The table below presents information related to the geographic areas in which GCP operates. Sales are attributed to geographic areas based on customer location. With the exception of the U.S. as presented below, there are no individually significant countries with sales exceeding 10% of total sales. Brazil and Belgium each have long-lived assets of approximately 10% - 12% of total long-lived assets. There are no other individually significant countries with long-lived assets exceeding 10% of total long-lived assets. Year Ended December 31, (In millions) 2016 2015 2014 Net Sales United States $ 540.3 $ 507.4 $ 468.4 Canada and Puerto Rico 32.5 30.8 35.5 Total North America 572.8 538.2 503.9 Europe Middle East Africa 321.3 341.1 396.0 Asia Pacific 322.6 329.6 349.7 Latin America 139.1 209.7 230.8 Total $ 1,355.8 $ 1,418.6 $ 1,480.4 Properties and Equipment, net United States $ 131.1 $ 91.9 $ 87.8 Canada and Puerto Rico 2.7 2.5 2.7 Total North America 133.8 94.4 90.5 Europe Middle East Africa (EMEA) 43.2 45.7 47.0 Asia Pacific 39.9 42.1 40.9 Latin America 15.3 14.9 19.1 Total $ 232.2 $ 197.1 $ 197.5 Goodwill, Intangibles and Other Assets United States $ 85.6 $ 34.1 $ 34.8 Canada and Puerto Rico 7.7 2.8 2.9 Total North America 93.3 36.9 37.7 Europe Middle East Africa (EMEA) 56.3 61.1 69.7 Asia Pacific 21.4 22.1 23.4 Latin America 28.3 25.8 35.7 Total $ 199.3 $ 145.9 $ 166.5 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. (In millions, except per share amounts) 2016 2015 2014 Numerators Net income attributable to GCP shareholders $ 72.8 $ 40.1 $ 134.3 Denominators Weighted average common shares—basic calculation 70.8 70.5 70.5 Dilutive effect of employee stock awards 0.9 — — Weighted average common shares—diluted calculation 71.7 70.5 70.5 Basic earnings per share $ 1.03 $ 0.57 $ 1.90 Diluted earnings per share $ 1.02 $ 0.57 $ 1.90 The Company calculates basic and diluted earnings per common share assuming the number of shares of GCP common stock outstanding on February 3, 2016 had been outstanding at the beginning of each period presented. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no equity awards in GCP outstanding prior to the Separation. See Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," for further discussion of the Separation. There were approximately 0.1 million anti-dilutive options and 0.1 million anti-dilutive RSUs outstanding on a weighted-average basis as of December 31, 2016 . As of December 31, 2016 , GCP repurchased 112,205 shares of Company common stock for $2.1 million in connection with its equity compensation programs. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On August 9, 2016, GCP acquired the intellectual property and related assets of Sensocrete, a Canadian technology company in the ready mix concrete industry. This acquisition did not have a material effect on the Company's financial statements for the periods presented. On November 9, 2016, GCP acquired 100% of the stock of Halex Corporation ("Halex") a North American supplier of specialty moisture barrier flooring underlayment products, seam tapes, other flooring and accessories, for total consideration of $47.0 million , net of $1.4 million of cash acquired and subject to customary purchase price adjustments. The Company believes that the addition of Halex and its products, including the proprietary VersaShield rolled moisture barrier flooring membrane, opens new growth opportunities in the building envelope industry by providing customers with differentiated products in interior environments while leveraging the Company's existing sales and distribution channels. The acquisition of Halex has been accounted for as a business combination and is included within the GCP SBM operating and reportable segment. The acquisition purchase price has been allocated to the tangible net assets and identifiable intangible assets acquired based on their estimated fair values at the acquisition date in accordance with ASC 805, Business Combinations . The excess of the purchase price over the fair value of the tangible net assets and identifiable intangible assets acquired was recorded as goodwill. The $16.1 million of goodwill recognized is attributable to the revenue growth and operating synergies the Company expects to realize from this acquisition and will be deductible for U.S. income tax purposes over a period of 15 years . The Company’s estimates and assumptions used in determining the estimated fair values of the net assets acquired are subject to change within the measurement period (up to one year from the acquisition date) as a result of additional information obtained with regards to facts and circumstances that existed as of the acquisition date. The purchase price allocation is preliminary. The primary areas of the purchase price allocation that are not yet finalized relate to the final settlement of the purchase price adjustments and the amount of the residual goodwill. The following table presents the aggregate purchase price allocation, including those items that were preliminary allocations, as of the fiscal year ended December 31, 2016. (In millions) Net Assets Acquired Accounts receivable $ 3.2 Other current assets 0.5 Inventories 9.7 Properties and equipment 1.4 Goodwill 16.1 Intangible assets 20.4 Accounts payable (1.9 ) Other current liabilities (2.2 ) Other liabilities (0.2 ) Net assets acquired $ 47.0 The table below presents the intangible assets acquired as part of the acquisition of Halex and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 16.5 15.0 Trademarks 0.2 10.0 Technology 3.7 12.0 Total $ 20.4 |
Quarterly Summary and Statistic
Quarterly Summary and Statistical Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary and Statistical Information (Unaudited) | Quarterly Summary and Statistical Information (Unaudited) (In millions, except per share amounts) March 31 June 30 September 30 December 31 (1) 2016 Net sales $ 314.1 $ 366.3 $ 342.5 $ 332.9 Gross profit 121.2 148.4 136.0 123.1 Net income attributable to GCP shareholders 17.8 30.3 21.3 3.4 Net income per share: (2) Basic earnings per share: Net income $ 0.25 $ 0.43 $ 0.30 $ 0.05 Diluted earnings per share: Net income $ 0.25 $ 0.42 $ 0.30 $ 0.05 ________________________________ (1) In the fourth quarter of 2016, GCP recorded a pension mark-to-market adjustment of $20.5 million . Refer to Note 7, "Pension Plans and Other Postretirement Benefit Plans." (2) 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. (In millions, except per share amounts) March 31 June 30 September 30 (1) December 31 (2) 2015 Net sales $ 322.7 $ 373.7 $ 389.7 $ 332.5 Gross profit 111.3 142.9 143.9 118.1 Net income attributable to GCP shareholders 20.5 27.2 (15.3 ) 7.7 Net income per share: (3) Basic earnings per share: Net income $ 0.29 $ 0.39 $ (0.22 ) $ 0.11 Diluted earnings per share: Net income $ 0.29 $ 0.39 $ (0.22 ) $ 0.11 ________________________________ (1) In the third quarter of 2015, GCP recorded a pre-tax charge of $73.2 million to reflect the devaluation of net monetary assets and the impairment of non-monetary assets within its Venezuela subsidiary. Refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies." (2) In the fourth quarter of 2015, GCP recorded a pension mark-to-market adjustment of $15.0 million . Refer to Note 7, "Pension Plans and Other Postretirement Benefit Plans." (3) GCP Earnings per share for 2015 were calculated using the shares that were distributed to Grace shareholders immediately following the Separation. For periods prior to the Separation it is assumed that there are no dilutive equity instruments as there were no GCP equity awards outstanding prior to the Separation. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Binding Offer Letter for Divestiture of the Darex Business On March 2, 2017 , the Company entered into a final, binding and irrevocable offer letter (the “Offer Letter”) with Henkel AG & Co. KGaA (“Henkel”), pursuant to which Henkel made a binding offer (the "Offer") to acquire the Company’s Darex Packaging Technologies business for approximately $1.05 billion. This transaction would position the Company to focus on the growth opportunities in its construction and building materials markets. In connection with the Offer, the Company has agreed to initiate the employee consultation process with its relevant works councils (the “Consultation Process”). The Company may accept the Offer by executing and delivering to Henkel a countersignature to the proposed stock and asset purchase agreement (the “stock and asset purchase agreement”) after the Consultation Process has concluded. The Offer is valid until July 3, 2017 ; provided, however, that if the Consultation Process has not been completed by at least five business days prior to such date, the Company or Henkel may, subject to certain conditions, extend the Offer from time to time in consecutive increments of up to thirty days each, but in any event not beyond December 2, 2017 . The Offer was made on the terms and subject to the conditions of the proposed stock and asset purchase agreement, which was attached to the Offer Letter and executed by Henkel in connection with the making of the Offer. If the Offer is accepted, the completion of the transaction will be subject to customary closing conditions, including regulatory approvals, and will be expected to close in the middle of 2017. Under the terms of the proposed stock and asset purchase agreement, the Company would sell to Henkel certain assets, and Henkel would assume certain liabilities, of Darex. The proposed stock and asset purchase agreement would contain various customary representations, warranties and covenants, and the parties would agree to indemnify each other for any breaches thereof, subject to specified time and amount limits and other exceptions. The Company expects to classify Darex, which is an operating segment, as held for sale and to report Darex's financial results in discontinued operations beginning in the first quarter of 2017. Darex had sales of $309.3 million and segment operating income of $64.8 million for the year ended December 31, 2016. The Company is assessing the full financial impact that the potential transaction would have, including the impact of potential restructuring initiatives that the Company may undertake to ensure its cost structure aligns with anticipated needs subsequent to a sale of Darex, as well as the gain that it would record related to the transaction for both tax and financial reporting purposes. |
Schedule II - Valuation & Quali
Schedule II - Valuation & Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation & Qualifying Accounts and Reserves | FINANCIAL STATEMENT SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (In millions) For the Year Ended December 31, 2016 Balance at beginning of period Additions charged to costs and expenses Deductions Other, net (1) Balance at end of period Valuation and qualifying accounts deducted from assets: Allowances for notes and accounts receivable $ 6.2 $ 0.2 $ (1.9 ) $ 0.4 $ 4.9 Inventory obsolescence reserve 3.1 — — — 3.1 Valuation allowance for deferred tax assets 2.0 0.4 (0.1 ) — 2.3 ___________________________________________________________________________________________________________________ (1) Various miscellaneous adjustments against reserves and effects of currency translation. For the Year Ended December 31, 2015 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 $ 4.8 $ 3.6 $ (2.9 ) $ 0.7 $ 6.2 Inventory obsolescence reserve 4.4 — (1.3 ) — 3.1 Valuation allowance for deferred tax assets 1.8 0.5 (0.3 ) — 2.0 ___________________________________________________________________________________________________________________ (1) Various miscellaneous adjustments against reserves and effects of currency translation. For the Year Ended December 31, 2014 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 $ 4.9 $ 2.1 $ (2.6 ) $ 0.4 $ 4.8 Inventory obsolescence reserve 3.9 0.5 — — 4.4 Valuation allowance for deferred tax assets 1.6 0.2 — — 1.8 ___________________________________________________________________________________________________________________ (1) Various miscellaneous adjustments against reserves and effects of currency translation. |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements for periods prior to the Separation have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Grace, as the Company's business operated as a combination of entities under common control of Grace. These financial statements reflect the historical basis and carrying values established when the Company was part of Grace. Subsequent to the Separation, the accompanying Consolidated Financial Statements are presented on a consolidated basis and include all of the accounts and operations of GCP and its majority-owned subsidiaries. |
Principles of Combination | All transactions between GCP and Grace have been included in these financial statements. Prior to the Separation, all such transactions, other than intercompany loan transactions, are effectively considered to be settled for cash, in the Consolidated Financial Statements at the time the transactions were recorded . The intercompany loans payable to Grace and the related interest and cash flows, as presented in Note 5 "Debt and Other Financial Instruments", are reflected as "Borrowings under related party loans" and "Repayments under related party loans" in the Consolidated Statements of Cash Flows, as "Loans payable-related party" in the Consolidated Balance Sheets and as "Interest expense, net-related party" in the Consolidated Statements of Operations. Subsequent to the Separation, Grace is no longer a related party of the Company. Prior to the Separation, the financial statements included expenses of Grace allocated to GCP for certain functions provided by Grace, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, environment health and safety, supply chain, shared services, employee benefits and incentives, insurance and stock-based compensation. These expenses were allocated to GCP on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. These cost allocations were included in "Selling, general and administrative expenses" in the Statements of Operations. Most of these costs were included in segment operating income with only a portion included in corporate costs. Both GCP and Grace consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to, or the benefit received by, GCP during the periods presented. Subsequent to the Separation, GCP has performed most of these functions using its own resources or purchased services. However, Grace has continued to provide certain of these functions under a transition services agreement, which will remain in place for a period generally up to 18 months from the Separation. As of December 31, 2016, the activities subject to the transition services agreement were substantially complete. See Note 12, "Related Party Transactions and Transactions with Grace," for further description of the transition services agreement between GCP and Grace. Prior to the Separation, the financial statements also included the assets and liabilities that were historically held at the Grace corporate level but were specifically identifiable or otherwise pushed down to GCP. The cash and cash equivalents held by Grace at the corporate level were not specifically identifiable to GCP and therefore were not allocated to GCP for any of the periods presented. Prior to the Separation, cash and cash equivalents in the Balance Sheets represent primarily cash held locally by entities included in the financial statements. Third-party debt and the related interest expense of Grace were not allocated to GCP for any of the periods presented as GCP was not the legal obligor of the debt and the Grace borrowings were not directly attributable to GCP's business. The financial statements exclude all assets, liabilities, income, gains, costs and expenses reported by Grace related to asbestos and bankruptcy matters. Prior to the Separation, these matters were not allocated to GCP as Grace was the legal obligor for those liabilities and Grace is expected to pay all future liabilities and costs related to such matters as such matters were not historically managed by GCP. Grace retained full responsibility for these matters following the Separation and GCP has not indemnified Grace for any losses or payments associated with these matters. Prior to the Separation, Grace used a centralized approach to cash management and financing of its operations and Grace funded GCP's operating and investing activities as needed. Prior to the Separation, cash transfers to and from the cash management accounts of Grace are reflected in the Statements of Cash Flows as “Transfers to parent, net.” Noncontrolling Interests GCP conducts certain of its business through joint ventures with unaffiliated third parties. For joint ventures in which GCP has a controlling financial interest, GCP consolidates the results of such joint ventures in the Consolidated Financial Statements. GCP deducts the amount of income attributable to noncontrolling interests in the measurement of its consolidated net income. |
Operating Segments | Operating Segments GCP reports financial results of each of its operating segments that engage in business activities that generate revenues and expenses and whose operating results are regularly reviewed by GCP's chief operating decision maker. |
Earnings per Share | Earnings per Share GCP computes basic earnings per share ("EPS") attributable to GCP shareholders by dividing net income attributable to GCP shareholders by weighted-average common shares outstanding during the period. GCP's diluted EPS calculation reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in GCP's earnings. GCP calculated its earnings per share for 2015 and 2014 using the shares that were distributed to Grace shareholders immediately following the Separation. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments, as there were no equity awards in GCP outstanding prior to the Separation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, 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. GCP's accounting measurements that are most affected by management's estimates of future events are: • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate resolution cost, that may arise from circumstances such as legal disputes, environmental remediation, product liability claims, material commitments (see Note 9, "Commitments and Contingent Liabilities,") and income taxes (see Note 6, "Income Taxes"); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 7, "Pension Plans and Other Postretirement Benefit Plans); and • Realization values of net deferred tax assets, which depend on projections of future taxable income (see Note 6, "Income Taxes"). |
Reclassifications | Reclassifications Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts. |
Revenue Recognition | Revenue Recognition GCP recognizes revenue when all of the following criteria are satisfied: risk of loss and title transfer to the customer; the price is fixed and determinable; persuasive evidence of a sales arrangement exists; and collectability is reasonably assured. Risk of loss and title transfers to customers are based on individual contractual terms. Terms of delivery are generally included in customer contracts of sale, order confirmation documents and invoices. |
Rebates | Certain customer arrangements include conditions for volume rebates. GCP accrues a rebate allowance and reduces recorded sales for anticipated selling price adjustments at the time of sale. GCP regularly reviews rebate accruals based on actual and anticipated sales patterns. |
Cash Equivalents | 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 Inventories are stated at the lower of cost or market. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. |
Long-Lived Assets | Long-Lived Assets Properties and equipment are stated at cost. Depreciation of properties and equipment is generally computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives range from 20 to 40 years for buildings, 3 to 7 years for information technology equipment, 3 to 10 years for operating machinery and equipment and 5 to 10 years for furniture and fixtures. Interest is capitalized in connection with major project expenditures. Fully depreciated assets are retained in properties and equipment and related accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged or credited to earnings. Obligations for costs associated with asset retirements, such as requirements to restore a site to its original condition, are accrued at net present value and amortized along with the related asset. |
Finite-Lived Intangible Assets | 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 20 years. |
Impairment of Long-Lived Assets | GCP 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. |
Goodwill | Goodwill Goodwill arises from certain business combinations. GCP reviews its goodwill for impairment on an annual basis in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Recoverability is assessed at the reporting unit level most directly associated with the business combination that generated the goodwill. For the purpose of measuring impairment under the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, " Intangibles—Goodwill and Other ," GCP has identified its reporting units as its operating segments. |
Income Tax | Income Tax As a global enterprise, GCP is subject to a complex array of tax regulations and must make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. After the Separation, income tax expense and income tax balances represent GCP’s federal, state and foreign income taxes as an independent company. GCP will file a U.S. consolidated income tax return, along with foreign and state corporate income tax filings, as required. GCP's deferred taxes and effective tax rate may not be comparable to those of historical periods prior to the Separation. See Note 6, "Income Taxes," for details regarding estimates used in accounting for income tax matters including unrecognized tax benefits. In the financial statements for periods prior to the Separation, income tax expense and tax balances were calculated using the separate return method as if GCP was a separate taxpayer, although GCP was included in tax returns filed by Grace. The separate return method applies ASC 740, Income Taxes , to the standalone financial statements of each member of a consolidated group as if the group member were a separate taxpayer and standalone enterprise. As a result, actual tax transactions included in the Consolidated Financial Statements of GCP may not be included in the separate financial statements of Grace. Further, the tax treatment of certain items reflected in the separate financial statements of Grace may not be reflected in the Consolidated Financial Statements and tax returns of GCP. For example, certain items such as net operating losses, credit carryforwards and valuation allowances that exist within Grace's financial statements may or may not exist in GCP's standalone financial statements. With the exception of certain dedicated foreign entities, GCP did not maintain taxes payable to and from Grace and GCP was deemed to settle the annual current tax balances immediately with the legal entities liable for the taxes in the respective jurisdictions. These settlements are reflected as changes in net parent investment. The Consolidated Statements of Cash Flows reflect cash paid for income taxes, including GCP’s cash taxes paid to taxing authorities, as well as tax payments that are deemed settled with Grace as the taxpayer during these time periods. Deferred tax assets and liabilities are recognized with respect to the expected future tax consequences of events that have been recorded in the Consolidated Financial Statements. If it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is provided against such deferred tax assets. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. GCP evaluates such likelihood based on relevant facts and tax law. |
Pension Benefits | Pension Benefits GCP'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, GCP'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, GCP's pension obligation and plan assets would be remeasured at an interim period and the gains or losses on remeasurement would be recognized in that period. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Prior to the Separation, GCP was allocated stock-based compensation expense from Grace related to GCP employees receiving awards denominated in Grace equity instruments. In accordance with an employee matters agreement entered into between Grace and GCP on January 27, 2016 in connection with the Separation (the "Employee Matters Agreement"), previously outstanding stock-based compensation awards granted under Grace's equity compensation programs prior to the Separation and held by certain executives and employees of GCP and Grace were adjusted to reflect the impact of the Separation on these awards. To preserve the aggregate intrinsic value of these stock-based compensation awards, as measured immediately before and immediately after the Separation, each holder of Grace stock-based compensation awards generally received an adjusted award consisting of either (i) both a stock-based compensation award denominated in Grace 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 the equity of the company at which the person was employed following the Separation. In the Separation, the determination as to which type of adjustment applied to a holder’s previously outstanding Grace award was based upon the type of stock-based compensation award that was to be adjusted and the date on which the award was originally granted under the Grace equity compensation programs prior to the Separation. Under the Employee Matters Agreement, GCP retains certain obligations related to all stock- and cash-settled stock-based compensation awards denominated in GCP equity, regardless of whether the holder is a GCP or Grace employee. Following the Separation, the Company records stock-based compensation expense for equity awards in accordance with the applicable authoritative accounting guidance. |
Currency Translation | 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 currency translation adjustments are included in accumulated other comprehensive loss in the Consolidated Balance Sheets. The financial statements of any subsidiaries located in countries with highly inflationary economies are remeasured as if the functional currency were the U.S. dollar; the remeasurement creates translation adjustments that are reflected in net income in the Consolidated Statements of Operations. |
Recently Issued and Recently Adopted Accounting Standards | Recently Issued Accounting Standards Business Combinations In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The standard is effective for the Company on January 1, 2018, with early application permitted for certain transactions. GCP is currently evaluating the allowed transition methods and potential impact on its Consolidated Financial Statements and related disclosures. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) . This ASU 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, which eliminates Step 2 from the goodwill impairment test. The standard is effective for the Company for annual or any interim goodwill impairment tests beginning on or after January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires recognition of the current and deferred income tax effects of an intra-entity asset transfer, other than inventory, when the transfer occurs, as opposed to current GAAP, which requires companies to defer the income tax effects until the asset has been sold to an outside party . The standard is effective for the Company on January 1, 2018, with early adoption permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Payments, which addresses eight specific cash flow presentation issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for the Company on January 1, 2018 and requires a retrospective approach to adoption. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update is intended to remove inconsistencies and weaknesses in revenue requirements; provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; provide more useful information to users of financial statements through improved disclosure requirements; and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new requirements were to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers—Deferral of the Effective Date , deferring the effective date by one year but permitting adoption as of the original effective date. The revised standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The standard will be effective for the Company on January 1, 2018 and requires either a retrospective or a modified retrospective approach to adoption. In addition to the expanded disclosures regarding revenue, this guidance may impact timing of revenue recognition in some arrangements with variable consideration or contracts for the sale of goods and services. GCP is currently evaluating the available transition methods and, given the diversity of the Company's business segments, the potential impact of the standard on its Consolidated Financial Statements and related disclosures. As a result, GCP will not adopt the standard early. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which clarifies aspects of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , including non-cash consideration and provides a practical expedient for reflecting contract modifications upon transition. The Company is currently evaluating the impact of adopting ASU 2016-12, which will occur in conjunction with its adoption of the new revenue recognition standard promulgated in Topic 606. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which clarifies aspects of ASU 2014-09 pertaining to the identification of performance obligations and the licensing implementation guidance, while retaining the core principles for those areas. GCP is currently evaluating the impact of adopting ASU 2016-10, which will occur in conjunction with its adoption of Topic 606. In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) , which amends the principal-versus-agent implementation guidance in Topic 606 and will affect whether an entity reports revenue on a gross or net basis. GCP is currently evaluating the impact of adopting ASU 2016-08, which will occur in conjunction with its adoption of Topic 606. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term, including optional payments where they are reasonably certain to occur. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures. Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The update requires that inventory be measured at the lower of cost or net realizable value for entities using FIFO or average cost methods. The new requirements are effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years, with early adoption permitted. GCP will adopt this standard for the 2017 first quarter and does not expect it to have a material effect on the Consolidated Financial Statements. Recently Adopted Accounting Standards Accounting for Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The update requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled. It also eliminates the requirement that excess tax benefits be realized (reduce cash taxes payable) before being recognized. Previously, an entity could not recognize excess tax benefits if the tax deduction increased a net operating loss ("NOL") or tax credit carryforward. The updated standard no longer requires cash flows related to excess tax benefits to be presented as a financing activity separate from other income tax cash flows. The update also allows entities to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments to taxing authorities made on an employee's behalf for withheld shares should be presented as a financing activity on the statement of cash flows and provides for an accounting policy election to account for forfeitures as they occur. The update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. GCP elected to early adopt this update in the 2016 third quarter and now recognizes excess tax benefits in the provision for income taxes rather than paid-in capital. Adoption of the update resulted in the recognition of excess tax benefits in the provision for income taxes of $0.8 million , $0.2 million and $0.9 million for the three month periods ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively; $1.0 million for the six months ended June 30, 2016; and $1.9 million for the nine months ended September 30, 2016. GCP has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation expense to be recognized each period. The presentation requirements for cash flows related to excess tax benefits resulted in an increase in cash provided by operating activities of $0.8 million and $1.0 million (with a corresponding reduction of cash provided by financing activities) for the three months ended March 31, 2016 and the six months ended June 30, 2016, respectively. The tables below summarize the effects of the adoption of this update on GCP's previously reported results for the 2016 first and second quarters and for the six months ended June 30, 2016. GCP will revise its 2016 first and second quarter and 2016 six-month results accordingly in future filings to reflect its adoption of this update. Consolidated Statements of Operations Three Months Ended March 31, 2016 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In millions, except per share amounts) Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Provision for income taxes $ (8.4 ) $ (7.6 ) $ 0.8 $ (12.8 ) $ (12.6 ) $ 0.2 $ (21.2 ) $ (20.2 ) $ 1.0 Net income 17.4 18.2 0.8 30.4 30.6 0.2 47.8 48.8 1.0 Net income attributable to GCP shareholders 17.0 17.8 0.8 30.1 30.3 0.2 47.1 48.1 1.0 Basic earnings per share: Net income attributable to GCP shareholders $ 0.24 $ 0.25 $ 0.01 $ 0.43 $ 0.43 $ — $ 0.67 $ 0.68 $ 0.01 Diluted earnings per share: Net income attributable to GCP shareholders $ 0.24 $ 0.25 $ 0.01 $ 0.42 $ 0.42 $ — $ 0.66 $ 0.67 $ 0.01 Weighted average number of diluted shares 70.9 70.9 — 71.4 71.7 0.3 71.2 71.3 0.1 Consolidated Statements of Cash Flows Three Months Ended Six Months Ended (In millions) Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Net cash provided by operating activities $ 23.7 $ 24.5 $ 0.8 $ 52.0 $ 53.0 $ 1.0 Net cash provided by financing activities 15.6 14.8 (0.8 ) 9.2 8.2 (1.0 ) Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . The update clarifies ASU 2015-03, allowing debt issuance costs related to line of credit arrangements to be deferred and presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new requirements are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years, with early adoption permitted. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. GCP adopted both of these standards for the 2016 first quarter. Refer to Note 5, "Debt and Other Financial Instruments," for related information regarding GCP's credit facility, which the Company entered into in the 2016 first quarter. |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Effects of the Early Adoption | The tables below summarize the effects of the adoption of this update on GCP's previously reported results for the 2016 first and second quarters and for the six months ended June 30, 2016. GCP will revise its 2016 first and second quarter and 2016 six-month results accordingly in future filings to reflect its adoption of this update. Consolidated Statements of Operations Three Months Ended March 31, 2016 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In millions, except per share amounts) Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Provision for income taxes $ (8.4 ) $ (7.6 ) $ 0.8 $ (12.8 ) $ (12.6 ) $ 0.2 $ (21.2 ) $ (20.2 ) $ 1.0 Net income 17.4 18.2 0.8 30.4 30.6 0.2 47.8 48.8 1.0 Net income attributable to GCP shareholders 17.0 17.8 0.8 30.1 30.3 0.2 47.1 48.1 1.0 Basic earnings per share: Net income attributable to GCP shareholders $ 0.24 $ 0.25 $ 0.01 $ 0.43 $ 0.43 $ — $ 0.67 $ 0.68 $ 0.01 Diluted earnings per share: Net income attributable to GCP shareholders $ 0.24 $ 0.25 $ 0.01 $ 0.42 $ 0.42 $ — $ 0.66 $ 0.67 $ 0.01 Weighted average number of diluted shares 70.9 70.9 — 71.4 71.7 0.3 71.2 71.3 0.1 Consolidated Statements of Cash Flows Three Months Ended Six Months Ended (In millions) Previously Reported Revised Effect of Change Previously Reported Revised Effect of Change Net cash provided by operating activities $ 23.7 $ 24.5 $ 0.8 $ 52.0 $ 53.0 $ 1.0 Net cash provided by financing activities 15.6 14.8 (0.8 ) 9.2 8.2 (1.0 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories presented on GCP's Consolidated Balance Sheets consisted of the below. December 31, (In millions) 2016 2015 Raw materials $ 45.6 $ 39.1 In process 7.0 6.2 Finished products and other 69.0 60.0 Total inventories $ 121.6 $ 105.3 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | December 31, (In millions) 2016 2015 Land $ 8.4 $ 9.2 Buildings 165.5 159.1 Machinery, equipment and other 448.1 425.3 Information technology and equipment 67.6 18.9 Projects under construction 28.4 14.7 Properties and equipment, gross 718.0 627.2 Accumulated depreciation and amortization (485.8 ) (430.1 ) Properties and equipment, net $ 232.2 $ 197.1 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill attributable to each operating segment and the changes in those balances during the years ended December 31, 2016 and 2015 , are as presented below. (In millions) SCC SBM Darex Total Balance, December 31, 2014 $ 49.3 $ 59.4 $ 5.3 $ 114.0 Foreign currency translation (5.1 ) (5.8 ) (0.5 ) (11.4 ) Other adjustments — (0.1 ) — (0.1 ) Balance, December 31, 2015 $ 44.2 $ 53.5 $ 4.8 $ 102.5 Foreign currency translation (0.5 ) (0.6 ) (0.3 ) (1.4 ) Acquisitions 2.1 16.1 — 18.2 Balance, December 31, 2016 $ 45.8 $ 69.0 $ 4.5 $ 119.3 |
Schedule of Finite-Lived Intangible Assets | GCP's net book value of other intangible assets at December 31, 2016 and 2015 was $53.0 million and $33.3 million , respectively, detailed below. December 31, 2016 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 56.1 $ 21.0 Technology 24.3 11.6 Trademarks 13.5 9.4 Other 11.9 10.8 Total $ 105.8 $ 52.8 December 31, 2015 (In millions) Gross Carrying Accumulated Customer lists $ 39.2 $ 19.4 Technology 17.9 10.2 Trademarks 13.7 9.3 Other 12.3 10.9 Total $ 83.1 $ 49.8 |
Schedule of Indefinite-Lived Intangible Assets | GCP's net book value of other intangible assets at December 31, 2016 and 2015 was $53.0 million and $33.3 million , respectively, detailed below. December 31, 2016 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 56.1 $ 21.0 Technology 24.3 11.6 Trademarks 13.5 9.4 Other 11.9 10.8 Total $ 105.8 $ 52.8 December 31, 2015 (In millions) Gross Carrying Accumulated Customer lists $ 39.2 $ 19.4 Technology 17.9 10.2 Trademarks 13.7 9.3 Other 12.3 10.9 Total $ 83.1 $ 49.8 |
Schedule of Estimated Future Annual Amortization Expense | At December 31, 2016 , estimated future annual amortization expense for intangible assets is presented below. (In millions) 2017 $ 4.4 2018 4.3 2019 4.2 2020 4.2 2021 3.6 Thereafter 28.6 Total $ 49.3 |
Debt and Other Financial Inst32
Debt and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Debt | Components of Debt December 31, (In millions, except interest rate amounts) 2016 2015 9.5% Senior Notes due 2023, net of unamortized debt issuance costs of $7.3 at December 31, 2016 $ 517.7 $ — Term Loan due 2022, net of unamortized discount of $2.4 and unamortized debt issuance costs of $4.3 at December 31, 2016 (1) 266.2 — Revolving credit facility due 2021 (2) 25.0 — Related party — 42.3 Other borrowings (3) 22.0 25.7 Total debt 830.9 68.0 Less debt payable within one year 47.9 68.0 Debt payable after one year $ 783.0 $ — Weighted average interest rates on related party debt — % 3.3 % Weighted average interest rates on total debt 7.5 % 11.9 % __________________________ (1) Interest at LIBOR + 325 bps with a 75 bps LIBOR floor at December 31, 2016 . (2) Interest at LIBOR +200 bps at December 31, 2016 . (3) Represents borrowings under various lines of credit, primarily by non-U.S. subsidiaries. |
Principal Maturities of Debt Outstanding | The principal maturities of debt outstanding (net of unamortized discounts and debt issuance costs) at December 31, 2016 are presented below. (In millions) 2017 $ 47.9 2018 3.4 2019 3.4 2020 3.4 2021 2.8 Thereafter 770.0 Total debt $ 830.9 |
Carrying Amounts and Fair Values of Debt Instruments | At December 31, 2016 , the carrying amounts and fair values of GCP's debt are presented below. December 31, 2016 December 31, 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 9.5% Senior Notes due 2023 $ 517.7 $ 603.1 $ — $ — Term Loan due 2022 266.2 274.6 — — Revolving credit facility due 2021 25.0 25.0 — — Other borrowings 22.0 22.0 68.0 68.0 Total debt $ 830.9 $ 924.7 $ 68.0 $ 68.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes and the related provision for income taxes for 2016 , 2015 and 2014 are presented below. (In millions) 2016 2015 2014 Income before income taxes: Domestic $ 37.1 $ 97.2 $ 65.6 Foreign 68.9 28.0 125.5 Total $ 106.0 $ 125.2 $ 191.1 Benefit from (provision for) income taxes: Federal—current $ 6.1 $ 50.5 $ 23.3 Federal—deferred 3.9 1.0 (3.6 ) State and local—current 2.3 9.5 4.7 State and local—deferred (0.2 ) 0.2 (0.6 ) Foreign—current 19.6 25.6 29.2 Foreign—deferred 0.5 (2.5 ) 2.6 Total $ 32.2 $ 84.3 $ 55.6 |
Schedule of Provision for Income Taxes | The components of income before income taxes and the related provision for income taxes for 2016 , 2015 and 2014 are presented below. (In millions) 2016 2015 2014 Income before income taxes: Domestic $ 37.1 $ 97.2 $ 65.6 Foreign 68.9 28.0 125.5 Total $ 106.0 $ 125.2 $ 191.1 Benefit from (provision for) income taxes: Federal—current $ 6.1 $ 50.5 $ 23.3 Federal—deferred 3.9 1.0 (3.6 ) State and local—current 2.3 9.5 4.7 State and local—deferred (0.2 ) 0.2 (0.6 ) Foreign—current 19.6 25.6 29.2 Foreign—deferred 0.5 (2.5 ) 2.6 Total $ 32.2 $ 84.3 $ 55.6 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the provision for income taxes at the U.S. federal income tax rate of 35.0% and GCP's overall income tax provision is summarized below. (In millions) 2016 2015 2014 Tax provision at U.S. federal income tax rate $ 37.1 $ 43.8 $ 66.9 Change in provision resulting from: Nondeductible Venezuela charge — 24.7 — Cost (benefit) from U.S. taxes on repatriation foreign earnings — 19.9 (0.1 ) Effect of tax rates in foreign jurisdictions (5.3 ) (8.0 ) (12.3 ) State and local income taxes, net 1.6 6.3 2.7 Benefit from domestic production activities (0.4 ) (2.7 ) (2.2 ) Return to provision – change in estimate — (2.5 ) — Nondeductible expenses 1.4 2.5 2.5 Research and other state credits (0.6 ) — — Adjustments to uncertain tax positions and other (1.6 ) 0.3 (1.9 ) Provision for income taxes $ 32.2 $ 84.3 $ 55.6 |
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2016 and 2015 , the deferred tax assets and liabilities consisted of the below items. (In millions) December 31, 2016 December 31, 2015 Deferred tax assets: Foreign net operating loss carryforwards $ 12.0 $ 11.3 Research and development 6.3 9.2 Reserves and allowances 14.6 7.9 Pension benefits 27.1 2.9 Intangible assets/goodwill 24.5 — Stock compensation 4.4 6.0 Foreign tax credits 3.5 — Other 2.8 1.6 Total deferred tax assets $ 95.2 $ 38.9 Deferred tax liabilities: Properties and equipment $ (14.6 ) $ (14.4 ) Intangible assets/goodwill — (12.7 ) Other (3.8 ) (0.9 ) Total deferred tax liabilities $ (18.4 ) $ (28.0 ) Valuation Allowance: Foreign net operating loss carryforwards (2.3 ) (2.0 ) Net deferred tax assets (liabilities) $ 74.5 $ 8.9 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the unrecognized tax benefits, excluding interest and penalties, for the three years ended December 31, 2016 , are presented below. (In millions) Unrecognized Tax Benefits Balance, January 1, 2014 $ 7.7 Additions for prior year tax positions 0.7 Reductions for prior year tax positions and reclassifications (0.4 ) Reductions for expirations of statute of limitations (0.3 ) Settlements (2.4 ) Balance, December 31, 2014 5.3 Additions for prior year tax positions 0.3 Reductions for prior year tax positions and reclassifications (0.8 ) Settlements (0.9 ) Balance, December 31, 2015 3.9 Transfers from Parent 4.1 Additions for prior year tax positions 2.5 Reductions for prior year tax positions and reclassifications — Reductions for expirations of statute of limitations (1.1 ) Settlements (2.0 ) Balance, December 31, 2016 $ 7.4 |
Schedule of Open Tax Years by Major Jurisdiction | The following table summarizes open tax years by major jurisdiction. Tax Jurisdiction (1) Examination in Progress Examination Not Initiated United States—Federal None None United States—States None 2015 Italy None 2009-2014 France None 2014-2015 Germany None 2014-2015 India 2013-2014 2015 Malaysia None 2014-2015 Argentina 2002-2007 2008-2015 China None None Russia 2015 None Canada None 2014-2015 Indonesia 2013 2014-2015 ___________________________________________________________________________________________________________________ (1) Includes federal, state, provincial or local jurisdictions, as applicable. |
Pension Plans and Other Postr34
Pension Plans and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans | The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans: (In millions) December 31, December 31, Overfunded defined benefit pension plans $ 21.2 $ 26.1 Underfunded defined benefit pension plans (58.5 ) (8.0 ) Unfunded defined benefit pension plans (39.5 ) (26.0 ) Total underfunded and unfunded defined benefit pension plans (98.0 ) (34.0 ) Pension liabilities included in other current liabilities (1.2 ) (1.1 ) Net funded status $ (78.0 ) $ (9.0 ) |
Changes in Projected Benefit Obligations and Fair Value of Plan Assets | The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2016 and 2015 : Defined Benefit Pension Plans U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year (1) $ 125.7 $ 12.9 $ 296.8 $ 285.7 $ 422.5 $ 298.6 Service cost 6.1 0.3 3.3 3.1 9.4 3.4 Interest cost 4.7 0.5 7.8 9.2 12.5 9.7 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements/curtailments — — (7.1 ) (1.0 ) (7.1 ) (1.0 ) Actuarial loss (gain) 14.0 (0.9 ) 33.9 5.4 47.9 4.5 Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan liabilities — — — 19.0 — 19.0 Currency exchange translation adjustments — — (43.6 ) (16.2 ) (43.6 ) (16.2 ) Benefit obligation at end of year $ 147.6 $ 12.3 $ 276.0 $ 293.9 $ 423.6 $ 306.2 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 81.1 $ 12.2 $ 287.5 $ 294.8 $ 368.6 $ 307.0 Actual return on plan assets 7.1 (0.4 ) 32.2 1.2 39.3 0.8 Employer contributions 1.0 — 6.4 2.4 7.4 2.4 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements — — (5.1 ) (1.5 ) (5.1 ) (1.5 ) Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan assets — — — 14.9 — 14.9 Currency exchange translation adjustments — — (46.6 ) (14.6 ) (46.6 ) (14.6 ) Fair value of plan assets at end of year $ 86.3 $ 11.3 $ 259.3 $ 285.9 $ 345.6 $ 297.2 Funded status at end of year (PBO basis) $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ — $ — $ 21.2 $ 26.1 $ 21.2 $ 26.1 Current liabilities (0.2 ) — (1.0 ) (1.1 ) (1.2 ) (1.1 ) Noncurrent liabilities (61.1 ) (1.0 ) (36.9 ) (33.0 ) (98.0 ) (34.0 ) Net amount recognized $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.1 ) (0.2 ) (0.1 ) (0.2 ) Net amount recognized $ — $ — $ (0.1 ) $ (0.2 ) $ (0.1 ) $ (0.2 ) ___________________________________________________________________________________________________________________ (1) As discussed above, the beginning balances for 2016 include $113.4 million (U.S.) and $2.9 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. (2) The beginning balances for 2016 include $69.8 million (U.S.) and $1.6 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. |
Schedule of Amounts Recognized in the Consolidated Balance Sheet | The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2016 and 2015 : Defined Benefit Pension Plans U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year (1) $ 125.7 $ 12.9 $ 296.8 $ 285.7 $ 422.5 $ 298.6 Service cost 6.1 0.3 3.3 3.1 9.4 3.4 Interest cost 4.7 0.5 7.8 9.2 12.5 9.7 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements/curtailments — — (7.1 ) (1.0 ) (7.1 ) (1.0 ) Actuarial loss (gain) 14.0 (0.9 ) 33.9 5.4 47.9 4.5 Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan liabilities — — — 19.0 — 19.0 Currency exchange translation adjustments — — (43.6 ) (16.2 ) (43.6 ) (16.2 ) Benefit obligation at end of year $ 147.6 $ 12.3 $ 276.0 $ 293.9 $ 423.6 $ 306.2 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 81.1 $ 12.2 $ 287.5 $ 294.8 $ 368.6 $ 307.0 Actual return on plan assets 7.1 (0.4 ) 32.2 1.2 39.3 0.8 Employer contributions 1.0 — 6.4 2.4 7.4 2.4 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements — — (5.1 ) (1.5 ) (5.1 ) (1.5 ) Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan assets — — — 14.9 — 14.9 Currency exchange translation adjustments — — (46.6 ) (14.6 ) (46.6 ) (14.6 ) Fair value of plan assets at end of year $ 86.3 $ 11.3 $ 259.3 $ 285.9 $ 345.6 $ 297.2 Funded status at end of year (PBO basis) $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ — $ — $ 21.2 $ 26.1 $ 21.2 $ 26.1 Current liabilities (0.2 ) — (1.0 ) (1.1 ) (1.2 ) (1.1 ) Noncurrent liabilities (61.1 ) (1.0 ) (36.9 ) (33.0 ) (98.0 ) (34.0 ) Net amount recognized $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.1 ) (0.2 ) (0.1 ) (0.2 ) Net amount recognized $ — $ — $ (0.1 ) $ (0.2 ) $ (0.1 ) $ (0.2 ) ___________________________________________________________________________________________________________________ (1) As discussed above, the beginning balances for 2016 include $113.4 million (U.S.) and $2.9 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. (2) The beginning balances for 2016 include $69.8 million (U.S.) and $1.6 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2016 and 2015 : Defined Benefit Pension Plans U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Change in Projected Benefit Obligation (PBO): Benefit obligation at beginning of year (1) $ 125.7 $ 12.9 $ 296.8 $ 285.7 $ 422.5 $ 298.6 Service cost 6.1 0.3 3.3 3.1 9.4 3.4 Interest cost 4.7 0.5 7.8 9.2 12.5 9.7 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements/curtailments — — (7.1 ) (1.0 ) (7.1 ) (1.0 ) Actuarial loss (gain) 14.0 (0.9 ) 33.9 5.4 47.9 4.5 Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan liabilities — — — 19.0 — 19.0 Currency exchange translation adjustments — — (43.6 ) (16.2 ) (43.6 ) (16.2 ) Benefit obligation at end of year $ 147.6 $ 12.3 $ 276.0 $ 293.9 $ 423.6 $ 306.2 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 81.1 $ 12.2 $ 287.5 $ 294.8 $ 368.6 $ 307.0 Actual return on plan assets 7.1 (0.4 ) 32.2 1.2 39.3 0.8 Employer contributions 1.0 — 6.4 2.4 7.4 2.4 Plan participants' contributions — — 0.4 0.5 0.4 0.5 Settlements — — (5.1 ) (1.5 ) (5.1 ) (1.5 ) Benefits paid (2.9 ) (0.5 ) (15.5 ) (11.8 ) (18.4 ) (12.3 ) Assumption of plan assets — — — 14.9 — 14.9 Currency exchange translation adjustments — — (46.6 ) (14.6 ) (46.6 ) (14.6 ) Fair value of plan assets at end of year $ 86.3 $ 11.3 $ 259.3 $ 285.9 $ 345.6 $ 297.2 Funded status at end of year (PBO basis) $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ — $ — $ 21.2 $ 26.1 $ 21.2 $ 26.1 Current liabilities (0.2 ) — (1.0 ) (1.1 ) (1.2 ) (1.1 ) Noncurrent liabilities (61.1 ) (1.0 ) (36.9 ) (33.0 ) (98.0 ) (34.0 ) Net amount recognized $ (61.3 ) $ (1.0 ) $ (16.7 ) $ (8.0 ) $ (78.0 ) $ (9.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.1 ) (0.2 ) (0.1 ) (0.2 ) Net amount recognized $ — $ — $ (0.1 ) $ (0.2 ) $ (0.1 ) $ (0.2 ) ___________________________________________________________________________________________________________________ (1) As discussed above, the beginning balances for 2016 include $113.4 million (U.S.) and $2.9 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. (2) The beginning balances for 2016 include $69.8 million (U.S.) and $1.6 million (non-U.S.) related to certain Shared Plans that were accounted for as multiemployer plans prior to the Separation. |
Schedule of Assumptions Used | Defined Benefit Pension Plans U.S. Non-U.S. 2016 2015 2016 2015 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 4.27 % 4.40 % 2.42 % 3.24 % Rate of compensation increase 4.70 % NM 3.78 % 3.60 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.53 % 3.95 % 3.26 % 3.39 % Expected return on plan assets 6.25 % 5.75 % 3.50 % 3.87 % Rate of compensation increase 4.70 % NM 3.78 % 3.12 % ___________________________________________________________________________________________________________________ NM Not meaningful |
Components of Net Periodic Benefit Cost (Income) | Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) 2016 2015 2014 (In millions) U.S. Non-U.S. Other U.S. Non-U.S. Other U.S. Non-U.S. Other Net Periodic Benefit Cost (Income) (1) Service cost $ 6.1 $ 3.3 $ — $ 0.3 $ 3.1 $ — $ 0.2 $ 3.2 $ — Interest cost 4.7 7.8 — 0.5 9.2 — 0.5 12.0 — Expected return on plan assets (5.0 ) (8.6 ) — (0.8 ) (11.0 ) — (0.6 ) (12.9 ) — Amortization of prior service cost (credit) 0.1 — (0.1 ) 0.1 — — 0.1 — — Amortization of net deferred actuarial loss — — 0.1 — — — — — — Gain on termination and curtailment of pension and other postretirement plans — (0.6 ) (0.2 ) — — — — — — Annual mark-to-market adjustment 11.9 8.6 — 0.2 14.2 — 0.9 (18.7 ) — Net periodic benefit cost (income) (1) $ 17.8 $ 10.5 $ (0.2 ) $ 0.3 $ 15.5 $ — $ 1.1 $ (16.4 ) $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) Amortization of prior service cost $ (0.1 ) $ — $ — $ (0.1 ) $ — $ — $ (0.1 ) $ — $ — Assumption of prior service credit — — — — (0.5 ) — — — — Total recognized in other comprehensive income (0.1 ) — — (0.1 ) (0.5 ) — (0.1 ) — — Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) $ 17.7 $ 10.5 $ (0.2 ) $ 0.2 $ 15.0 $ — $ 1.0 $ (16.4 ) $ — ___________________________________________________________________________________________________________________ (1) Includes expense that was allocated to Grace of $0.1 million and $0.4 million for the years ended December 31, 2015 and 2014 , respectively. GCP allocates such expense excluding any mark-to-market adjustment. |
Schedule of Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Underfunded or U.S. Non-U.S. Total 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 147.4 $ 12.1 $ 42.1 $ 40.4 $ 189.5 $ 52.5 Accumulated benefit obligation 124.5 12.1 36.2 33.4 160.7 45.5 Fair value of plan assets 86.2 11.1 5.0 6.6 91.2 17.7 Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending Pension Plans Total U.S. Non-U.S. (1) Benefit Benefit 2017 5.5 11.2 16.7 2018 5.9 11.6 17.5 2019 6.3 11.3 17.6 2020 7.1 11.6 18.7 2021 7.9 11.7 19.6 2022 - 2026 48.9 63.0 111.9 |
Schedule of Expected Benefit Payments | Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending Pension Plans Total U.S. Non-U.S. (1) Benefit Benefit 2017 5.5 11.2 16.7 2018 5.9 11.6 17.5 2019 6.3 11.3 17.6 2020 7.1 11.6 18.7 2021 7.9 11.7 19.6 2022 - 2026 48.9 63.0 111.9 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2017 and future periods have been translated at the applicable December 31, 2016 exchange rates. |
Schedule of Changes in Fair Value of Plan Assets | The following table presents a summary of the changes in the fair value of the plans' Level 3 assets for the year ended December 31, 2016 . (In millions) Insurance Contracts Balance, December 31, 2015 $ 138.5 Actual return on plan assets relating to assets still held at year-end 10.0 Purchases, sales and settlements, net — Transfers out for benefit payments (7.7 ) Currency exchange translation adjustments (24.3 ) Balance, December 31, 2016 $ 116.5 |
Schedule of Allocation of Plan Assets | The following tables present the fair value hierarchy for GCP's proportionate share of the U.S. qualified pension plan assets measured at fair value, which are held in a trust by GCP, as of December 31, 2016 and 2015 . December 31, 2016 Total Quoted Prices in Significant Significant U.S. equity group trust funds $ 21.8 $ — $ 21.8 $ — Non-U.S. equity group trust funds 13.1 — 13.1 — Corporate bond group trust funds—intermediate-term 3.2 — 3.2 — Corporate bond group trust funds—long-term 42.7 — 42.7 — Other fixed income group trust funds 4.3 — 4.3 — Common/collective trust funds 1.2 — 1.2 — Annuity and immediate participation contracts — — — — Total Assets $ 86.3 $ — $ 86.3 $ — December 31, 2015 Total Quoted Prices in Significant Significant U.S. equity group trust funds $ 1.2 $ — $ 1.2 $ — Non-U.S. equity group trust funds 0.8 — 0.8 — Corporate bond group trust funds—intermediate-term 3.1 — 3.1 — Corporate bond group trust funds—long-term 5.2 — 5.2 — Other fixed income group trust funds 0.2 — 0.2 — Common/collective trust funds 0.6 — 0.6 — Annuity and immediate participation contracts 0.2 — 0.2 — Total Assets $ 11.3 $ — $ 11.3 $ — The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2016 : Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices Significant Significant Common/collective trust funds $ 130.1 $ — $ 130.1 $ — Government and agency securities 1.8 — 1.8 — Corporate bonds 8.1 — 8.1 — Insurance contracts and other investments (1) 116.5 — — 116.5 Cash 2.8 2.8 — — Total Assets $ 259.3 $ 2.8 $ 140.0 $ 116.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2016, the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2015 . Fair Value Measurements at December 31, 2015, Using (In millions) Total Quoted Prices Significant Significant Common/collective trust funds $ 142.3 $ — $ 142.3 $ — Government and agency securities 1.3 — 1.3 — Corporate bonds 1.1 — 1.1 — Insurance contracts and other investments (1) 140.6 — 2.1 138.5 Cash 0.6 0.6 — — Total Assets $ 285.9 $ 0.6 $ 146.8 $ 138.5 ___________________________________________________________________________________________________________________ (1) In October 2015, the trustees of the U.K. pension plan entered into a contract with an insurance company to secure the benefits for current retirees and hedge the risk of future inflation and changes in longevity with a buy-in contract. At December 31, 2015 , the fair value of the insurance contract has been determined using a discounted cash flow approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. The target allocation of investment assets at December 31, 2016 and the actual allocation at December 31, 2016 and 2015 , for the U.K. pension plan are as follows: Target Percentage of Plan Assets United Kingdom Pension Plan Asset Category 2016 2016 2015 Diversified growth funds 9 % 8 % 10 % U.K. gilts 31 % 31 % 29 % U.K. corporate bonds 10 % 11 % 8 % Insurance contracts 50 % 50 % 53 % Total 100 % 100 % 100 % The target allocation of investment assets at December 31, 2016 and the actual allocation at December 31, 2016 and 2015 for GCP's U.S. qualified pension plans were as follows: Target Percentage of Plan Assets U.S. Qualified Pension Plans Asset Category 2016 2016 2015 U.S. equity securities 25 % 25 % 11 % Non-U.S. equity securities 11 % 15 % 7 % Short-term debt securities 1 % 1 % 6 % Intermediate-term debt securities 5 % 4 % 28 % Long-term debt securities 50 % 50 % 46 % Other investments 8 % 5 % 2 % Total 100 % 100 % 100 % |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | (In millions) December 31, December 31, Other Current Assets: Non-trade receivables $ 27.8 $ 25.5 Prepaid expenses 13.4 8.9 Income tax receivable (2) 10.6 4.4 Marketable securities — 0.1 Total other current assets $ 51.8 $ 38.9 |
Schedule of Other Current Liabilities | (In millions) December 31, December 31, Other Current Liabilities: Customer volume rebates $ 34.8 $ 33.5 Accrued compensation (1) 36.3 27.1 Income tax payable (2) 8.0 23.3 Accrued interest 20.8 3.9 Pension liabilities 1.2 1.1 Other accrued liabilities 39.9 36.6 Total other current liabilities $ 141.0 $ 125.5 ________________________________ (1) Accrued compensation in the table above includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. (2) Income tax items above do not include amounts due from/to Grace. |
Commitments and Contingent Li36
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Non-cancelable Payments for Operating Leases | At December 31, 2016 , minimum future non-cancelable payments for operating leases are summarized below. (In millions) 2017 $ 11.2 2018 8.3 2019 5.3 2020 3.6 2021 2.5 Thereafter 13.6 $ 44.5 |
Restructuring and Repositioni37
Restructuring and Repositioning Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Rescheduling Expenses, Related Asset Impairments and Repositioning Expenses | Year Ended December 31, Restructuring Expenses and Asset Impairments 2016 2015 2014 Severance and other $ 1.9 $ 11.5 $ 4.0 Asset impairments — 0.1 14.3 Total restructuring expenses and asset impairments $ 1.9 $ 11.6 $ 18.3 For the year ended December 31, 2016 , GCP incurred repositioning expenses as presented below. Repositioning Expenses 2016 Professional fees $ 7.8 Software and IT implementation fees 3.0 Employee-related costs 4.5 Total repositioning expenses $ 15.3 |
Schedule of Restructuring Liability | December 31, Restructuring Liability 2016 2015 2014 Beginning balance $ 1.4 $ 0.8 $ 1.1 Accruals for severance and other costs 1.9 11.5 4.0 Payments (3.6 ) (10.9 ) (4.3 ) Impact of foreign currency and other 1.4 — — Ending balance $ 1.1 $ 1.4 $ 0.8 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule 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 GCP's other comprehensive loss for the years ended December 31, 2016 , 2015 and 2014 . Year Ended December 31, 2016 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service credit $ (0.1 ) $ — $ (0.1 ) Amortization of net actuarial gain 0.1 — 0.1 Assumption of net prior service credit 1.2 (0.4 ) 0.8 Assumption of net actuarial loss (1.1 ) 0.4 (0.7 ) Other changes in funded status (0.1 ) — (0.1 ) Benefit plans, net — — — Currency translation adjustments (19.9 ) — (19.9 ) Other comprehensive loss attributable to GCP shareholders $ (19.9 ) $ — $ (19.9 ) Year Ended December 31, 2015 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.1 $ (0.1 ) $ — Assumption of net prior service credit 0.5 (0.1 ) 0.4 Benefit plans, net 0.6 (0.2 ) 0.4 Currency translation adjustments (62.3 ) — (62.3 ) Gain from hedging activities 0.4 (0.2 ) 0.2 Other comprehensive loss attributable to GCP shareholders $ (61.3 ) $ (0.4 ) $ (61.7 ) Year Ended December 31, 2014 Pre-Tax Tax (Expense)/Benefit After-Tax Defined benefit pension and other postretirement plans: Amortization of net prior service cost included in net periodic benefit cost $ 0.1 $ — $ 0.1 Benefit plans, net 0.1 — 0.1 Currency translation adjustments (41.4 ) — (41.4 ) Gain from hedging activities 0.2 — 0.2 Other than temporary impairment of investment 0.8 — 0.8 Loss on securities available for sale (0.1 ) — (0.1 ) Other comprehensive loss attributable to GCP shareholders $ (40.4 ) $ — $ (40.4 ) |
Schedule of Changes of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following tables present the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2016 , 2015 and 2014 . Year Ended December 31, 2016 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ 0.1 $ (127.8 ) $ — $ — $ — $ (127.7 ) Other comprehensive loss before reclassifications — (19.9 ) (1.2 ) — — (21.1 ) Amounts reclassified from accumulated other comprehensive income — — 1.2 — — 1.2 Net current-period other comprehensive loss — (19.9 ) — — — (19.9 ) Ending balance $ 0.1 $ (147.7 ) $ — $ — $ — $ (147.6 ) Year Ended December 31, 2015 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ (0.3 ) $ (65.5 ) $ (0.2 ) $ — $ — $ (66.0 ) Other comprehensive income (loss) before reclassifications 0.4 (62.3 ) 0.2 — — (61.7 ) Amounts reclassified from accumulated other comprehensive income — — — — — — Net current-period other comprehensive income (loss) 0.4 (62.3 ) 0.2 — — (61.7 ) Ending balance $ 0.1 $ (127.8 ) $ — $ — $ — $ (127.7 ) Year Ended December 31, 2014 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments (Loss) Gain from Hedging Activities Unrealized (Loss) Gain on Investment Gain (Loss) on Securities Available for Sale Total Beginning balance $ (0.4 ) $ (24.1 ) $ (0.4 ) $ (0.8 ) $ 0.1 $ (25.6 ) Other comprehensive loss before reclassifications — (41.4 ) (0.4 ) — (0.7 ) (42.5 ) Amounts reclassified from accumulated other comprehensive income 0.1 — 0.6 0.8 0.6 2.1 Net current-period other comprehensive income (loss) 0.1 (41.4 ) 0.2 0.8 (0.1 ) (40.4 ) Ending balance $ (0.3 ) $ (65.5 ) $ (0.2 ) $ — $ — $ (66.0 ) |
Related Party Transactions an39
Related Party Transactions and Transactions with Grace (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Components of Net Transfers to Parent | The components of the "Net transfer to parent" as of December 31, 2016 , 2015 and 2014 are presented below. Year Ended December 31, (In millions) 2016 2015 2014 Cash pooling and general financing activities $ (688.0 ) $ (306.1 ) $ (259.7 ) GCP expenses funded by parent 6.6 54.6 63.4 Corporate costs allocations 2.0 54.8 52.1 Provision for income taxes 4.3 84.3 55.6 Total net transfers to parent (675.1 ) (112.4 ) (88.6 ) Share-based compensation — (3.7 ) (4.1 ) Other, net (89.5 ) (4.5 ) (7.5 ) Transfers to parent, net per Consolidated Statements of Cash Flows $ (764.6 ) $ (120.6 ) $ (100.2 ) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumptions for Estimating the Fair Value of Stock Options | The following summarizes GCP's and Grace's assumptions for estimating the fair value of stock options granted during 2016 , 2015 and 2014: Year Ended December 31, Assumptions used to calculate expense for stock option 2016 2015 2014 Risk-free interest rate 0.93 - 1.24% 1.3% 1.25% Average life of options (years) 4 - 5 3 - 4 3 - 4 Volatility 29.6 – 33.2% 23.0 – 27.2% 28.2 – 28.7% Dividend yield — — — Average fair value per stock option $4.89 $18.43 $21.08 |
Summary of Stock Option Activity | The following table sets forth information relating to such options denominated in GCP stock during 2016 . Stock Option Activity Number Of Weighted Weighted Aggregated Outstanding, December 31, 2015 — $ — Converted on February 3, 2016 2,236 14.36 Options exercised 811 10.08 Options forfeited 52 16.58 Options expired — — Options granted 749 17.23 Outstanding, December 31, 2016 2,122 16.92 3.57 $ 20,748 Exercisable December 31, 2016 895 $ 15.43 1.75 $ 20,748 |
Summary of Restricted Stock Units Award Activity | GCP’s RSU activity for the year ended December 31, 2016 is presented below. RSU Activity Number Of Weighted Outstanding, December 31, 2015 — $ — Converted on February 3, 2016 265 17.00 RSUs settled 31 16.90 RSUs forfeited 23 17.29 RSUs granted 327 17.36 RSUs outstanding, December 31, 2016 538 $ 17.22 RSUs vested and outstanding 77 $ 17.23 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Data | The table below presents information related to GCP's operating segments. Only those corporate expenses directly related to the operating segments are allocated for reporting purposes. GCP excludes certain functional costs, impacts of foreign exchange (related primarily to Venezuela) and other corporate costs such as certain performance-based incentive compensation and public company costs from segment operating income. GCP also excludes pension costs, including certain ongoing defined benefit pension costs recognized quarterly, which include service and interest costs, the effect of expected returns on plan assets and amortization of prior service costs/credits, from the calculation of segment operating income. GCP believes that the exclusion of certain corporate costs and pension costs provides a better indicator of its operating segment performance as such costs are not managed at an operating segment level. Operating Segment Data (In millions) 2016 2015 2014 Net Sales Specialty Construction Chemicals $ 623.8 $ 694.3 $ 726.3 Specialty Building Materials 422.7 398.1 379.3 Darex Packaging Technologies 309.3 326.2 374.8 Total $ 1,355.8 $ 1,418.6 $ 1,480.4 Segment Operating Income Specialty Construction Chemicals segment operating income $ 72.6 $ 83.7 $ 72.4 Specialty Building Materials segment operating income 114.0 99.6 75.7 Darex Packaging Technologies segment operating income 64.8 72.8 74.1 Total segment operating income $ 251.4 $ 256.1 $ 222.2 Depreciation and Amortization Specialty Construction Chemicals $ 20.0 $ 18.0 $ 18.5 Specialty Building Materials 9.6 7.8 8.6 Darex Packaging Technologies 6.4 4.8 5.5 Corporate 0.2 1.2 1.4 Total $ 36.2 $ 31.8 $ 34.0 Capital Expenditures Specialty Construction Chemicals $ 23.6 $ 21.8 $ 24.3 Specialty Building Materials 5.7 7.0 6.3 Darex Packaging Technologies 4.4 5.9 6.7 Corporate 11.6 1.3 0.2 Total $ 45.3 $ 36.0 $ 37.5 Total Assets Specialty Construction Chemicals $ 335.9 $ 318.4 $ 329.0 Specialty Building Materials 273.3 227.4 247.3 Darex Packaging Technologies 148.6 121.2 157.4 Corporate 332.0 166.1 247.8 Total $ 1,089.8 $ 833.1 $ 981.5 |
Reconciliation of Operating Segment Data to Financial Statements | Total segment operating income for the years ended December 31, 2016 , 2015 and 2014 are reconciled below to "Income before income taxes" presented in the accompanying Consolidated Statements of Operations. Year Ended December 31, (In millions) 2016 2015 2014 Total segment operating income $ 251.4 $ 256.1 $ 222.2 Corporate costs (29.2 ) (24.3 ) (19.3 ) Certain pension costs (8.4 ) (5.1 ) (7.5 ) Currency and other financial losses in Venezuela — (73.2 ) (1.0 ) Repositioning expenses (15.3 ) — — Restructuring expenses and asset impairments (1.9 ) (11.6 ) (18.3 ) Pension MTM adjustment and other related costs, net (23.2 ) (15.0 ) 18.6 Gain on termination and curtailment of pension and other postretirement plans 0.8 — — Third-party acquisition-related costs (2.1 ) — — Other financing costs (1.2 ) — — Amortization of acquired inventory fair value adjustment (1.3 ) — — Interest expense, net (64.6 ) (2.5 ) (4.8 ) Net income attributable to noncontrolling interests 1.0 0.8 1.2 Income before income taxes $ 106.0 $ 125.2 $ 191.1 |
Sales by Product Group | Sales by Product Group Year Ended December 31, (In millions) 2016 2015 2014 Specialty Construction Chemicals: Concrete $ 469.1 $ 532.7 $ 541.9 Cement 154.7 161.6 184.4 Total SCC Sales $ 623.8 $ 694.3 $ 726.3 Specialty Building Materials: Building Envelope $ 236.3 $ 234.7 $ 236.3 Residential Building Products 89.2 79.3 59.2 Specialty Construction Products 97.2 84.1 83.8 Total SBM Sales $ 422.7 $ 398.1 $ 379.3 Darex Packaging Technologies: Sealants $ 211.7 $ 221.2 $ 254.8 Coatings 97.6 105.0 120.0 Total Darex Sales $ 309.3 $ 326.2 $ 374.8 Total Sales $ 1,355.8 $ 1,418.6 $ 1,480.4 |
Schedule of Geographic Area Data | The table below presents information related to the geographic areas in which GCP operates. Sales are attributed to geographic areas based on customer location. With the exception of the U.S. as presented below, there are no individually significant countries with sales exceeding 10% of total sales. Brazil and Belgium each have long-lived assets of approximately 10% - 12% of total long-lived assets. There are no other individually significant countries with long-lived assets exceeding 10% of total long-lived assets. Year Ended December 31, (In millions) 2016 2015 2014 Net Sales United States $ 540.3 $ 507.4 $ 468.4 Canada and Puerto Rico 32.5 30.8 35.5 Total North America 572.8 538.2 503.9 Europe Middle East Africa 321.3 341.1 396.0 Asia Pacific 322.6 329.6 349.7 Latin America 139.1 209.7 230.8 Total $ 1,355.8 $ 1,418.6 $ 1,480.4 Properties and Equipment, net United States $ 131.1 $ 91.9 $ 87.8 Canada and Puerto Rico 2.7 2.5 2.7 Total North America 133.8 94.4 90.5 Europe Middle East Africa (EMEA) 43.2 45.7 47.0 Asia Pacific 39.9 42.1 40.9 Latin America 15.3 14.9 19.1 Total $ 232.2 $ 197.1 $ 197.5 Goodwill, Intangibles and Other Assets United States $ 85.6 $ 34.1 $ 34.8 Canada and Puerto Rico 7.7 2.8 2.9 Total North America 93.3 36.9 37.7 Europe Middle East Africa (EMEA) 56.3 61.1 69.7 Asia Pacific 21.4 22.1 23.4 Latin America 28.3 25.8 35.7 Total $ 199.3 $ 145.9 $ 166.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerators and Denominators Used in Calculating Basic and Diluted Earnings Per Share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. (In millions, except per share amounts) 2016 2015 2014 Numerators Net income attributable to GCP shareholders $ 72.8 $ 40.1 $ 134.3 Denominators Weighted average common shares—basic calculation 70.8 70.5 70.5 Dilutive effect of employee stock awards 0.9 — — Weighted average common shares—diluted calculation 71.7 70.5 70.5 Basic earnings per share $ 1.03 $ 0.57 $ 1.90 Diluted earnings per share $ 1.02 $ 0.57 $ 1.90 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the aggregate purchase price allocation, including those items that were preliminary allocations, as of the fiscal year ended December 31, 2016. (In millions) Net Assets Acquired Accounts receivable $ 3.2 Other current assets 0.5 Inventories 9.7 Properties and equipment 1.4 Goodwill 16.1 Intangible assets 20.4 Accounts payable (1.9 ) Other current liabilities (2.2 ) Other liabilities (0.2 ) Net assets acquired $ 47.0 |
Schedule of Intangible Assets Acquired | The table below presents the intangible assets acquired as part of the acquisition of Halex and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 16.5 15.0 Trademarks 0.2 10.0 Technology 3.7 12.0 Total $ 20.4 |
Quarterly Summary and Statist44
Quarterly Summary and Statistical Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary and Statistical Information | (In millions, except per share amounts) March 31 June 30 September 30 December 31 (1) 2016 Net sales $ 314.1 $ 366.3 $ 342.5 $ 332.9 Gross profit 121.2 148.4 136.0 123.1 Net income attributable to GCP shareholders 17.8 30.3 21.3 3.4 Net income per share: (2) Basic earnings per share: Net income $ 0.25 $ 0.43 $ 0.30 $ 0.05 Diluted earnings per share: Net income $ 0.25 $ 0.42 $ 0.30 $ 0.05 ________________________________ (1) In the fourth quarter of 2016, GCP recorded a pension mark-to-market adjustment of $20.5 million . Refer to Note 7, "Pension Plans and Other Postretirement Benefit Plans." (2) 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. (In millions, except per share amounts) March 31 June 30 September 30 (1) December 31 (2) 2015 Net sales $ 322.7 $ 373.7 $ 389.7 $ 332.5 Gross profit 111.3 142.9 143.9 118.1 Net income attributable to GCP shareholders 20.5 27.2 (15.3 ) 7.7 Net income per share: (3) Basic earnings per share: Net income $ 0.29 $ 0.39 $ (0.22 ) $ 0.11 Diluted earnings per share: Net income $ 0.29 $ 0.39 $ (0.22 ) $ 0.11 ________________________________ (1) In the third quarter of 2015, GCP recorded a pre-tax charge of $73.2 million to reflect the devaluation of net monetary assets and the impairment of non-monetary assets within its Venezuela subsidiary. Refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies." (2) In the fourth quarter of 2015, GCP recorded a pension mark-to-market adjustment of $15.0 million . Refer to Note 7, "Pension Plans and Other Postretirement Benefit Plans." (3) GCP Earnings per share for 2015 were calculated using the shares that were distributed to Grace shareholders immediately following the Separation. For periods prior to the Separation it is assumed that there are no dilutive equity instruments as there were no GCP equity awards outstanding prior to the Separation. |
Basis of Presentation and Sum45
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies - Narrative (Details) | Feb. 03, 2016shares | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Class of Stock [Line Items] | |||||
Number of operating segments | segment | 3 | ||||
Long-lived assets impairment | $ 0 | $ 0 | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 | ||
Minimum | |||||
Class of Stock [Line Items] | |||||
Finite-lived intangible asset, useful life | 1 year | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Maximum | W.R. Grace & Co. | |||||
Class of Stock [Line Items] | |||||
Transition period | 18 months | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of GCP shares distributed for every share held by Grace stockholders | shares | 1 | ||||
Buildings | Minimum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 20 years | ||||
Buildings | Maximum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 40 years | ||||
Information technology and equipment | Minimum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Information technology and equipment | Maximum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 7 years | ||||
Machinery, equipment and other | Minimum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Machinery, equipment and other | Maximum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Furniture and fixtures | Minimum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Furniture and fixtures | Maximum | |||||
Class of Stock [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Joint Venture, Turkey | |||||
Class of Stock [Line Items] | |||||
Remaining equity interest acquired | 50.00% | 50.00% | |||
Payments to acquire remaining interest in joint venture | $ 11,700,000 |
Basis of Presentation and Sum46
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies - Currency Translation (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015USD ($)VEB / $ | Dec. 31, 2016USD ($)VEB / $ | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 13, 2013VEB / $ | Feb. 08, 2013VEB / $ | Jan. 01, 2010VEB / $ | |
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||||
Foreign currency exchange rate, translation | VEB / $ | 674.6 | ||||||
Loss in Venezuela | $ 59.6 | $ 0 | $ 59.6 | $ 1 | |||
Increase in currency exchange rate, in percentage | 240.00% | ||||||
Other (Income) Expense, Net | |||||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||||
Loss due to remeasurement of subsidiary net monetary assets | $ 4.4 | ||||||
Venezuela | |||||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||||
Pre-tax charge reflect the devaluation of monetary assets and the impairment of non-monetary assets | $ 73.2 | ||||||
Venezuela | Bolivar | |||||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||||
Exchange rate used to remeasure financial statements upon Venezuela's designation as a highly inflationary economy | VEB / $ | 6.3 | 4.3 | 4.3 | ||||
Foreign currency exchange rate, translation | VEB / $ | 199 | ||||||
Inventories | |||||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||||
Devaluation of monetary assets and liabilities | $ 13.6 |
Basis of Presentation and Sum47
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies - Accounting for Stock Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Excess tax benefit | $ 0.9 | $ 0.2 | $ 0.8 | $ 1 | $ 1.9 | $ 2 | |||||||
Increase in cash provided by operating activities | 24.5 | 53 | 127.9 | $ 151.8 | $ 161 | ||||||||
Decrease in cash provided by financing activities | (14.8) | (8.2) | (31.7) | 128.2 | 106.9 | ||||||||
Provision for income taxes | (12.6) | (7.6) | (20.2) | 32.2 | 84.3 | 55.6 | |||||||
Net income | 30.6 | 18.2 | 48.8 | 73.8 | 40.9 | 135.5 | |||||||
Net income attributable to GCP shareholders | $ 3.4 | $ 21.3 | $ 30.3 | $ 17.8 | $ 7.7 | $ (15.3) | $ 27.2 | $ 20.5 | $ 48.1 | $ 72.8 | $ 40.1 | $ 134.3 | |
Basic earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0.05 | $ 0.30 | $ 0.43 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.68 | $ 1.03 | $ 0.57 | $ 1.90 | |
Diluted earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0.05 | $ 0.30 | $ 0.42 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.67 | $ 1.02 | $ 0.57 | $ 1.90 | |
Weighted average number of diluted shares | 71.7 | 70.9 | 71.3 | 71.7 | 70.5 | 70.5 | |||||||
Net cash provided by operating activities | $ 24.5 | $ 53 | $ 127.9 | $ 151.8 | $ 161 | ||||||||
Net cash provided by financing activities | 14.8 | 8.2 | $ 31.7 | $ (128.2) | $ (106.9) | ||||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Increase in cash provided by operating activities | 0.8 | 1 | |||||||||||
Decrease in cash provided by financing activities | 0.8 | 1 | |||||||||||
Diluted earnings per share: | |||||||||||||
Net cash provided by operating activities | 0.8 | 1 | |||||||||||
Net cash provided by financing activities | (0.8) | (1) | |||||||||||
Previously Reported | Accounting Standards Update 2016-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Increase in cash provided by operating activities | 23.7 | 52 | |||||||||||
Decrease in cash provided by financing activities | (15.6) | (9.2) | |||||||||||
Provision for income taxes | $ (12.8) | (8.4) | (21.2) | ||||||||||
Net income | 30.4 | 17.4 | 47.8 | ||||||||||
Net income attributable to GCP shareholders | $ 30.1 | $ 17 | $ 47.1 | ||||||||||
Basic earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0.43 | $ 0.24 | $ 0.67 | ||||||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0.42 | $ 0.24 | $ 0.66 | ||||||||||
Weighted average number of diluted shares | 71.4 | 70.9 | 71.2 | ||||||||||
Net cash provided by operating activities | $ 23.7 | $ 52 | |||||||||||
Net cash provided by financing activities | 15.6 | 9.2 | |||||||||||
Effect of Change | Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Increase in cash provided by operating activities | 0.8 | 1 | |||||||||||
Decrease in cash provided by financing activities | 0.8 | 1 | |||||||||||
Provision for income taxes | $ 0.2 | 0.8 | 1 | ||||||||||
Net income | 0.2 | 0.8 | 1 | ||||||||||
Net income attributable to GCP shareholders | $ 0.2 | $ 0.8 | $ 1 | ||||||||||
Basic earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0 | $ 0.01 | $ 0.01 | ||||||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to GCP shareholders (in usd per share) | $ 0 | $ 0.01 | $ 0.01 | ||||||||||
Weighted average number of diluted shares | 0.3 | 0 | 0.1 | ||||||||||
Net cash provided by operating activities | $ 0.8 | $ 1 | |||||||||||
Net cash provided by financing activities | $ (0.8) | $ (1) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45.6 | $ 39.1 |
In process | 7 | 6.2 |
Finished products and other | 69 | 60 |
Total inventories | $ 121.6 | $ 105.3 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Finished products purchased | $ 69 | $ 60 |
Finished Products Purchased | ||
Inventory [Line Items] | ||
Finished products purchased | $ 11.4 | $ 8.7 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 718 | $ 627.2 | |
Accumulated depreciation and amortization | (485.8) | (430.1) | |
Properties and equipment, net | 232.2 | 197.1 | $ 197.5 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 8.4 | 9.2 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 165.5 | 159.1 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 448.1 | 425.3 | |
Information technology and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 67.6 | 18.9 | |
Projects under construction | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 28.4 | $ 14.7 |
Properties and Equipment - Narr
Properties and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 32.2 | $ 27.3 | $ 28.1 |
W.R. Grace & Co. | |||
Property, Plant and Equipment [Line Items] | |||
Non-cash transfer from parent | 89.5 | $ 4.5 | $ 7.5 |
Fixed assets | W.R. Grace & Co. | |||
Property, Plant and Equipment [Line Items] | |||
Non-cash transfer from parent | $ 23 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 102.5 | $ 114 |
Foreign currency translation | (1.4) | (11.4) |
Other adjustments | (0.1) | |
Acquisitions | 18.2 | |
Goodwill, ending balance | 119.3 | 102.5 |
Specialty Construction Chemicals | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 44.2 | 49.3 |
Foreign currency translation | (0.5) | (5.1) |
Other adjustments | 0 | |
Acquisitions | 2.1 | |
Goodwill, ending balance | 45.8 | 44.2 |
Specialty Building Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 53.5 | 59.4 |
Foreign currency translation | (0.6) | (5.8) |
Other adjustments | (0.1) | |
Acquisitions | 16.1 | |
Goodwill, ending balance | 69 | 53.5 |
Darex Packaging Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 4.8 | 5.3 |
Foreign currency translation | (0.3) | (0.5) |
Other adjustments | 0 | |
Acquisitions | 0 | |
Goodwill, ending balance | $ 4.5 | $ 4.8 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 09, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Net book value of intangible assets | $ 53 | $ 33.3 | ||
Amortization of intangible assets | 4 | 4.6 | $ 5.9 | |
Trademarks | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | $ 3.7 | $ 3.9 | ||
Halex | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Percentage of stock acquired | 100.00% |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 105.8 | $ 83.1 |
Accumulated Amortization | 52.8 | 49.8 |
Trademarks | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13.5 | 13.7 |
Accumulated Amortization | 9.4 | 9.3 |
Customer lists | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 56.1 | 39.2 |
Accumulated Amortization | 21 | 19.4 |
Technology | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 24.3 | 17.9 |
Accumulated Amortization | 11.6 | 10.2 |
Other | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11.9 | 12.3 |
Accumulated Amortization | $ 10.8 | $ 10.9 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 4.4 |
2,018 | 4.3 |
2,019 | 4.2 |
2,020 | 4.2 |
2,021 | 3.6 |
Thereafter | 28.6 |
Total estimated amortization expense | $ 49.3 |
Debt and Other Financial Inst56
Debt and Other Financial Instruments - Components of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Feb. 03, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Total debt | $ 830.9 | $ 68 | |
Less debt payable within one year | 47.9 | 68 | |
Debt payable after one year | $ 783 | $ 0 | |
Weighted average interest rates | 7.50% | 11.90% | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total debt | $ 517.7 | $ 0 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | 266.2 | 0 | |
Revolving credit facility due 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | 22 | 25.7 | |
Related Party | |||
Debt Instrument [Line Items] | |||
Total debt | $ 0 | $ 42 | $ 42.3 |
Weighted average interest rates | 0.00% | 3.30% | |
Revolving Credit | Revolving credit facility due 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 25 | $ 0 |
Debt and Other Financial Inst57
Debt and Other Financial Instruments - Components of Debt (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 27, 2016 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.50% | 9.50% |
Unamortized debt issuance cost | $ 7.3 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 4.3 | |
Unamortized discount | $ 2.4 | |
Term Loan | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 325.00% | |
Variable interest rate, floor | 75.00% | |
Revolving Credit | Revolving credit facility due 2021 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% |
Debt and Other Financial Inst58
Debt and Other Financial Instruments - Principal Maturities of Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 47.9 | |
2,018 | 3.4 | |
2,019 | 3.4 | |
2,020 | 3.4 | |
2,021 | 2.8 | |
Thereafter | 770 | |
Total debt | $ 830.9 | $ 68 |
Debt and Other Financial Inst59
Debt and Other Financial Instruments - Narrative (Details) - USD ($) | Aug. 25, 2016 | Aug. 24, 2016 | Feb. 03, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Jan. 27, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||||
Distribution to Grace related to the Separation | $ 750,000,000 | ||||||
Debt proceeds retained to meet operating requirements and to pay fees associated with the Separation | 50,000,000 | ||||||
Long-term debt | $ 830,900,000 | $ 68,000,000 | |||||
United States | |||||||
Debt Instrument [Line Items] | |||||||
Pledged equity to credit facilities, percentage | 100.00% | ||||||
United Kingdom | |||||||
Debt Instrument [Line Items] | |||||||
Pledged equity to credit facilities, percentage | 65.00% | ||||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 266,200,000 | 0 | |||||
Term Loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 325.00% | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 525,000,000 | ||||||
Stated interest rate | 9.50% | 9.50% | |||||
Debt issuance costs, gross | 8,000,000 | ||||||
Long-term debt | $ 517,700,000 | 0 | |||||
Related Party | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 42,000,000 | 0 | $ 42,300,000 | ||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 525,000,000 | ||||||
Carrying value of pledged assets to Credit Facilities | 461,000,000 | ||||||
Secured Debt | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 275,000,000 | ||||||
Annual amortization of debt, as percentage of original amount | 1.00% | ||||||
Outstanding draws on revolving loans | $ 274,300,000 | $ 274,300,000 | |||||
Accelerated amortization of debt issuance costs | 100,000 | ||||||
Third party financing costs | $ 1,200,000 | ||||||
Debt issuance costs, gross | 5,000,000 | ||||||
Secured Debt | Term Loan | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% | 3.50% | |||||
Secured Debt | Term Loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.25% | 4.50% | |||||
Secured Debt | Revolving Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||
Outstanding draws on revolving loans | 25,000,000 | ||||||
Outstanding letters of credit | 9,000,000 | ||||||
Available credit under revolving loans | 216,000,000 | ||||||
Line of credit debt issuance costs, gross | $ 5,200,000 | ||||||
Line of credit, unamortized debt issuance costs | $ 4,200,000 | ||||||
Secured Debt | Revolving Credit | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Secured Debt | Revolving Credit | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Secured Debt | Revolving Credit | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Secured Debt | Revolving Credit | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% |
Debt and Other Financial Inst60
Debt and Other Financial Instruments - Carrying Amounts and Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 27, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Carrying Amount | $ 830.9 | $ 68 | |
Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 924.7 | 68 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Carrying Amount | $ 517.7 | 0 | |
Stated interest rate | 9.50% | 9.50% | |
Senior Notes | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | $ 603.1 | 0 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 266.2 | 0 | |
Term Loan | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 274.6 | 0 | |
Revolving credit facility due 2021 | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 22 | 25.7 | |
Other Borrowings | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 22 | 68 | |
Other Borrowings | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 22 | 68 | |
Revolving Credit | Revolving credit facility due 2021 | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 25 | 0 | |
Revolving Credit | Revolving credit facility due 2021 | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | $ 25 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income taxes: | ||||||
Domestic | $ 37.1 | $ 97.2 | $ 65.6 | |||
Foreign | 68.9 | 28 | 125.5 | |||
Income before income taxes | 106 | 125.2 | 191.1 | |||
Benefit from (provision for) income taxes: | ||||||
Federal—current | 6.1 | 50.5 | 23.3 | |||
Federal—deferred | 3.9 | 1 | (3.6) | |||
State and local—current | 2.3 | 9.5 | 4.7 | |||
State and local—deferred | (0.2) | 0.2 | (0.6) | |||
Foreign—current | 19.6 | 25.6 | 29.2 | |||
Foreign—deferred | 0.5 | (2.5) | 2.6 | |||
Total | $ (12.6) | $ (7.6) | $ (20.2) | $ 32.2 | $ 84.3 | $ 55.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Feb. 03, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | |||||||||||
Provision for income taxes | $ (12.6) | $ (7.6) | $ (20.2) | $ 32.2 | $ 84.3 | $ 55.6 | |||||
Effective tax rate | 30.40% | 67.30% | 29.10% | ||||||||
Reduction in effective tax rate | 1.90% | ||||||||||
Excess tax benefit | $ 0.9 | $ 0.2 | $ 0.8 | $ 1 | $ 1.9 | $ 2 | |||||
Repatriated foreign earnings from foreign subsidiaries transferred to GCP pursuant to the Separation | $ 15.5 | $ 173.1 | $ 7.9 | ||||||||
Federal income tax rate | 35.00% | ||||||||||
Increase in deferred tax assets in the US in conjunction with the Separation | $ 76 | ||||||||||
Deferred tax assets, valuation allowance | $ 2.3 | 2 | |||||||||
Deferred tax assets | 74.5 | 8.9 | |||||||||
State research credit | 0.6 | 0 | 0 | ||||||||
Deferred tax assets, capital loss carryforwards | 1.6 | ||||||||||
Undistributed earnings of foreign subsidiaries | 272.4 | ||||||||||
Deferred tax liability not recognized associated with undistributed earnings | 4 | ||||||||||
Repatriation of foreign earnings, tax expense | 0 | $ 19.9 | (0.1) | ||||||||
Repatriation of foreign earnings, effective tax rate | 15.90% | ||||||||||
Unrecognized tax benefits | 7.4 | $ 3.9 | 5.3 | $ 7.7 | |||||||
Interest and penalties accrued on uncertain tax positions | 2.3 | 1.3 | |||||||||
Decrease in unrecognized tax benefits | 1.1 | ||||||||||
Venezuela | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Nondeductible charge | $ 73.2 | ||||||||||
Grace Brasil | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Deferred tax assets | 11.2 | ||||||||||
W.R. Grace | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Unrecognized tax benefits | 3.7 | $ 2.1 | $ 2.1 | ||||||||
W.R. Grace & Co. | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Decrease in unrecognized tax benefits | 0.5 | ||||||||||
Capital loss carryfoward | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Tax credit | 4.5 | ||||||||||
Foreign tax authority | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Operating loss carryforwards | 28.6 | ||||||||||
Tax credit | 3.5 | ||||||||||
State jurisdiction | Research tax credit | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Tax credit | 0.2 | ||||||||||
State jurisdiction | Investment tax credit | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Tax credit | $ 0.1 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Tax provision at U.S. federal income tax rate | $ 37.1 | $ 43.8 | $ 66.9 | |||
Change in provision resulting from: | ||||||
Nondeductible Venezuela charge | 0 | 24.7 | 0 | |||
Cost (benefit) from U.S. taxes on repatriation foreign earnings | 0 | 19.9 | (0.1) | |||
Effect of tax rates in foreign jurisdictions | (5.3) | (8) | (12.3) | |||
State and local income taxes, net | 1.6 | 6.3 | 2.7 | |||
Benefit from domestic production activities | (0.4) | (2.7) | (2.2) | |||
Return to provision – change in estimate | 0 | (2.5) | 0 | |||
Nondeductible expenses | 1.4 | 2.5 | 2.5 | |||
Research and other state credits | (0.6) | 0 | 0 | |||
Adjustments to uncertain tax positions and other | (1.6) | 0.3 | (1.9) | |||
Total | $ (12.6) | $ (7.6) | $ (20.2) | $ 32.2 | $ 84.3 | $ 55.6 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Foreign net operating loss carryforwards | $ 12 | $ 11.3 |
Research and development | 6.3 | 9.2 |
Reserves and allowances | 14.6 | 7.9 |
Pension benefits | 27.1 | 2.9 |
Intangible assets/goodwill | 24.5 | 0 |
Stock compensation | 4.4 | 6 |
Foreign tax credits | 3.5 | 0 |
Other | 2.8 | 1.6 |
Total deferred tax assets | 95.2 | 38.9 |
Deferred tax liabilities: | ||
Properties and equipment | (14.6) | (14.4) |
Intangible assets/goodwill | 0 | (12.7) |
Other | (3.8) | (0.9) |
Total deferred tax liabilities | (18.4) | (28) |
Valuation Allowance: | ||
Foreign net operating loss carryforwards | (2.3) | (2) |
Net deferred tax assets (liabilities) | $ 74.5 | $ 8.9 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 3.9 | $ 5.3 | $ 7.7 |
Transfers from Parent | 4.1 | ||
Additions for prior year tax positions | 2.5 | 0.3 | 0.7 |
Reductions for prior year tax positions and reclassifications | 0 | (0.8) | (0.4) |
Reductions for expirations of statute of limitations | (1.1) | (0.3) | |
Settlements | (2) | (0.9) | (2.4) |
Unrecognized tax benefits, ending balance | $ 7.4 | $ 3.9 | $ 5.3 |
Pension Plans and Other Postr66
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Overfunded defined benefit pension plans | $ 26.1 | $ 21.2 | $ 26.1 | ||||
Accumulated benefit obligation | 289 | 289 | |||||
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 | $ 4.6 | 4.8 | $ 4.5 | ||||
Shared Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Allocated pension expense | 3.8 | 5.3 | |||||
Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Increase to net pension liabilities | $ 44 | 4 | |||||
Prior service credit assumed as part of acquisition, net of tax | 0.2 | 0.1 | 0.2 | ||||
Overfunded defined benefit pension plans | 26.1 | 21.2 | 26.1 | ||||
Combined balance of underfunded and unfunded plans included as liabilities | (99.2) | ||||||
Pension liabilities included in other current liabilities | 1.1 | 1.2 | 1.1 | ||||
Underfunded and unfunded defined benefit pension plans | 34 | 98 | 34 | ||||
Benefit obligation | 422.5 | 422.5 | 298.6 | ||||
Accumulated benefit obligation | 388 | ||||||
Employer contributions | 7.4 | 2.4 | |||||
Non-U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Prior service credit assumed as part of acquisition, net of tax | 0.2 | 0.1 | 0.2 | ||||
Gain on termination and curtailment of pension and other postretirement plans | 0.6 | 0 | 0 | ||||
Overfunded defined benefit pension plans | 26.1 | $ 21.2 | 26.1 | ||||
Benefit obligation | $ 296.8 | $ 296.8 | 285.7 | ||||
Discount rate | 3.24% | 2.42% | 3.24% | ||||
Percentage of total pension assets | 96.00% | 75.00% | 96.00% | ||||
Expected return on plan assets | 3.50% | 3.87% | |||||
Employer contributions | $ 6.4 | $ 2.4 | |||||
Expected employer contributions in next twelve months | 3 | ||||||
U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Prior service credit assumed as part of acquisition, net of tax | $ 0 | 0 | 0 | ||||
Gain on termination and curtailment of pension and other postretirement plans | 0 | 0 | 0 | ||||
Overfunded defined benefit pension plans | 0 | $ 0 | 0 | ||||
Benefit obligation | $ 125.7 | $ 125.7 | 12.9 | ||||
Discount rate | 4.40% | 4.27% | 4.40% | ||||
Expected return on plan assets | 6.25% | 5.75% | |||||
Employer contributions | $ 1 | $ 1 | $ 0 | ||||
Postretirement Life Insurance Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Increase to net pension liabilities | $ 0.1 | ||||||
Allocated income | $ 1.4 | $ 0.7 | |||||
Prior service credit assumed as part of acquisition, net of tax | $ 0.8 | ||||||
Actuarial losses, net of tax | $ 0.7 | ||||||
Gain on termination and curtailment of pension and other postretirement plans | $ 0.2 | ||||||
United Kingdom | Non-U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate | 2.06% | ||||||
Funded percentage | 80.00% | 78.00% | 80.00% | ||||
Percentage of total pension assets, non-U.S. | 91.00% | 91.00% | 91.00% | ||||
Expected return on plan assets | 3.24% | ||||||
Other countries, excluding the United Kingdom | Non-U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of total pension assets, non-U.S. | 9.00% | 9.00% | 9.00% | ||||
Multiemployer Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Benefit obligation of certain Shared Plans | $ 116 | $ 116 | |||||
Retirement Plan, Excluding Shared Plans | Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Benefit obligation | 306.2 | $ 423.6 | 306.2 | ||||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Benefit obligation | 293.9 | 276 | 293.9 | ||||
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Benefit obligation | $ 12.3 | $ 147.6 | $ 12.3 |
Pension Plans and Other Postr67
Pension Plans and Other Postretirement Benefit Plans - Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded defined benefit pension plans | $ 21.2 | $ 26.1 |
Underfunded defined benefit pension plans | (98) | (34) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded defined benefit pension plans | 21.2 | 26.1 |
Underfunded defined benefit pension plans | (58.5) | (8) |
Unfunded defined benefit pension plans | (39.5) | (26) |
Total underfunded and unfunded defined benefit pension plans | (98) | (34) |
Pension liabilities included in other current liabilities | (1.2) | (1.1) |
Net funded status | $ (78) | $ (9) |
Pension Plans and Other Postr68
Pension Plans and Other Postretirement Benefit Plans - Summary of Changes in Benefit Obligations and Fair Values of Retirement Plan Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amounts recognized in the Consolidated Balance Sheets: | ||||
Noncurrent assets | $ 21.2 | $ 26.1 | ||
Current liabilities | (1.2) | (1.1) | ||
Pension Plans | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 422.5 | 298.6 | ||
Service cost | 9.4 | 3.4 | ||
Interest cost | 12.5 | 9.7 | ||
Plan participants' contributions | 0.4 | 0.5 | ||
Settlements/curtailments | (7.1) | (1) | ||
Actuarial loss (gain) | 47.9 | 4.5 | ||
Benefits paid | (18.4) | (12.3) | ||
Assumption of plan liabilities | 0 | 19 | ||
Currency exchange translation adjustments | (43.6) | (16.2) | ||
Benefit obligation at end of year | 422.5 | $ 298.6 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 368.6 | 307 | ||
Actual return on plan assets | 39.3 | 0.8 | ||
Employer contributions | 7.4 | 2.4 | ||
Settlements | (5.1) | (1.5) | ||
Assumption of plan assets | 0 | 14.9 | ||
Currency exchange translation adjustments | (46.6) | (14.6) | ||
Fair value of plan assets at end of year | 368.6 | 307 | ||
Net funded status | (78) | (9) | ||
Amounts recognized in the Consolidated Balance Sheets: | ||||
Noncurrent assets | 21.2 | 26.1 | ||
Current liabilities | (1.2) | (1.1) | ||
Noncurrent liabilities | (98) | (34) | ||
Net amount recognized | (78) | (9) | ||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Prior service credit | (0.1) | (0.2) | ||
Net amount recognized | (0.1) | (0.2) | ||
U.S. Pension Plan | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 125.7 | 12.9 | ||
Service cost | 6.1 | 0.3 | 0.2 | |
Interest cost | 4.7 | 0.5 | 0.5 | |
Plan participants' contributions | 0 | 0 | ||
Settlements/curtailments | 0 | 0 | ||
Actuarial loss (gain) | 14 | (0.9) | ||
Benefits paid | (2.9) | (0.5) | ||
Assumption of plan liabilities | 0 | 0 | ||
Currency exchange translation adjustments | 0 | 0 | ||
Benefit obligation at end of year | 125.7 | 12.9 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 81.1 | 12.2 | ||
Actual return on plan assets | 7.1 | (0.4) | ||
Employer contributions | $ 1 | 1 | 0 | |
Settlements | 0 | 0 | ||
Assumption of plan assets | 0 | 0 | ||
Currency exchange translation adjustments | 0 | 0 | ||
Fair value of plan assets at end of year | 81.1 | 12.2 | ||
Amounts recognized in the Consolidated Balance Sheets: | ||||
Noncurrent assets | 0 | 0 | ||
Current liabilities | (0.2) | 0 | ||
Noncurrent liabilities | (61.1) | (1) | ||
Net amount recognized | (61.3) | (1) | ||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Prior service credit | 0 | 0 | ||
Net amount recognized | 0 | 0 | ||
Non-U.S. Pension Plan | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 296.8 | 285.7 | ||
Service cost | 3.3 | 3.1 | 3.2 | |
Interest cost | 7.8 | 9.2 | 12 | |
Plan participants' contributions | 0.4 | 0.5 | ||
Settlements/curtailments | (7.1) | (1) | ||
Actuarial loss (gain) | 33.9 | 5.4 | ||
Benefits paid | (15.5) | (11.8) | ||
Assumption of plan liabilities | 0 | 19 | ||
Currency exchange translation adjustments | (43.6) | (16.2) | ||
Benefit obligation at end of year | 296.8 | 285.7 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 287.5 | 294.8 | ||
Actual return on plan assets | 32.2 | 1.2 | ||
Employer contributions | 6.4 | 2.4 | ||
Settlements | (5.1) | (1.5) | ||
Assumption of plan assets | 0 | 14.9 | ||
Currency exchange translation adjustments | (46.6) | (14.6) | ||
Fair value of plan assets at end of year | 259.3 | 287.5 | $ 294.8 | |
Amounts recognized in the Consolidated Balance Sheets: | ||||
Noncurrent assets | 21.2 | 26.1 | ||
Current liabilities | (1) | (1.1) | ||
Noncurrent liabilities | (36.9) | (33) | ||
Net amount recognized | (16.7) | (8) | ||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Prior service credit | (0.1) | (0.2) | ||
Net amount recognized | (0.1) | (0.2) | ||
Retirement Plan, Excluding Shared Plans | Pension Plans | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 306.2 | |||
Benefit obligation at end of year | 423.6 | 306.2 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 297.2 | |||
Fair value of plan assets at end of year | 345.6 | 297.2 | ||
Net funded status | (78) | (9) | ||
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 12.3 | |||
Benefit obligation at end of year | 147.6 | 12.3 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 11.3 | |||
Fair value of plan assets at end of year | 86.3 | 11.3 | ||
Net funded status | (61.3) | (1) | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | ||||
Change in Projected Benefit Obligation (PBO): | ||||
Benefit obligation at beginning of year | 293.9 | |||
Benefit obligation at end of year | 276 | 293.9 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 285.9 | |||
Fair value of plan assets at end of year | 259.3 | 285.9 | ||
Net funded status | $ (16.7) | (8) | ||
Multiemployer Pension Plan | ||||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Benefit obligation of certain Shared Plans | 116 | |||
United States | Multiemployer Pension Plan | ||||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Plan assets related to Shared Plans | 69.8 | |||
Benefit obligation of certain Shared Plans | 113.4 | |||
Non-U.S. | Multiemployer Pension Plan | ||||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||
Plan assets related to Shared Plans | 1.6 | |||
Benefit obligation of certain Shared Plans | $ 2.9 |
Pension Plans and Other Postr69
Pension Plans and Other Postretirement Benefit Plans - Change in Financial Status of Retirement Plans (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Pension Plan | ||
Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: | ||
Discount rate | 4.27% | 4.40% |
Rate of compensation increase | 4.70% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: | ||
Discount rate | 4.53% | 3.95% |
Expected return on plan assets | 6.25% | 5.75% |
Rate of compensation increase | 4.70% | |
Non-U.S. Pension Plan | ||
Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: | ||
Discount rate | 2.42% | 3.24% |
Rate of compensation increase | 3.78% | 3.60% |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: | ||
Discount rate | 3.26% | 3.39% |
Expected return on plan assets | 3.50% | 3.87% |
Rate of compensation increase | 3.78% | 3.12% |
Pension Plans and Other Postr70
Pension Plans and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 6.1 | $ 0.3 | $ 0.2 |
Interest cost | 4.7 | 0.5 | 0.5 |
Expected return on plan assets | (5) | (0.8) | (0.6) |
Amortization of prior service cost (credit) | 0.1 | 0.1 | 0.1 |
Amortization of net deferred actuarial loss | 0 | 0 | 0 |
Gain on termination and curtailment of pension and other postretirement plans | 0 | 0 | 0 |
Annual mark-to-market adjustment | 11.9 | 0.2 | 0.9 |
Net periodic benefit cost (income) | 17.8 | 0.3 | 1.1 |
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Amortization of prior service cost | (0.1) | (0.1) | (0.1) |
Assumption of prior service credit | 0 | 0 | 0 |
Total recognized in other comprehensive income | (0.1) | (0.1) | (0.1) |
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) | 17.7 | 0.2 | 1 |
Non-U.S. Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 3.3 | 3.1 | 3.2 |
Interest cost | 7.8 | 9.2 | 12 |
Expected return on plan assets | (8.6) | (11) | (12.9) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net deferred actuarial loss | 0 | 0 | 0 |
Gain on termination and curtailment of pension and other postretirement plans | (0.6) | 0 | 0 |
Annual mark-to-market adjustment | 8.6 | 14.2 | (18.7) |
Net periodic benefit cost (income) | 10.5 | 15.5 | (16.4) |
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Amortization of prior service cost | 0 | 0 | 0 |
Assumption of prior service credit | 0 | (0.5) | 0 |
Total recognized in other comprehensive income | 0 | (0.5) | 0 |
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) | 10.5 | 15 | (16.4) |
Other Postretirement Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.1) | 0 | 0 |
Amortization of net deferred actuarial loss | 0.1 | 0 | 0 |
Gain on termination and curtailment of pension and other postretirement plans | (0.2) | 0 | 0 |
Annual mark-to-market adjustment | 0 | 0 | 0 |
Net periodic benefit cost (income) | (0.2) | 0 | 0 |
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Amortization of prior service cost | 0 | 0 | 0 |
Assumption of prior service credit | 0 | 0 | 0 |
Total recognized in other comprehensive income | 0 | 0 | 0 |
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) | $ (0.2) | 0 | 0 |
W.R. Grace | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | $ 0.1 | $ 0.4 |
Pension Plans and Other Postr71
Pension Plans and Other Postretirement Benefit Plans - Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 147.4 | $ 12.1 |
Accumulated benefit obligation | 124.5 | 12.1 |
Fair value of plan assets | 86.2 | 11.1 |
Non-U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 42.1 | 40.4 |
Accumulated benefit obligation | 36.2 | 33.4 |
Fair value of plan assets | 5 | 6.6 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 189.5 | 52.5 |
Accumulated benefit obligation | 160.7 | 45.5 |
Fair value of plan assets | $ 91.2 | $ 17.7 |
Pension Plans and Other Postr72
Pension Plans and Other Postretirement Benefit Plans - Estimated Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | $ 5.5 |
2,018 | 5.9 |
2,019 | 6.3 |
2,020 | 7.1 |
2,021 | 7.9 |
2022-2026 | 48.9 |
Non-U.S. Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | 11.2 |
2,018 | 11.6 |
2,019 | 11.3 |
2,020 | 11.6 |
2,021 | 11.7 |
2022-2026 | 63 |
Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | 16.7 |
2,018 | 17.5 |
2,019 | 17.6 |
2,020 | 18.7 |
2,021 | 19.6 |
2022-2026 | $ 111.9 |
Pension Plans and Other Postr73
Pension Plans and Other Postretirement Benefit Plans - Schedule of Plan Asset Allocation (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
U.S. Pension Plan | Short-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 1.00% | |
Percentage of Plan Assets | 1.00% | 6.00% |
U.S. Pension Plan | Intermediate-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Percentage of Plan Assets | 4.00% | 28.00% |
U.S. Pension Plan | Long-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 50.00% | |
Percentage of Plan Assets | 50.00% | 46.00% |
U.S. Pension Plan | Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 8.00% | |
Percentage of Plan Assets | 5.00% | 2.00% |
United States | U.S. Pension Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 25.00% | |
Percentage of Plan Assets | 25.00% | 11.00% |
Non-U.S. | U.S. Pension Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 11.00% | |
Percentage of Plan Assets | 15.00% | 7.00% |
United Kingdom | Non-U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
United Kingdom | Non-U.S. Pension Plan | Diversified growth funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 9.00% | |
Percentage of Plan Assets | 8.00% | 10.00% |
United Kingdom | Non-U.S. Pension Plan | U.K. gilts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 31.00% | |
Percentage of Plan Assets | 31.00% | 29.00% |
United Kingdom | Non-U.S. Pension Plan | U.K. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10.00% | |
Percentage of Plan Assets | 11.00% | 8.00% |
United Kingdom | Non-U.S. Pension Plan | Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 50.00% | |
Percentage of Plan Assets | 50.00% | 53.00% |
Pension Plans and Other Postr74
Pension Plans and Other Postretirement Benefit Plans - Fair Value Measurements of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 81.1 | $ 12.2 | |
Non-U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 259.3 | 287.5 | $ 294.8 |
Non-U.S. Pension Plan | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Non-U.S. Pension Plan | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 140 | ||
Non-U.S. Pension Plan | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | ||
Non-U.S. Pension Plan | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130.1 | ||
Non-U.S. Pension Plan | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130.1 | ||
Non-U.S. Pension Plan | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | ||
Non-U.S. Pension Plan | Government and agency securities | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Government and agency securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | ||
Non-U.S. Pension Plan | Government and agency securities | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.1 | ||
Non-U.S. Pension Plan | Corporate bonds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Corporate bonds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.1 | ||
Non-U.S. Pension Plan | Corporate bonds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Insurance contracts and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | ||
Non-U.S. Pension Plan | Insurance contracts and other investments | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Insurance contracts and other investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Insurance contracts and other investments | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | 138.5 | |
Non-U.S. Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Non-U.S. Pension Plan | Cash | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Non-U.S. Pension Plan | Cash | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Pension Plan | Cash | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 86.3 | 11.3 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 86.3 | 11.3 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | U.S. equity group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21.8 | 1.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | U.S. equity group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | U.S. equity group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21.8 | 1.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | U.S. equity group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Non-U.S. equity group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.1 | 0.8 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Non-U.S. equity group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Non-U.S. equity group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.1 | 0.8 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Non-U.S. equity group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—intermediate-term | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.1 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—intermediate-term | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—intermediate-term | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.1 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—intermediate-term | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—long-term | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42.7 | 5.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—long-term | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—long-term | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42.7 | 5.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Corporate bond group trust funds—long-term | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Other fixed income group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.3 | 0.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Other fixed income group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Other fixed income group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.3 | 0.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Other fixed income group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | 0.6 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | 0.6 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Annuity and immediate participation contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Annuity and immediate participation contracts | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Annuity and immediate participation contracts | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0.2 | |
Retirement Plan, Excluding Shared Plans | U.S. Pension Plan | Annuity and immediate participation contracts | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 259.3 | 285.9 | |
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 146.8 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 138.5 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142.3 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142.3 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.3 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Government and agency securities | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Government and agency securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.3 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Government and agency securities | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.1 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Corporate bonds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Corporate bonds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.1 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Corporate bonds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Insurance contracts and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 140.6 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Insurance contracts and other investments | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Insurance contracts and other investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.1 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Insurance contracts and other investments | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 138.5 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Cash | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Cash | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Retirement Plan, Excluding Shared Plans | Non-U.S. Pension Plan | Cash | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
Pension Plans and Other Postr75
Pension Plans and Other Postretirement Benefit Plans - Schedule of Changes in Fair Value Measurement Level 3 (Details) - Non-U.S. Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 287.5 | $ 294.8 |
Currency exchange translation adjustments | (46.6) | (14.6) |
Fair value of plan assets at end of year | 259.3 | 287.5 |
Level 3 inputs | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at end of year | 116.5 | |
Insurance Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at end of year | 116.5 | |
Insurance Contracts | Level 3 inputs | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 138.5 | |
Actual return on plan assets relating to assets still held at year-end | 10 | |
Purchases, sales and settlements, net | 0 | |
Transfers out for benefit payments | (7.7) | |
Currency exchange translation adjustments | (24.3) | |
Fair value of plan assets at end of year | $ 116.5 | $ 138.5 |
Other Balance Sheet Accounts -
Other Balance Sheet Accounts - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Non-trade receivables | $ 27.8 | $ 25.5 |
Prepaid expenses | 13.4 | 8.9 |
Income tax receivable | 10.6 | 4.4 |
Marketable securities | 0 | 0.1 |
Total other current assets | $ 51.8 | $ 38.9 |
Other Balance Sheet Accounts -
Other Balance Sheet Accounts - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Current Liabilities | ||
Customer volume rebates | $ 34.8 | $ 33.5 |
Accrued compensation | 36.3 | 27.1 |
Income tax payable | 8 | 23.3 |
Accrued interest | 20.8 | 3.9 |
Pension liabilities | 1.2 | 1.1 |
Other accrued liabilities | 39.9 | 36.6 |
Total other current liabilities | $ 141 | $ 125.5 |
Commitments and Contingent Li78
Commitments and Contingent Liabilities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Standby Letter of Credit | |
Loss Contingencies [Line Items] | |
Gross financial assurances issued and outstanding | $ 9 |
Commitments and Contingent Li79
Commitments and Contingent Liabilities - Minimum Future Non-cancelable Payments for Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,017 | $ 11.2 | ||
2,018 | 8.3 | ||
2,019 | 5.3 | ||
2,020 | 3.6 | ||
2,021 | 2.5 | ||
Thereafter | 13.6 | ||
Operating leases, future minimum payments due | 44.5 | ||
Rental expense for operating leases | $ 15.4 | $ 21.6 | $ 22.6 |
Restructuring and Repositioni80
Restructuring and Repositioning Expenses - Narrative (Details) - USD ($) | Feb. 03, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | $ 15,300,000 | $ 0 | $ 0 | ||
Asset impairments | 0 | 100,000 | 14,300,000 | ||
Impairment of unconsolidated investment | 4,500,000 | ||||
Fair value of unconsolidated investment | 0 | ||||
Changes in Business Environment and Structure | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | 1,900,000 | 11,500,000 | 4,000,000 | ||
Restructuring liabilities | 1,100,000 | 1,400,000 | 800,000 | $ 1,100,000 | |
Total cash payments for repositioning costs | 3,600,000 | 10,900,000 | 4,300,000 | ||
Changes in Business Environment and Structure | SCC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | 1,200,000 | 6,500,000 | |||
Changes in Business Environment and Structure | SBM | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | 700,000 | 3,200,000 | |||
Changes in Business Environment and Structure | Darex Packaging Technologies | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | $ 1,800,000 | ||||
Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses and asset impairments | 15,300,000 | ||||
Estimated period for transition expenses to be incurred | 18 months | ||||
Total cash payments for repositioning costs | 0 | ||||
Repositioning | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated transition expenses | $ 18,000,000 | ||||
Repositioning | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated transition expenses | $ 20,000,000 | ||||
Repositioning | Professional Fees and Employee-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total cash payments for repositioning costs | 17,700,000 | ||||
Repositioning | Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total cash payments for repositioning costs | 6,900,000 | ||||
Repositioning | Taxes | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total cash payments for repositioning costs | $ 2,500,000 | ||||
Concrete | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | 9,800,000 | ||||
Fair value of assets | 8,200,000 | ||||
Concrete | Equipment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | 3,800,000 | ||||
Fair value of assets | 5,600,000 | ||||
Concrete | Technology | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | 5,500,000 | ||||
Fair value of assets | 2,300,000 | ||||
Concrete | Intellectual Property | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | 500,000 | ||||
Fair value of assets | $ 300,000 |
Restructuring and Repositioni81
Restructuring and Repositioning Expenses - Restructuring Expenses and Related Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |||
Severance and other | $ 1.9 | $ 11.5 | $ 4 |
Asset impairments | 0 | 0.1 | 14.3 |
Total restructuring expenses and asset impairments | $ 1.9 | $ 11.6 | $ 18.3 |
Restructuring and Repositioni82
Restructuring and Repositioning Expenses - Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Liability (In millions) | |||
Accruals for severance and other costs | $ 15.3 | $ 0 | $ 0 |
Changes in Business Environment and Structure | |||
Restructuring Liability (In millions) | |||
Restructuring liability, beginning balance | 1.4 | 0.8 | 1.1 |
Accruals for severance and other costs | 1.9 | 11.5 | 4 |
Payments | (3.6) | (10.9) | (4.3) |
Impact of foreign currency and other | 1.4 | 0 | 0 |
Restructuring liability, ending balance | $ 1.1 | $ 1.4 | $ 0.8 |
Restructuring and Repositioni83
Restructuring and Repositioning Expenses - Repositioning Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | $ 15.3 | $ 0 | $ 0 |
Repositioning | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | 15.3 | ||
Repositioning | Professional fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | 7.8 | ||
Repositioning | Software and IT implementation fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | 3 | ||
Repositioning | Employee-related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Repositioning expenses | $ 4.5 |
Other Comprehensive Loss - Pre-
Other Comprehensive Loss - Pre-Tax, Tax, and After-Tax Components of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
After-Tax Amount | |||
Total other comprehensive loss | $ (19.7) | $ (61.8) | $ (42.9) |
Other comprehensive loss attributable to GCP shareholders | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | (19.9) | (61.3) | (40.4) |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0 | (0.4) | 0 |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (21.1) | (61.7) | (42.5) |
Total other comprehensive loss | (19.9) | (61.7) | (40.4) |
Amortization of net prior service credit | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | (0.1) | 0.1 | 0.1 |
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0 | (0.1) | 0 |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (0.1) | 0 | 0.1 |
Amortization of net actuarial gain | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | 0.1 | ||
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0 | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0.1 | ||
Assumption of net prior service credit | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | 1.2 | 0.5 | |
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | (0.4) | (0.1) | |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0.8 | 0.4 | |
Assumption of net actuarial loss | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | (1.1) | ||
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0.4 | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (0.7) | ||
Other changes in funded status | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | (0.1) | ||
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0 | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (0.1) | ||
Benefit plans, net | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | 0 | 0.6 | 0.1 |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0 | (0.2) | 0 |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0 | 0.4 | 0 |
Total other comprehensive loss | 0 | 0.4 | 0.1 |
Currency translation adjustments | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | (19.9) | (62.3) | (41.4) |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0 | 0 | 0 |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (19.9) | (62.3) | (41.4) |
Total other comprehensive loss | (19.9) | (62.3) | (41.4) |
Gain from hedging activities | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | 0.4 | 0.2 | |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | (0.2) | 0 | |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (1.2) | 0.2 | (0.4) |
Total other comprehensive loss | 0 | 0.2 | 0.2 |
Unrealized (Loss) Gain on Investment | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | 0.8 | ||
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0 | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0 | 0 | 0 |
Total other comprehensive loss | 0 | 0 | 0.8 |
Gain (Loss) on Securities Available for Sale | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | (0.1) | ||
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0 | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0 | 0 | (0.7) |
Total other comprehensive loss | $ 0 | $ 0 | $ (0.1) |
Other Comprehensive Loss - Chan
Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)country | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | $ 474.1 | $ 607.4 | $ 609.7 |
Total other comprehensive loss | (19.7) | (61.8) | (42.9) |
Ending balance | $ (139) | 474.1 | 607.4 |
Number of countries in which entity operates, more than | country | 35 | ||
Defined Benefit Pension and Other Postretirement Plans | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | $ 0.1 | (0.3) | (0.4) |
Other comprehensive loss before reclassifications | 0 | 0.4 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0.1 |
Total other comprehensive loss | 0 | 0.4 | 0.1 |
Ending balance | 0.1 | 0.1 | (0.3) |
Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | (127.8) | (65.5) | (24.1) |
Other comprehensive loss before reclassifications | (19.9) | (62.3) | (41.4) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive loss | (19.9) | (62.3) | (41.4) |
Ending balance | (147.7) | (127.8) | (65.5) |
(Losses) Gains from Hedging Activities | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | 0 | (0.2) | (0.4) |
Other comprehensive loss before reclassifications | (1.2) | 0.2 | (0.4) |
Amounts reclassified from accumulated other comprehensive income | 1.2 | 0 | 0.6 |
Total other comprehensive loss | 0 | 0.2 | 0.2 |
Ending balance | 0 | 0 | (0.2) |
Unrealized (Loss) Gain on Investment | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | 0 | 0 | (0.8) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0.8 |
Total other comprehensive loss | 0 | 0 | 0.8 |
Ending balance | 0 | 0 | 0 |
Gain (Loss) on Securities Available for Sale | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | 0 | 0 | 0.1 |
Other comprehensive loss before reclassifications | 0 | 0 | (0.7) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0.6 |
Total other comprehensive loss | 0 | 0 | (0.1) |
Ending balance | 0 | 0 | 0 |
Total | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | (127.7) | (66) | (25.6) |
Other comprehensive loss before reclassifications | (21.1) | (61.7) | (42.5) |
Amounts reclassified from accumulated other comprehensive income | 1.2 | 0 | 2.1 |
Total other comprehensive loss | (19.9) | (61.7) | (40.4) |
Ending balance | $ (147.6) | $ (127.7) | $ (66) |
Related Party Transactions an86
Related Party Transactions and Transactions with Grace - Related Party Expenses and Agreements (Details) - USD ($) $ in Millions | Feb. 03, 2016 | Feb. 02, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||||||
Distribution to Grace related to the Separation | $ 750 | |||||
W.R. Grace & Co. | ||||||
Related Party Transaction [Line Items] | ||||||
General corporate expenses allocated to the Company | $ 2 | $ 54.8 | $ 52.1 | |||
Indemnified receivables, tax | $ 3.7 | |||||
Non-cash transfer from parent | 89.5 | $ 4.5 | $ 7.5 | |||
W.R. Grace & Co. | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Transition period | 18 months | |||||
Net pension liabilities | W.R. Grace & Co. | ||||||
Related Party Transaction [Line Items] | ||||||
Non-cash transfer from parent | 44 | |||||
Fixed assets | W.R. Grace & Co. | ||||||
Related Party Transaction [Line Items] | ||||||
Non-cash transfer from parent | 23 | |||||
Related party debt, deferred tax, and other | W.R. Grace & Co. | ||||||
Related Party Transaction [Line Items] | ||||||
Non-cash transfer from parent | $ 42 |
Related Party Transactions an87
Related Party Transactions and Transactions with Grace - Parent Company Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Total net transfers to parent | $ (675.1) | $ (112.4) | $ (88.6) |
W.R. Grace & Co. | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | (675.1) | (112.4) | (88.6) |
Share-based compensation | 0 | (3.7) | (4.1) |
Other, net | (89.5) | (4.5) | (7.5) |
Transfers to parent, net per Consolidated Statements of Cash Flows | (764.6) | (120.6) | (100.2) |
W.R. Grace & Co. | Cash pooling and general financing activities | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | (688) | (306.1) | (259.7) |
W.R. Grace & Co. | GCP expenses funded by parent | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | 6.6 | 54.6 | 63.4 |
W.R. Grace & Co. | Corporate costs allocations | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | 2 | 54.8 | 52.1 |
W.R. Grace & Co. | Provision for income taxes | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | $ 4.3 | $ 84.3 | $ 55.6 |
Related Party Transactions an88
Related Party Transactions and Transactions with Grace - Parent Company Equity (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Distribution to Grace related to the Separation | $ 750 | |||
W.R. Grace & Co. | ||||
Related Party Transaction [Line Items] | ||||
Non-cash transfer from parent | $ 89.5 | $ 4.5 | $ 7.5 | |
W.R. Grace & Co. | Net pension liabilities | ||||
Related Party Transaction [Line Items] | ||||
Non-cash transfer from parent | 44 | |||
W.R. Grace & Co. | Fixed assets | ||||
Related Party Transaction [Line Items] | ||||
Non-cash transfer from parent | 23 | |||
W.R. Grace & Co. | Related party debt, deferred tax, and other | ||||
Related Party Transaction [Line Items] | ||||
Non-cash transfer from parent | $ 42 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 03, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares repurchased | 112,205 | |||||||||
Income tax benefit recognized for stock-based compensation | $ 4.8 | $ 1.7 | $ 1.8 | |||||||
Excess tax benefit | $ 0.9 | $ 0.2 | $ 0.8 | $ 1 | $ 1.9 | $ 2 | ||||
Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options, exercise price, percent of market value on the date of grant | 100.00% | |||||||||
Stock option awards, contractual term | 5 years | |||||||||
Award vesting period | 3 years | |||||||||
Intrinsic value of all options exercised | $ 9.3 | 8.4 | 3.1 | |||||||
Unrecognized stock-based compensation expense for stock options | $ 1.6 | $ 1.6 | ||||||||
Unrecognized stock-based compensation expense, period of recognition | 1 year | |||||||||
Stock Option | 33.33% of Options and RSUs Vest After Year 1, 100% of Sign On Awards Vest at Year 2, 100% of Some RSUs Vest After Year 3 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Stock Option | 33.33% Vest After Year Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Stock Option | 33.33% Vest After Year Three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Stock Option | W.R. Grace | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option awards, contractual term | 7 years | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
RSUs vested (in shares) | 101,046 | |||||||||
Weighted average grant date fair value of RSUs vested (in usd per share) | $ 17.15 | |||||||||
Shares distributed | 25,000 | |||||||||
Fully vested awards settled in cash | $ 0.5 | |||||||||
Percent of units expected to settle in cash, vesting in 2016 | 42.00% | 42.00% | ||||||||
Shares vested and outstanding | 76,636 | 76,636 | ||||||||
Percent of units expected to settle in cash, vesting in 2017 | 0.00% | 0.00% | ||||||||
Shares vesting in 2017 | 67,050 | 67,050 | ||||||||
Percent of units expected to settle in cash, vesting in 2018 | 34.00% | 34.00% | ||||||||
Shares vesting in 2018 | 158,887 | 158,887 | ||||||||
Percent of units expected to settle in cash, vesting in 2019 | 0.00% | 0.00% | ||||||||
Shares vesting in 2019 | 235,275 | 235,275 | ||||||||
Awards granted (in shares) | 327,000 | |||||||||
Weighted average grant date fair value (in usd per share) | $ 17.36 | |||||||||
Awards forfeited (in shares) | 23,000 | |||||||||
Restricted Stock Units (RSUs) | 33.33% of Options and RSUs Vest After Year 1, 100% of Sign On Awards Vest at Year 2, 100% of Some RSUs Vest After Year 3 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | 100.00% | ||||||||
Restricted Stock Units (RSUs) | 33.33% Vest After Year Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Restricted Stock Units (RSUs) | 33.33% Vest After Year Three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Sign-On Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 2 years | |||||||||
Award vesting percentage | 100.00% | |||||||||
Restricted Stock Units (RSUs) and Performance Based Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized stock-based compensation expense, period of recognition | 1 year 7 months 7 days | |||||||||
Total unrecognized compensation expense related to the RSU and PBU awards | $ 7.2 | $ 7.2 | ||||||||
2016 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares repurchased | 112,205 | |||||||||
Number of shares of common stock available for issuance | 1,637,301 | 1,637,301 | ||||||||
2016 Stock Incentive Plan | Performance Based Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Awards granted (in shares) | 155,501 | |||||||||
Weighted average grant date fair value (in usd per share) | $ 17.04 | |||||||||
Percent of units expected to settle in common stock | 100.00% | 100.00% | ||||||||
Awards forfeited (in shares) | 8,695 | |||||||||
Performance period | 3 years | |||||||||
2016 Stock Incentive Plan | Performance Based Units | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected payout, percent of target | 0.00% | |||||||||
2016 Stock Incentive Plan | Performance Based Units | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected payout, percent of target | 200.00% | |||||||||
Selling, General and Administrative Expenses | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total cash and non-cash stock-based compensation cost | $ 7.5 | $ 4.7 | $ 4.8 |
Stock Incentive Plans - Valuati
Stock Incentive Plans - Valuation Assumptions (Details) - Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 1.30% | 1.25% | |
Risk-free interest rate, minimum | 0.93% | ||
Risk-free interest rate, maximum | 1.24% | ||
Volatility, minimum | 29.60% | 23.00% | 28.20% |
Volatility, maximum | 33.20% | 27.20% | 28.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Average fair value per stock option (in usd per share) | $ 4.89 | $ 18.43 | $ 21.08 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average life of options (years) | 4 years | 3 years | 3 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average life of options (years) | 5 years | 4 years | 4 years |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Option Activity (Details) - Stock Option $ / shares in Units, shares in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Number Of Shares (in thousands) | ||
Outstanding, beginning balance (in shares) | shares | 2,236 | |
Options exercised (in shares) | shares | 811 | |
Options forfeited (in shares) | shares | 52 | |
Options expired (in shares) | shares | 0 | |
Options granted (in shares) | shares | 749 | |
Outstanding, end balance (in shares) | shares | 2,122 | 2,122 |
Exercisable, end of period (in shares) | shares | 895 | 895 |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in usd per share) | $ / shares | $ 14.36 | |
Options exercised (in usd per share) | $ / shares | 10.08 | |
Options forfeited (in usd per share) | $ / shares | 16.58 | |
Options expired (in usd per share) | $ / shares | 0 | |
Options granted (in usd per share) | $ / shares | 17.23 | |
Outstanding, ending balance (in usd per share) | $ / shares | 16.92 | $ 16.92 |
Exercisable, end of period (in usd per share) | $ / shares | $ 15.43 | $ 15.43 |
Other Disclosures | ||
Outstanding, weighted-average remaining contractual term | 3 years 6 months 26 days | |
Exercisable, weighted-average remaining contractual term | 1 year 9 months | |
Outstanding, aggregated intrinsic value | $ | $ 20,748 | $ 20,748 |
Exercisable, aggregated intrinsic value | $ | $ 20,748 | $ 20,748 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units Award Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 11 Months Ended |
Dec. 31, 2016 | |
Number Of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 265 |
RSUs settled (in shares) | 31 |
RSUs forfeited (in shares) | 23 |
RSUs granted (in shares) | 327 |
RSUs outstanding, ending balance (in shares) | 538 |
RSUs vested and outstanding (in shares) | 77 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in usd per share) | $ 17 |
RSUs settled (in usd per share) | 16.90 |
RSUs forfeited (in usd per share) | 17.29 |
RSUs granted (in usd per share) | 17.36 |
RSUs outstanding, ending balance (in usd per share) | 17.22 |
RSUs vested and outstanding (in usd per share) | $ 17.23 |
Operating Segment Information -
Operating Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Concentration Risk [Line Items] | |
Number of operating segments | 3 |
Minimum | BRAZIL | Geographic concentration risk | Long-lived assets | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Minimum | BELGIUM | Geographic concentration risk | Long-lived assets | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Maximum | BRAZIL | Geographic concentration risk | Long-lived assets | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.00% |
Maximum | BELGIUM | Geographic concentration risk | Long-lived assets | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.00% |
Operating Segment Information94
Operating Segment Information - Schedule of Operating Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 332.9 | $ 342.5 | $ 366.3 | $ 314.1 | $ 332.5 | $ 389.7 | $ 373.7 | $ 322.7 | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 |
Segment Operating Income | 251.4 | 256.1 | 222.2 | ||||||||
Depreciation and Amortization | 36.2 | 31.8 | 34 | ||||||||
Capital Expenditures | 45.3 | 36 | 37.5 | ||||||||
Total Assets | 1,089.8 | 833.1 | 1,089.8 | 833.1 | 981.5 | ||||||
Specialty Construction Chemicals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 623.8 | 694.3 | 726.3 | ||||||||
Specialty Building Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 422.7 | 398.1 | 379.3 | ||||||||
Darex Packaging Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 309.3 | 326.2 | 374.8 | ||||||||
Operating Segments | Specialty Construction Chemicals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 623.8 | 694.3 | 726.3 | ||||||||
Segment Operating Income | 72.6 | 83.7 | 72.4 | ||||||||
Depreciation and Amortization | 20 | 18 | 18.5 | ||||||||
Capital Expenditures | 23.6 | 21.8 | 24.3 | ||||||||
Total Assets | 335.9 | 318.4 | 335.9 | 318.4 | 329 | ||||||
Operating Segments | Specialty Building Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 422.7 | 398.1 | 379.3 | ||||||||
Segment Operating Income | 114 | 99.6 | 75.7 | ||||||||
Depreciation and Amortization | 9.6 | 7.8 | 8.6 | ||||||||
Capital Expenditures | 5.7 | 7 | 6.3 | ||||||||
Total Assets | 273.3 | 227.4 | 273.3 | 227.4 | 247.3 | ||||||
Operating Segments | Darex Packaging Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 309.3 | 326.2 | 374.8 | ||||||||
Segment Operating Income | 64.8 | 72.8 | 74.1 | ||||||||
Depreciation and Amortization | 6.4 | 4.8 | 5.5 | ||||||||
Capital Expenditures | 4.4 | 5.9 | 6.7 | ||||||||
Total Assets | 148.6 | 121.2 | 148.6 | 121.2 | 157.4 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and Amortization | 0.2 | 1.2 | 1.4 | ||||||||
Capital Expenditures | 11.6 | 1.3 | 0.2 | ||||||||
Total Assets | $ 332 | $ 166.1 | $ 332 | $ 166.1 | $ 247.8 |
Operating Segment Information95
Operating Segment Information - Reconciliation of Operating Segment Data to Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Corporate costs | $ (312.8) | $ (296.4) | $ (288.9) |
Currency and other financial losses in Venezuela | (4.4) | (73.2) | (1) |
Restructuring expenses | (15.3) | 0 | 0 |
Restructuring expenses and asset impairments | (1.9) | (11.6) | (18.3) |
Gain on termination and curtailment of pension and other postretirement plans | 0.8 | 0 | 0 |
Net income attributable to noncontrolling interests | 1 | 0.8 | 1.2 |
Income before income taxes | 106 | 125.2 | 191.1 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating income | 251.4 | 256.1 | 222.2 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | (29.2) | (24.3) | (19.3) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Certain pension costs | (8.4) | (5.1) | (7.5) |
Currency and other financial losses in Venezuela | 0 | (73.2) | (1) |
Restructuring expenses | (15.3) | 0 | 0 |
Restructuring expenses and asset impairments | (1.9) | (11.6) | (18.3) |
Pension MTM adjustment and other related costs, net | (23.2) | (15) | 18.6 |
Gain on termination and curtailment of pension and other postretirement plans | 0.8 | 0 | 0 |
Third-party acquisition-related costs | (2.1) | 0 | 0 |
Other financing costs | (1.2) | 0 | 0 |
Amortization of acquired inventory fair value adjustment | (1.3) | 0 | 0 |
Interest expense, net | (64.6) | (2.5) | (4.8) |
Net income attributable to noncontrolling interests | $ 1 | $ 0.8 | $ 1.2 |
Operating Segment Information96
Operating Segment Information - Sales by Product Group (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | $ 332.9 | $ 342.5 | $ 366.3 | $ 314.1 | $ 332.5 | $ 389.7 | $ 373.7 | $ 322.7 | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 |
Specialty Construction Chemicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 623.8 | 694.3 | 726.3 | ||||||||
Specialty Construction Chemicals | Concrete | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 469.1 | 532.7 | 541.9 | ||||||||
Specialty Construction Chemicals | Cement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 154.7 | 161.6 | 184.4 | ||||||||
Specialty Building Materials | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 422.7 | 398.1 | 379.3 | ||||||||
Specialty Building Materials | Building Envelope | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 236.3 | 234.7 | 236.3 | ||||||||
Specialty Building Materials | Residential Building Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 89.2 | 79.3 | 59.2 | ||||||||
Specialty Building Materials | Specialty Construction Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 97.2 | 84.1 | 83.8 | ||||||||
Darex Packaging Technologies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 309.3 | 326.2 | 374.8 | ||||||||
Darex Packaging Technologies | Sealants | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 211.7 | 221.2 | 254.8 | ||||||||
Darex Packaging Technologies | Coatings | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | $ 97.6 | $ 105 | $ 120 |
Operating Segment Information97
Operating Segment Information - Geographic Area Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 332.9 | $ 342.5 | $ 366.3 | $ 314.1 | $ 332.5 | $ 389.7 | $ 373.7 | $ 322.7 | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 |
Properties and equipment, net | 232.2 | 197.1 | 232.2 | 197.1 | 197.5 | ||||||
Goodwill, intangibles and other assets | 199.3 | 145.9 | 199.3 | 145.9 | 166.5 | ||||||
Total North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 572.8 | 538.2 | 503.9 | ||||||||
Properties and equipment, net | 133.8 | 94.4 | 133.8 | 94.4 | 90.5 | ||||||
Goodwill, intangibles and other assets | 93.3 | 36.9 | 93.3 | 36.9 | 37.7 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 540.3 | 507.4 | 468.4 | ||||||||
Properties and equipment, net | 131.1 | 91.9 | 131.1 | 91.9 | 87.8 | ||||||
Goodwill, intangibles and other assets | 85.6 | 34.1 | 85.6 | 34.1 | 34.8 | ||||||
Canada and Puerto Rico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 32.5 | 30.8 | 35.5 | ||||||||
Properties and equipment, net | 2.7 | 2.5 | 2.7 | 2.5 | 2.7 | ||||||
Goodwill, intangibles and other assets | 7.7 | 2.8 | 7.7 | 2.8 | 2.9 | ||||||
Europe Middle East Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 321.3 | 341.1 | 396 | ||||||||
Properties and equipment, net | 43.2 | 45.7 | 43.2 | 45.7 | 47 | ||||||
Goodwill, intangibles and other assets | 56.3 | 61.1 | 56.3 | 61.1 | 69.7 | ||||||
Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 322.6 | 329.6 | 349.7 | ||||||||
Properties and equipment, net | 39.9 | 42.1 | 39.9 | 42.1 | 40.9 | ||||||
Goodwill, intangibles and other assets | 21.4 | 22.1 | 21.4 | 22.1 | 23.4 | ||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 139.1 | 209.7 | 230.8 | ||||||||
Properties and equipment, net | 15.3 | 14.9 | 15.3 | 14.9 | 19.1 | ||||||
Goodwill, intangibles and other assets | $ 28.3 | $ 25.8 | $ 28.3 | $ 25.8 | $ 35.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerators | ||||||||||||
Net income attributable to GCP shareholders | $ 3.4 | $ 21.3 | $ 30.3 | $ 17.8 | $ 7.7 | $ (15.3) | $ 27.2 | $ 20.5 | $ 48.1 | $ 72.8 | $ 40.1 | $ 134.3 |
Denominators | ||||||||||||
Weighted average common shares—basic calculation | 70,800,000 | 70,500,000 | 70,500,000 | |||||||||
Dilutive effect of employee stock awards (in shares) | 900,000 | 0 | 0 | |||||||||
Weighted average common shares—diluted calculation | 71,700,000 | 70,900,000 | 71,300,000 | 71,700,000 | 70,500,000 | 70,500,000 | ||||||
Basic earnings per share (in usd per share) | $ 0.05 | $ 0.30 | $ 0.43 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.68 | $ 1.03 | $ 0.57 | $ 1.90 |
Diluted earnings per share (in usd per share) | $ 0.05 | $ 0.30 | $ 0.42 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.67 | $ 1.02 | $ 0.57 | $ 1.90 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Number of shares repurchased in connection with equity compensation programs | 112,205 | |||||||||||
Value of common stock repurchased in connection with equity compensation programs | $ 2.1 | |||||||||||
Stock Option | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | |||||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Nov. 09, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Total consideration, net of cash acquired | $ 47 | $ 0 | $ 0 | |
Goodwill | 119.3 | $ 102.5 | $ 114 | |
Halex | ||||
Business Acquisition [Line Items] | ||||
Percentage of stock acquired | 100.00% | |||
Total consideration, net of cash acquired | $ 47 | |||
Cash acquired | 1.4 | |||
Goodwill | $ 16.1 | $ 16.1 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details - USD ($) $ in Millions | Dec. 31, 2016 | Nov. 09, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 119.3 | $ 102.5 | $ 114 | |
Halex | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 3.2 | |||
Other current assets | 0.5 | |||
Inventories | 9.7 | |||
Properties and equipment | 1.4 | |||
Goodwill | 16.1 | $ 16.1 | ||
Intangible assets | 20.4 | |||
Accounts payable | (1.9) | |||
Other current liabilities | (2.2) | |||
Other liabilities | (0.2) | |||
Net assets acquired | $ 47 |
Acquisitions - Schedule of Fini
Acquisitions - Schedule of Finite-Lived Intangible Assets Acquired (Details) - Halex $ in Millions | Nov. 09, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 20.4 |
Customer lists | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 16.5 |
Weighted average amortization period (in years) | 15 years |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 0.2 |
Weighted average amortization period (in years) | 10 years |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 3.7 |
Weighted average amortization period (in years) | 12 years |
Quarterly Summary and Statis102
Quarterly Summary and Statistical Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Net sales | $ 332.9 | $ 342.5 | $ 366.3 | $ 314.1 | $ 332.5 | $ 389.7 | $ 373.7 | $ 322.7 | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 | |
Gross profit | 123.1 | 136 | 148.4 | 121.2 | 118.1 | 143.9 | 142.9 | 111.3 | 528.7 | 516.2 | 530.5 | |
Net income attributable to GCP shareholders | $ 3.4 | $ 21.3 | $ 30.3 | $ 17.8 | $ 7.7 | $ (15.3) | $ 27.2 | $ 20.5 | $ 48.1 | $ 72.8 | $ 40.1 | $ 134.3 |
Basic earnings per share: | ||||||||||||
Net income (in usd per share) | $ 0.05 | $ 0.30 | $ 0.43 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.68 | $ 1.03 | $ 0.57 | $ 1.90 |
Diluted earnings per share: | ||||||||||||
Net income (in usd per share) | $ 0.05 | $ 0.30 | $ 0.42 | $ 0.25 | $ 0.11 | $ (0.22) | $ 0.39 | $ 0.29 | $ 0.67 | $ 1.02 | $ 0.57 | $ 1.90 |
Pension Plans | ||||||||||||
Diluted earnings per share: | ||||||||||||
Pension mark-to-market adjustment | $ (20.5) | $ 15 | ||||||||||
Venezuela | ||||||||||||
Diluted earnings per share: | ||||||||||||
Pre-tax charge reflect the devaluation of monetary assets and the impairment of non-monetary assets | $ 73.2 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 02, 2017 | |
Subsequent Event [Line Items] | ||||||||||||
Net sales | $ 332.9 | $ 342.5 | $ 366.3 | $ 314.1 | $ 332.5 | $ 389.7 | $ 373.7 | $ 322.7 | $ 1,355.8 | $ 1,418.6 | $ 1,480.4 | |
Segment operating income | 251.4 | 256.1 | 222.2 | |||||||||
Darex Packaging Technologies | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Net sales | 309.3 | 326.2 | 374.8 | |||||||||
Operating Segments | Darex Packaging Technologies | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Net sales | 309.3 | 326.2 | 374.8 | |||||||||
Segment operating income | $ 64.8 | $ 72.8 | $ 74.1 | |||||||||
Darex Packaging Technologies Business | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Consideration received/receivable for disposal | $ 1,050 |
Schedule II - Valuation & Qu104
Schedule II - Valuation & Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowances for notes and accounts receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 6.2 | $ 4.8 | $ 4.9 |
Additions charged to costs and expenses | 0.2 | 3.6 | 2.1 |
Deductions | (1.9) | (2.9) | (2.6) |
Other, net | 0.4 | 0.7 | 0.4 |
Balance at end of period | 4.9 | 6.2 | 4.8 |
Inventory obsolescence reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 3.1 | 4.4 | 3.9 |
Additions charged to costs and expenses | 0 | 0 | 0.5 |
Deductions | 0 | (1.3) | 0 |
Other, net | 0 | 0 | 0 |
Balance at end of period | 3.1 | 3.1 | 4.4 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 2 | 1.8 | 1.6 |
Additions charged to costs and expenses | 0.4 | 0.5 | 0.2 |
Deductions | (0.1) | (0.3) | 0 |
Other, net | 0 | 0 | 0 |
Balance at end of period | $ 2.3 | $ 2 | $ 1.8 |