Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 71,921,125 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 2,184,022,437 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Net sales | $ 1,084.4 | $ 1,046.5 | $ 1,092.4 | |
Cost of goods sold | 667.3 | 628.9 | 685 | |
Gross profit | 417.1 | 417.6 | 407.4 | |
Selling, general and administrative expenses | 296.5 | 266.3 | 257.7 | |
Research and development expenses | 20 | 18.4 | 17.5 | |
Interest expense and related financing costs | 70.2 | 65.8 | 1.5 | |
Interest expense, net - related party | 0 | 0 | 1.2 | |
Repositioning expenses | 9.8 | 15.3 | 0 | |
Restructuring expenses and asset impairments | 13.5 | 1.9 | 9.8 | |
Loss in Venezuela | 38.3 | 0 | 55.2 | |
Other (income) expense, net | (2.9) | 14.6 | 7.9 | |
Total costs and expenses | 445.4 | 382.3 | 350.8 | |
(Loss) income from continuing operations before income taxes | (28.3) | 35.3 | 56.6 | |
Income tax expense | (82.1) | (6.7) | (56) | |
(Loss) income from continuing operations | (110.4) | 28.6 | 0.6 | |
Income from discontinued operations, net of income taxes | 664.3 | 45.2 | 40.1 | |
Net income | 553.9 | 73.8 | 40.7 | |
Less: Net income attributable to noncontrolling interests | (0.5) | (1) | (0.6) | |
Net income attributable to GCP shareholders | 553.4 | 72.8 | 40.1 | |
Amounts Attributable to GCP Shareholders: | ||||
(Loss) income from continuing operations attributable to GCP shareholders | (110.9) | 27.6 | 0 | |
Income from discontinued operations, net of income taxes | 664.3 | 45.2 | 40.1 | |
Net income attributable to GCP shareholders | $ 553.4 | $ 72.8 | $ 40.1 | |
Basic earnings per share: | ||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | $ (1.55) | $ 0.39 | $ 0 | |
Income from discontinued operations, net of income taxes (in usd per share) | 9.29 | 0.64 | 0.57 | |
Net income attributable to GCP shareholders (in usd per share) | [1] | $ 7.74 | $ 1.03 | $ 0.57 |
Weighted average number of basic shares (in shares) | 71.5 | 70.8 | 70.5 | |
Diluted earnings per share | ||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | [2] | $ (1.55) | $ 0.38 | $ 0 |
Income from discontinued operations, net of income taxes (in usd per share) | [2] | 9.29 | 0.63 | 0.57 |
Net income attributable to GCP shareholders (in usd per share) | [1],[2] | $ 7.74 | $ 1.02 | $ 0.57 |
Weighted average number of diluted shares (in shares) | [2] | 71.5 | 71.7 | 70.5 |
[1] | Amounts may not sum due to rounding | |||
[2] | Dilutive effect only applicable to periods where there is net income from continuing operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 721.5 | $ 147 |
Trade accounts receivable, less allowance of $5.7 (2016—$4.5) | 217.1 | 166.6 |
Inventories | 106.3 | 89.3 |
Other current assets | 48.6 | 42.9 |
Current assets held for sale | 19.7 | 108 |
Total Current Assets | 1,113.2 | 553.8 |
Properties and equipment, net | 216.6 | 192.6 |
Goodwill | 198.2 | 114.9 |
Technology and other intangible assets, net | 91.8 | 52.6 |
Deferred income taxes | 30.2 | 76.9 |
Overfunded defined benefit pension plans | 26.4 | 21.2 |
Other assets | 23.8 | 22.4 |
Assets held for sale | 2.8 | 55.4 |
Total Assets | 1,703 | 1,089.8 |
Current Liabilities | ||
Debt payable within one year | 24 | 47.9 |
Accounts payable | 134.8 | 95.9 |
Other current liabilities | 316.2 | 119.5 |
Current liabilities held for sale | 7.8 | 48.2 |
Total Current Liabilities | 482.8 | 311.5 |
Debt payable after one year | 520.3 | 783 |
Income taxes payable | 58.3 | 0 |
Deferred income taxes | 14.7 | 6.6 |
Unrecognized tax benefits | 42.4 | 9.7 |
Underfunded and unfunded defined benefit pension plans | 57.1 | 83.2 |
Other liabilities | 35.1 | 13.9 |
Noncurrent liabilities held for sale | 0.3 | 20.9 |
Total Liabilities | 1,211 | 1,228.8 |
Commitments and Contingencies - Note 9 | ||
Stockholders' Equity (Deficit): | ||
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 71,754,344 and 71,081,764, respectively | 0.7 | 0.7 |
Paid-in capital | 29.9 | 11 |
Accumulated earnings (deficit) | 548.7 | (4.7) |
Accumulated other comprehensive loss | (85.7) | (147.6) |
Treasury stock | (3.4) | (2.1) |
Total GCP Stockholders' Equity (Deficit) | 490.2 | (142.7) |
Noncontrolling interests | 1.8 | 3.7 |
Total Stockholders' Equity (Deficit) | 492 | (139) |
Total Liabilities and Stockholders' Equity | $ 1,703 | $ 1,089.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 5.7 | $ 4.5 |
Common stock issued, par value (in usd per share) | $ 0.01 | |
Common stock, number of shares authorized | 300,000,000 | 300,000,000 |
Common stock, number of shares outstanding | 71,754,344 | 71,081,764 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 553.9 | $ 73.8 | $ 40.7 |
Other comprehensive income (loss): | |||
Defined benefit pension and other postretirement plans, net of income taxes | 0.3 | 0 | 0.4 |
Currency translation adjustments | 61.7 | (19.9) | (62.3) |
(Loss) gain from hedging activities, net of income taxes | (0.1) | 0 | 0.2 |
Total other comprehensive income (loss) attributable to noncontrolling interests | 0 | 0.2 | (0.1) |
Total other comprehensive income (loss) | 61.9 | (19.7) | (61.8) |
Comprehensive income (loss) | 615.8 | 54.1 | (21.1) |
Less: Comprehensive income attributable to noncontrolling interests | (0.5) | (1) | (0.6) |
Comprehensive income (loss) attributable to GCP shareholders | $ 615.3 | $ 53.1 | $ (21.7) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Accumulated Earnings / (Deficit) | Net Parent Investment | Accumulated Other Comprehensive Loss | Noncontrolling Interests | ||
Beginning balance (in shares) at Dec. 31, 2014 | 0 | 0 | ||||||||
Beginning balance at Dec. 31, 2014 | $ 607.4 | $ 0 | $ 0 | $ 0 | $ 0 | $ 670.6 | $ (66) | $ 2.8 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | Previously Reported | 40.9 | 40.1 | 0.8 | |||||||
Net income | 40.7 | |||||||||
Other comprehensive income (loss) | (61.8) | (61.7) | (0.1) | |||||||
Net transfer to 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 income (loss) | (19.7) | (19.9) | 0.2 | |||||||
Net transfer to parent | (675.1) | (675.1) | ||||||||
Issuance of common stock and reclassification of net parent investment in connection with Separation (in shares) | 70,500,000 | |||||||||
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 in connection with stock plans (in shares) | 100,000 | |||||||||
Share-based compensation | 6.4 | 6.4 | ||||||||
Exercise of stock options (in shares) | 600,000 | |||||||||
Exercise of stock options | $ 4.6 | 4.6 | ||||||||
Share repurchases (in shares) | 112,000 | 100,000 | ||||||||
Share repurchases | $ (2.1) | $ (2.1) | ||||||||
Dividends and other changes in noncontrolling interest | (1) | (1) | ||||||||
Ending balance (in shares) at Dec. 31, 2016 | 71,200,000 | 100,000 | ||||||||
Ending balance at Dec. 31, 2016 | (139) | $ 0.7 | $ (2.1) | 11 | (4.7) | 0 | (147.6) | 3.7 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 553.9 | 553.4 | 0.5 | |||||||
Other comprehensive income (loss) | 61.9 | 61.9 | ||||||||
Issuance of common stock in connection with stock plans (in shares) | 100,000 | |||||||||
Share-based compensation | 8.6 | 8.6 | ||||||||
Exercise of stock options (in shares) | 600,000 | |||||||||
Exercise of stock options | $ 8.6 | 8.6 | ||||||||
Share repurchases (in shares) | 47,000 | 0 | [1] | |||||||
Share repurchases | [1] | $ (1.3) | $ (1.3) | |||||||
Other changes in additional paid in capital | [2] | 1.7 | 1.7 | |||||||
Dividends and other changes in noncontrolling interest | (2.4) | (2.4) | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 71,900,000 | 100,000 | ||||||||
Ending balance at Dec. 31, 2017 | $ 492 | $ 0.7 | $ (3.4) | $ 29.9 | $ 548.7 | $ 0 | $ (85.7) | $ 1.8 | ||
[1] | As of December 31, 2017, GCP repurchased approximately 47,000 shares of Company common stock for $1.3 million in connection with its equity compensation programs; number of shares is not included in the table above due to rounding. | |||||||||
[2] | During 2017, GCP assumed certain net pension assets in accordance with the final division of the Grace plan. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
OPERATING ACTIVITIES | |||
Net income | $ 553.9 | $ 73.8 | $ 40.7 |
Less: income from discontinued operations | 664.3 | 45.2 | 40.1 |
(Loss) income from continuing operations | (110.4) | 28.6 | 0.6 |
Reconciliation to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 36.8 | 29.8 | 27 |
Amortization of debt discount and financing costs | 2.7 | 2.8 | 0 |
Stock-based compensation expense | 8.5 | 6.6 | 3.6 |
Gain on termination and curtailment of pension and other postretirement plans | (6.6) | (0.8) | 0 |
Currency and other losses in Venezuela | 40.1 | 3 | 63 |
Deferred income taxes | 70.9 | (17.7) | (4.3) |
Excess tax benefits from stock-based compensation | 0 | 0 | (8.2) |
(Gain) loss on disposal of property and equipment | (0.3) | 0.9 | 4 |
Loss on sale of product line | 2.1 | 0 | 0 |
Changes in assets and liabilities, excluding effect of currency translation: | |||
Trade accounts receivable | (45.1) | (10.4) | (14.9) |
Inventories | (11.3) | (4.3) | (7.8) |
Accounts payable | 30.9 | 5.7 | 3.6 |
Pension assets and liabilities, net | (26) | 21.5 | 13.4 |
Other assets and liabilities, net | 2.3 | 10.1 | 4.3 |
Net cash (used in) provided by operating activities from continuing operations | (5.4) | 75.8 | 84.3 |
Net cash (used in) provided by operating activities from discontinued operations | (34.1) | 52.1 | 67.5 |
Net cash (used in) provided by operating activities | (39.5) | 127.9 | 151.8 |
INVESTING ACTIVITIES | |||
Capital expenditures | (45) | (40.9) | (30.1) |
Receipt of payment on loan from related party | 0 | 0 | 25.2 |
Businesses acquired, net of cash acquired | (121.2) | (47) | 0 |
Proceeds from sale of product line | 2.9 | 0 | 0 |
Other investing activities | 2.4 | 1.6 | 0.5 |
Net cash used in investing activities from continuing operations | (160.9) | (86.3) | (4.4) |
Net cash provided by (used in) investing activities from discontinued operations | 1,043.1 | (4.4) | 15.1 |
Net cash provided by (used in) investing activities | 882.2 | (90.7) | 10.7 |
FINANCING ACTIVITIES | |||
Borrowings under credit arrangements | 122.8 | 321.1 | 51.2 |
Repayments under credit arrangements | (419.5) | (32.9) | (56.5) |
Borrowings under related party loans | 0 | 0 | 2.4 |
Repayments under related party loans | 0 | 0 | (12.9) |
Proceeds from issuance of notes | 0 | 525 | 0 |
Cash paid for debt financing costs | 0 | (18.2) | 0 |
Share repurchases | (1.3) | (2.1) | 0 |
Proceeds from exercise of stock options | 8 | 4.3 | 0 |
Excess tax benefits from stock-based compensation | 0 | 0 | 8.2 |
Noncontrolling interest dividend | (2) | (1) | 0 |
Transfers to parent, net | 0 | (758.7) | (119.6) |
Net cash (used in) provided by financing activities from continuing operations | (292) | 37.5 | (127.2) |
Net cash provided by (used in) financing activities from discontinued operations | 1.1 | (5.8) | (1) |
Net cash (used in) provided by financing activities | (290.9) | 31.7 | (128.2) |
Effect of currency exchange rate changes on cash and cash equivalents | 6.4 | (4.2) | (56.6) |
Increase (decrease) in cash and cash equivalents | 558.2 | 64.7 | (22.3) |
Cash and cash equivalents, beginning of year | 163.3 | 98.6 | 120.9 |
Cash and cash equivalents, end of year | 721.5 | 163.3 | 98.6 |
Less: Cash and cash equivalents of discontinued operations | 0 | 16.3 | 13.6 |
Cash and cash equivalents of continuing operations, end of year | 721.5 | 147 | 85 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes, net of refunds | 11.2 | 24.4 | 12.9 |
Cash paid for income taxes, net of refunds--former Parent | 0 | 0 | 47.4 |
Cash paid for interest on notes and credit arrangements | $ 59.6 | $ 39.3 | $ 2.4 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 W.R. Grace & Co. ("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, at which time GCP became an independent public company and its common stock listed and began trading under the symbol "GCP" on the New York Stock Exchange. GCP is engaged in the production and sale of specialty construction chemicals and specialty building materials through two 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 and other products designed to protect the building envelope. On July 3, 2017 (the "Closing Date"), GCP completed the sale of its Darex Packaging Technologies ("Darex") business to Henkel AG & Co. KGaA (“Henkel”) for $1.06 billion in cash. As discussed further below under "Discontinued Operations," the results of operations for Darex have been excluded from continuing operations and segment results for all periods presented. Basis of Presentation 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, except as noted below with respect to the Company's Venezuela subsidiary. The financial statements reflect the financial position, results of operations and cash flows of GCP in accordance with generally accepted accounting principles in the United States of America ("GAAP") and with the instructions to Form 10-K. Discontinued Operations As noted above, on July 3, 2017 , the Company completed the sale of Darex to Henkel. In conjunction with this transaction and applicable GAAP, the assets and liabilities related to Darex have been reclassified and reflected as "held for sale" on the Consolidated Balance Sheet as of December 31, 2016 . As discussed further in Note 18, the assets and liabilities of the Darex business in certain delayed close countries are categorized as “Assets held for sale” or “Liabilities held for sale” in the accompanying Consolidated Balance Sheet as of December 31, 2017 . Additionally, Darex has been reclassified and reflected as "discontinued operations" on the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented. GCP recognized a pre-tax gain on the sale of Darex of approximately $880.8 million for the year ended December 31, 2017 . The calculation of the pre-tax gain excludes deferral of $68.7 million of consideration related to the delayed closings, which was received on the Closing Date. Deferred consideration is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheet as of December 31, 2017 . Unless otherwise noted, the information throughout the Notes to the Consolidated Financial Statements pertains only to the continuing operations of GCP. Refer to Note 18 for further discussion of the sale of Darex. Deconsolidation of Venezuelan Operations Prior to July 3, 2017, the Company included the results of its Venezuelan operations (“GCP Venezuela”) in the Consolidated Financial Statements using the consolidation method of accounting. Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, and have restricted GCP Venezuela’s ability to pay dividends and meet obligations denominated in U.S. dollars. These exchange regulations, combined with other recently adopted regulations, have constrained availability of raw materials and have significantly limited GCP Venezuela’s ability to maintain normal production. As a result of these conditions, combined with the loss of scale in Venezuela resulting from the sale of the Company’s Darex-related operations and assets in Venezuela, GCP has deconsolidated its Venezuelan operations as of July 3, 2017 in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation . Subsequent to this date, the Company began accounting for GCP Venezuela using the cost method of accounting. This change resulted in a pre-tax charge of $36.7 million , which is reflected in “Loss in Venezuela” in the accompanying Consolidated Statements of Operations, primarily related to the recognition of $33.4 million of unfavorable cumulative translation adjustments associated with the Venezuelan business. In periods subsequent to July 3, 2017, the Company’s financial results do not include the operating results of GCP Venezuela. The Company will record cash and recognize income from its Venezuelan operations in the consolidated financial statements to the extent GCP is paid for inventory sold to or dividends received from GCP Venezuela. The remaining investment on the Company's Consolidated Balance Sheet as of December 31, 2017 is immaterial. Separation from Grace 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 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 Consolidated 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 continued to provide certain of these functions under a transition services agreement, which remained in place for a period of 18 months from the Separation. As of December 31, 2017, the activities subject to the transition services agreement were complete. Refer to Note 12 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 Consolidated 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 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 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 (refer to Note 9) and income taxes (refer to Note 6); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (refer to Note 7); and • Realization values of net deferred tax assets, which depend on projections of future taxable income. In addition, the provisional estimates of the impact of The Tax Cuts and Jobs Act of 2017 ("2017 Tax Act") that were recorded as of December 31, 2017 may be subject to material adjustments in 2018 as the Company changes its interpretations and assumptions underlying the related charge, as well as guidance that may be issued, and actions the Company may take as a result of the tax legislation. 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 net realizable value. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. Long-Lived Assets Properties and equipment are stated at cost. Depreciation of properties and equipment is generally computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives range from 20 to 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 ; however, there were impairment charges recorded in 2017 and 2015 (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 FASB 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 files 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 was 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, such as a major plan amendment or curtailment, 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 authoritative accounting guidance. The Company recognizes expenses related to stock-based compensation payment transactions over the requisite service period, which may be the stated vesting period, in which it receives employee services in exchange for equity and/or liability instruments of the Company or based on the fair value of the Company’s equity instruments. The expense is reduced by estimated forfeitures expected over the requisite service period, and at the end of that time, the cumulative expense is adjusted to account for actual forfeitures that occurred. Total stock compensation costs are included within "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Refer to Note 13 for further discussion. 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. 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 $63.0 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 $7.8 million of this amount related to inventory to cost of goods sold and $55.2 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 the first quarter of 2016, changes to the currency exchange systems were announced which eliminated the SICAD exchange rate and replaced the name SIMADI rate with DICOM, a floating exchange rate. The Company recorded a $3.0 million loss within “Other (income) expense, net,” in the Consolidated Statements of Operations for the year ended December 31, 2016 to reflect the remeasurement of the Venezuela subsidiary’s net monetary assets to U.S. dollars. In May of 2017, the Venezuela government announced that it had completed its first auction under the new DICOM exchange mechanism at a rate of 2,010 bolivars per U.S. dollar, an increase of 176.1% from the previously published rate of 728 bolivar per U.S. dollar. As a result of the change in the exchange mechanism and devaluation of the bolivar, the Company recorded a foreign exchange remeasurement and impairment loss of $7.1 million , of which $2.4 million was from continuing operations and $4.7 million was from discontinued operations. Of the $2.4 million from continuing operations, $1.6 million is reflected in “Loss in Venezuela” and $0.8 million is reflected in “Cost of goods sold” within the accompanying Consolidated Statement of Operations for the year ended December 31, 2017. At the end of June 2017, the DICOM rate increased to 2,640 bolivars per U.S. dollar. As a result, the Company recorded a foreign exchange remeasurement loss of $1.2 million , of which $0.3 million was from continuing operations and $0.9 million was from discontinued operations. The $0.3 million from continuing operations is reflected in “Other (income) expense, net” within the accompanying Consolidated Statement of Operations for the year ended December 31, 2017. GCP deconsolidated its Venezuelan operations as of July 3, 2017 and, as a result, the Company's financial results no longer include the operations of GCP Venezuela, including currency translation adjustments, beyond that date. Recently Issued Accounting Standards Derivatives and Hedging In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815). The amendments in this update improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The standard is effective for the Company as of January 1, 2019, and early adoption is permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, but does not expect the adoption of this standard will have a material effect on its Consolidated Financial Statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard is effective for the Company on January 1, 2018, with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date, and, therefore, GCP will consider the provisions of this update in conjunction with awards issued on or after January 1, 2018, as applicable. 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 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. GCP will adopt the standard beginning January 1, 2018 through a cumulative adjustment to retained earnings, as opposed to retrospectively adjusting prior periods, and continues to progress in its evaluation of the potential impact of the standard on its Consolidated Financial Statements and related disclosures. Unde |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. GCP determines cost using the FIFO methodology. Inventories presented on GCP's Consolidated Balance Sheets consisted of the below. December 31, (In millions) 2017 2016 Raw materials $ 41.9 $ 35.7 In process 3.5 3.6 Finished products and other 60.9 50.0 Total inventories $ 106.3 $ 89.3 Included above as "other" within "Finished products and other" are finished products purchased rather than produced by GCP of $11.1 million and $10.9 million as of December 31, 2017 and December 31, 2016 , respectively. |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | Properties and Equipment December 31, (In millions) 2017 2016 Land $ 6.3 $ 6.2 Buildings 131.9 109.1 Machinery, equipment and other 388.9 343.2 Information technology and equipment 76.6 64.6 Projects under construction 20.4 26.0 Properties and equipment, gross 624.1 549.1 Accumulated depreciation and amortization (407.5 ) (356.5 ) Properties and equipment, net $ 216.6 $ 192.6 Depreciation and amortization expense relating to properties and equipment was $30.4 million , $25.9 million and $22.5 million , in 2017 , 2016 and 2015 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 , are as presented below. (In millions) SCC SBM Total Balance, December 31, 2015 $ 44.2 $ 53.5 $ 97.7 Foreign currency translation (0.5 ) (0.5 ) (1.0 ) Acquisitions 2.1 16.1 18.2 Balance, December 31, 2016 $ 45.8 $ 69.1 $ 114.9 Foreign currency translation 3.8 6.9 10.7 Acquisitions 15.5 58.4 73.9 Divestitures — (1.3 ) (1.3 ) Balance, December 31, 2017 $ 65.1 $ 133.1 $ 198.2 GCP's net book value of other intangible assets at December 31, 2017 and 2016 was $91.8 million and $52.6 million , respectively, detailed below. December 31, 2017 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 82.4 $ 25.4 Technology 40.9 14.2 Trademarks 17.1 10.0 Other 5.9 4.9 Total $ 146.3 $ 54.5 December 31, 2016 (In millions) Gross Carrying Accumulated Customer lists $ 55.4 $ 20.3 Technology 23.7 11.2 Trademarks 12.7 8.8 Other 5.8 4.7 Total $ 97.6 $ 45.0 Total indefinite-lived assets included above at December 31, 2017 and 2016 were $5.6 million and $3.7 million , respectively. During 2017, GCP acquired the intellectual property and related assets of Contek Shilstone Inc., including $1.5 million of in-process research and development and $1.5 million of goodwill. Amortization expense related to intangible assets was $6.4 million , $3.9 million and $4.5 million in 2017 , 2016 and 2015 , respectively. At December 31, 2017 , estimated future annual amortization expense for intangible assets is presented below. (In millions) 2018 $ 8.5 2019 8.4 2020 8.4 2021 7.8 2022 7.7 Thereafter 45.0 Total $ 85.8 During 2017, GCP acquired 100% of the stock of Ductilcrete Technologies ("Ductilcrete") and Stirling Lloyd Plc ("Stirling Lloyd"). In 2016, GCP acquired the intellectual property and related assets of Sensocrete and 100% of the stock of Halex Corporation ("Halex"). Refer to Note 16 for further discussion of the related intangible assets and goodwill, to the extent material to the Company's accompanying Consolidated Financial Statements. |
Debt and Other Financial Instru
Debt and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Other Financial Instruments | Debt and Other Financial Instruments Components of Debt December 31, (In millions) 2017 2016 9.5% Senior Notes due 2023, net of unamortized debt issuance costs of $6.4 at December 31, 2017 (2016 — $7.3) $ 518.6 $ 517.7 Term Loan due 2022, net of unamortized discount of $2.4M and unamortized debt issuance costs of $4.3M at December 31, 2016 (1) — 266.2 Revolving credit facility due 2021 (2) — 25.0 Other borrowings (3) 25.7 22.0 Total debt 544.3 830.9 Less debt payable within one year 24.0 47.9 Debt payable after one year $ 520.3 $ 783.0 Weighted average interest rates on total debt 9.4 % 7.5 % __________________________ (1) GCP repaid the outstanding principal balance and accrued interest on the Term Loan in July 2017. Refer below to "Credit Agreement" disclosure. (2) Interest at LIBOR +200 bps at December 31, 2017 . (3) Represents borrowings under various lines of credit, primarily by non-U.S. subsidiaries. The principal maturities of debt outstanding (net of unamortized debt issuance costs) at December 31, 2017 are presented below. (In millions) 2018 $ 24.0 2019 0.9 2020 0.8 2021 — 2022 — Thereafter 518.6 Total debt $ 544.3 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 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, 2017 . 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, 2017 . 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 a United Kingdom holding company. During 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 outstanding principal balance was replaced by a like aggregate principal balance with substantially similar terms to the Credit Agreement. In the third quarter of 2017, the Company repaid the outstanding principal balance and extinguished the Term Loan under the Credit Agreement, which, together with accrued and unpaid interest, was $272.6 million . In conjunction with the debt repayment, GCP wrote-off the net unamortized discount of $2.1 million and the net unamortized debt issuance costs of $3.9 million related to the Term Loan, which are reflected in "Interest expense and related financing costs" in the Consolidated Statement of Operations. 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. As of December 31, 2017, there were no outstanding draws and approximately $10 million in outstanding letters of credit, which resulted in available credit under the Revolving Loan of $240.0 million . The summary above of the Credit Agreement and First Amendment to Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such agreements, copies of which have been filed with the SEC. 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. The Notes become callable at a premium over their face amount on February 1, 2019. The Notes are redeemable prior to February 1, 2019 at a price that reflects a yield to the first call that is equivalent to the applicable Treasury bond yield plus 0.5 percentage points. Beginning on or after February 1, 2019 and 2020, and until the next applicable redemption date, the Notes are redeemable at a percentage of par equal to 104.8% and 102.4% , respectively. Prior to maturity, on or after February 1, 2021, the Notes are redeemable at par. 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; and (iv) make certain investments and acquisitions, merge or sell or otherwise dispose of all or substantially all assets. Other Items As discussed in Note 1, on July 3, 2017, the Company completed the sale of Darex to Henkel for approximately $1.06 billion , in cash. The sale of Darex is a permitted transaction under the Company's Credit Agreement and the Indenture governing the Notes. Under the Credit Agreement and Indenture, the Company is required to use any net cash proceeds from the sale of Darex to prepay debt or make investments in its business over a period of approximately 18 months. As of December 31, 2017, GCP has repaid all the outstanding debt of the Term Loan and Revolving Loan. Refer to Note 18 for further discussion of the sale of Darex. During 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 continues to amortize the costs related to the Notes over the term of the underlying obligation. 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 the debt issuance costs associated with the Revolving Loan was $3.2 million and $4.2 million as of December 31, 2017 and 2016, respectively. 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, 2017 , the carrying amounts and fair values of GCP's debt are presented below. December 31, 2017 December 31, 2016 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 9.5% Senior Notes due 2023 $ 518.6 $ 584.5 $ 517.7 $ 603.1 Term Loan due 2022 — — 266.2 274.6 Revolving credit facility due 2021 — — 25.0 25.0 Other borrowings 25.7 25.7 22.0 22.0 Total debt $ 544.3 $ 610.2 $ 830.9 $ 924.7 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 decrease in fair value on the Senior Notes as of December 31, 2017 was due to the Federal Reserve raising the federal funds target rate during 2017 and due to the call rates as defined in the bond redemption schedule. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for Income Taxes The components of income before income taxes and the related provision for income taxes for 2017 , 2016 and 2015 are presented below. (In millions) 2017 2016 2015 (Loss) income before income taxes: Domestic $ (27.4 ) $ (5.9 ) $ 56.4 Foreign (0.9 ) 41.2 0.2 Total $ (28.3 ) $ 35.3 $ 56.6 Provision for (benefit from) income taxes: Federal—current $ 27.2 $ (4.2 ) $ 32.2 Federal—deferred 39.4 0.5 0.6 State and local—current (3.8 ) (0.5 ) 7.0 State and local—deferred 2.7 — 0.1 Foreign—current 5.7 10.4 21.4 Foreign—deferred 10.9 0.5 (5.3 ) Total $ 82.1 $ 6.7 $ 56.0 The income by jurisdiction above does not reflect $277.0 million , $15.5 million and $173.1 million of domestic income resulting from repatriated earnings in 2017 , 2016 and 2015 , respectively. Tax Reform The 2017 Tax Act, which was signed into law on December 22, 2017, has resulted in significant changes to the Internal Revenue Code. These significant changes include, but are not limited to, the federal corporate tax rate being reduced from 35% to 21%, the elimination or reduction of certain domestic deductions and credits, along with limitations on interest expense and executive compensation. The 2017 Tax Act also transitions international taxation from a worldwide system to a modified territorial system and includes base erosion prevention measures on non-US earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to US taxation as global intangible low-taxed income (GILTI). Due to the complexity of the new GILTI rules, the Company is continuing to evaluate this provision of the Tax Act. The Company has not recorded any provisional amounts as of December 31, 2017 nor has management made an accounting policy choice of including taxable income related to GILTI as either a current period tax expense or factoring such amounts into our measurement of deferred taxes. All these changes are effective beginning in 2018. The 2017 Tax Act also includes a one-time mandatory deemed repatriation tax on accumulated foreign subsidiaries previously untaxed foreign earnings (the "Transition Toll Tax"). During the year ended December 31, 2017, the Company recorded a provisional net charge of $81.7 million related to the provisions of the 2017 Tax Act, which is comprised of a $70.5 million Transition Toll Tax and a $11.2 million revaluation of net deferred tax assets. Changes in tax rates and tax laws are accounted for in the period of enactment. Transition Toll Tax The 2017 Tax Act eliminates the deferral of U.S. income tax on the historical unrepatriated earnings by imposing the Transition Toll Tax, which is a one-time mandatory deemed repatriation tax on undistributed earnings. The Transition Toll Tax is assessed on the U.S. shareholder's share of the foreign corporation's accumulated foreign earnings that have not previously been taxed. Earnings in the form of cash and cash equivalents will be taxed at a 15.5% and all other earnings will be taxed at 8.0% . As of December 31, 2017, the Company has calculated its best estimate of the impact of the 2017 Tax Act in its year end income tax provision in accordance with its understanding of the act and guidance available as of the date of this filing. The provisional amount related to the one-time transition tax expense on the mandatory deemed repatriation of foreign earnings is approximately $70.5 million , which is net of foreign tax credits generated. The Transition Toll Tax will be paid over an eight -year period, starting in 2018, and will not accrue interest. After giving effect to the utilization of foreign tax credits and the consideration of state tax, the Company’s estimate of its payment for 2018 is approximately $6 million . Effect on Deferred Assets and Liabilities The Company's deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. As the Company's deferred tax assets exceed the balance of deferred tax liabilities at the date of enactment, the Company has recorded a provisional tax expense of $11.2 million , reflecting the decrease in the U.S. corporate income tax rate and other changes in U.S. tax law. Status of Company's Assessment of the 2017 Tax Act On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. The Company's accounting for the effects of the 2017 Tax Act, including the preliminary estimates of the Transition Toll Tax and the remeasurement of its deferred tax assets and liabilities is subject to the finalization of management's analysis related to certain matters, such as developing interpretations of the provisions of the 2017 Tax Act, changes to certain estimates and amounts related to the earnings and profits of certain subsidiaries and the filing of the Company's tax returns. Future U.S. Treasury regulations, administrative interpretations or court decisions interpreting the 2017 Tax Act may require further adjustments and changes in management's estimates. The Company's final determination of the accounting of the effects of the 2017 Tax Act, including the Transition Toll Tax and the remeasurement of our deferred assets and liabilities, will be completed as additional information becomes available, but no later than one year from the enactment of the 2017 Tax Act. 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) 2017 2016 2015 Tax (benefit) provision at U.S. federal income tax rate $ (9.9 ) $ 12.4 $ 19.8 Change in provision resulting from: Deconsolidation of Venezuela (1) 11.5 — — Devaluation in Venezuela 1.4 — 21.5 2017 Tax Act 81.7 — — Recognition of outside basis differences (13.9 ) — 9.3 U.S. foreign income inclusions 1.1 (3.1 ) Effect of tax rates in foreign jurisdictions (1.0 ) (4.5 ) 8.6 Valuation allowance 11.4 0.4 — State and local income taxes, net (1.2 ) — 4.2 Benefit from domestic production activities — — (2.6 ) Return to provision – change in estimate 0.4 — 1.2 Nondeductible expenses and non-taxable items 3.5 2.5 (3.0 ) Research and other state credits (0.8 ) (0.7 ) (0.2 ) Uncertain tax positions (0.7 ) (1.6 ) 0.9 Equity compensation (1.2 ) (1.7 ) — Other (0.2 ) (0.1 ) (0.6 ) Provision for income taxes $ 82.1 $ 6.7 $ 56.0 __________________________ (1) Amount in 2017 is offset by the benefit resulting from outside basis differences in primarily Mexico and Venezuela, which is included in the table above in "Recognition of outside basis differences." The income tax provision for the years ended December 31, 2017 , 2016 , and 2015 was $82.1 million , $6.7 million and $56.0 million respectively, representing effective tax rates of 290.1% , 19.0% , and 98.9% respectively. The increase in the Company's effective tax rate for the year ended December 31, 2017 compared to the same period in 2016 was primarily due to the provisions of the 2017 Tax Act, an increase in valuation allowances due to the sale of Darex, partially off-set by a benefit for taxes related to outside basis differences in foreign subsidiaries. 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 a non-deductible loss in Venezuela recorded in 2015. The Company's 2017 effective tax rate of 290.1% was higher than the 35% U.S. statutory rate primarily due to net expenses recognized during the year comprised of $81.7 million due to the 2017 Tax Act, $11.5 million due to non-deductible charges for the Venezuela deconsolidation, a $13.9 million benefit due to differences between book and tax basis in Venezuela and Mexico and $11.4 million of expense due to an increase in valuation allowance primarily due to the sale of Darex. The Company's 2016 effective tax rate of approximately 19% was lower than the 35% U.S. statutory rate primarily due to benefits recognized during the year, including $4.5 million benefit due to lower taxes in non-U.S. jurisdictions, $0.7 million benefit related to income tax credits and $1.6 million benefit related to the release of reserves for uncertain tax positions and $2.5 million expense for non-deductible expenses. The Company's 2015 effective tax rate of approximately 99% was higher than the 35% U.S. statutory rate primarily due to $21.5 million expense related to the Venezuela nondeductible charge, $9.3 million U.S. tax expense related to the repatriation of foreign earnings in connection with the Separation, $4.2 million expense related to state and local income taxes and $3 million benefit for non-taxable amounts, $2.6 million benefit related to the domestic production activities deduction and an $8.6 million expense related to foreign withholding taxes. 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 $63.0 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, 2017 and 2016 , the deferred tax assets and liabilities consisted of the below items. (In millions) December 31, 2017 December 31, 2016 Deferred tax assets: Foreign net operating loss carryforwards $ 24.5 $ 11.6 Research and development 2.4 6.3 Reserves and allowances 12.5 14.3 Pension benefits 8.3 21.4 Intangible assets/goodwill 1.4 24.5 Stock compensation 3.8 4.4 Foreign tax credits — 3.5 Other 2.5 2.6 Total deferred tax assets $ 55.4 $ 88.6 Deferred tax liabilities: Properties and equipment $ (12.1 ) $ (12.2 ) Intangible assets/goodwill — — Other (3.9 ) (3.8 ) Total deferred tax liabilities $ (16.0 ) $ (16.0 ) Valuation Allowance: Foreign net operating loss carryforwards (23.9 ) (2.3 ) Net deferred tax assets $ 15.5 $ 70.3 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, 2017 and 2016 , GCP has recorded a valuation allowance of $23.9 million and $2.3 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. As of December 31, 2016 , the Company asserted that the weight of the positive evidence outweighed the negative evidence regarding the realization of the net deferred tax assets in Grace Brasil. In 2017, however, as a result of the sale of Darex, the Company believes it is no longer more likely than not that it will realize its Brazil deferred tax assets and has recorded a valuation allowance accordingly. In addition to Brazil, the Company has also recorded in 2017 a valuation allowance against deferred tax assets in France and Germany, predominantly due to the sale of the Darex business. As part of sale of Darex, a capital loss was recognized in Japan on the sale of stock of the Company's Japanese subsidiary. Although this loss can be carried over in Japan, the Company may not have sufficient income to utilize this asset and has recorded a valuation allowance. As of December 31, 2017, the company had net operating losses for income tax purposes of approximately $76.3 million . These net operating losses consist primarily of Brazil net operating losses of $23.9 million with an unlimited carryover period, $32.0 million of Japan net operating losses that begin to expire in 2026 and $7.7 million of India net operating losses that begin to expire in 2018. Unrepatriated Foreign Earnings As of December 31, 2017, no provision has been made for income taxes on certain undistributed earnings of foreign subsidiaries the Company provisionally intends to permanently reinvest or that may be remitted substantially tax-free. Due the transition tax on deemed repatriation required by the 2017 Tax Act, the Company has been subject to tax in 2017 on substantially all of its previously undistributed earnings from foreign subsidiaries. Beginning in 2018, the Act will generally provide a 100% deduction for U.S. federal tax purposes of dividends received by the Company from its foreign subsidiaries. However, the Company is currently evaluating the potential foreign and U.S. state tax liabilities that would result from future repatriations, if any, and how the Act will affect the Company's existing accounting position with regard to the indefinite reinvestment of undistributed foreign earnings. The Company expects to complete this evaluation and determine the impact the legislation may have on its indefinite reinvestment assertion within the measurement period provided by SAB 118. As of December 31, 2017, the Company has $827.5 million of undistributed earnings of foreign subsidiaries. The estimated unrecorded deferred tax liability associated with these earnings is $7.8 million . Earnings of $277.0 million , $15.5 million and $173.1 million were repatriated from non-U.S. GCP subsidiaries in 2017, 2016 and 2015, respectively, resulting in an insignificant amount of U.S. income tax expense or benefit in 2017 and 2016. 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 $9.3 million in U.S. tax expense as a result of such repatriation, increasing the Company's 2015 effective tax rate by 13.6 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, including further assessment under the 2017 Tax Act. The Company considers its assertion of indefinite reinvestment provisional as of December 31, 2017. As of December 31, 2017, in accordance with this assertion, the Company has not provided for any state or withholding tax exposure that would be incurred related to repatriation of foreign earnings. 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. Pursuant to SAB 118, GCP will continually analyze measurement and evaluate its indemnifications to determine the appropriateness under the 2017 Tax Act. Unrecognized Tax Benefits A reconciliation of the unrecognized tax benefits excluding interest and penalties, for the three years ended December 31, 2017, is presented below. The Company is currently evaluating the potential foreign and U.S. state tax liabilities and how the Act will affect the Company's existing accounting positions. The Company expects to complete this evaluation and determine the impact which the legislation may have on its unrecognized tax benefits within the measurement period provided by SAB 118. (In millions) Unrecognized Tax Benefits 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 expirations of statute of limitations (1.1 ) Settlements (2.0 ) Balance, December 31, 2016 7.4 Additions for prior year tax positions 7.0 Additions for current year tax positions 26.0 Reductions for expirations of statute of limitations (1.0 ) Reductions for prior year tax positions and reclassifications (5.3 ) Balance, December 31, 2017 $ 34.1 The balance of unrecognized tax benefits as of December 31, 2017, 2016 and 2015, that if recognized, would affect GCP’s effective tax rate are $33.4 million , $7.4 million and $3.9 million , respectively, 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, 2017 and 2016 was $9.0 million and $2.3 million , respectively, net of applicable federal income tax benefits. Unrecognized tax benefits from GCP's operations are reflected in its 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, 2017 , 2016 and 2015 , the amount of unrecognized tax benefits considered obligations of Grace (including both interest and penalties) were $3.8 million , $3.7 million and $2.1 million , respectively. GCP believes it is reasonably possible that in the next 12 months due to expiration of statute of limitation that the amount of the liability for unrecognized tax benefits could decrease by approximately $1.3 million , of which $0.7 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. As of December 31, 2017, the tax years for which we remain subject to United States federal income tax assessment and state and local income tax assessment upon examination are 2015 and thereafter. We are currently under examination by the Internal Revenue Service (“IRS”) for the period ended December 31, 2016. We are also subject to taxation in various foreign jurisdictions including in Europe, the Middle East, Africa, Asia Pacific, Canada and Latin America. We are under, or may be subject to, audit or examination and additional assessments in respect of these particular jurisdictions in general for tax years 2011 and thereafter. Foreign jurisdiction audits that have been initiated and/or are ongoing include two German audits relating to GCP Darex GmbH and GCP Germany GmbH for taxable years 2014-2015, and an Indian audit relating to GCP Applied Technologies (India) Private Limited for taxable years 2013-2014. Since GCP Darex Germany was recently sold in July 2017, any assessments pursuant to the audit will be reimbursed by GCP to the buyer. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefit Plans | Pension Plans and Other Postretirement Benefit Plans The following discussion of GCP's pension plans and other postretirement benefit plans includes amounts related to continuing operations and discontinued operations. Amounts attributed to results from discontinued operations in the current and prior years are distinguished below. Multiemployer Benefit Plans Prior to the Separation, Grace sponsored other postretirement benefit and defined benefit pension plans in which GCP employees and employees from other Grace businesses participated in (the “Shared Plans”). The Shared Plans were accounted for as multiemployer benefit plans until legal plan separation, at which time GCP began accounting for the plans as single-employer or multiple-employer plans, as applicable. In the first quarter of 2016 , the postretirement life insurance benefits plan related to GCP employees was legally transferred to GCP, resulting in the assumption of $0.1 million of other liabilities; $0.8 million of prior service credit, net of tax; and $0.7 million of actuarial losses, net of tax. GCP’s allocated income for the postretirement life insurance benefits plan was $1.4 million for the year ended December 31, 2015 . The non-U.S. defined benefit pension Shared Plans were legally separated as of December 31, 2015 , increasing net pension liabilities approximately $4 million , and the U.S. defined benefit pension Shared Plans were legally separated in the first quarter of 2016 , increasing net pension liabilities approximately $44 million . GCP’s allocated pension expense for the defined benefit pension Shared Plans totaled $3.8 million for the year ended December 31, 2015 , which includes those amounts presented in continuing and discontinued operations. GCP's allocation of the multiemployer net periodic pension and other postretirement expense for the year ended December 31, 2015 is not included in the table presenting Net Periodic Benefit Cost (Income) below. The following discussion relates only to those plans accounted for as single and/or multiple-employer plans to which GCP currently or previously sponsored. Postretirement Benefits Other Than Pensions In 2016 , GCP terminated its postretirement benefit retiree life insurance plan, resulting in a net gain from the curtailment and termination totaling $0.2 million presented in "Other (income) expense, net" in the Consolidated Statement of Operations for the year ended December 31, 2016 . Pension Plans GCP sponsors defined benefit pension plans, primarily in the U.S . and the U.K., in which GCP employees and former 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. The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans in continuing operations: (In millions) December 31, December 31, Overfunded defined benefit pension plans $ 26.4 $ 21.2 Underfunded defined benefit pension plans (26.6 ) (55.6 ) Unfunded defined benefit pension plans (30.5 ) (27.6 ) Total underfunded and unfunded defined benefit pension plans (57.1 ) (83.2 ) Pension liabilities included in other current liabilities (1.0 ) (0.4 ) Net funded status $ (31.7 ) $ (62.4 ) Overfunded and underfunded plans include several advance-funded plans for which the fair value of the plan assets offset the projected benefit obligation ("PBO"). Of this group, the overfunded plans hold plan assets measured at fair value that exceeds the PBO. As of December 31, 2017 , "Overfunded defined benefit pension plans" presented in the Consolidated Balance Sheets totaled $26.4 million . In contrast to overfunded plans, the PBO of the underfunded plans is greater than the fair value of the plan assets. These plans are presented in the Consolidated Balance Sheets along with unfunded plans. Unfunded plans are funded on a pay-as-you-go basis; and therefore, the PBO is unfunded entirely. As of December 31, 2017 , the combined balance of the underfunded and unfunded plans included $58.1 million total liabilities, which is comprised of $1.0 million "Other current liabilities" and $57.1 million "Underfunded and unfunded defined benefit pension plans" in the Consolidated Balance Sheets. The Company recognized the impact of material events specific to the U.S. plans in 2017 . On May 3, 2017 , the Board of Directors approved an amendment to the GCP Applied Technologies Inc. Retirement Plan for Salaried Employees that closes the plan to new hires effective January 1, 2018 and freezes the accrual of plan benefits for all plan participants as of December 31, 2022 . In the second quarter of 2017 , the Company recognized a curtailment gain of $5.1 million in continuing operations and $0.5 million in discontinued operations as a result of this plan amendment. In the second half of 2017 , the Company recognized a $0.7 million curtailment gain due to U.S. restructuring activities and a $0.8 million curtailment gain in connection with a plan change. The Company recognized $18.7 million mark-to-market losses in accordance with the remeasurement of the U.S. plans' PBO and plan assets during the year. With the exception of the $0.5 million curtailment gain recorded in discontinued operations, these amounts are presented in "Other (income) expense, net" in the Consolidated Statement of Operations for the year ended December 31, 2017. In 2017 , the Company's non-U.S. plans' activity consisted of a plan amendment resulting in a $0.7 million reduction to the PBO and a $0.5 million increase, net of tax, of unrecognized prior service credit in "Accumulated other comprehensive loss," which will be amortized over the average remaining years of service. The Company recognized $4.6 million mark-to-market gains in accordance with the remeasurement of the non-U.S. plans' PBO and plan assets during the year, which is included in "Other (income) expense, net" in the Consolidated Statements of Operations. In connection with the divestiture of the Darex operating segment in 2017 , the Company recognized curtailment and settlement gains totaling $2.1 million in the U.S. and $14.3 million outside of the U.S. These amounts are presented in "Income from discontinued operations, net of income taxes" in the Consolidated Statements of Operations. GCP also recognized a $0.1 million non-U.S. mark-to-market gain in "Income from discontinued operations, net of income taxes" relating to remeasurement at the time of the Darex sale in the third quarter of 2017. In addition to the amounts disclosed above, the Company has included in "Income from discontinued operations, net of income taxes" mark-to-market adjustments relating to U.S. plan losses of $0.4 million in 2016 and $0.1 million in 2015 , as well as a loss relating to non-U.S. plans of $0.2 million in 2016 and a gain related to non-U.S. plans of $2.2 million in 2015 . The Company has also included non-U.S. plan service cost, interest cost and expected return on plan assets totaling $0.5 million , $1.2 million and $1.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, in "Income from discontinued operations, net of income taxes" in the Consolidated Statements of Operations. During 2016 , certain pension plans at non-U.S. locations were curtailed and/or terminated, resulting in a net gain of $0.6 million , which is included in "Other (income) expense, net" in the Consolidated Statements of Operations. At the December 31, 2017 measurement date for GCP's defined benefit pension plans, the PBO was $438.3 million compared to $423.6 million as of December 31, 2016 , whereby the 2016 PBO is not adjusted for discontinued operations. The increase in the PBO is partially due to the entrance of plan participants in the U.S. subsequent to achieving eligibility requirements relating to service and the assumption of plan liabilities in the U.S. relating to previously accrued benefits of employees that began employment with GCP in 2017. These previously accrued benefits were considered vested during employment with Grace and as active participants in the Grace plan. These amounts were offset by reductions in the PBO in 2017 due to plan amendments and the divestiture of Darex. The PBO reflects the present value of vested and non-vested benefits earned from employee service to date, based upon current services and estimated future pay increases for active employees. As of December 31, 2017 , the PBO is determined using the weighted average discount rate for U.S. plans of 3.68% and non-U.S. plans of 2.30% . 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 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 2017 and 2016 , including amounts presented in both continuing and discontinued operations. Settlements and curtailments directly related to the sale of Darex are presented within "Divestitures" below: Defined Benefit Pension Plans U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligation: Benefit obligation at beginning of year (1) $ 147.6 $ 125.7 $ 276.0 $ 296.8 $ 423.6 $ 422.5 Service cost 6.8 6.1 3.9 3.3 10.7 9.4 Interest cost 5.5 4.7 5.7 7.8 11.2 12.5 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Amendments (6.4 ) — (0.7 ) — (7.1 ) — Settlements/curtailments (0.8 ) — (2.2 ) (7.1 ) (3.0 ) (7.1 ) Divestitures (8.7 ) — (16.3 ) — (25.0 ) — Actuarial loss 25.5 14.0 0.9 33.9 26.4 47.9 Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan liabilities 4.9 — — — 4.9 — Currency exchange translation adjustments — — 23.7 (43.6 ) 23.7 (43.6 ) Benefit obligation at end of year $ 163.8 $ 147.6 $ 274.5 $ 276.0 $ 438.3 $ 423.6 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 86.3 $ 81.1 $ 259.3 $ 287.5 $ 345.6 $ 368.6 Actual return on plan assets 12.4 7.1 12.3 32.2 24.7 39.3 Employer contributions 40.0 1.0 3.8 6.4 43.8 7.4 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Settlements — — (2.2 ) (5.1 ) (2.2 ) (5.1 ) Divestitures (6.7 ) — (2.1 ) — (8.8 ) — Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan assets 7.8 — — — 7.8 — Currency exchange translation adjustments — — 22.5 (46.6 ) 22.5 (46.6 ) Fair value of plan assets at end of year $ 129.2 $ 86.3 $ 277.1 $ 259.3 $ 406.3 $ 345.6 Funded status at end of year (PBO basis) $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ 0.5 $ — $ 25.9 $ 21.2 $ 26.4 $ 21.2 Current liabilities (0.2 ) (0.2 ) (0.8 ) (0.3 ) (1.0 ) (0.5 ) Current liabilities held-for-sale — — — (0.7 ) — (0.7 ) Noncurrent liabilities (34.9 ) (59.9 ) (22.2 ) (23.2 ) (57.1 ) (83.1 ) Noncurrent liabilities held-for-sale — (1.2 ) (0.3 ) (13.7 ) (0.3 ) (14.9 ) Net amount recognized $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.6 ) (0.1 ) (0.6 ) (0.1 ) Net amount recognized $ — $ — $ (0.6 ) $ (0.1 ) $ (0.6 ) $ (0.1 ) ___________________________________________________________________________________________________________________ (1) 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. 2017 2016 2017 2016 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 3.68 % 4.27 % 2.30 % 2.42 % Rate of compensation increase 4.70 % 4.70 % 3.13 % 3.78 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.27 % 4.53 % 2.42 % 3.26 % Expected return on plan assets 6.25 % 6.25 % 2.60 % 3.50 % Rate of compensation increase 4.70 % 4.70 % 3.49 % 3.78 % Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) 2017 2016 2015 (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 $ 6.8 $ 3.9 $ — $ 6.1 $ 3.3 $ — $ 0.3 $ 3.1 $ — Interest cost 5.5 5.7 — 4.7 7.8 — 0.5 9.2 — Expected return on plan assets (5.6 ) (6.8 ) — (5.0 ) (8.6 ) — (0.8 ) (11.0 ) — Amortization of prior service cost (credit) — — — 0.1 — (0.1 ) 0.1 — — Amortization of net deferred actuarial loss — — — — — 0.1 — — — Gain on termination, curtailment and settlement of pension and other postretirement plans (9.2 ) (14.3 ) — — (0.6 ) (0.2 ) — — — Annual mark-to-market adjustment 18.7 (4.7 ) — 11.9 8.6 — 0.2 14.2 — Net periodic benefit cost (income) (1) $ 16.2 $ (16.2 ) $ — $ 17.8 $ 10.5 $ (0.2 ) $ 0.3 $ 15.5 $ — Less: Discontinued operations (income) cost (2.6 ) (13.9 ) — 0.4 1.4 — 0.1 (0.9 ) — Net periodic benefit cost (income) from continuing operations (1) $ 18.8 $ (2.3 ) $ — $ 17.4 $ 9.1 $ (0.2 ) $ 0.2 $ 16.4 $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) Net prior service credit $ — $ (0.7 ) $ — $ — $ — $ — $ — $ — $ — Amortization of prior service cost — 0.2 — (0.1 ) — — (0.1 ) — — Assumption of prior service credit — — — — — — — (0.5 ) — Total recognized in other comprehensive income $ — $ (0.5 ) $ — $ (0.1 ) $ — $ — $ (0.1 ) $ (0.5 ) $ — Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) $ 16.2 $ (16.7 ) $ — $ 17.7 $ 10.5 $ (0.2 ) $ 0.2 $ 15.0 $ — __________________________________________________ (1) Includes expense that was allocated to Grace of $0.1 million for the year ended December 31, 2015 . GCP allocated such expense excluding any mark-to-market adjustment. The accumulated benefit obligation for all defined benefit pension plans, including those with related assets and liabilities presented as held for sale in the Consolidated Balance Sheets, was approximately $415 million and $388 million as of December 31, 2017 and 2016 , respectively. The following table presents amounts relating to underfunded and unfunded pension plans, including those presented in "Noncurrent liabilities held for sale" in the Consolidated Balance Sheets for the as of December 31, 2017 and 2016 . Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ 159.3 $ 147.4 $ 42.0 $ 42.1 $ 201.3 $ 189.5 Accumulated benefit obligation 142.8 124.5 39.1 36.2 181.9 160.7 Fair value of plan assets 124.3 86.2 18.7 5.0 143.0 91.2 Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending Pension Plans Total U.S. Non-U.S. (1) Benefit Benefit 2018 5.8 11.9 17.7 2019 6.1 11.6 17.7 2020 6.9 11.4 18.3 2021 7.9 11.6 19.5 2022 8.8 11.9 20.7 2023 - 2027 50.2 62.3 112.5 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2018 and future periods have been translated at the applicable December 31, 2017 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 overall market interest rates. For the U.S. qualified pension plans, the assumed weighted average discount rate of 3.68% as of December 31, 2017 was selected in consultation with independent actuaries and is based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximates the estimated payouts of the plans. As of December 31, 2017 and 2016 , the U.K. pension plan represented approximately 84% and 78% , respectively, of the benefit obligation of the non-U.S. pension plans. The assumed weighted average discount rate as of December 31, 2017 for the U.K. of 2.01% 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 approximates 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 indexes. Beginning in 2016 , GCP elected to measure service and interest costs by applying the specific spot rates along the yield curve in accordance with the plans' expected future benefit payments, or 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, 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, a portion of which are passively managed and benchmarked to the S&P 500 and Russell 2000 and the remainder of which is allocated 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 2017 , 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 2017 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, 2017 and the actual allocation at December 31, 2017 and 2016 for GCP's U.S. qualified pension plans were as follows: Target Percentage of Plan Assets U.S. Qualified Pension Plans Asset Category 2017 2017 2016 U.S. equity securities 26 % 18 % 25 % Non-U.S. equity securities 12 % 9 % 15 % Short-term debt securities (1) — % 32 % 1 % Intermediate-term debt securities — % — % 4 % Long-term debt securities 56 % 37 % 50 % Other investments 6 % 4 % 5 % Total 100 % 100 % 100 % ___________________________________________________________________________________________________________________ (1) In December 2017, the Company made a $40.0 million accelerated contribution to the U.S. pension plans. As of December 31, 2017, these funds were held in common/collective trust funds, which are presented within "Short-term debt securities" above. This resulted in the appearance of a variance between the actual asset allocations as of December 31, 2017 compared to the 2017 target allocations; however, this is not a change in investment strategy. The other assets in these plans have been invested in a manner materially consistent with the 2017 target allocations and investment strategy discussed above. 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, 2017 and 2016 . December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs U.S. equity group trust funds $ 23.5 $ — $ 23.5 $ — Non-U.S. equity group trust funds 11.5 — 11.5 — Corporate bond group trust funds—long-term 48.0 — 48.0 — Other fixed income group trust funds 5.2 — 5.2 — Common/collective trust funds 41.0 — 41.0 — Total Assets $ 129.2 $ — $ 129.2 $ — December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs 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 — Total Assets $ 86.3 $ — $ 86.3 $ — Non-U.S. pension plans accounted for approximately 68% and 75% of total global pension assets at December 31, 2017 and 2016 , 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 92% and 91% of the total non-U.S. pension plan assets at December 31, 2017 and 2016 , respectively. In determining the expected rate of return for the U.K. pension plan, the trustees' strategic investment policy has been considered together with long-term historical returns and investment community forecasts for each asset class. The expected return by sector has been combined with the actual asset allocation to determine the 2017 expected long-term return assumption of 2.36% . The target allocation of investment assets at December 31, 2017 and the actual allocation at December 31, 2017 and 2016 , for the U.K. pension plan are as follows: Target Percentage of Plan Assets United Kingdom Pension Plan Asset Category 2017 2017 2016 Diversified growth funds 9 % 10 % 8 % U.K. gilts 35 % 33 % 31 % U.K. corporate bonds 3 % 3 % 11 % Insurance contracts 53 % 54 % 50 % Total 100 % 100 % 100 % The plan assets for the other countries represent approximately 8% and 9% in the aggregate of total non-U.S. pension plan assets at December 31, 2017 and 2016 , 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, 2017 : Fair Value Measurements at December 31, 2017, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Common/collective trust funds $ 127.5 $ — $ 127.5 $ — Government and agency securities 1.2 — 1.2 — Corporate bonds 8.5 — 8.5 — Insurance contracts and other investments (1) 136.8 — 0.1 136.7 Cash 3.2 3.2 — — Total Assets $ 277.2 $ 3.2 $ 137.3 $ 136.7 ___________________________________________________________________________________________________________________ (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, 2017, 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, 2017 . (In millions) Insurance Contracts Balance, December 31, 2016 $ 116.5 Actual return on plan assets relating to assets still held at year-end 4.7 Purchases, sales and settlements, net — Transfers in for premium 10.2 Transfers out for benefits paid (6.8 ) Currency exchange translation adjustments 12.1 Balance, December 31, 2017 $ 136.7 The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2016 . Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs 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. 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 2017 and 2016 , GCP made accelerated contributions to the trusts that hold assets of the U.S. qualified pension plans of approximately $40 million and $1 million , respectively. Based on the U.S. qualified pension plans' status as of December 31, 2017 , there are no minimum requirements under ERISA for 2018 . 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 $3.5 million to non-U.S. pension plans in 2018 . 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 costs included in "Selling, general and administrative expenses" related to this benefit plan for the years ended December 31, 2017 and 2016 was $4.8 million and $4.1 million , respectively. GCP's allocated cost related to this benefit plan was $4.4 million for the year ending December 31, 2015 . |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 28.4 $ 19.9 Prepaid expenses 13.8 12.4 Income tax receivable (2) 6.0 10.6 Marketable securities 0.4 — Total other current assets $ 48.6 $ 42.9 (In millions) December 31, December 31, Other Current Liabilities: Customer volume rebates $ 31.5 $ 30.5 Accrued compensation (1) 27.1 28.0 Income tax payable (2) 115.1 6.7 Accrued interest 20.8 20.8 Restructuring liability 12.8 1.1 Pension liabilities 1.0 0.4 Other accrued liabilities (3) 107.9 32.0 Total other current liabilities $ 316.2 $ 119.5 ________________________________ (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. The year-over-year change in income tax payable relates primarily to the Company's divestiture of Darex. (3) Other accrued liabilities in the table above as of December 31, 2017 includes $55.1 million of deferred consideration related to the delayed closings associated with the Company's divestiture of Darex, as discussed in Note 18. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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 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 and tax 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. 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, 2017 , GCP had gross financial assurances issued and outstanding of approximately $10 million , composed of standby letters of credit. Lawsuits and Investigations In Re: Library Gardens Balcony Litigation, Lead Case Beary v. Blackrock, Inc. Case No. RG15793054 was filed on November 12, 2015 in Alameda County Superior Court in California. It was the lead case in a consolidated lawsuit filed on behalf of six individuals who died and an additional seven individuals who were injured in a balcony collapse, which occurred on June 16, 2015 in Berkeley, California. The consolidated complaint named the Company as the sole party in the category of suppliers of materials and names twenty additional defendants in other categories, including categories for property owners, property managers, construction defendants and development and design defendants. The consolidated complaint alleged product liability against the Company concerning one of its products. The plaintiffs sought unspecified monetary damages against all defendants and punitive damages only against the building owners, building manager and two construction company defendants. During the third quarter of 2017, the Company reached an agreement with the plaintiffs to settle this matter for $4.0 million , which the Company recorded and reflected in "Selling, general and administrative expenses" in the accompanying Consolidated Statements of Operations. The Company paid the settlement during the fourth quarter of 2017. In addition to the above, 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, 2017 , minimum future non-cancelable payments for operating leases are summarized below. (In millions) 2018 $ 13.5 2019 10.2 2020 7.7 2021 5.1 2022 4.1 Thereafter 15.7 $ 56.3 GCP's rental expense for operating leases was $15.1 million , $14.0 million and $19.6 million in 2017 , 2016 and 2015 , respectively. |
Restructuring and Repositioning
Restructuring and Repositioning Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Repositioning Expenses | Restructuring and Repositioning Expenses 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 employee terminations that are not part of a major program. Restructuring programs generally include severance and other employee-related costs, contract or lease termination costs, asset impairments, facility exit costs and other costs. The Company may also undertake repositioning activities that generally represent major strategic or transformational actions to enhance the value and performance of the Company, improve business efficiency or optimize the Company’s footprint. Repositioning expenses include professional fees for legal, consulting, accounting and tax services, employment-related costs such as recruitment, relocation and compensation, and other expenses incurred that are directly associated with the repositioning activity. GCP accounts for these costs, which are reflected in "Restructuring expenses and asset impairments" and “Repositioning expenses,” respectively, in its Consolidated Statements of Operations, or in those captions within discontinued operations, in the period that the related liabilities are incurred. Restructuring expenses, including asset impairments and repositioning expenses, are excluded from segment operating income. 2017 Restructuring and Repositioning Plan (the “2017 Plan”) On June 28, 2017, the Board of Directors approved a restructuring and repositioning plan that includes actions to streamline its operations, reduce its global cost structure and reposition itself as a construction products technologies company. The Company expects to incur total costs under the 2017 Plan of approximately $32 million to $34 million , an increase from the $28 million to $32 million estimated range in the third quarter of 2017. The 2017 Plan includes approximately $25 million related to restructuring activities and approximately $8 million related to repositioning activities. The restructuring activities, which are expected to be substantially complete by December 31, 2018, primarily include severance and other employee-related costs, asset impairments and facility exit costs, of which the Company expects to classify approximately $11 million within discontinued operations. The repositioning activities primarily include professional fees for consulting, accounting, tax and legal services, as well as other employee-related costs for recruitment, relocation services and sign-on and other employee bonuses associated with the Company's organizational realignment. In addition, the Company expects to incur approximately $10 million to $15 million in capital expenditures related to repositioning activities, which includes the build-out of three manufacturing plants in Asia Pacific that will replace shared facilities sold with the Darex divestiture. All of the Company’s repositioning activities are expected to relate to continuing operations and should be substantially completed by December 31, 2019. The Company expects to settle substantially all of the costs related to the 2017 Plan in cash. For the year ended December 31, 2017, GCP incurred $13.5 million of restructuring expenses from continuing operations, primarily for severance and other employee-related costs associated with the 2017 Plan. In 2016, GCP incurred $1.9 million of restructuring expenses comprised of severance-related costs associated with the Separation, as well as costs incurred for plant closures. In 2015, GCP incurred restructuring expenses from continuing operations of $9.8 million , which were the result of changes in the business environment and the business structure. Restructuring Expenses and Asset Impairments The following table summarizes restructuring expenses and asset impairments incurred related to the 2017 Plan and prior-period plans: Year Ended December 31, (In millions) 2017 2016 2015 Severance and other employee costs $ 19.9 $ 1.9 $ 11.5 Facility exit costs 0.2 — — Asset impairments 1.2 — 0.1 Total restructuring expenses and asset impairments $ 21.3 $ 1.9 $ 11.6 Less: restructuring expenses and asset impairments reflected in discontinued operations 7.8 — 1.8 Total restructuring expenses and asset impairments from continuing operations $ 13.5 $ 1.9 $ 9.8 GCP incurred restructuring expenses and asset impairments related to its two operating segments and Corporate as follows: Year Ended December 31, (In millions) 2017 2016 2015 SCC $ 6.2 $ 1.2 $ 6.5 SBM 4.1 0.7 3.2 Corporate 3.2 — 0.1 Total restructuring expenses and asset impairments from continuing operations $ 13.5 $ 1.9 $ 9.8 Restructuring expenses and asset impairments reflected in discontinued operations 7.8 — 1.8 Total restructuring expenses and asset impairments $ 21.3 $ 1.9 $ 11.6 GCP had restructuring liabilities of $12.8 million , $1.1 million and $1.4 million as of December 31, 2017 2016 , and 2015 respectively. These liabilities are included within “Other current liabilities” in the Consolidated Balance Sheets. GCP expects to pay all costs related to prior-year plans and substantially all costs related to the 2017 Plan by December 31, 2018. The following table summarizes details of the Company’s restructuring liability activity: 2017 Plan (In millions) Severance and other employee costs Facility exit costs Other plans Total Balance, December 31, 2014 $ — $ — $ 0.8 $ 0.8 Expense — — 11.5 11.5 Payments — — (10.9 ) (10.9 ) Impact of foreign currency and other — — — — Balance, December 31, 2015 — — 1.4 1.4 Expense — — 1.9 1.9 Payments — — (3.6 ) (3.6 ) Impact of foreign currency and other — — 1.4 1.4 Balance, December 31, 2016 — — 1.1 1.1 Expense 19.5 0.1 0.5 20.1 Payments (8.0 ) — (0.5 ) (8.5 ) Impact of foreign currency and other 0.1 — — 0.1 Balance, December 31, 2017 $ 11.6 $ 0.1 $ 1.1 $ 12.8 Repositioning Expenses Repositioning Expenses - 2017 Plan Repositioning expenses associated with the 2017 Plan primarily relate to consulting and other professional service fees and employee-related costs associated with the Company’s organizational realignment. Due to the scope and complexity of the Company’s repositioning activities, the range of estimated repositioning expense could increase or decrease and the timing of incurrence could change. For the year ended December 31, 2017, GCP incurred repositioning expenses related to the 2017 Plan of $4.5 million , substantially all of which represent professional fees and employee-related costs. Total cash payments for the year ended December 31, 2017 were $2.0 million . Separation-Related Repositioning Expenses Post-Separation from Grace, GCP incurred expenses related to its transition to a stand-alone public company. As of December 31, 2017, the Company completed these activities and incurred total costs of $20.6 million . Separation-related repositioning expenses primarily relate to the following: • accounting, tax, legal and other professional fees 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. Separation-related repositioning expenses incurred for the periods presented were as follows: Year Ended December 31, (In millions) 2017 2016 Professional fees $ 3.4 $ 7.8 Software and IT implementation fees 0.9 3.0 Employee-related costs 1.0 4.5 Total $ 5.3 $ 15.3 Total cash payments for the year ended December 31, 2017 were $4.2 million for professional fees and employee-related costs and $1.9 million for related capital expenditures. 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 related capital expenditures and $2.5 million for taxes. GCP did no t incur any repositioning expenses for the year ended December 31, 2015. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables present the pre-tax, tax and after-tax components of GCP's other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 . Year Ended December 31, 2017 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service credit $ (0.2 ) $ — $ (0.2 ) Assumption of net prior service credit 0.7 (0.2 ) 0.5 Benefit plans, net 0.5 (0.2 ) 0.3 Currency translation adjustments 61.7 — 61.7 Loss from hedging activities (0.2 ) 0.1 (0.1 ) Other comprehensive income attributable to GCP shareholders $ 62.0 $ (0.1 ) $ 61.9 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 ) Gain from hedging activities — — — Other comprehensive loss attributable to GCP shareholders $ (19.9 ) $ — $ (19.9 ) Year Ended December 31, 2015 Pre-Tax Tax (Expense)/Benefit After-Tax (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 ) The following tables present the changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2017 , 2016 and 2015 . Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Year Ended December 31, 2017 (In millions) Beginning balance $ 0.1 $ (147.7 ) $ — $ (147.6 ) Other comprehensive income (loss) before reclassifications 0.3 61.7 (0.7 ) 61.3 Amounts reclassified from accumulated other comprehensive income — — 0.6 0.6 Net current-period other comprehensive income (loss) 0.3 61.7 (0.1 ) 61.9 Ending balance $ 0.4 $ (86.0 ) $ (0.1 ) $ (85.7 ) Year Ended December 31, 2016 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities 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 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities 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 ) GCP is a global enterprise operating in over 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. Refer to Note 7 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, 2017 | |
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 GCP financial statements included expense allocations for certain functions provided or costs incurred by Grace, 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. These expenses were further allocated to GCP's operating segments where directly identifiable. 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 year ended December 31, 2015, Grace allocated $54.8 million of general corporate expenses to GCP. The expense allocations from Grace prior to the Separation also 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 provided various services to each other on a temporary, transitional basis. The services provided by Grace to GCP included information technology, treasury, tax administration, accounting, financial reporting, human resources and other services. Following the Separation, Grace and GCP provided some of these services on a transitional basis, generally for a period of up to 18 months . As of the December 31, 2017, these transitional services are complete. 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 December 31, 2017, GCP has included $7.2 million of indemnified receivables in "Other assets", $2.7 million of indemnified payables in "Other current liabilities". 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 and 2015 are presented below. Year Ended December 31, (In millions) 2016 2015 Cash pooling and general financing activities $ (688.0 ) $ (306.1 ) GCP expenses funded by parent 6.6 54.6 Corporate costs allocations 2.0 54.8 Provision for income taxes 4.3 84.3 Total net transfers to parent (675.1 ) (112.4 ) Share-based compensation — (3.7 ) Other, net (83.6 ) (3.5 ) Transfers to parent, net per Consolidated Statements of Cash Flows $ (758.7 ) $ (119.6 ) During the year ended December 31, 2017, there were no adjustments to parent company equity. In 2016, "Other, net" 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 $36 million of related-party debt, deferred tax items, and other items. 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, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On May 11, 2017, GCP filed a Registration Statement on Form S-8 with the SEC for the purpose of registering an additional 8,000,000 shares of Common Stock, par value $0.01 per share, that may be issued under the GCP Applied Technologies Inc. Equity and Incentive Plan (the "Plan"), as amended and restated on February 28, 2017. GCP has provided certain key employees equity awards in the form of stock options, restricted stock units (“RSUs”) and performance-based stock units (“PBUs”) under the Plan. Certain employees and members of the Board of Directors are eligible to receive stock-based compensation, including stock, stock options, RSUs and PBUs. As of December 31, 2017, approximately 9.1 million shares of common stock were available for issuance under the Plan. In accordance with U.S. GAAP, we estimate the fair value of equity awards issued at the grant date. The fair value of the awards is recognized as stock-based compensation expense on a straight line basis over the employee’s requisite service period for each separately vesting portion of the award. Total cash and non-cash stock-based compensation cost included in "(Loss) income from continuing operations before income taxes" on the Consolidated Statements of Operations is $9.2 million , $7.2 million and $4.5 million for the years ended December 31, 2017 , 2016 and 2015 , 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 , $4.7 million and $1.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. During 2016, the Company early adopted ASU 2016-9 and as a result recognized an additional $2.0 million of tax benefit for the year ended December 31, 2016 . Upon Separation from Grace, previously outstanding stock-based compensation awards granted under Grace’s equity compensation programs were adjusted to reflect the impact of the Separation. To preserve the aggregate intrinsic value of those Grace 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. Adjusted awards consisting of stock-based compensation awards denominated in GCP equity are considered issued under the Plan. These adjusted awards generally will be subject to the same vesting conditions and other terms that applied to the original Grace awards 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 recorded a liability for cash-settled awards held by Grace employees. The Company issues new shares of common stock upon exercise of stock options. In accordance with certain provisions of the Plan, GCP repurchases shares issued to certain holders of GCP awards in order to fulfill statutory tax withholding requirements for the employee. During the years ended December 31, 2017 and 2016 GCP repurchased approximately 47,000 and 112,000 shares under these provisions, respectively. These purchases are reflected as "Share Purchases" in the Consolidated Statements of (Deficit) Equity. Stock Options Stock options are non-qualified and are set at exercise prices not less than 100% of the fair market value on the date of grant (with respect to awards issued before February 28, 2017, fair market value is the average of the high price and low price on the grant date and, with respect to awards issued after February 28, 2017, fair market value is the closing price on the grant date). 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 or ten 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 values 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 estimates 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 2017 , 2016 and 2015: Year Ended December 31, Assumptions used to calculate expense for stock option 2017 2016 2015 Risk-free interest rate 1.83 - 2.11% 0.93 - 1.24% 1.3% Average life of options (years) 5.5 - 6.5 4 - 5 3 - 4 Volatility 31.42 - 31.96% 29.6 – 33.2% 23.0 – 27.2% Dividend yield — — — Average fair value per stock option $9.17 $4.89 $18.43 The following table sets forth information relating to such options denominated in GCP stock during 2017 . 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/expired/canceled 52 16.58 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 Options exercised 601 $ 14.69 Options forfeited/expired/canceled 126 19.76 Options granted 241 26.51 Outstanding, December 31, 2017 1,636 18.94 3.78 $ 21,597 Exercisable, December 31, 2017 844 $ 17.78 2.16 $ 12,118 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, 2017 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, 2017 , 2016 2015 was $9.8 million , $9.3 million and $8.4 million , respectively. Total unrecognized stock-based compensation expense for stock options outstanding at December 31, 2017 , was $0.7 million and the weighted-average period over which this expense will be recognized is approximately eight months. Restricted Stock Units and Performance Based Units RSUs and PBUs are granted with the exercise price equal to zero and are converted to shares immediately upon vesting. 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. As of December 31, 2017 , $5.4 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 1.2 years . RSUs RSUs granted by the Company are time-based, Non-Performance Units. 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 . RSUs are recorded at fair value at the date of grant. The common stock-settled awards are considered equity awards, with the stock compensation expense being determined based on GCP’s stock price on the grant date. The cash settled awards are considered liability awards, with the liability being remeasured each reporting period based on GCP’s then current stock price. GCP’s RSU activity for the year ended December 31, 2017 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 Outstanding, December 31, 2016 538 17.22 Vested and outstanding, December 31, 2016 77 17.23 RSU's settled 141 17.19 RSU's forfeited 86 18.34 RSU's granted 95 26.44 Outstanding, December 31, 2017 406 19.15 Vested and outstanding, December 31, 2017 — $ — During 2017, 64,572 RSUs with an average grant date fair value of $17.14 vested. During 2017 and 2016, GCP distributed approximately 107,000 shares and 25,000 shares, and $0.9 million and $0.5 million of cash to settle RSUs, respectively. GCP's expectations of future RSU vesting and settlement are as follows: Year: Number Of Shares Vesting (in thousands) Settled in Cash Settled in Stock 2018 163 10% 90% 2019 219 —% 100% 2020 24 —% 100% PBUs PBUs granted by the Company are performance-based either with or without market conditions and expected to vest over three years. During the year ended December 31, 2017 , GCP granted 166,821 PBUs under the Plan to Company employees. These awards vest upon certification by the Board's Compensation Committee that the applicable performance criteria have been satisfied (such certification would likely occur in February 2020), are subject to the employees' continued employment through the vesting date, and have a weighted average grant date fair value of $28.29 . GCP anticipates that 100% of these PBUs will be settled in GCP common stock upon vesting. During 2017, 15,382 of these PBUs were forfeited. The performance criteria for PBUs granted in 2017 is a 3 -year cumulative adjusted diluted earnings per share metric that is modified, up or down, based on the Company's relative total shareholder return ("TSR") as against the Russell 3000 Index ("the Index"). The number of shares subject to a 2017 PBU award that ultimately vest, if any, is based on Company performance against these metrics, and can range from 0% to 200% of the target number of shares granted to the employee. The awards will become vested, if at all, no later than March 15, 2020, once actual performance for the 2017-2019 performance period is certified by the Board's Compensation Committee. PBUs 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 applicable performance period. PBUs granted during 2017 were valued using a Monte Carlo simulation, which is commonly used for assessing the grant date fair value of equity awards with relative TSR metrics. The risk-free rate is a continuous rate based on the U.S. Treasury yield curve published as of the grant date, based on maturity commensurate with the remaining performance period (expected term) of the PBUs. Expected volatility is based on the annualized historical volatility of GCP's stock price. Historical volatility is calculated based on a lookback period commensurate with the remaining performance period of the PBUs, or the longest available based on the Company's trading history as a public company. Correlation coefficients are used in the Monte Carlo valuation to simulate future stock prices. This includes correlations between the Company and the Index, and each constituent of the Index and the Index. The correlation coefficient is based on daily stock returns of the Company and the Index using a lookback period commensurate with the remaining performance period of the PBUs, or the longest available based on the Company's trading history as a public company. The following summarizes the assumptions used in the Monte Carlo simulation for estimating the grant date fair value of PBUs granted during 2017: Assumptions used to calculate expense for PBUs Year ended December 31, 2017 Expected Term (Remaining Performance Period) 2.84 years Expected volatility 28.00% Risk-free interest rate 1.41% Expected Dividends — Correlation coefficient 46.83% Average correlation coefficient of constituents 42.33% PBUs that were granted during the year ended December 31, 2016 under the Plan to Company employees remain outstanding as of December 31, 2017. These awards vest upon certification by the Board's Compensation Committee that the applicable performance criteria have been satisfied (such certification would likely occur in February 2019), are subject to the employees' continued employment through the vesting 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 2017, 35,505 of these awards were forfeited. PBUs granted prior to 2017 are recorded at fair value at the date of grant. The performance criteria for PBUs granted in 2016 is 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. These 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. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information GCP is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. SCC manufactures and markets concrete admixtures, cement additives and in-transit monitoring systems. 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. The tables below present 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 for periods up through the deconsolidation date of July 3, 2017, as discussed in Note 1,) 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) 2017 2016 2015 Net Sales Specialty Construction Chemicals $ 615.7 $ 623.8 $ 694.3 Specialty Building Materials 468.7 422.7 398.1 Total $ 1,084.4 $ 1,046.5 $ 1,092.4 Segment Operating Income Specialty Construction Chemicals segment operating income $ 63.4 $ 72.6 $ 83.7 Specialty Building Materials segment operating income 109.4 114.0 99.6 Total segment operating income $ 172.8 $ 186.6 $ 183.3 Depreciation and Amortization Specialty Construction Chemicals $ 21.3 $ 20.0 $ 18.0 Specialty Building Materials 13.2 9.6 7.8 Corporate 2.3 0.2 1.2 Total $ 36.8 $ 29.8 $ 27.0 Capital Expenditures Specialty Construction Chemicals $ 23.9 $ 23.6 $ 21.8 Specialty Building Materials 8.5 5.7 7.0 Corporate 12.6 11.6 1.3 Total $ 45.0 $ 40.9 $ 30.1 Total Assets Specialty Construction Chemicals $ 419.9 $ 335.9 $ 318.4 Specialty Building Materials 409.3 273.3 227.4 Corporate 851.3 317.2 130.0 Assets held for sale 22.5 163.4 157.3 Total $ 1,703.0 $ 1,089.8 $ 833.1 Reconciliation of Operating Segment Data to Financial Statements Total segment operating income for the years ended December 31, 2017 , 2016 and 2015 are reconciled below to "(Loss) income from continuing operations before income taxes" presented in the accompanying Consolidated Statements of Operations: Year Ended December 31, (In millions) 2017 2016 2015 Total segment operating income $ 172.8 $ 186.6 $ 183.3 Corporate costs (1) (36.4 ) (38.4 ) (31.1 ) Certain pension costs (9.0 ) (7.2 ) (3.8 ) Loss on sale of product line (2.1 ) — — Currency and other financial losses in Venezuela (1) (39.1 ) — (63.0 ) Litigation settlement (4.0 ) — — Legacy product, environmental and other claims (0.6 ) — — Repositioning expenses (9.8 ) (15.3 ) — Restructuring expenses and asset impairments (13.5 ) (1.9 ) (9.8 ) Pension MTM adjustment and other related costs, net (14.1 ) (22.6 ) (17.1 ) Gain on termination and curtailment of pension and other postretirement plans 6.6 0.8 — Third-party and other acquisition-related costs (6.8 ) (0.6 ) — Other financing costs (6.0 ) (1.2 ) — Amortization of acquired inventory fair value adjustment (2.9 ) (1.3 ) — Tax indemnification adjustments (2.8 ) — — Interest expense, net (61.1 ) (64.6 ) (2.5 ) Net income attributable to noncontrolling interests 0.5 1.0 0.6 (Loss) income from continuing operations before income taxes $ (28.3 ) $ 35.3 $ 56.6 ______________________________ (1) Corporate costs include $5.4 million and $10.3 million of allocated costs in the years ended December 31, 2017 and 2016, respectively, as such costs did not qualify to be reclassified to discontinued operations. As of the third quarter of 2017, the Company began allocating these costs to its remaining operating segments. Sales by Product Group Year Ended December 31, (In millions) 2017 2016 2015 Specialty Construction Chemicals: Concrete $ 455.6 $ 469.1 $ 532.7 Cement 160.1 154.7 161.6 Total SCC Sales $ 615.7 $ 623.8 $ 694.3 Specialty Building Materials: Building Envelope $ 263.3 $ 236.3 $ 234.7 Residential Building Products 80.3 89.2 79.3 Specialty Construction Products 125.1 97.2 84.1 Total SBM Sales $ 468.7 $ 422.7 $ 398.1 Total Sales $ 1,084.4 $ 1,046.5 $ 1,092.4 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. The United Kingdom has long-lived assets of approximately 30% 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) 2017 2016 2015 Net Sales United States $ 509.2 $ 476.6 $ 440.8 Canada and Puerto Rico 31.5 32.5 30.8 Total North America 540.7 509.1 471.6 Europe Middle East Africa 244.5 225.6 235.9 Asia Pacific 229.2 241.2 251.3 Latin America 70.0 70.6 133.6 Total $ 1,084.4 $ 1,046.5 $ 1,092.4 Properties and Equipment, net United States $ 138.5 $ 124.3 $ 85.2 Canada and Puerto Rico 3.1 2.7 2.5 Total North America 141.6 127.0 87.7 Europe Middle East Africa (EMEA) 32.1 24.3 26.9 Asia Pacific 31.4 30.0 31.3 Latin America 11.5 11.3 10.3 Total $ 216.6 $ 192.6 $ 156.2 Goodwill, Intangibles and Other Assets United States $ 109.0 $ 82.0 $ 34.1 Canada and Puerto Rico 7.7 7.7 2.8 Total North America 116.7 89.7 36.9 Europe Middle East Africa (EMEA) 151.2 55.3 60.0 Asia Pacific 18.6 17.7 18.0 Latin America 27.3 27.2 24.3 Total $ 313.8 $ 189.9 $ 139.2 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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 (loss) earnings per share. Year Ended December 31, (In millions, except per share amounts) 2017 2016 2015 Numerators (Loss) income from continuing operations attributable to GCP shareholders $ (110.9 ) $ 27.6 $ — Income from discontinued operations, net of income taxes $ 664.3 $ 45.2 $ 40.1 Net income attributable to GCP shareholders $ 553.4 $ 72.8 $ 40.1 Denominators Weighted average common shares—basic calculation 71.5 70.8 70.5 Dilutive effect of employee stock awards (1) — 0.9 — Weighted average common shares—diluted calculation 71.5 71.7 70.5 Basic (loss) earnings per share (Loss) income from continuing operations attributable to GCP shareholders $ (1.55 ) $ 0.39 $ — Income from discontinued operations, net of income taxes $ 9.29 $ 0.64 $ 0.57 Net income attributable to GCP shareholders (1) $ 7.74 $ 1.03 $ 0.57 Diluted (loss) earnings per share (Loss) income from continuing operations attributable to GCP shareholders $ (1.55 ) $ 0.38 $ — Income from discontinued operations, net of income taxes $ 9.29 $ 0.63 $ 0.57 Net income attributable to GCP shareholders (1) $ 7.74 $ 1.02 $ 0.57 (1) Dilutive effect only applicable to periods where there is income from continuing operations. (2) Amounts may not sum due to rounding. For 2016, the computation of basic and diluted earnings per common share is calculated assuming the number of shares of GCP common stock outstanding on February 3, 2016 had been outstanding at the beginning of the period. For 2017, we did not include the effect of 0.6 million dilutive options and 0.4 million RSUs in the table above, as we recorded a loss from continuing operations for the year ended December 31, 2017. As of December 31, 2017, there were approximately 0.1 million anti-dilutive options outstanding on a weighted-average basis. As of December 31, 2016, 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, 2017 and 2016, GCP repurchased approximately 47,000 and 112,000 shares of Company common stock for $1.3 million and $2.1 million in connection with its equity compensation programs. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisition of Ductilcrete Technologies On October 31, 2017, GCP acquired 100% of the share capital of Ductilcrete, a U.S.-based technology leader for concrete engineered systems, for total consideration of $32.1 million , net of $1.5 million of cash acquired. The Company believes that Ductilcrete will expand its technology platform with new product categories and engineered systems that will allow it to access a wider range of customers. The Company has accounted for the acquisition as a business combination in accordance with ASC 805, Business Combinations ("ASC 805") , and has included Ductilcrete within the SCC operating and reportable segment. In applying the provisions of ASC 805 and ASU 2017-01 (refer to Note 1) in determining that Ductilcrete represents a business, the Company first assessed whether all of the fair value of the acquired Ductilcrete's gross assets is concentrated in a single identifiable asset or group of identifiable assets. If that concentration existed, Ductilcrete would not be considered a business. The Company concluded that there was not such a concentration, as the fair value of the acquired gross assets is distributed between various intangible and tangible assets. The Company has allocated the acquisition purchase price to the tangible net assets and identifiable intangible assets acquired based on their estimated fair values at the acquisition date and recorded the excess as goodwill. As of December 31, 2017, the Company recognized $14.0 million of goodwill, which is tax-deductible and will be amortized over 15 years. The goodwill is attributable to the revenue growth and operating synergies that GCP expects to realize from this acquisition. 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. As a result, the purchase price allocation is preliminary. The primary areas of the purchase price allocation that are not yet finalized relate to the settlement of the purchase price adjustments, the valuation of certain assets acquired and liabilities assumed, and, therefore, the amount of the residual goodwill. The following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 2.5 Other current assets 0.2 Properties and equipment 0.1 Goodwill 14.0 Intangible assets 15.5 Accounts payable (0.2 ) Net assets acquired $ 32.1 The table below presents the intangible assets acquired as part of the acquisition of Ductilcrete and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 10.2 11 Technology 4.5 13 Trademarks 0.8 10 Total $ 15.5 Acquisition of Stirling Lloyd Plc In the second quarter of 2017, GCP acquired 100% of the share capital of Stirling Lloyd, a UK-based global supplier of high-performance liquid waterproofing and coatings products, for total consideration of $91.1 million , net of $16.1 million of cash acquired. The Company believes that the addition of Stirling Lloyd and its products, which are used for the protection of infrastructure and buildings, opens new growth opportunities by offering additional selling channels for specialized end-market applications. The Company has accounted for the acquisition as a business combination in accordance with ASC 805 , and has included Stirling Lloyd within the SBM operating and reportable segment. In applying the provisions of ASC 805 and determining that Stirling Lloyd represents a business, the Company elected to early adopt and apply ASU 2017-01 (refer to Note 1). Under ASU 2017-01, the Company first assessed whether all of the fair value of the acquired Stirling Lloyd gross assets is concentrated in a single identifiable asset or group of identifiable assets. If that concentration existed, Stirling Lloyd would not be considered a business. The Company concluded that there was not such a concentration, as the fair value of the acquired gross assets is distributed between various intangible and tangible assets. The Company has allocated the acquisition purchase price to the tangible net assets and identifiable intangible assets acquired based on their fair values at the acquisition date and recorded the excess as goodwill. The Company recognized $59.6 million of goodwill, which is attributable to the revenue growth and operating synergies that GCP expects to realize from this acquisition. The following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 6.8 Other current assets 3.1 Inventories 4.2 Properties and equipment 3.4 Goodwill 59.6 Intangible assets 26.9 Accounts payable (2.9 ) Other current liabilities (4.2 ) Other liabilities (5.8 ) Net assets acquired $ 91.1 The table below presents the intangible assets acquired as part of the acquisition of Stirling Lloyd and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 15.0 10 Technology 9.8 11 Trademarks 2.1 10 Total $ 26.9 Supplemental Pro Forma Information During the year ended December 31, 2017 , GCP completed acquisitions of businesses, which when considered in aggregate, are material to the Company's Consolidated Financial Statements. Stirling Lloyd contributed revenues of $33.1 million and income from continuing operations of $2.8 million to GCP for the period from May 17, 2017 to December 31, 2017, and Ductilcrete contributed revenues of $1.2 million and income from continuing operations of $0.1 million to GCP for the period from October 31, 2017 to December 31, 2017. The following unaudited pro forma summary presents consolidated information for GCP as if these business combinations had occurred on January 1, 2016: (In millions) Pro forma year ended December 31, 2017 (unaudited) Pro forma year ended December 31, 2016 (unaudited) Revenue $ 1,108.9 $ 1,101.3 (Loss) income from continuing operations $ (103.4 ) $ 28.3 GCP included non-recurring pro forma adjustments directly attributable to the business combinations in the reported pro forma revenue and loss from continuing operations above. These non-recurring adjustments relate to prepaid compensation expense, recognition of inventory adjusted to fair value, interest expense and acquisition-related costs. These pro forma amounts have been calculated after applying GCP's accounting policies and adjusting the results of Stirling Lloyd and Ductilcrete to reflect the additional amortization expense that would have been charged assuming the intangible assets had been acquired on January 1, 2016. In 2017, GCP incurred $2.1 million of acquisition-related costs for the Ductilcrete and Stirling Lloyd acquisitions, which are included in "Selling, general and administrative expenses" in the Consolidated Statement of Operations for the year ended December 31, 2017 and are reflected in the pro forma earnings for the year ended December 31, 2016 in the table above. Acquisition of Halex Corporation In the fourth quarter of 2016, GCP acquired 100% of the stock of Halex, a North American supplier of specialty moisture barrier flooring underlayment products, seam tapes, other flooring and accessories, for total consideration of $46.0 million , net of $2.4 million of cash acquired. 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. 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 $14.7 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 following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 3.2 Other current assets 0.5 Inventories 9.7 Properties and equipment 1.4 Goodwill 14.7 Intangible assets 20.4 Accounts payable (1.5 ) Other current liabilities (2.2 ) Other liabilities (0.2 ) Net assets acquired $ 46.0 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 Disposal of Non-core Halex Net Assets In the second quarter of 2017, the Company completed the sale of non-core carpet tack strip and plywood underlayment product lines that were acquired with Halex for approximately $3 million in cash. The Company recorded a $2.1 million loss related to the disposal of these non-core Halex net assets which is reflected in "Other (income) expense, net" in the accompanying Consolidated Statement of Operations. The transaction included the disposal of $1.3 million in related goodwill and $1.5 million in customer list intangible assets, respectively. |
Quarterly Summary and Statistic
Quarterly Summary and Statistical Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary and Statistical Information (Unaudited) | Quarterly Summary and Statistical Information (Unaudited) As discussed in Note 1, on July 3, 2017, the Company completed the sale of Darex to Henkel. In conjunction with this transaction and applicable GAAP, Darex has been reclassified and reflected as "discontinued operations" on the Consolidated Statements of Operations for all periods presented. (In millions, except per share amounts) March 31 June 30 September 30 (1)(2) December 31 (3) 2017 Net sales $ 225.3 $ 287.2 $ 282.4 $ 289.5 Gross profit 85.3 115.0 106.5 110.3 Net (loss) income (16.9 ) (4.6 ) 659.3 (83.9 ) (Loss) income from continuing operations attributable to GCP shareholders (25.0 ) 1.3 (18.1 ) (69.1 ) Income (loss) from discontinued operations, net of income taxes 8.1 (6.0 ) 677.3 (15.1 ) Net (loss) income attributable to GCP shareholders (16.9 ) (4.7 ) 659.2 (84.2 ) Net (loss) income per share: (4) Basic earnings per share: Net (loss) income from continuing operations attributable to GCP shareholders $ (0.35 ) $ 0.02 $ (0.25 ) $ (0.96 ) Net income (loss) from discontinued operations, net of income taxes $ 0.11 $ (0.08 ) $ 9.46 $ (0.21 ) Net (loss) income attributable to GCP shareholders $ (0.24 ) $ (0.07 ) $ 9.21 $ (1.17 ) Diluted earnings per share: (5) Net (loss) income from continuing operations $ (0.35 ) $ 0.02 $ (0.25 ) $ (0.96 ) Net income (loss) from discontinued operations, net of income taxes $ 0.11 $ (0.08 ) $ 9.46 $ (0.21 ) Net (loss) income attributable to GCP shareholders $ (0.24 ) $ (0.07 ) $ 9.21 $ (1.17 ) ________________________________ (1) GCP recognized a net gain on the sale of Darex of approximately $678.9 million during the third quarter of 2017. Refer to Note 18 for further discussion of the Company's sale of Darex. (2) In the third quarter of 2017, GCP recorded an out-period-adjustment to correct the misclassification of a $3.4 million foreign exchange remeasurement loss that was incorrectly included within discontinued operations in the second quarter of 2017. The impact of this correction, of which $2.9 million is reflected in "Loss on Venezuela" and $0.5 million is reflected in "Other (income) expense, net" on the Consolidated Statement of Operations, resulted in an increase in "Loss from continuing operations." There was no tax impact associated with this adjustment. GCP has assessed the impact of this error and concluded that the amount was not material to any prior-period financial statements and the impact of correcting this error in the third quarter of 2017 is not material. (3) In the fourth quarter of 2017, GCP recorded a pension mark-to-market adjustment loss of $11.2 million . Refer to Note 7. (4) 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. (5) Dilutive effect only applicable to periods where there is net income from continuing operations. (In millions, except per share amounts) March 31 June 30 September 30 December 31 (1) 2016 Net sales $ 237.7 $ 284.0 $ 263.4 $ 261.4 Gross profit 93.2 118.2 108.6 97.6 Net income 18.2 30.6 21.5 3.5 Income (loss) from continuing operations attributable to GCP shareholders 5.6 16.7 10.9 (5.6 ) Income from discontinued operations, net of income taxes 12.2 13.6 10.4 9.0 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 (loss) from continuing operations attributable to GCP shareholders $ 0.08 $ 0.24 $ 0.15 $ (0.08 ) Net income from discontinued operations, net of income taxes $ 0.17 $ 0.19 $ 0.15 $ 0.13 Net income attributable to GCP shareholders $ 0.25 $ 0.43 $ 0.30 $ 0.05 Diluted earnings per share: Net income (loss) from continuing operations $ 0.08 $ 0.23 $ 0.15 $ (0.08 ) Net income from discontinued operations, net of income taxes $ 0.17 $ 0.19 $ 0.14 $ 0.13 Net income attributable to GCP shareholders $ 0.25 $ 0.42 $ 0.30 $ 0.05 ________________________________ (1) In the fourth quarter of 2016, GCP recorded a pension mark-to-market adjustment of $19.9 million . Refer to Note 7. (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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 3, 2017, the Company completed the sale of Darex to Henkel for $1.06 billion in cash (the “Disposition”). In accordance with applicable accounting guidance, the assets and liabilities related to Darex have been reclassified and reflected as "held for sale" on the Consolidated Balance Sheet as of December 31, 2016. In addition, Darex results have been reclassified and reflected as "discontinued operations" on the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provides for a series of delayed closings in certain non-U.S. jurisdictions, including Argentina, China, Colombia, Indonesia, Peru and Venezuela. The delayed closings will implement the legal transfer of the Darex business in the delayed closing jurisdictions in accordance with local law. In January 2018, the delayed closings in Argentina, Colombia and Peru were completed. The Company estimates that it will record a pre-tax gain in the first quarter of 2018 of approximately $17 million to $19 million based on $25.1 million of proceeds received on July 3, 2017 related to the Darex business in these delayed closing jurisdictions, subject to normal and customary closing adjustments. The remaining delayed closings are expected to be completed over the following three to 24 months. Up to the time of the delayed closings for these countries, the results of the operations of the Darex business in the delayed close countries are reported as “Income (loss) from discontinued operations, net of income taxes” in the Consolidated Statements of Operations, and reflect an economic benefit payable to or recoverable from Henkel, as applicable for each reporting period, per the Amended Purchase Agreement. The assets and liabilities of the Darex business in the delayed close countries are categorized as “Assets held for sale” or “Liabilities held for sale” in the accompanying Consolidated Balance Sheet as of December 31, 2017 . In connection with the Disposition, the Company and Henkel also entered into a Transition Services Agreement pursuant to which Henkel and the Company will provide various services to each other in connection with the transition of the Darex business to Henkel. The Company and Henkel expect to perform these services, which relate to real estate, information technology, accounts payable, payroll and other financial functions and administrative services, for various periods up to 24 months following the closing date. The charges for such services generally allow the servicing party to recover all out-of-pocket costs and expenses. Additionally, in connection with the Disposition, the Company and Henkel entered into a Master Tolling Agreement, whereby Henkel will operate certain equipment at facilities being sold in order to manufacture and prepare for shipping certain products related to product lines that the Company continues to own. The Company and Henkel expect these services to be provided for a period of 24 months following the closing date, which can be further extended. Under the Amended Purchase Agreement, GCP is required to indemnify Henkel for certain possible future tax liabilities. As of December 31, 2017, GCP has recorded an indemnification payable of $3.3 million in this regard as a result of the Disposition. GCP recognized a pre-tax gain on the sale of Darex of approximately $880.8 million during 2017, including the impact of customary closing adjustments to the purchase price recognized during the fourth quarter of 2017. The calculation of the pre-tax gain excludes $68.7 million of deferred consideration related to the delayed closings, which was received on the closing date. Deferred consideration is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheet as of December 31, 2017 . Refer to the table below for a reconciliation of the gain recorded on the sale of Darex. (In millions) Net proceeds included in gain recognized in 2017 $ 996.3 Less: Transaction costs 15.9 Less: Net assets derecognized in 2017 99.6 Gain recognized in 2017 before income taxes 880.8 Less: Tax effect of gain recognized in 2017 201.9 Gain recognized in 2017 after income taxes $ 678.9 In connection with the Disposition and related tax gain, as noted above, the Company has recorded tax expense of $201.9 million within discontinued operations. The tax consequences of the Disposition are complex and the calculation of the provision is based on management’s best estimate using all readily accessible information. Management is in the process of completing further analysis related to the stock basis, earnings and profits, tax pools, transaction costs and other related components associated with the Disposition. Based on the overall complexity of the calculation, management believes that there is a reasonable possibility that differences between the estimated tax provision and actual outcome may result within the next 12 months, which could have a material impact on the Company's results of operations. As a result of the Disposition, GCP recorded an unrecognized tax benefit of $32.4 million , which is reflected in the tax effect of the gain and within income tax expense in discontinued operations for the year ended December 31, 2017 . "Income from discontinued operations, net of income taxes" in the accompanying Statements of Operations is comprised of the following: Year Ended December 31, (In millions) 2017 2016 2015 Net sales $ 169.5 $ 309.3 $ 326.2 Cost of goods sold 111.9 198.2 217.4 Selling, general and administrative expenses 44.9 33.4 32.4 Research and development expenses 2.3 4.6 4.8 Repositioning expenses — — — Restructuring expenses 7.8 — 1.8 Loss in Venezuela 1.1 — 4.4 Gain on sale of business (880.8 ) — — Other non-operating expenses, net 7.7 2.4 (3.2 ) Provision for income taxes (210.2 ) (25.5 ) (28.3 ) Less: Net income attributable to noncontrolling interests (0.1 ) — (0.2 ) Income from discontinued operations, net of income taxes $ 664.3 $ 45.2 $ 40.1 The carrying amounts of the major classes of assets and liabilities of Darex classified as "held for sale" as of December 31, 2017 and 2016 consist of the following: (In millions) December 31, 2017 December 31, 2016 Cash and cash equivalents $ — $ 16.3 Trade accounts receivable 8.4 50.5 Inventories 10.6 32.3 Other current assets 0.7 8.9 Current assets held for sale $ 19.7 $ 108.0 Properties and equipment, net 2.2 39.6 Goodwill — 4.4 Technology and other intangible assets, net — 0.4 Deferred income taxes — 6.4 Other assets 0.6 4.6 Noncurrent assets held for sale $ 2.8 $ 55.4 Accounts payable 6.4 26.7 Other current liabilities 1.4 21.5 Current liabilities held for sale $ 7.8 $ 48.2 Deferred income taxes — 2.3 Underfunded and unfunded defined benefit pension plans 0.3 14.8 Other liabilities — 3.8 Noncurrent liabilities held for sale $ 0.3 $ 20.9 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event TBD |
Schedule II - Valuation & Quali
Schedule II - Valuation & Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 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 $ 4.5 $ 0.8 $ — $ 0.4 $ 5.7 Inventory obsolescence reserve 2.6 4.7 (4.8 ) (0.1 ) 2.4 Valuation allowance for deferred tax assets 2.3 21.8 (0.3 ) 0.1 23.9 ___________________________________________________________________________________________________________________ (1) Various miscellaneous adjustments against reserves and effects of currency translation. 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 $ 5.8 $ 0.2 $ (1.9 ) $ 0.4 $ 4.5 Inventory obsolescence reserve 2.7 — (0.1 ) — 2.6 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 $ 4.6 $ 2.8 $ (2.3 ) $ 0.7 $ 5.8 Inventory obsolescence reserve 3.5 — (0.8 ) — 2.7 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. |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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, except as noted below with respect to the Company's Venezuela subsidiary. The financial statements reflect the financial position, results of operations and cash flows of GCP in accordance with generally accepted accounting principles in the United States of America ("GAAP") and with the instructions to Form 10-K. |
Discontinued Operations | Discontinued Operations As noted above, on July 3, 2017 , the Company completed the sale of Darex to Henkel. In conjunction with this transaction and applicable GAAP, the assets and liabilities related to Darex have been reclassified and reflected as "held for sale" on the Consolidated Balance Sheet as of December 31, 2016 . As discussed further in Note 18, the assets and liabilities of the Darex business in certain delayed close countries are categorized as “Assets held for sale” or “Liabilities held for sale” in the accompanying Consolidated Balance Sheet as of December 31, 2017 . Additionally, Darex has been reclassified and reflected as "discontinued operations" on the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented. GCP recognized a pre-tax gain on the sale of Darex of approximately $880.8 million for the year ended December 31, 2017 . The calculation of the pre-tax gain excludes deferral of $68.7 million of consideration related to the delayed closings, which was received on the Closing Date. Deferred consideration is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheet as of December 31, 2017 . Unless otherwise noted, the information throughout the Notes to the Consolidated Financial Statements pertains only to the continuing operations of GCP. Refer to Note 18 for further discussion of the sale of Darex. |
Principles of Combination | Deconsolidation of Venezuelan Operations Prior to July 3, 2017, the Company included the results of its Venezuelan operations (“GCP Venezuela”) in the Consolidated Financial Statements using the consolidation method of accounting. Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, and have restricted GCP Venezuela’s ability to pay dividends and meet obligations denominated in U.S. dollars. These exchange regulations, combined with other recently adopted regulations, have constrained availability of raw materials and have significantly limited GCP Venezuela’s ability to maintain normal production. As a result of these conditions, combined with the loss of scale in Venezuela resulting from the sale of the Company’s Darex-related operations and assets in Venezuela, GCP has deconsolidated its Venezuelan operations as of July 3, 2017 in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation . Subsequent to this date, the Company began accounting for GCP Venezuela using the cost method of accounting. This change resulted in a pre-tax charge of $36.7 million , which is reflected in “Loss in Venezuela” in the accompanying Consolidated Statements of Operations, primarily related to the recognition of $33.4 million of unfavorable cumulative translation adjustments associated with the Venezuelan business. In periods subsequent to July 3, 2017, the Company’s financial results do not include the operating results of GCP Venezuela. The Company will record cash and recognize income from its Venezuelan operations in the consolidated financial statements to the extent GCP is paid for inventory sold to or dividends received from GCP Venezuela. The remaining investment on the Company's Consolidated Balance Sheet as of December 31, 2017 is immaterial. Separation from Grace 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 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 Consolidated 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 continued to provide certain of these functions under a transition services agreement, which remained in place for a period of 18 months from the Separation. As of December 31, 2017, the activities subject to the transition services agreement were complete. Refer to Note 12 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 Consolidated 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 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 (refer to Note 9) and income taxes (refer to Note 6); • Pension and postretirement liabilities that depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (refer to Note 7); and • Realization values of net deferred tax assets, which depend on projections of future taxable income. In addition, the provisional estimates of the impact of The Tax Cuts and Jobs Act of 2017 ("2017 Tax Act") that were recorded as of December 31, 2017 may be subject to material adjustments in 2018 as the Company changes its interpretations and assumptions underlying the related charge, as well as guidance that may be issued, and actions the Company may take as a result of the tax legislation. |
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 net realizable value. The method used to determine cost is first-in/first-out, or "FIFO." Market values for raw materials are based on current cost and, for other inventory classifications, net realizable value. Inventories are evaluated regularly for salability and slow moving and/or obsolete items are adjusted to expected salable value. Inventory values include direct and certain indirect costs of materials and production. Abnormal costs of production are expensed as incurred. |
Long-Lived Assets | 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 FASB 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 files 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 was 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, such as a major plan amendment or curtailment, 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 authoritative accounting guidance. The Company recognizes expenses related to stock-based compensation payment transactions over the requisite service period, which may be the stated vesting period, in which it receives employee services in exchange for equity and/or liability instruments of the Company or based on the fair value of the Company’s equity instruments. The expense is reduced by estimated forfeitures expected over the requisite service period, and at the end of that time, the cumulative expense is adjusted to account for actual forfeitures that occurred. Total stock compensation costs are included within "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Refer to Note 13 for further discussion. |
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 Derivatives and Hedging In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815). The amendments in this update improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The standard is effective for the Company as of January 1, 2019, and early adoption is permitted. GCP is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, but does not expect the adoption of this standard will have a material effect on its Consolidated Financial Statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard is effective for the Company on January 1, 2018, with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date, and, therefore, GCP will consider the provisions of this update in conjunction with awards issued on or after January 1, 2018, as applicable. 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 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. GCP will adopt the standard beginning January 1, 2018 through a cumulative adjustment to retained earnings, as opposed to retrospectively adjusting prior periods, and continues to progress in its evaluation of the potential impact of the standard on its Consolidated Financial Statements and related disclosures. Under Topic 606, entities are required to disaggregate revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company is evaluating the Topic 606 disclosure requirements, including this requirement to disaggregate revenue. The Company is additionally assessing the impact of Topic 606 on its internal controls over financial reporting. The Company is currently in the final phase in the process of identifying and implementing necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. The Company will continue to evaluate the impact the adoption of this standard will have on its Consolidated Financial Statements and related disclosures, but anticipates that revenue recognition related to the VERIFI ® business ("Verifi") will be most impacted. The Company determined that under Topic 606 Verifi agreements contain multiple performance obligations, which will require the Company to estimate the stand-alone selling price for each performance obligation and then allocate the overall arrangement consideration. The Company estimates that the cumulative impact to its Consolidated Financial Statements of adopting Topic 606 on January 1, 2018 will not be material. 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. GCP will adopt ASU 2016-12, as applicable, in conjunction with its adoption of 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 will adopt ASU 2016-10 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 will adopt ASU 2016-08 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. Other new pronouncements issued but not effective until after December 31, 2017 are not expected to have a material impact on the Company's financial position, results of operations or liquidity. Recently Adopted Accounting Standards Business Combinations In January 2017, the FASB issued 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 transaction does not involve a business. The standard is effective for the Company on January 1, 2018, with early application permitted for certain transactions. GCP elected to early adopt the provisions of this update in the second quarter of 2017 in conjunction with its acquisition of Stirling Lloyd Plc (refer to Note 16). Pension and Other Postretirement Benefit Costs In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes certain presentation and disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The amendments in this ASU require entities to (1) report the service cost component of net periodic pension/postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period; (2) capitalize only the service cost component of net periodic pension/postretirement benefit cost (when applicable); and (3) present other components of net periodic pension/postretirement benefit cost separately from the service cost component and outside a subtotal of income from operations (if applicable). The standard is effective for the Company on January 1, 2018, with early adoption permitted as of January 1, 2017. GCP elected to early adopt this standard in the first quarter of 2017 and has reflected only the service cost component of net periodic pension/postretirement benefit cost in "Cost of goods sold" and presented the other components of net periodic pension/postretirement benefit cost in "Other (income) expense, net," within the Consolidated Statements of Operations. In accordance with the standard, GCP utilized prior period footnote disclosures as a practical expedient to apply these retrospective presentation requirements and will prospectively apply the capitalization requirements. GCP's adoption of this standard did not have a material effect on the accompanying Consolidated Financial Statements. 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 adopted this standard for the 2017 first quarter and there were no material effects on the accompanying Consolidated Financial Statements. 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 . This ASU impacts share-based compensation payment accounting and cash flow statement presentation of income taxes and allows for the recognition of forfeitures as they occur. The update requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled and 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 update no longer requires cash flows related to excess tax benefits to be presented as a financing activity and separate from other income tax cash flows, which are presented in the operating section. The ASU also allows entities to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, and it clarifies that all cash payments to taxing authorities made on behalf of an employee in the form of withheld shares be presented as a financing activity on the cash flow statement. GCP elected to early adopt this update in the third quarter of 2016 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. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories presented on GCP's Consolidated Balance Sheets consisted of the below. December 31, (In millions) 2017 2016 Raw materials $ 41.9 $ 35.7 In process 3.5 3.6 Finished products and other 60.9 50.0 Total inventories $ 106.3 $ 89.3 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | December 31, (In millions) 2017 2016 Land $ 6.3 $ 6.2 Buildings 131.9 109.1 Machinery, equipment and other 388.9 343.2 Information technology and equipment 76.6 64.6 Projects under construction 20.4 26.0 Properties and equipment, gross 624.1 549.1 Accumulated depreciation and amortization (407.5 ) (356.5 ) Properties and equipment, net $ 216.6 $ 192.6 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 , are as presented below. (In millions) SCC SBM Total Balance, December 31, 2015 $ 44.2 $ 53.5 $ 97.7 Foreign currency translation (0.5 ) (0.5 ) (1.0 ) Acquisitions 2.1 16.1 18.2 Balance, December 31, 2016 $ 45.8 $ 69.1 $ 114.9 Foreign currency translation 3.8 6.9 10.7 Acquisitions 15.5 58.4 73.9 Divestitures — (1.3 ) (1.3 ) Balance, December 31, 2017 $ 65.1 $ 133.1 $ 198.2 |
Schedule of Finite-Lived Intangible Assets | GCP's net book value of other intangible assets at December 31, 2017 and 2016 was $91.8 million and $52.6 million , respectively, detailed below. December 31, 2017 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 82.4 $ 25.4 Technology 40.9 14.2 Trademarks 17.1 10.0 Other 5.9 4.9 Total $ 146.3 $ 54.5 December 31, 2016 (In millions) Gross Carrying Accumulated Customer lists $ 55.4 $ 20.3 Technology 23.7 11.2 Trademarks 12.7 8.8 Other 5.8 4.7 Total $ 97.6 $ 45.0 |
Schedule of Indefinite-Lived Intangible Assets | GCP's net book value of other intangible assets at December 31, 2017 and 2016 was $91.8 million and $52.6 million , respectively, detailed below. December 31, 2017 (In millions) Gross Carrying Amount Accumulated Amortization Customer lists $ 82.4 $ 25.4 Technology 40.9 14.2 Trademarks 17.1 10.0 Other 5.9 4.9 Total $ 146.3 $ 54.5 December 31, 2016 (In millions) Gross Carrying Accumulated Customer lists $ 55.4 $ 20.3 Technology 23.7 11.2 Trademarks 12.7 8.8 Other 5.8 4.7 Total $ 97.6 $ 45.0 |
Schedule of Estimated Future Annual Amortization Expense | At December 31, 2017 , estimated future annual amortization expense for intangible assets is presented below. (In millions) 2018 $ 8.5 2019 8.4 2020 8.4 2021 7.8 2022 7.7 Thereafter 45.0 Total $ 85.8 |
Debt and Other Financial Inst32
Debt and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Debt | Components of Debt December 31, (In millions) 2017 2016 9.5% Senior Notes due 2023, net of unamortized debt issuance costs of $6.4 at December 31, 2017 (2016 — $7.3) $ 518.6 $ 517.7 Term Loan due 2022, net of unamortized discount of $2.4M and unamortized debt issuance costs of $4.3M at December 31, 2016 (1) — 266.2 Revolving credit facility due 2021 (2) — 25.0 Other borrowings (3) 25.7 22.0 Total debt 544.3 830.9 Less debt payable within one year 24.0 47.9 Debt payable after one year $ 520.3 $ 783.0 Weighted average interest rates on total debt 9.4 % 7.5 % __________________________ (1) GCP repaid the outstanding principal balance and accrued interest on the Term Loan in July 2017. Refer below to "Credit Agreement" disclosure. (2) Interest at LIBOR +200 bps at December 31, 2017 . (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 debt issuance costs) at December 31, 2017 are presented below. (In millions) 2018 $ 24.0 2019 0.9 2020 0.8 2021 — 2022 — Thereafter 518.6 Total debt $ 544.3 |
Carrying Amounts and Fair Values of Debt Instruments | At December 31, 2017 , the carrying amounts and fair values of GCP's debt are presented below. December 31, 2017 December 31, 2016 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 9.5% Senior Notes due 2023 $ 518.6 $ 584.5 $ 517.7 $ 603.1 Term Loan due 2022 — — 266.2 274.6 Revolving credit facility due 2021 — — 25.0 25.0 Other borrowings 25.7 25.7 22.0 22.0 Total debt $ 544.3 $ 610.2 $ 830.9 $ 924.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 , 2016 and 2015 are presented below. (In millions) 2017 2016 2015 (Loss) income before income taxes: Domestic $ (27.4 ) $ (5.9 ) $ 56.4 Foreign (0.9 ) 41.2 0.2 Total $ (28.3 ) $ 35.3 $ 56.6 Provision for (benefit from) income taxes: Federal—current $ 27.2 $ (4.2 ) $ 32.2 Federal—deferred 39.4 0.5 0.6 State and local—current (3.8 ) (0.5 ) 7.0 State and local—deferred 2.7 — 0.1 Foreign—current 5.7 10.4 21.4 Foreign—deferred 10.9 0.5 (5.3 ) Total $ 82.1 $ 6.7 $ 56.0 |
Schedule of Provision for Income Taxes | The components of income before income taxes and the related provision for income taxes for 2017 , 2016 and 2015 are presented below. (In millions) 2017 2016 2015 (Loss) income before income taxes: Domestic $ (27.4 ) $ (5.9 ) $ 56.4 Foreign (0.9 ) 41.2 0.2 Total $ (28.3 ) $ 35.3 $ 56.6 Provision for (benefit from) income taxes: Federal—current $ 27.2 $ (4.2 ) $ 32.2 Federal—deferred 39.4 0.5 0.6 State and local—current (3.8 ) (0.5 ) 7.0 State and local—deferred 2.7 — 0.1 Foreign—current 5.7 10.4 21.4 Foreign—deferred 10.9 0.5 (5.3 ) Total $ 82.1 $ 6.7 $ 56.0 |
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) 2017 2016 2015 Tax (benefit) provision at U.S. federal income tax rate $ (9.9 ) $ 12.4 $ 19.8 Change in provision resulting from: Deconsolidation of Venezuela (1) 11.5 — — Devaluation in Venezuela 1.4 — 21.5 2017 Tax Act 81.7 — — Recognition of outside basis differences (13.9 ) — 9.3 U.S. foreign income inclusions 1.1 (3.1 ) Effect of tax rates in foreign jurisdictions (1.0 ) (4.5 ) 8.6 Valuation allowance 11.4 0.4 — State and local income taxes, net (1.2 ) — 4.2 Benefit from domestic production activities — — (2.6 ) Return to provision – change in estimate 0.4 — 1.2 Nondeductible expenses and non-taxable items 3.5 2.5 (3.0 ) Research and other state credits (0.8 ) (0.7 ) (0.2 ) Uncertain tax positions (0.7 ) (1.6 ) 0.9 Equity compensation (1.2 ) (1.7 ) — Other (0.2 ) (0.1 ) (0.6 ) Provision for income taxes $ 82.1 $ 6.7 $ 56.0 __________________________ (1) Amount in 2017 is offset by the benefit resulting from outside basis differences in primarily Mexico and Venezuela, which is included in the table above in "Recognition of outside basis differences." |
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2017 and 2016 , the deferred tax assets and liabilities consisted of the below items. (In millions) December 31, 2017 December 31, 2016 Deferred tax assets: Foreign net operating loss carryforwards $ 24.5 $ 11.6 Research and development 2.4 6.3 Reserves and allowances 12.5 14.3 Pension benefits 8.3 21.4 Intangible assets/goodwill 1.4 24.5 Stock compensation 3.8 4.4 Foreign tax credits — 3.5 Other 2.5 2.6 Total deferred tax assets $ 55.4 $ 88.6 Deferred tax liabilities: Properties and equipment $ (12.1 ) $ (12.2 ) Intangible assets/goodwill — — Other (3.9 ) (3.8 ) Total deferred tax liabilities $ (16.0 ) $ (16.0 ) Valuation Allowance: Foreign net operating loss carryforwards (23.9 ) (2.3 ) Net deferred tax assets $ 15.5 $ 70.3 |
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, 2017, is presented below. The Company is currently evaluating the potential foreign and U.S. state tax liabilities and how the Act will affect the Company's existing accounting positions. The Company expects to complete this evaluation and determine the impact which the legislation may have on its unrecognized tax benefits within the measurement period provided by SAB 118. (In millions) Unrecognized Tax Benefits 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 expirations of statute of limitations (1.1 ) Settlements (2.0 ) Balance, December 31, 2016 7.4 Additions for prior year tax positions 7.0 Additions for current year tax positions 26.0 Reductions for expirations of statute of limitations (1.0 ) Reductions for prior year tax positions and reclassifications (5.3 ) Balance, December 31, 2017 $ 34.1 |
Pension Plans and Other Postr34
Pension Plans and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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 continuing operations: (In millions) December 31, December 31, Overfunded defined benefit pension plans $ 26.4 $ 21.2 Underfunded defined benefit pension plans (26.6 ) (55.6 ) Unfunded defined benefit pension plans (30.5 ) (27.6 ) Total underfunded and unfunded defined benefit pension plans (57.1 ) (83.2 ) Pension liabilities included in other current liabilities (1.0 ) (0.4 ) Net funded status $ (31.7 ) $ (62.4 ) |
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 2017 and 2016 , including amounts presented in both continuing and discontinued operations. Settlements and curtailments directly related to the sale of Darex are presented within "Divestitures" below: Defined Benefit Pension Plans U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligation: Benefit obligation at beginning of year (1) $ 147.6 $ 125.7 $ 276.0 $ 296.8 $ 423.6 $ 422.5 Service cost 6.8 6.1 3.9 3.3 10.7 9.4 Interest cost 5.5 4.7 5.7 7.8 11.2 12.5 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Amendments (6.4 ) — (0.7 ) — (7.1 ) — Settlements/curtailments (0.8 ) — (2.2 ) (7.1 ) (3.0 ) (7.1 ) Divestitures (8.7 ) — (16.3 ) — (25.0 ) — Actuarial loss 25.5 14.0 0.9 33.9 26.4 47.9 Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan liabilities 4.9 — — — 4.9 — Currency exchange translation adjustments — — 23.7 (43.6 ) 23.7 (43.6 ) Benefit obligation at end of year $ 163.8 $ 147.6 $ 274.5 $ 276.0 $ 438.3 $ 423.6 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 86.3 $ 81.1 $ 259.3 $ 287.5 $ 345.6 $ 368.6 Actual return on plan assets 12.4 7.1 12.3 32.2 24.7 39.3 Employer contributions 40.0 1.0 3.8 6.4 43.8 7.4 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Settlements — — (2.2 ) (5.1 ) (2.2 ) (5.1 ) Divestitures (6.7 ) — (2.1 ) — (8.8 ) — Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan assets 7.8 — — — 7.8 — Currency exchange translation adjustments — — 22.5 (46.6 ) 22.5 (46.6 ) Fair value of plan assets at end of year $ 129.2 $ 86.3 $ 277.1 $ 259.3 $ 406.3 $ 345.6 Funded status at end of year (PBO basis) $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ 0.5 $ — $ 25.9 $ 21.2 $ 26.4 $ 21.2 Current liabilities (0.2 ) (0.2 ) (0.8 ) (0.3 ) (1.0 ) (0.5 ) Current liabilities held-for-sale — — — (0.7 ) — (0.7 ) Noncurrent liabilities (34.9 ) (59.9 ) (22.2 ) (23.2 ) (57.1 ) (83.1 ) Noncurrent liabilities held-for-sale — (1.2 ) (0.3 ) (13.7 ) (0.3 ) (14.9 ) Net amount recognized $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.6 ) (0.1 ) (0.6 ) (0.1 ) Net amount recognized $ — $ — $ (0.6 ) $ (0.1 ) $ (0.6 ) $ (0.1 ) ___________________________________________________________________________________________________________________ (1) 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 2017 and 2016 , including amounts presented in both continuing and discontinued operations. Settlements and curtailments directly related to the sale of Darex are presented within "Divestitures" below: Defined Benefit Pension Plans U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligation: Benefit obligation at beginning of year (1) $ 147.6 $ 125.7 $ 276.0 $ 296.8 $ 423.6 $ 422.5 Service cost 6.8 6.1 3.9 3.3 10.7 9.4 Interest cost 5.5 4.7 5.7 7.8 11.2 12.5 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Amendments (6.4 ) — (0.7 ) — (7.1 ) — Settlements/curtailments (0.8 ) — (2.2 ) (7.1 ) (3.0 ) (7.1 ) Divestitures (8.7 ) — (16.3 ) — (25.0 ) — Actuarial loss 25.5 14.0 0.9 33.9 26.4 47.9 Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan liabilities 4.9 — — — 4.9 — Currency exchange translation adjustments — — 23.7 (43.6 ) 23.7 (43.6 ) Benefit obligation at end of year $ 163.8 $ 147.6 $ 274.5 $ 276.0 $ 438.3 $ 423.6 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 86.3 $ 81.1 $ 259.3 $ 287.5 $ 345.6 $ 368.6 Actual return on plan assets 12.4 7.1 12.3 32.2 24.7 39.3 Employer contributions 40.0 1.0 3.8 6.4 43.8 7.4 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Settlements — — (2.2 ) (5.1 ) (2.2 ) (5.1 ) Divestitures (6.7 ) — (2.1 ) — (8.8 ) — Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan assets 7.8 — — — 7.8 — Currency exchange translation adjustments — — 22.5 (46.6 ) 22.5 (46.6 ) Fair value of plan assets at end of year $ 129.2 $ 86.3 $ 277.1 $ 259.3 $ 406.3 $ 345.6 Funded status at end of year (PBO basis) $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ 0.5 $ — $ 25.9 $ 21.2 $ 26.4 $ 21.2 Current liabilities (0.2 ) (0.2 ) (0.8 ) (0.3 ) (1.0 ) (0.5 ) Current liabilities held-for-sale — — — (0.7 ) — (0.7 ) Noncurrent liabilities (34.9 ) (59.9 ) (22.2 ) (23.2 ) (57.1 ) (83.1 ) Noncurrent liabilities held-for-sale — (1.2 ) (0.3 ) (13.7 ) (0.3 ) (14.9 ) Net amount recognized $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.6 ) (0.1 ) (0.6 ) (0.1 ) Net amount recognized $ — $ — $ (0.6 ) $ (0.1 ) $ (0.6 ) $ (0.1 ) ___________________________________________________________________________________________________________________ (1) 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 2017 and 2016 , including amounts presented in both continuing and discontinued operations. Settlements and curtailments directly related to the sale of Darex are presented within "Divestitures" below: Defined Benefit Pension Plans U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligation: Benefit obligation at beginning of year (1) $ 147.6 $ 125.7 $ 276.0 $ 296.8 $ 423.6 $ 422.5 Service cost 6.8 6.1 3.9 3.3 10.7 9.4 Interest cost 5.5 4.7 5.7 7.8 11.2 12.5 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Amendments (6.4 ) — (0.7 ) — (7.1 ) — Settlements/curtailments (0.8 ) — (2.2 ) (7.1 ) (3.0 ) (7.1 ) Divestitures (8.7 ) — (16.3 ) — (25.0 ) — Actuarial loss 25.5 14.0 0.9 33.9 26.4 47.9 Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan liabilities 4.9 — — — 4.9 — Currency exchange translation adjustments — — 23.7 (43.6 ) 23.7 (43.6 ) Benefit obligation at end of year $ 163.8 $ 147.6 $ 274.5 $ 276.0 $ 438.3 $ 423.6 Change in Plan Assets: Fair value of plan assets at beginning of year (2) $ 86.3 $ 81.1 $ 259.3 $ 287.5 $ 345.6 $ 368.6 Actual return on plan assets 12.4 7.1 12.3 32.2 24.7 39.3 Employer contributions 40.0 1.0 3.8 6.4 43.8 7.4 Plan participants' contributions — — 0.2 0.4 0.2 0.4 Settlements — — (2.2 ) (5.1 ) (2.2 ) (5.1 ) Divestitures (6.7 ) — (2.1 ) — (8.8 ) — Benefits paid (10.6 ) (2.9 ) (16.7 ) (15.5 ) (27.3 ) (18.4 ) Assumption of plan assets 7.8 — — — 7.8 — Currency exchange translation adjustments — — 22.5 (46.6 ) 22.5 (46.6 ) Fair value of plan assets at end of year $ 129.2 $ 86.3 $ 277.1 $ 259.3 $ 406.3 $ 345.6 Funded status at end of year (PBO basis) $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets $ 0.5 $ — $ 25.9 $ 21.2 $ 26.4 $ 21.2 Current liabilities (0.2 ) (0.2 ) (0.8 ) (0.3 ) (1.0 ) (0.5 ) Current liabilities held-for-sale — — — (0.7 ) — (0.7 ) Noncurrent liabilities (34.9 ) (59.9 ) (22.2 ) (23.2 ) (57.1 ) (83.1 ) Noncurrent liabilities held-for-sale — (1.2 ) (0.3 ) (13.7 ) (0.3 ) (14.9 ) Net amount recognized $ (34.6 ) $ (61.3 ) $ 2.6 $ (16.7 ) $ (32.0 ) $ (78.0 ) Amounts recognized in Accumulated Other Comprehensive Income: Prior service credit — — (0.6 ) (0.1 ) (0.6 ) (0.1 ) Net amount recognized $ — $ — $ (0.6 ) $ (0.1 ) $ (0.6 ) $ (0.1 ) ___________________________________________________________________________________________________________________ (1) 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. 2017 2016 2017 2016 Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: Discount rate 3.68 % 4.27 % 2.30 % 2.42 % Rate of compensation increase 4.70 % 4.70 % 3.13 % 3.78 % Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: Discount rate 4.27 % 4.53 % 2.42 % 3.26 % Expected return on plan assets 6.25 % 6.25 % 2.60 % 3.50 % Rate of compensation increase 4.70 % 4.70 % 3.49 % 3.78 % Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) 2017 2016 2015 (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 $ 6.8 $ 3.9 $ — $ 6.1 $ 3.3 $ — $ 0.3 $ 3.1 $ — Interest cost 5.5 5.7 — 4.7 7.8 — 0.5 9.2 — Expected return on plan assets (5.6 ) (6.8 ) — (5.0 ) (8.6 ) — (0.8 ) (11.0 ) — Amortization of prior service cost (credit) — — — 0.1 — (0.1 ) 0.1 — — Amortization of net deferred actuarial loss — — — — — 0.1 — — — Gain on termination, curtailment and settlement of pension and other postretirement plans (9.2 ) (14.3 ) — — (0.6 ) (0.2 ) — — — Annual mark-to-market adjustment 18.7 (4.7 ) — 11.9 8.6 — 0.2 14.2 — Net periodic benefit cost (income) (1) $ 16.2 $ (16.2 ) $ — $ 17.8 $ 10.5 $ (0.2 ) $ 0.3 $ 15.5 $ — Less: Discontinued operations (income) cost (2.6 ) (13.9 ) — 0.4 1.4 — 0.1 (0.9 ) — Net periodic benefit cost (income) from continuing operations (1) $ 18.8 $ (2.3 ) $ — $ 17.4 $ 9.1 $ (0.2 ) $ 0.2 $ 16.4 $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) Net prior service credit $ — $ (0.7 ) $ — $ — $ — $ — $ — $ — $ — Amortization of prior service cost — 0.2 — (0.1 ) — — (0.1 ) — — Assumption of prior service credit — — — — — — — (0.5 ) — Total recognized in other comprehensive income $ — $ (0.5 ) $ — $ (0.1 ) $ — $ — $ (0.1 ) $ (0.5 ) $ — Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) $ 16.2 $ (16.7 ) $ — $ 17.7 $ 10.5 $ (0.2 ) $ 0.2 $ 15.0 $ — |
Components of Net Periodic Benefit Cost (Income) | Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) 2017 2016 2015 (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 $ 6.8 $ 3.9 $ — $ 6.1 $ 3.3 $ — $ 0.3 $ 3.1 $ — Interest cost 5.5 5.7 — 4.7 7.8 — 0.5 9.2 — Expected return on plan assets (5.6 ) (6.8 ) — (5.0 ) (8.6 ) — (0.8 ) (11.0 ) — Amortization of prior service cost (credit) — — — 0.1 — (0.1 ) 0.1 — — Amortization of net deferred actuarial loss — — — — — 0.1 — — — Gain on termination, curtailment and settlement of pension and other postretirement plans (9.2 ) (14.3 ) — — (0.6 ) (0.2 ) — — — Annual mark-to-market adjustment 18.7 (4.7 ) — 11.9 8.6 — 0.2 14.2 — Net periodic benefit cost (income) (1) $ 16.2 $ (16.2 ) $ — $ 17.8 $ 10.5 $ (0.2 ) $ 0.3 $ 15.5 $ — Less: Discontinued operations (income) cost (2.6 ) (13.9 ) — 0.4 1.4 — 0.1 (0.9 ) — Net periodic benefit cost (income) from continuing operations (1) $ 18.8 $ (2.3 ) $ — $ 17.4 $ 9.1 $ (0.2 ) $ 0.2 $ 16.4 $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) Net prior service credit $ — $ (0.7 ) $ — $ — $ — $ — $ — $ — $ — Amortization of prior service cost — 0.2 — (0.1 ) — — (0.1 ) — — Assumption of prior service credit — — — — — — — (0.5 ) — Total recognized in other comprehensive income $ — $ (0.5 ) $ — $ (0.1 ) $ — $ — $ (0.1 ) $ (0.5 ) $ — Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) $ 16.2 $ (16.7 ) $ — $ 17.7 $ 10.5 $ (0.2 ) $ 0.2 $ 15.0 $ — __________________________________________________ (1) Includes expense that was allocated to Grace of $0.1 million for the year ended December 31, 2015 . GCP allocated such expense excluding any mark-to-market adjustment. |
Schedule of Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents amounts relating to underfunded and unfunded pension plans, including those presented in "Noncurrent liabilities held for sale" in the Consolidated Balance Sheets for the as of December 31, 2017 and 2016 . Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation U.S. Non-U.S. Total 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ 159.3 $ 147.4 $ 42.0 $ 42.1 $ 201.3 $ 189.5 Accumulated benefit obligation 142.8 124.5 39.1 36.2 181.9 160.7 Fair value of plan assets 124.3 86.2 18.7 5.0 143.0 91.2 Estimated Expected Future Benefit Payments Reflecting Future Service for the Fiscal Years Ending Pension Plans Total U.S. Non-U.S. (1) Benefit Benefit 2018 5.8 11.9 17.7 2019 6.1 11.6 17.7 2020 6.9 11.4 18.3 2021 7.9 11.6 19.5 2022 8.8 11.9 20.7 2023 - 2027 50.2 62.3 112.5 |
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 2018 5.8 11.9 17.7 2019 6.1 11.6 17.7 2020 6.9 11.4 18.3 2021 7.9 11.6 19.5 2022 8.8 11.9 20.7 2023 - 2027 50.2 62.3 112.5 ___________________________________________________________________________________________________________________ (1) Non-U.S. estimated benefit payments for 2018 and future periods have been translated at the applicable December 31, 2017 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, 2017 . (In millions) Insurance Contracts Balance, December 31, 2016 $ 116.5 Actual return on plan assets relating to assets still held at year-end 4.7 Purchases, sales and settlements, net — Transfers in for premium 10.2 Transfers out for benefits paid (6.8 ) Currency exchange translation adjustments 12.1 Balance, December 31, 2017 $ 136.7 |
Schedule of Allocation of Plan Assets | The target allocation of investment assets at December 31, 2017 and the actual allocation at December 31, 2017 and 2016 , for the U.K. pension plan are as follows: Target Percentage of Plan Assets United Kingdom Pension Plan Asset Category 2017 2017 2016 Diversified growth funds 9 % 10 % 8 % U.K. gilts 35 % 33 % 31 % U.K. corporate bonds 3 % 3 % 11 % Insurance contracts 53 % 54 % 50 % Total 100 % 100 % 100 % The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2017 : Fair Value Measurements at December 31, 2017, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Common/collective trust funds $ 127.5 $ — $ 127.5 $ — Government and agency securities 1.2 — 1.2 — Corporate bonds 8.5 — 8.5 — Insurance contracts and other investments (1) 136.8 — 0.1 136.7 Cash 3.2 3.2 — — Total Assets $ 277.2 $ 3.2 $ 137.3 $ 136.7 ___________________________________________________________________________________________________________________ (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, 2017, 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, 2017 and the actual allocation at December 31, 2017 and 2016 for GCP's U.S. qualified pension plans were as follows: Target Percentage of Plan Assets U.S. Qualified Pension Plans Asset Category 2017 2017 2016 U.S. equity securities 26 % 18 % 25 % Non-U.S. equity securities 12 % 9 % 15 % Short-term debt securities (1) — % 32 % 1 % Intermediate-term debt securities — % — % 4 % Long-term debt securities 56 % 37 % 50 % Other investments 6 % 4 % 5 % Total 100 % 100 % 100 % ___________________________________________________________________________________________________________________ (1) In December 2017, the Company made a $40.0 million accelerated contribution to the U.S. pension plans. As of December 31, 2017, these funds were held in common/collective trust funds, which are presented within "Short-term debt securities" above. This resulted in the appearance of a variance between the actual asset allocations as of December 31, 2017 compared to the 2017 target allocations; however, this is not a change in investment strategy. The other assets in these plans have been invested in a manner materially consistent with the 2017 target allocations and investment strategy discussed above. The following table presents the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2016 . Fair Value Measurements at December 31, 2016, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs 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 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, 2017 and 2016 . December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs U.S. equity group trust funds $ 23.5 $ — $ 23.5 $ — Non-U.S. equity group trust funds 11.5 — 11.5 — Corporate bond group trust funds—long-term 48.0 — 48.0 — Other fixed income group trust funds 5.2 — 5.2 — Common/collective trust funds 41.0 — 41.0 — Total Assets $ 129.2 $ — $ 129.2 $ — December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs 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 — Total Assets $ 86.3 $ — $ 86.3 $ — |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 28.4 $ 19.9 Prepaid expenses 13.8 12.4 Income tax receivable (2) 6.0 10.6 Marketable securities 0.4 — Total other current assets $ 48.6 $ 42.9 |
Schedule of Other Current Liabilities | (In millions) December 31, December 31, Other Current Liabilities: Customer volume rebates $ 31.5 $ 30.5 Accrued compensation (1) 27.1 28.0 Income tax payable (2) 115.1 6.7 Accrued interest 20.8 20.8 Restructuring liability 12.8 1.1 Pension liabilities 1.0 0.4 Other accrued liabilities (3) 107.9 32.0 Total other current liabilities $ 316.2 $ 119.5 ________________________________ (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. The year-over-year change in income tax payable relates primarily to the Company's divestiture of Darex. (3) Other accrued liabilities in the table above as of December 31, 2017 includes $55.1 million of deferred consideration related to the delayed closings associated with the Company's divestiture of Darex, as discussed in Note 18. |
Commitments and Contingent Li36
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Non-cancelable Payments for Operating Leases | At December 31, 2017 , minimum future non-cancelable payments for operating leases are summarized below. (In millions) 2018 $ 13.5 2019 10.2 2020 7.7 2021 5.1 2022 4.1 Thereafter 15.7 $ 56.3 |
Restructuring and Repositioni37
Restructuring and Repositioning Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | The following table summarizes restructuring expenses and asset impairments incurred related to the 2017 Plan and prior-period plans: Year Ended December 31, (In millions) 2017 2016 2015 Severance and other employee costs $ 19.9 $ 1.9 $ 11.5 Facility exit costs 0.2 — — Asset impairments 1.2 — 0.1 Total restructuring expenses and asset impairments $ 21.3 $ 1.9 $ 11.6 Less: restructuring expenses and asset impairments reflected in discontinued operations 7.8 — 1.8 Total restructuring expenses and asset impairments from continuing operations $ 13.5 $ 1.9 $ 9.8 GCP incurred restructuring expenses and asset impairments related to its two operating segments and Corporate as follows: Year Ended December 31, (In millions) 2017 2016 2015 SCC $ 6.2 $ 1.2 $ 6.5 SBM 4.1 0.7 3.2 Corporate 3.2 — 0.1 Total restructuring expenses and asset impairments from continuing operations $ 13.5 $ 1.9 $ 9.8 Restructuring expenses and asset impairments reflected in discontinued operations 7.8 — 1.8 Total restructuring expenses and asset impairments $ 21.3 $ 1.9 $ 11.6 Separation-related repositioning expenses incurred for the periods presented were as follows: Year Ended December 31, (In millions) 2017 2016 Professional fees $ 3.4 $ 7.8 Software and IT implementation fees 0.9 3.0 Employee-related costs 1.0 4.5 Total $ 5.3 $ 15.3 |
Schedule of Restructuring Reserve | The following table summarizes details of the Company’s restructuring liability activity: 2017 Plan (In millions) Severance and other employee costs Facility exit costs Other plans Total Balance, December 31, 2014 $ — $ — $ 0.8 $ 0.8 Expense — — 11.5 11.5 Payments — — (10.9 ) (10.9 ) Impact of foreign currency and other — — — — Balance, December 31, 2015 — — 1.4 1.4 Expense — — 1.9 1.9 Payments — — (3.6 ) (3.6 ) Impact of foreign currency and other — — 1.4 1.4 Balance, December 31, 2016 — — 1.1 1.1 Expense 19.5 0.1 0.5 20.1 Payments (8.0 ) — (0.5 ) (8.5 ) Impact of foreign currency and other 0.1 — — 0.1 Balance, December 31, 2017 $ 11.6 $ 0.1 $ 1.1 $ 12.8 |
Other Comprehensive Income (L38
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 income (loss) for the years ended December 31, 2017 , 2016 and 2015 . Year Ended December 31, 2017 Pre-Tax Amount Tax (Expense)/Benefit After-Tax Amount (In millions) Defined benefit pension and other postretirement plans: Amortization of net prior service credit $ (0.2 ) $ — $ (0.2 ) Assumption of net prior service credit 0.7 (0.2 ) 0.5 Benefit plans, net 0.5 (0.2 ) 0.3 Currency translation adjustments 61.7 — 61.7 Loss from hedging activities (0.2 ) 0.1 (0.1 ) Other comprehensive income attributable to GCP shareholders $ 62.0 $ (0.1 ) $ 61.9 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 ) Gain from hedging activities — — — Other comprehensive loss attributable to GCP shareholders $ (19.9 ) $ — $ (19.9 ) Year Ended December 31, 2015 Pre-Tax Tax (Expense)/Benefit After-Tax (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 ) |
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, 2017 , 2016 and 2015 . Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Year Ended December 31, 2017 (In millions) Beginning balance $ 0.1 $ (147.7 ) $ — $ (147.6 ) Other comprehensive income (loss) before reclassifications 0.3 61.7 (0.7 ) 61.3 Amounts reclassified from accumulated other comprehensive income — — 0.6 0.6 Net current-period other comprehensive income (loss) 0.3 61.7 (0.1 ) 61.9 Ending balance $ 0.4 $ (86.0 ) $ (0.1 ) $ (85.7 ) Year Ended December 31, 2016 (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities 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 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities 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 ) |
Related Party Transactions an39
Related Party Transactions and Transactions with Grace (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Components of Net Transfers to Parent | The components of the "Net transfer to parent" as of December 31, 2016 and 2015 are presented below. Year Ended December 31, (In millions) 2016 2015 Cash pooling and general financing activities $ (688.0 ) $ (306.1 ) GCP expenses funded by parent 6.6 54.6 Corporate costs allocations 2.0 54.8 Provision for income taxes 4.3 84.3 Total net transfers to parent (675.1 ) (112.4 ) Share-based compensation — (3.7 ) Other, net (83.6 ) (3.5 ) Transfers to parent, net per Consolidated Statements of Cash Flows $ (758.7 ) $ (119.6 ) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 , 2016 and 2015: Year Ended December 31, Assumptions used to calculate expense for stock option 2017 2016 2015 Risk-free interest rate 1.83 - 2.11% 0.93 - 1.24% 1.3% Average life of options (years) 5.5 - 6.5 4 - 5 3 - 4 Volatility 31.42 - 31.96% 29.6 – 33.2% 23.0 – 27.2% Dividend yield — — — Average fair value per stock option $9.17 $4.89 $18.43 |
Summary of Stock Option Activity | The following table sets forth information relating to such options denominated in GCP stock during 2017 . 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/expired/canceled 52 16.58 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 Options exercised 601 $ 14.69 Options forfeited/expired/canceled 126 19.76 Options granted 241 26.51 Outstanding, December 31, 2017 1,636 18.94 3.78 $ 21,597 Exercisable, December 31, 2017 844 $ 17.78 2.16 $ 12,118 |
Summary of Restricted Stock Units Award Activity | GCP’s RSU activity for the year ended December 31, 2017 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 Outstanding, December 31, 2016 538 17.22 Vested and outstanding, December 31, 2016 77 17.23 RSU's settled 141 17.19 RSU's forfeited 86 18.34 RSU's granted 95 26.44 Outstanding, December 31, 2017 406 19.15 Vested and outstanding, December 31, 2017 — $ — |
Schedule of Restricted Stock Units Vesting and Settlements | GCP's expectations of future RSU vesting and settlement are as follows: Year: Number Of Shares Vesting (in thousands) Settled in Cash Settled in Stock 2018 163 10% 90% 2019 219 —% 100% 2020 24 —% 100% |
Schedule of Assumptions for Estimating the Fair Value of PBUs | The following summarizes the assumptions used in the Monte Carlo simulation for estimating the grant date fair value of PBUs granted during 2017: Assumptions used to calculate expense for PBUs Year ended December 31, 2017 Expected Term (Remaining Performance Period) 2.84 years Expected volatility 28.00% Risk-free interest rate 1.41% Expected Dividends — Correlation coefficient 46.83% Average correlation coefficient of constituents 42.33% |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Data | Operating Segment Data (In millions) 2017 2016 2015 Net Sales Specialty Construction Chemicals $ 615.7 $ 623.8 $ 694.3 Specialty Building Materials 468.7 422.7 398.1 Total $ 1,084.4 $ 1,046.5 $ 1,092.4 Segment Operating Income Specialty Construction Chemicals segment operating income $ 63.4 $ 72.6 $ 83.7 Specialty Building Materials segment operating income 109.4 114.0 99.6 Total segment operating income $ 172.8 $ 186.6 $ 183.3 Depreciation and Amortization Specialty Construction Chemicals $ 21.3 $ 20.0 $ 18.0 Specialty Building Materials 13.2 9.6 7.8 Corporate 2.3 0.2 1.2 Total $ 36.8 $ 29.8 $ 27.0 Capital Expenditures Specialty Construction Chemicals $ 23.9 $ 23.6 $ 21.8 Specialty Building Materials 8.5 5.7 7.0 Corporate 12.6 11.6 1.3 Total $ 45.0 $ 40.9 $ 30.1 Total Assets Specialty Construction Chemicals $ 419.9 $ 335.9 $ 318.4 Specialty Building Materials 409.3 273.3 227.4 Corporate 851.3 317.2 130.0 Assets held for sale 22.5 163.4 157.3 Total $ 1,703.0 $ 1,089.8 $ 833.1 |
Reconciliation of Operating Segment Data to Financial Statements | Total segment operating income for the years ended December 31, 2017 , 2016 and 2015 are reconciled below to "(Loss) income from continuing operations before income taxes" presented in the accompanying Consolidated Statements of Operations: Year Ended December 31, (In millions) 2017 2016 2015 Total segment operating income $ 172.8 $ 186.6 $ 183.3 Corporate costs (1) (36.4 ) (38.4 ) (31.1 ) Certain pension costs (9.0 ) (7.2 ) (3.8 ) Loss on sale of product line (2.1 ) — — Currency and other financial losses in Venezuela (1) (39.1 ) — (63.0 ) Litigation settlement (4.0 ) — — Legacy product, environmental and other claims (0.6 ) — — Repositioning expenses (9.8 ) (15.3 ) — Restructuring expenses and asset impairments (13.5 ) (1.9 ) (9.8 ) Pension MTM adjustment and other related costs, net (14.1 ) (22.6 ) (17.1 ) Gain on termination and curtailment of pension and other postretirement plans 6.6 0.8 — Third-party and other acquisition-related costs (6.8 ) (0.6 ) — Other financing costs (6.0 ) (1.2 ) — Amortization of acquired inventory fair value adjustment (2.9 ) (1.3 ) — Tax indemnification adjustments (2.8 ) — — Interest expense, net (61.1 ) (64.6 ) (2.5 ) Net income attributable to noncontrolling interests 0.5 1.0 0.6 (Loss) income from continuing operations before income taxes $ (28.3 ) $ 35.3 $ 56.6 ______________________________ (1) Corporate costs include $5.4 million and $10.3 million of allocated costs in the years ended December 31, 2017 and 2016, respectively, as such costs did not qualify to be reclassified to discontinued operations. As of the third quarter of 2017, the Company began allocating these costs to its remaining operating segments. |
Sales by Product Group | Sales by Product Group Year Ended December 31, (In millions) 2017 2016 2015 Specialty Construction Chemicals: Concrete $ 455.6 $ 469.1 $ 532.7 Cement 160.1 154.7 161.6 Total SCC Sales $ 615.7 $ 623.8 $ 694.3 Specialty Building Materials: Building Envelope $ 263.3 $ 236.3 $ 234.7 Residential Building Products 80.3 89.2 79.3 Specialty Construction Products 125.1 97.2 84.1 Total SBM Sales $ 468.7 $ 422.7 $ 398.1 Total Sales $ 1,084.4 $ 1,046.5 $ 1,092.4 |
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. The United Kingdom has long-lived assets of approximately 30% 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) 2017 2016 2015 Net Sales United States $ 509.2 $ 476.6 $ 440.8 Canada and Puerto Rico 31.5 32.5 30.8 Total North America 540.7 509.1 471.6 Europe Middle East Africa 244.5 225.6 235.9 Asia Pacific 229.2 241.2 251.3 Latin America 70.0 70.6 133.6 Total $ 1,084.4 $ 1,046.5 $ 1,092.4 Properties and Equipment, net United States $ 138.5 $ 124.3 $ 85.2 Canada and Puerto Rico 3.1 2.7 2.5 Total North America 141.6 127.0 87.7 Europe Middle East Africa (EMEA) 32.1 24.3 26.9 Asia Pacific 31.4 30.0 31.3 Latin America 11.5 11.3 10.3 Total $ 216.6 $ 192.6 $ 156.2 Goodwill, Intangibles and Other Assets United States $ 109.0 $ 82.0 $ 34.1 Canada and Puerto Rico 7.7 7.7 2.8 Total North America 116.7 89.7 36.9 Europe Middle East Africa (EMEA) 151.2 55.3 60.0 Asia Pacific 18.6 17.7 18.0 Latin America 27.3 27.2 24.3 Total $ 313.8 $ 189.9 $ 139.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 (loss) earnings per share. Year Ended December 31, (In millions, except per share amounts) 2017 2016 2015 Numerators (Loss) income from continuing operations attributable to GCP shareholders $ (110.9 ) $ 27.6 $ — Income from discontinued operations, net of income taxes $ 664.3 $ 45.2 $ 40.1 Net income attributable to GCP shareholders $ 553.4 $ 72.8 $ 40.1 Denominators Weighted average common shares—basic calculation 71.5 70.8 70.5 Dilutive effect of employee stock awards (1) — 0.9 — Weighted average common shares—diluted calculation 71.5 71.7 70.5 Basic (loss) earnings per share (Loss) income from continuing operations attributable to GCP shareholders $ (1.55 ) $ 0.39 $ — Income from discontinued operations, net of income taxes $ 9.29 $ 0.64 $ 0.57 Net income attributable to GCP shareholders (1) $ 7.74 $ 1.03 $ 0.57 Diluted (loss) earnings per share (Loss) income from continuing operations attributable to GCP shareholders $ (1.55 ) $ 0.38 $ — Income from discontinued operations, net of income taxes $ 9.29 $ 0.63 $ 0.57 Net income attributable to GCP shareholders (1) $ 7.74 $ 1.02 $ 0.57 (1) Dilutive effect only applicable to periods where there is income from continuing operations. (2) Amounts may not sum due to rounding. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 2.5 Other current assets 0.2 Properties and equipment 0.1 Goodwill 14.0 Intangible assets 15.5 Accounts payable (0.2 ) Net assets acquired $ 32.1 The following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 6.8 Other current assets 3.1 Inventories 4.2 Properties and equipment 3.4 Goodwill 59.6 Intangible assets 26.9 Accounts payable (2.9 ) Other current liabilities (4.2 ) Other liabilities (5.8 ) Net assets acquired $ 91.1 The following table presents the aggregate purchase price allocation as of December 31, 2017. (In millions) Net Assets Acquired Accounts receivable $ 3.2 Other current assets 0.5 Inventories 9.7 Properties and equipment 1.4 Goodwill 14.7 Intangible assets 20.4 Accounts payable (1.5 ) Other current liabilities (2.2 ) Other liabilities (0.2 ) Net assets acquired $ 46.0 |
Schedule of Intangible Assets Acquired | The table below presents the intangible assets acquired as part of the acquisition of Ductilcrete and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 10.2 11 Technology 4.5 13 Trademarks 0.8 10 Total $ 15.5 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 The table below presents the intangible assets acquired as part of the acquisition of Stirling Lloyd and the periods over which they will be amortized. Amount (In millions) Weighted-Average Amortization Period (in years) Customer Lists $ 15.0 10 Technology 9.8 11 Trademarks 2.1 10 Total $ 26.9 |
Schedule of Pro Forma Information | The following unaudited pro forma summary presents consolidated information for GCP as if these business combinations had occurred on January 1, 2016: (In millions) Pro forma year ended December 31, 2017 (unaudited) Pro forma year ended December 31, 2016 (unaudited) Revenue $ 1,108.9 $ 1,101.3 (Loss) income from continuing operations $ (103.4 ) $ 28.3 |
Quarterly Summary and Statist44
Quarterly Summary and Statistical Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary and Statistical Information | (In millions, except per share amounts) March 31 June 30 September 30 (1)(2) December 31 (3) 2017 Net sales $ 225.3 $ 287.2 $ 282.4 $ 289.5 Gross profit 85.3 115.0 106.5 110.3 Net (loss) income (16.9 ) (4.6 ) 659.3 (83.9 ) (Loss) income from continuing operations attributable to GCP shareholders (25.0 ) 1.3 (18.1 ) (69.1 ) Income (loss) from discontinued operations, net of income taxes 8.1 (6.0 ) 677.3 (15.1 ) Net (loss) income attributable to GCP shareholders (16.9 ) (4.7 ) 659.2 (84.2 ) Net (loss) income per share: (4) Basic earnings per share: Net (loss) income from continuing operations attributable to GCP shareholders $ (0.35 ) $ 0.02 $ (0.25 ) $ (0.96 ) Net income (loss) from discontinued operations, net of income taxes $ 0.11 $ (0.08 ) $ 9.46 $ (0.21 ) Net (loss) income attributable to GCP shareholders $ (0.24 ) $ (0.07 ) $ 9.21 $ (1.17 ) Diluted earnings per share: (5) Net (loss) income from continuing operations $ (0.35 ) $ 0.02 $ (0.25 ) $ (0.96 ) Net income (loss) from discontinued operations, net of income taxes $ 0.11 $ (0.08 ) $ 9.46 $ (0.21 ) Net (loss) income attributable to GCP shareholders $ (0.24 ) $ (0.07 ) $ 9.21 $ (1.17 ) ________________________________ (1) GCP recognized a net gain on the sale of Darex of approximately $678.9 million during the third quarter of 2017. Refer to Note 18 for further discussion of the Company's sale of Darex. (2) In the third quarter of 2017, GCP recorded an out-period-adjustment to correct the misclassification of a $3.4 million foreign exchange remeasurement loss that was incorrectly included within discontinued operations in the second quarter of 2017. The impact of this correction, of which $2.9 million is reflected in "Loss on Venezuela" and $0.5 million is reflected in "Other (income) expense, net" on the Consolidated Statement of Operations, resulted in an increase in "Loss from continuing operations." There was no tax impact associated with this adjustment. GCP has assessed the impact of this error and concluded that the amount was not material to any prior-period financial statements and the impact of correcting this error in the third quarter of 2017 is not material. (3) In the fourth quarter of 2017, GCP recorded a pension mark-to-market adjustment loss of $11.2 million . Refer to Note 7. (4) 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. (5) Dilutive effect only applicable to periods where there is net income from continuing operations. (In millions, except per share amounts) March 31 June 30 September 30 December 31 (1) 2016 Net sales $ 237.7 $ 284.0 $ 263.4 $ 261.4 Gross profit 93.2 118.2 108.6 97.6 Net income 18.2 30.6 21.5 3.5 Income (loss) from continuing operations attributable to GCP shareholders 5.6 16.7 10.9 (5.6 ) Income from discontinued operations, net of income taxes 12.2 13.6 10.4 9.0 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 (loss) from continuing operations attributable to GCP shareholders $ 0.08 $ 0.24 $ 0.15 $ (0.08 ) Net income from discontinued operations, net of income taxes $ 0.17 $ 0.19 $ 0.15 $ 0.13 Net income attributable to GCP shareholders $ 0.25 $ 0.43 $ 0.30 $ 0.05 Diluted earnings per share: Net income (loss) from continuing operations $ 0.08 $ 0.23 $ 0.15 $ (0.08 ) Net income from discontinued operations, net of income taxes $ 0.17 $ 0.19 $ 0.14 $ 0.13 Net income attributable to GCP shareholders $ 0.25 $ 0.42 $ 0.30 $ 0.05 ________________________________ (1) In the fourth quarter of 2016, GCP recorded a pension mark-to-market adjustment of $19.9 million . Refer to Note 7. (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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reconciliation of Gain Disposal | Refer to the table below for a reconciliation of the gain recorded on the sale of Darex. (In millions) Net proceeds included in gain recognized in 2017 $ 996.3 Less: Transaction costs 15.9 Less: Net assets derecognized in 2017 99.6 Gain recognized in 2017 before income taxes 880.8 Less: Tax effect of gain recognized in 2017 201.9 Gain recognized in 2017 after income taxes $ 678.9 |
Final Results and Other Effects Related to Discontinued Operations | "Income from discontinued operations, net of income taxes" in the accompanying Statements of Operations is comprised of the following: Year Ended December 31, (In millions) 2017 2016 2015 Net sales $ 169.5 $ 309.3 $ 326.2 Cost of goods sold 111.9 198.2 217.4 Selling, general and administrative expenses 44.9 33.4 32.4 Research and development expenses 2.3 4.6 4.8 Repositioning expenses — — — Restructuring expenses 7.8 — 1.8 Loss in Venezuela 1.1 — 4.4 Gain on sale of business (880.8 ) — — Other non-operating expenses, net 7.7 2.4 (3.2 ) Provision for income taxes (210.2 ) (25.5 ) (28.3 ) Less: Net income attributable to noncontrolling interests (0.1 ) — (0.2 ) Income from discontinued operations, net of income taxes $ 664.3 $ 45.2 $ 40.1 The carrying amounts of the major classes of assets and liabilities of Darex classified as "held for sale" as of December 31, 2017 and 2016 consist of the following: (In millions) December 31, 2017 December 31, 2016 Cash and cash equivalents $ — $ 16.3 Trade accounts receivable 8.4 50.5 Inventories 10.6 32.3 Other current assets 0.7 8.9 Current assets held for sale $ 19.7 $ 108.0 Properties and equipment, net 2.2 39.6 Goodwill — 4.4 Technology and other intangible assets, net — 0.4 Deferred income taxes — 6.4 Other assets 0.6 4.6 Noncurrent assets held for sale $ 2.8 $ 55.4 Accounts payable 6.4 26.7 Other current liabilities 1.4 21.5 Current liabilities held for sale $ 7.8 $ 48.2 Deferred income taxes — 2.3 Underfunded and unfunded defined benefit pension plans 0.3 14.8 Other liabilities — 3.8 Noncurrent liabilities held for sale $ 0.3 $ 20.9 |
Basis of Presentation and Sum46
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies - Narrative (Details) | Feb. 03, 2016 | Jun. 30, 2017USD ($)VEB / $ | May 31, 2017USD ($)VEB / $ | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($)VEB / $ | Dec. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 03, 2017USD ($) | Apr. 30, 2017VEB / $ |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Number of operating segments | segment | 2 | |||||||||||||||
Loss in Venezuela, before taxes | $ 36,700,000 | |||||||||||||||
Long-lived assets impairment | $ 0 | |||||||||||||||
Goodwill impairment | $ 0 | 0 | $ 0 | |||||||||||||
Loss in Venezuela | (38,300,000) | 0 | (55,200,000) | |||||||||||||
Foreign exchange remeasurement loss | $ 1,200,000 | $ 7,100,000 | $ 3,400,000 | |||||||||||||
Excess tax benefit | $ 900,000 | $ 200,000 | $ 800,000 | $ 1,000,000 | $ 1,900,000 | |||||||||||
Net cash provided by operating activities | (39,500,000) | 127,900,000 | 151,800,000 | |||||||||||||
Net cash used in financing activities | $ (290,900,000) | 31,700,000 | (128,200,000) | |||||||||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Net cash provided by operating activities | 800,000 | 1,000,000 | ||||||||||||||
Net cash used in financing activities | $ (800,000) | $ (1,000,000) | ||||||||||||||
Venezuela | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Pre-tax charge reflect the devaluation of monetary assets and the impairment of non-monetary assets | $ 63,000,000 | |||||||||||||||
Venezuela | Venezuelan bolívar fuerte | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Exchange rate | VEB / $ | 2,640 | 2,010 | 199 | 728 | ||||||||||||
Exchange rate percent increase | 176.10% | |||||||||||||||
Maximum | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Finite-lived intangible asset, useful life | 20 years | |||||||||||||||
Maximum | Buildings | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 40 years | |||||||||||||||
Maximum | Information technology and equipment | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 7 years | |||||||||||||||
Maximum | Machinery, equipment and other | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 10 years | |||||||||||||||
Maximum | Furniture and fixtures | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 10 years | |||||||||||||||
Maximum | W.R. Grace & Co. | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Transition period | 18 months | |||||||||||||||
Minimum | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Finite-lived intangible asset, useful life | 1 year | |||||||||||||||
Minimum | Buildings | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 20 years | |||||||||||||||
Minimum | Information technology and equipment | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||||||||
Minimum | Machinery, equipment and other | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||||||||
Minimum | Furniture and fixtures | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||||||||
Gain (Loss) due to Subsidiary in Highly Inflationary Economy | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cumulative translation adjustment, disposal group | $ 33,400,000 | |||||||||||||||
Foreign exchange remeasurement loss | 2,900,000 | |||||||||||||||
Other Income | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Foreign exchange remeasurement loss | $ 500,000 | $ 3,000,000 | ||||||||||||||
Inventories | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Devaluation of monetary assets and liabilities | $ 7,800,000 | |||||||||||||||
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Consideration received/receivable for disposal | $ 1,060,000,000 | |||||||||||||||
Pre-tax gain on sale of disposal group | $ 880,800,000 | |||||||||||||||
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | Other Liabilities | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Deferred consideration | $ 68,700,000 | |||||||||||||||
Continuing Operations | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Foreign exchange remeasurement loss | $ 300,000 | $ 2,400,000 | ||||||||||||||
Continuing Operations | Gain (Loss) due to Subsidiary in Highly Inflationary Economy | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Foreign exchange remeasurement loss | 1,600,000 | |||||||||||||||
Continuing Operations | Cost of goods sold | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Foreign exchange remeasurement loss | 800,000 | |||||||||||||||
Discontinued Operations | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Foreign exchange remeasurement loss | $ 900,000 | $ 4,700,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 41.9 | $ 35.7 |
In process | 3.5 | 3.6 |
Finished products and other | 60.9 | 50 |
Total inventories | $ 106.3 | $ 89.3 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Finished products purchased | $ 60.9 | $ 50 |
Finished Products Purchased | ||
Inventory [Line Items] | ||
Finished products purchased | $ 11.1 | $ 10.9 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 624.1 | $ 549.1 | |
Accumulated depreciation and amortization | (407.5) | (356.5) | |
Properties and equipment, net | 216.6 | 192.6 | $ 156.2 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 6.3 | 6.2 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 131.9 | 109.1 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 388.9 | 343.2 | |
Information technology and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 76.6 | 64.6 | |
Projects under construction | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 20.4 | $ 26 |
Properties and Equipment - Narr
Properties and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 30.4 | $ 25.9 | $ 22.5 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 114.9 | $ 97.7 |
Foreign currency translation | 10.7 | (1) |
Acquisitions | 73.9 | 18.2 |
Divestitures | (1.3) | |
Goodwill, ending balance | 198.2 | 114.9 |
Specialty Construction Chemicals | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 45.8 | 44.2 |
Foreign currency translation | 3.8 | (0.5) |
Acquisitions | 15.5 | 2.1 |
Divestitures | 0 | |
Goodwill, ending balance | 65.1 | 45.8 |
Specialty Building Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 69.1 | 53.5 |
Foreign currency translation | 6.9 | (0.5) |
Acquisitions | 58.4 | 16.1 |
Divestitures | (1.3) | |
Goodwill, ending balance | $ 133.1 | $ 69.1 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | Jun. 30, 2017 | Nov. 09, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Net book value of intangible assets | $ 91.8 | $ 52.6 | ||||
Goodwill | 198.2 | 114.9 | $ 97.7 | |||
Amortization of intangible assets | 6.4 | 3.9 | $ 4.5 | |||
Trademarks | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 5.6 | $ 3.7 | ||||
Contek Shilstone | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | 1.5 | |||||
Contek Shilstone | In Process Research and Development | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets acquired | 1.5 | |||||
Ductilcrete | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 14 | $ 14 | ||||
Percentage of stock acquired | 100.00% | 100.00% | ||||
Stirling Lloyd | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 59.6 | |||||
Percentage of stock acquired | 100.00% | 100.00% | ||||
Halex | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 14.7 | $ 14.7 | ||||
Percentage of stock acquired | 100.00% | 100.00% |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 146.3 | $ 97.6 |
Accumulated Amortization | 54.5 | 45 |
Trademarks | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17.1 | 12.7 |
Accumulated Amortization | 10 | 8.8 |
Customer lists | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 82.4 | 55.4 |
Accumulated Amortization | 25.4 | 20.3 |
Technology | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 40.9 | 23.7 |
Accumulated Amortization | 14.2 | 11.2 |
Other | ||
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5.9 | 5.8 |
Accumulated Amortization | $ 4.9 | $ 4.7 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Millions | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 8.5 |
2,019 | 8.4 |
2,020 | 8.4 |
2,021 | 7.8 |
2,022 | 7.7 |
Thereafter | 45 |
Total estimated amortization expense | $ 85.8 |
Debt and Other Financial Inst55
Debt and Other Financial Instruments - Components of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 544.3 | $ 830.9 |
Less debt payable within one year | 24 | 47.9 |
Debt payable after one year | $ 520.3 | $ 783 |
Weighted average interest rates on total debt | 9.40% | 7.50% |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 518.6 | $ 517.7 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 266.2 |
Revolving credit facility due 2021 | Revolving Credit | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 25 |
Other Borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | $ 25.7 | $ 22 |
Debt and Other Financial Inst56
Debt and Other Financial Instruments - Components of Debt (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 27, 2016 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 9.50% | 9.50% | |
Unamortized debt issuance cost | $ 6.4 | $ 7.3 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance cost | 4.3 | ||
Unamortized discount | $ 2.4 | ||
Revolving Credit | Revolving credit facility due 2021 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% |
Debt and Other Financial Inst57
Debt and Other Financial Instruments - Principal Maturities of Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 24 | |
2,019 | 0.9 | |
2,020 | 0.8 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 518.6 | |
Total debt | $ 544.3 | $ 830.9 |
Debt and Other Financial Inst58
Debt and Other Financial Instruments - Narrative (Details) - USD ($) | Jul. 31, 2017 | Aug. 25, 2016 | Aug. 24, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 03, 2017 | Feb. 03, 2016 | Jan. 27, 2016 |
Debt Instrument [Line Items] | ||||||||||
Repayments under credit arrangements | $ 419,500,000 | $ 32,900,000 | $ 56,500,000 | |||||||
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 | 544,300,000 | 830,900,000 | ||||||||
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consideration received/receivable for disposal | $ 1,060,000,000 | |||||||||
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] | ||||||||||
Write off of unamortized debt discount | $ 2,100,000 | |||||||||
Write off of deferred debt issuance cost | 3,900,000 | |||||||||
Long-term debt | $ 0 | 266,200,000 | ||||||||
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 | $ 518,600,000 | 517,700,000 | ||||||||
Related Party | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 42,000,000 | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 525,000,000 | |||||||||
Secured Debt | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 275,000,000 | |||||||||
Debt issuance costs, gross | 5,000,000 | |||||||||
Secured Debt | Term Loan | Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments under credit arrangements | $ 272,600,000 | |||||||||
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 letters of credit | 10,000,000 | |||||||||
Line of credit debt issuance costs, gross | 5,200,000 | |||||||||
Line of credit, unamortized debt issuance costs | 3,200,000 | $ 4,200,000 | ||||||||
Secured Debt | Revolving Credit | Amended Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available credit under revolving loans | $ 240,000,000 | |||||||||
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% | |||||||||
Prior to February 1, 2019 | Senior Notes | Treasury Bond Yield | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage, spread over variable rate | 0.50% | |||||||||
February 1, 2019 through January 31, 2020 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 104.80% | |||||||||
On or after February 1, 2020 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 102.40% |
Debt and Other Financial Inst59
Debt and Other Financial Instruments - Carrying Amounts and Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 27, 2016 |
Debt Instrument [Line Items] | |||
Carrying Amount | $ 544.3 | $ 830.9 | |
Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 610.2 | 924.7 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Carrying Amount | $ 518.6 | 517.7 | |
Stated interest rate | 9.50% | 9.50% | |
Senior Notes | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | $ 584.5 | 603.1 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 0 | 266.2 | |
Term Loan | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 0 | 274.6 | |
Other Borrowings | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 25.7 | 22 | |
Other Borrowings | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | 25.7 | 22 | |
Revolving Credit | Revolving credit facility due 2021 | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 0 | 25 | |
Revolving Credit | Revolving credit facility due 2021 | Level 2 Inputs | |||
Debt Instrument [Line Items] | |||
Fair Value | $ 0 | $ 25 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
(Loss) income before income taxes: | |||
Domestic | $ (27.4) | $ (5.9) | $ 56.4 |
Foreign | (0.9) | 41.2 | 0.2 |
(Loss) income from continuing operations before income taxes | (28.3) | 35.3 | 56.6 |
Provision for (benefit from) income taxes: | |||
Federal—current | 27.2 | (4.2) | 32.2 |
Federal—deferred | 39.4 | 0.5 | 0.6 |
State and local—current | (3.8) | (0.5) | 7 |
State and local—deferred | 2.7 | 0 | 0.1 |
Foreign—current | 5.7 | 10.4 | 21.4 |
Foreign—deferred | 10.9 | 0.5 | (5.3) |
Total | $ 82.1 | $ 6.7 | $ 56 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | Feb. 03, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($)audit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Income Tax Contingency [Line Items] | ||||||
Repatriated foreign earnings from foreign subsidiaries transferred to GCP pursuant to the Separation | $ 277 | $ 15.5 | $ 173.1 | |||
Tax Cuts and Jobs Act of 2017, provisional income tax expense | 81.7 | |||||
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, income tax expense, net | 70.5 | |||||
Tax Cuts and Jobs Act of 2017, change in tax rate, provisional income tax expense | $ 11.2 | |||||
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, payment period | 8 years | |||||
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, liability, current | $ 6 | |||||
Federal income tax rate | 35.00% | |||||
Provision for income taxes | $ 82.1 | $ 6.7 | $ 56 | |||
Effective tax rate | 290.10% | 19.00% | 98.90% | |||
Deconsolidation of Venezuela | $ 11.5 | $ 0 | $ 0 | |||
Recognition of outside basis differences | (13.9) | 0 | 9.3 | |||
Valuation allowance | 11.4 | 0.4 | 0 | |||
Effect of tax rates in foreign jurisdictions | (1) | (4.5) | 8.6 | |||
Tax credit | 0.7 | |||||
Adjustments to uncertain tax positions and other | 0.7 | 1.6 | (0.9) | |||
Nondeductible expenses and non-taxable items | 3.5 | 2.5 | (3) | |||
Devaluation in Venezuela | 1.4 | 0 | 21.5 | |||
State and local income taxes, net | (1.2) | 0 | 4.2 | |||
Benefit from domestic production activities | 0 | 0 | $ 2.6 | |||
Increase in deferred tax assets in the US in conjunction with the Separation | $ 76 | |||||
Deferred tax assets, valuation allowance | 23.9 | 2.3 | ||||
Operating loss carryforwards | 76.3 | |||||
Undistributed earnings of foreign subsidiaries | 827.5 | |||||
Deferred tax liability not recognized associated with undistributed earnings | 7.8 | |||||
Repatriation of foreign earnings, effective tax rate | 13.60% | |||||
Unrecognized tax benefits that would impact effective tax rate | 33.4 | 7.4 | $ 3.9 | |||
Interest and penalties accrued on uncertain tax positions | 9 | 2.3 | ||||
Unrecognized tax benefits | 34.1 | 7.4 | 3.9 | $ 5.3 | ||
Decrease in unrecognized tax benefits | 1.3 | |||||
W.R. Grace & Co. | ||||||
Income Tax Contingency [Line Items] | ||||||
Decrease in unrecognized tax benefits | 0.7 | |||||
W.R. Grace | ||||||
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | 3.8 | $ 3.7 | $ 2.1 | |||
Venezuela | ||||||
Income Tax Contingency [Line Items] | ||||||
Nondeductible charge | $ 63 | |||||
Brazil | Foreign tax authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 23.9 | |||||
Japan | Foreign tax authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 32 | |||||
India | Foreign tax authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | $ 7.7 | |||||
Germany | ||||||
Income Tax Contingency [Line Items] | ||||||
Number of audits | audit | 2 | |||||
Cash and Cash Equivalents | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, transition tax on accumulated foreign earnings, percent | 15.50% | |||||
Other Earnings | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, transition tax on accumulated foreign earnings, percent | 8.00% |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax (benefit) provision at U.S. federal income tax rate | $ (9.9) | $ 12.4 | $ 19.8 |
Change in provision resulting from: | |||
Deconsolidation of Venezuela | 11.5 | 0 | 0 |
Devaluation in Venezuela | 1.4 | 0 | 21.5 |
2017 Tax Act | 81.7 | 0 | 0 |
Recognition of outside basis differences | (13.9) | 0 | 9.3 |
U.S. foreign income inclusions | 1.1 | (3.1) | |
Effect of tax rates in foreign jurisdictions | (1) | (4.5) | 8.6 |
Valuation allowance | 11.4 | 0.4 | 0 |
State and local income taxes, net | (1.2) | 0 | 4.2 |
Benefit from domestic production activities | 0 | 0 | (2.6) |
Return to provision – change in estimate | 0.4 | 0 | 1.2 |
Nondeductible expenses and non-taxable items | 3.5 | 2.5 | (3) |
Research and other state credits | (0.8) | (0.7) | (0.2) |
Uncertain tax positions | (0.7) | (1.6) | 0.9 |
Equity compensation | (1.2) | (1.7) | 0 |
Other | (0.2) | (0.1) | (0.6) |
Total | $ 82.1 | $ 6.7 | $ 56 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Foreign net operating loss carryforwards | $ 24.5 | $ 11.6 |
Research and development | 2.4 | 6.3 |
Reserves and allowances | 12.5 | 14.3 |
Pension benefits | 8.3 | 21.4 |
Intangible assets/goodwill | 1.4 | 24.5 |
Stock compensation | 3.8 | 4.4 |
Foreign tax credits | 0 | 3.5 |
Other | 2.5 | 2.6 |
Total deferred tax assets | 55.4 | 88.6 |
Deferred tax liabilities: | ||
Properties and equipment | (12.1) | (12.2) |
Intangible assets/goodwill | 0 | 0 |
Other | (3.9) | (3.8) |
Total deferred tax liabilities | (16) | (16) |
Valuation Allowance: | ||
Foreign net operating loss carryforwards | (23.9) | (2.3) |
Net deferred tax assets | $ 15.5 | $ 70.3 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 7.4 | $ 3.9 | $ 5.3 |
Transfers from Parent | 4.1 | ||
Additions for prior year tax positions | 7 | 2.5 | 0.3 |
Additions for current year tax positions | 26 | ||
Reductions for prior year tax positions and reclassifications | (5.3) | (0.8) | |
Reductions for expirations of statute of limitations | (1) | (1.1) | |
Settlements | (2) | (0.9) | |
Unrecognized tax benefits, ending balance | $ 34.1 | $ 7.4 | $ 3.9 |
Pension Plans and Other Postr65
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Overfunded defined benefit pension plans | $ 26.4 | $ 21.2 | $ 26.4 | $ 26.4 | $ 21.2 | |||||
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 | $ 4.8 | 4.1 | $ 4.4 | |||||||
W.R. Grace | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | 0.1 | |||||||||
Shared Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Allocated pension expense | 3.8 | |||||||||
United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Prior service credit | 0 | 0 | 0 | 0 | 0 | |||||
Gain on termination and curtailment of pension and other postretirement plans | 9.2 | 0 | 0 | |||||||
Overfunded defined benefit pension plans | $ 0.5 | 0 | $ 0.5 | 0.5 | 0 | |||||
Mark to market adjustment gain (loss) | (18.7) | (11.9) | (0.2) | |||||||
Expected return on plan assets | 5.6 | 5 | 0.8 | |||||||
Amendment resulting in reduction to the PBO | $ 6.4 | 0 | ||||||||
Benefit obligation | $ 147.6 | $ 147.6 | 125.7 | |||||||
Discount rate | 3.68% | 4.27% | 3.68% | 3.68% | 4.27% | |||||
Net periodic benefit cost | $ 16.2 | $ 17.8 | 0.3 | |||||||
Expected return on plan assets | 6.25% | 6.25% | ||||||||
Employer contributions | $ 40 | $ 1 | ||||||||
United States | Retirement Plan, Excluding Shared Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Benefit obligation | $ 163.8 | $ 147.6 | $ 163.8 | 163.8 | 147.6 | |||||
United States | Income (Loss) From Discontinued Operations, Net Of Income Taxes | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Mark to market adjustment gain (loss) | (0.4) | (0.1) | ||||||||
United States | Income (Loss) From Discontinued Operations, Net Of Income Taxes | Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | 2.1 | |||||||||
Foreign Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Prior service credit | (0.6) | (0.1) | (0.6) | (0.6) | (0.1) | |||||
Gain on termination and curtailment of pension and other postretirement plans | 14.3 | 0.6 | 0 | |||||||
Overfunded defined benefit pension plans | $ 25.9 | 21.2 | $ 25.9 | 25.9 | 21.2 | |||||
Mark to market adjustment gain (loss) | 4.7 | (8.6) | (14.2) | |||||||
Expected return on plan assets | 6.8 | 8.6 | 11 | |||||||
Amendment resulting in reduction to the PBO | 0.7 | 0 | ||||||||
Prior service cost | $ 0.5 | |||||||||
Benefit obligation | $ 276 | $ 276 | 296.8 | |||||||
Discount rate | 2.30% | 2.42% | 2.30% | 2.30% | 2.42% | |||||
Net periodic benefit cost | $ (16.2) | $ 10.5 | 15.5 | |||||||
Expected return on plan assets | 2.60% | 3.50% | ||||||||
Percentage of total pension assets | 68.00% | 75.00% | 68.00% | 68.00% | 75.00% | |||||
Employer contributions | $ 3.8 | $ 6.4 | ||||||||
Expected employer contributions in next twelve months | $ 3.5 | $ 3.5 | 3.5 | |||||||
Foreign Plan | Retirement Plan, Excluding Shared Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Benefit obligation | $ 274.5 | $ 276 | $ 274.5 | 274.5 | 276 | |||||
Foreign Plan | Other (Income) Expense, Net | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | 0.6 | |||||||||
Mark to market adjustment gain (loss) | 4.6 | |||||||||
Foreign Plan | Income (Loss) From Discontinued Operations, Net Of Income Taxes | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Mark to market adjustment gain (loss) | (0.2) | 2.2 | ||||||||
Plan service cost, interest cost, and expected return | 0.5 | $ 1.2 | 1.3 | |||||||
Foreign Plan | Income (Loss) From Discontinued Operations, Net Of Income Taxes | Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | $ 14.3 | |||||||||
Mark to market adjustment gain (loss) | $ 0.1 | |||||||||
United Kingdom | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Discount rate | 2.01% | 2.01% | 2.01% | |||||||
Funded percentage | 84.00% | 78.00% | 84.00% | 84.00% | 78.00% | |||||
Expected return on plan assets | 2.36% | |||||||||
Percentage of total pension assets, non-U.S. | 92.00% | 91.00% | 92.00% | 92.00% | 91.00% | |||||
Other countries, excluding the United Kingdom | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Percentage of total pension assets, non-U.S. | 8.00% | 9.00% | 8.00% | 8.00% | 9.00% | |||||
Restructuring Activities | United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | $ 0.7 | |||||||||
Plan Amendment | United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | 0.8 | |||||||||
Continuing Operations | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | $ 5.1 | |||||||||
Continuing Operations | United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | $ 18.8 | $ 17.4 | 0.2 | |||||||
Continuing Operations | Foreign Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | (2.3) | 9.1 | 16.4 | |||||||
Discontinued Operations | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Curtailment gain (loss) | $ 0.5 | |||||||||
Discontinued Operations | United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected return on plan assets | 0.5 | |||||||||
Net periodic benefit cost | (2.6) | 0.4 | 0.1 | |||||||
Discontinued Operations | Foreign Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | (13.9) | 1.4 | (0.9) | |||||||
Multiemployer Pension Plan | United States | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Benefit obligation of certain Shared Plans | $ 113.4 | 113.4 | ||||||||
Plan assets related to Shared Plans | 69.8 | 69.8 | ||||||||
Multiemployer Pension Plan | Non-U.S. | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Benefit obligation of certain Shared Plans | 2.9 | 2.9 | ||||||||
Plan assets related to Shared Plans | 1.6 | 1.6 | ||||||||
Postretirement Life Insurance Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Increase to net pension liabilities | $ 0.1 | |||||||||
Prior service credit | $ 0.8 | |||||||||
Actuarial losses, net of tax | $ 0.7 | |||||||||
Allocated income | 1.4 | |||||||||
Gain on termination and curtailment of pension and other postretirement plans | 0.2 | |||||||||
Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Increase to net pension liabilities | $ 44 | 4 | ||||||||
Prior service credit | $ (0.6) | (0.1) | (0.6) | (0.6) | (0.1) | |||||
Overfunded defined benefit pension plans | 26.4 | 21.2 | 26.4 | 26.4 | 21.2 | |||||
Combined balance of underfunded and unfunded plans included as liabilities | 58.1 | 58.1 | 58.1 | |||||||
Mark to market adjustment gain (loss) | 11.2 | 19.9 | ||||||||
Amendment resulting in reduction to the PBO | 7.1 | 0 | ||||||||
Benefit obligation | 423.6 | 423.6 | $ 422.5 | |||||||
Accumulated benefit obligation | 415 | 388 | 415 | 415 | 388 | |||||
Employer contributions | 43.8 | 7.4 | ||||||||
Pension Plans | Retirement Plan, Excluding Shared Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Benefit obligation | 438.3 | 423.6 | 438.3 | 438.3 | 423.6 | |||||
Pension Plans | Continuing Operations | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Overfunded defined benefit pension plans | 26.4 | $ 21.2 | 26.4 | 26.4 | $ 21.2 | |||||
Pension Plans | Other current liabilities | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Combined balance of underfunded and unfunded plans included as liabilities | 1 | 1 | 1 | |||||||
Pension Plans | Underfunded And Unfunded Defined Benefit Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Combined balance of underfunded and unfunded plans included as liabilities | $ 57.1 | $ 57.1 | $ 57.1 |
Pension Plans and Other Postr66
Pension Plans and Other Postretirement Benefit Plans - Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded defined benefit pension plans | $ 26.4 | $ 21.2 |
Underfunded defined benefit pension plans | (57.1) | (83.2) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded defined benefit pension plans | 26.4 | 21.2 |
Continuing Operations | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded defined benefit pension plans | 26.4 | 21.2 |
Underfunded defined benefit pension plans | (26.6) | (55.6) |
Unfunded defined benefit pension plans | (30.5) | (27.6) |
Total underfunded and unfunded defined benefit pension plans | (57.1) | (83.2) |
Pension liabilities included in other current liabilities | (1) | (0.4) |
Net funded status | $ (31.7) | $ (62.4) |
Pension Plans and Other Postr67
Pension Plans and Other Postretirement Benefit Plans - Summary of Changes in Benefit Obligations and Fair Values of Retirement Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the Consolidated Balance Sheets: | |||
Noncurrent assets | $ 26.4 | $ 21.2 | |
Current liabilities | (1) | (0.4) | |
United States | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 147.6 | 125.7 | |
Service cost | 6.8 | 6.1 | $ 0.3 |
Interest cost | 5.5 | 4.7 | 0.5 |
Plan participants' contributions | 0 | 0 | |
Amendments | (6.4) | 0 | |
Settlements/curtailments | (0.8) | 0 | |
Divestitures | (8.7) | 0 | |
Actuarial loss | 25.5 | 14 | |
Benefits paid | (10.6) | (2.9) | |
Assumption of plan liabilities | 4.9 | 0 | |
Currency exchange translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 147.6 | 125.7 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 86.3 | 81.1 | |
Actual return on plan assets | 12.4 | 7.1 | |
Employer contributions | 40 | 1 | |
Plan participants' contributions | 0 | 0 | |
Settlements | 0 | 0 | |
Divestitures | (6.7) | 0 | |
Benefits paid | (10.6) | (2.9) | |
Assumption of plan assets | 7.8 | 0 | |
Currency exchange translation adjustments | 0 | 0 | |
Fair value of plan assets at end of year | 86.3 | 81.1 | |
Amounts recognized in the Consolidated Balance Sheets: | |||
Noncurrent assets | 0.5 | 0 | |
Current liabilities | (0.2) | (0.2) | |
Noncurrent liabilities | (34.9) | (59.9) | |
Net amount recognized | (34.6) | (61.3) | |
Amounts recognized in Accumulated Other Comprehensive Income: | |||
Prior service credit | 0 | 0 | |
Net amount recognized | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 147.6 | ||
Benefit obligation at end of year | 163.8 | 147.6 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 86.3 | ||
Fair value of plan assets at end of year | 129.2 | 86.3 | |
Net funded status | (34.6) | (61.3) | |
United States | Multiemployer Pension Plan | |||
Amounts recognized in Accumulated Other Comprehensive Income: | |||
Benefit obligation of certain Shared Plans | 113.4 | ||
Plan assets related to Shared Plans | 69.8 | ||
Foreign Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 276 | 296.8 | |
Service cost | 3.9 | 3.3 | 3.1 |
Interest cost | 5.7 | 7.8 | 9.2 |
Plan participants' contributions | 0.2 | 0.4 | |
Amendments | (0.7) | 0 | |
Settlements/curtailments | (2.2) | (7.1) | |
Divestitures | (16.3) | 0 | |
Actuarial loss | 0.9 | 33.9 | |
Benefits paid | (16.7) | (15.5) | |
Assumption of plan liabilities | 0 | 0 | |
Currency exchange translation adjustments | 23.7 | (43.6) | |
Benefit obligation at end of year | 276 | 296.8 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 259.3 | 287.5 | |
Actual return on plan assets | 12.3 | 32.2 | |
Employer contributions | 3.8 | 6.4 | |
Plan participants' contributions | 0.2 | 0.4 | |
Settlements | (2.2) | (5.1) | |
Divestitures | (2.1) | 0 | |
Benefits paid | (16.7) | (15.5) | |
Assumption of plan assets | 0 | 0 | |
Currency exchange translation adjustments | 22.5 | (46.6) | |
Fair value of plan assets at end of year | 277.2 | 259.3 | 287.5 |
Amounts recognized in the Consolidated Balance Sheets: | |||
Noncurrent assets | 25.9 | 21.2 | |
Current liabilities | (0.8) | (0.3) | |
Noncurrent liabilities | (22.2) | (23.2) | |
Net amount recognized | 2.6 | (16.7) | |
Amounts recognized in Accumulated Other Comprehensive Income: | |||
Prior service credit | (0.6) | (0.1) | |
Net amount recognized | (0.6) | (0.1) | |
Foreign Plan | Retirement Plan, Excluding Shared Plans | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 276 | ||
Benefit obligation at end of year | 274.5 | 276 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 259.3 | ||
Fair value of plan assets at end of year | 277.1 | 259.3 | |
Net funded status | 2.6 | (16.7) | |
Non-U.S. | Multiemployer Pension Plan | |||
Amounts recognized in Accumulated Other Comprehensive Income: | |||
Benefit obligation of certain Shared Plans | 2.9 | ||
Plan assets related to Shared Plans | 1.6 | ||
Pension Plans | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 423.6 | 422.5 | |
Service cost | 10.7 | 9.4 | |
Interest cost | 11.2 | 12.5 | |
Plan participants' contributions | 0.2 | 0.4 | |
Amendments | (7.1) | 0 | |
Settlements/curtailments | (3) | (7.1) | |
Divestitures | (25) | 0 | |
Actuarial loss | 26.4 | 47.9 | |
Benefits paid | (27.3) | (18.4) | |
Assumption of plan liabilities | 4.9 | 0 | |
Currency exchange translation adjustments | 23.7 | (43.6) | |
Benefit obligation at end of year | 423.6 | 422.5 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 345.6 | 368.6 | |
Actual return on plan assets | 24.7 | 39.3 | |
Employer contributions | 43.8 | 7.4 | |
Plan participants' contributions | 0.2 | 0.4 | |
Settlements | (2.2) | (5.1) | |
Divestitures | (8.8) | 0 | |
Benefits paid | (27.3) | (18.4) | |
Assumption of plan assets | 7.8 | 0 | |
Currency exchange translation adjustments | 22.5 | (46.6) | |
Fair value of plan assets at end of year | 345.6 | $ 368.6 | |
Amounts recognized in the Consolidated Balance Sheets: | |||
Noncurrent assets | 26.4 | 21.2 | |
Current liabilities | (1) | (0.5) | |
Noncurrent liabilities | (57.1) | (83.1) | |
Net amount recognized | (32) | (78) | |
Amounts recognized in Accumulated Other Comprehensive Income: | |||
Prior service credit | (0.6) | (0.1) | |
Net amount recognized | (0.6) | (0.1) | |
Pension Plans | Retirement Plan, Excluding Shared Plans | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 423.6 | ||
Benefit obligation at end of year | 438.3 | 423.6 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 345.6 | ||
Fair value of plan assets at end of year | 406.3 | 345.6 | |
Net funded status | (32) | (78) | |
Discontinued Operations, Held-for-sale | United States | |||
Amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | (1.2) | |
Discontinued Operations, Held-for-sale | Foreign Plan | |||
Amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | 0 | (0.7) | |
Noncurrent liabilities | (0.3) | (13.7) | |
Discontinued Operations, Held-for-sale | Pension Plans | |||
Amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | 0 | (0.7) | |
Noncurrent liabilities | $ (0.3) | $ (14.9) |
Pension Plans and Other Postr68
Pension Plans and Other Postretirement Benefit Plans - Change in Financial Status of Retirement Plans (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
United States | ||
Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: | ||
Discount rate | 3.68% | 4.27% |
Rate of compensation increase | 4.70% | 4.70% |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: | ||
Discount rate | 4.27% | 4.53% |
Expected return on plan assets | 6.25% | 6.25% |
Rate of compensation increase | 4.70% | 4.70% |
Foreign Plan | ||
Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31: | ||
Discount rate | 2.30% | 2.42% |
Rate of compensation increase | 3.13% | 3.78% |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31: | ||
Discount rate | 2.42% | 3.26% |
Expected return on plan assets | 2.60% | 3.50% |
Rate of compensation increase | 3.49% | 3.78% |
Pension Plans and Other Postr69
Pension Plans and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | |||
Net prior service credit | $ 0 | $ 0 | $ 0 |
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 | (0.1) | 0 |
Amortization of net deferred actuarial loss | 0 | 0.1 | 0 |
Gain on termination, curtailment and settlement of pension and other postretirement plans | 0 | (0.2) | 0 |
Annual mark-to-market adjustment | 0 | 0 | 0 |
Net periodic benefit cost (income) | 0 | (0.2) | 0 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | |||
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 | (0.2) | 0 |
W.R. Grace | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | 0.1 | ||
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 3.9 | 3.3 | 3.1 |
Interest cost | 5.7 | 7.8 | 9.2 |
Expected return on plan assets | (6.8) | (8.6) | (11) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net deferred actuarial loss | 0 | 0 | 0 |
Gain on termination, curtailment and settlement of pension and other postretirement plans | (14.3) | (0.6) | 0 |
Annual mark-to-market adjustment | (4.7) | 8.6 | 14.2 |
Net periodic benefit cost (income) | (16.2) | 10.5 | 15.5 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | |||
Net prior service credit | (0.7) | 0 | 0 |
Amortization of prior service cost | 0.2 | 0 | 0 |
Assumption of prior service credit | 0 | 0 | (0.5) |
Total recognized in other comprehensive income | (0.5) | 0 | (0.5) |
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) | (16.7) | 10.5 | 15 |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 6.8 | 6.1 | 0.3 |
Interest cost | 5.5 | 4.7 | 0.5 |
Expected return on plan assets | (5.6) | (5) | (0.8) |
Amortization of prior service cost (credit) | 0 | 0.1 | 0.1 |
Amortization of net deferred actuarial loss | 0 | 0 | 0 |
Gain on termination, curtailment and settlement of pension and other postretirement plans | (9.2) | 0 | 0 |
Annual mark-to-market adjustment | 18.7 | 11.9 | 0.2 |
Net periodic benefit cost (income) | 16.2 | 17.8 | 0.3 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | |||
Net prior service credit | 0 | 0 | 0 |
Amortization of prior service cost | 0 | (0.1) | (0.1) |
Assumption of prior service credit | 0 | 0 | 0 |
Total recognized in other comprehensive income | 0 | (0.1) | (0.1) |
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income) | 16.2 | 17.7 | 0.2 |
Discontinued Operations | Other Postretirement Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | 0 | 0 | 0 |
Discontinued Operations | Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | (13.9) | 1.4 | (0.9) |
Discontinued Operations | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | (0.5) | ||
Net periodic benefit cost (income) | (2.6) | 0.4 | 0.1 |
Continuing Operations | Other Postretirement Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | 0 | (0.2) | 0 |
Continuing Operations | Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | (2.3) | 9.1 | 16.4 |
Continuing Operations | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | $ 18.8 | $ 17.4 | $ 0.2 |
Pension Plans and Other Postr70
Pension Plans and Other Postretirement Benefit Plans - Pension Plans with Underfunded or Unfunded Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 201.3 | $ 189.5 |
Accumulated benefit obligation | 181.9 | 160.7 |
Fair value of plan assets | 143 | 91.2 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 159.3 | 147.4 |
Accumulated benefit obligation | 142.8 | 124.5 |
Fair value of plan assets | 124.3 | 86.2 |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 42 | 42.1 |
Accumulated benefit obligation | 39.1 | 36.2 |
Fair value of plan assets | $ 18.7 | $ 5 |
Pension Plans and Other Postr71
Pension Plans and Other Postretirement Benefit Plans - Estimated Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | $ 17.7 |
2,019 | 17.7 |
2,020 | 18.3 |
2,021 | 19.5 |
2,022 | 20.7 |
2023-2027 | 112.5 |
United States | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | 5.8 |
2,019 | 6.1 |
2,020 | 6.9 |
2,021 | 7.9 |
2,022 | 8.8 |
2023-2027 | 50.2 |
Foreign Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | 11.9 |
2,019 | 11.6 |
2,020 | 11.4 |
2,021 | 11.6 |
2,022 | 11.9 |
2023-2027 | $ 62.3 |
Pension Plans and Other Postr72
Pension Plans and Other Postretirement Benefit Plans - Schedule of Plan Asset Allocation (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
United Kingdom | Diversified growth funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 9.00% | |
Percentage of Plan Assets | 10.00% | 8.00% |
United Kingdom | U.K. gilts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 35.00% | |
Percentage of Plan Assets | 33.00% | 31.00% |
United Kingdom | U.K. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 3.00% | |
Percentage of Plan Assets | 3.00% | 11.00% |
United Kingdom | Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 53.00% | |
Percentage of Plan Assets | 54.00% | 50.00% |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
Accelerated contribution | $ 40 | |
United States | Short-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Percentage of Plan Assets | 32.00% | 1.00% |
United States | Intermediate-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Percentage of Plan Assets | 0.00% | 4.00% |
United States | Long-term debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 56.00% | |
Percentage of Plan Assets | 37.00% | 50.00% |
United States | Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.75% | |
Percentage of Plan Assets | 4.00% | 5.00% |
United States | United States | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 26.00% | |
Percentage of Plan Assets | 18.00% | 25.00% |
United States | Non-U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 11.75% | |
Percentage of Plan Assets | 9.00% | 15.00% |
Pension Plans and Other Postr73
Pension Plans and Other Postretirement Benefit Plans - Fair Value Measurements of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 277.2 | $ 259.3 | $ 287.5 |
Foreign Plan | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | ||
Foreign Plan | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 137.3 | ||
Foreign Plan | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 136.7 | ||
Foreign Plan | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 127.5 | ||
Foreign Plan | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 127.5 | ||
Foreign Plan | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | ||
Foreign Plan | Government and agency securities | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Government and agency securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | ||
Foreign Plan | Government and agency securities | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.5 | ||
Foreign Plan | Corporate bonds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Corporate bonds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.5 | ||
Foreign Plan | Corporate bonds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Insurance contracts and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 136.8 | ||
Foreign Plan | Insurance contracts and other investments | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Insurance contracts and other investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | ||
Foreign Plan | Insurance contracts and other investments | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 136.7 | 116.5 | |
Foreign Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | ||
Foreign Plan | Cash | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | ||
Foreign Plan | Cash | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Cash | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 277.1 | 259.3 | |
Foreign Plan | Retirement Plan, Excluding Shared Plans | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 140 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130.1 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130.1 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Government and agency securities | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Government and agency securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Government and agency securities | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.1 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Corporate bonds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Corporate bonds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.1 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Corporate bonds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Insurance contracts and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Insurance contracts and other investments | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Insurance contracts and other investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Insurance contracts and other investments | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 116.5 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Cash | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Cash | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Foreign Plan | Retirement Plan, Excluding Shared Plans | Cash | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 86.3 | $ 81.1 | |
United States | Retirement Plan, Excluding Shared Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 129.2 | 86.3 | |
United States | Retirement Plan, Excluding Shared Plans | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 129.2 | 86.3 | |
United States | Retirement Plan, Excluding Shared Plans | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | U.S. equity group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.5 | 21.8 | |
United States | Retirement Plan, Excluding Shared Plans | U.S. equity group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | U.S. equity group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.5 | 21.8 | |
United States | Retirement Plan, Excluding Shared Plans | U.S. equity group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Non-U.S. equity group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11.5 | 13.1 | |
United States | Retirement Plan, Excluding Shared Plans | Non-U.S. equity group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Non-U.S. equity group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11.5 | 13.1 | |
United States | Retirement Plan, Excluding Shared Plans | Non-U.S. equity group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—intermediate-term | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | ||
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—intermediate-term | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—intermediate-term | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | ||
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—intermediate-term | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—long-term | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48 | 42.7 | |
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—long-term | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—long-term | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48 | 42.7 | |
United States | Retirement Plan, Excluding Shared Plans | Corporate bond group trust funds—long-term | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Other fixed income group trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.2 | 4.3 | |
United States | Retirement Plan, Excluding Shared Plans | Other fixed income group trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Other fixed income group trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.2 | 4.3 | |
United States | Retirement Plan, Excluding Shared Plans | Other fixed income group trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 1.2 | |
United States | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 1 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 1.2 | |
United States | Retirement Plan, Excluding Shared Plans | Common/collective trust funds | Level 3 inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension Plans and Other Postr74
Pension Plans and Other Postretirement Benefit Plans - Schedule of Changes in Fair Value Measurement Level 3 (Details) - Foreign Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 259.3 | $ 287.5 |
Transfers out for benefits paid | (16.7) | (15.5) |
Currency exchange translation adjustments | 22.5 | (46.6) |
Fair value of plan assets at end of year | 277.2 | 259.3 |
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 | 136.7 | |
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 | 136.8 | |
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 | 116.5 | |
Actual return on plan assets relating to assets still held at year-end | 4.7 | |
Purchases, sales and settlements, net | 0 | |
Transfers in for premium | 10.2 | |
Transfers out for benefits paid | (6.8) | |
Currency exchange translation adjustments | 12.1 | |
Fair value of plan assets at end of year | $ 136.7 | $ 116.5 |
Other Balance Sheet Accounts -
Other Balance Sheet Accounts - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Non-trade receivables | $ 28.4 | $ 19.9 |
Prepaid expenses | 13.8 | 12.4 |
Income tax receivable | 6 | 10.6 |
Marketable securities | 0.4 | 0 |
Total other current assets | $ 48.6 | $ 42.9 |
Other Balance Sheet Accounts -
Other Balance Sheet Accounts - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Jul. 03, 2017 | Dec. 31, 2016 |
Other Current Liabilities | |||
Customer volume rebates | $ 31.5 | $ 30.5 | |
Accrued compensation | 27.1 | 28 | |
Income tax payable | 115.1 | 6.7 | |
Accrued interest | 20.8 | 20.8 | |
Restructuring liability | 12.8 | 1.1 | |
Pension liabilities | 1 | 0.4 | |
Other accrued liabilities | 107.9 | 32 | |
Total other current liabilities | $ 316.2 | $ 119.5 | |
Other current liabilities | Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | |||
Other Current Liabilities | |||
Deferred consideration | $ 55.1 |
Commitments and Contingent Li77
Commitments and Contingent Liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Rental expense for operating leases | $ 15.1 | $ 14 | $ 19.6 | |
Standby Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Gross financial assurances issued and outstanding | $ 10 | |||
Library Gardens Balcony Litigation, Lead Case Beary v. Blackrock, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, amount awarded to other party | $ 4 |
Commitments and Contingent Li78
Commitments and Contingent Liabilities - Minimum Future Non-cancelable Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 13.5 |
2,019 | 10.2 |
2,020 | 7.7 |
2,021 | 5.1 |
2,022 | 4.1 |
Thereafter | 15.7 |
Operating leases, future minimum payments due | $ 56.3 |
Restructuring and Repositioni79
Restructuring and Repositioning Expenses - Narrative (Details) $ in Millions | 12 Months Ended | 17 Months Ended | ||||
Dec. 31, 2017USD ($)segmentplant | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses and asset impairments | $ 13.5 | $ 1.9 | $ 9.8 | |||
Number of operating segments | segment | 2 | |||||
Repositioning expenses | $ 9.8 | 15.3 | 0 | |||
2017 Plan | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 32 | $ 28 | ||||
2017 Plan | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 34 | $ 32 | ||||
2017 Restructuring and Repositioning Plan, Restructuring Activities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 25 | |||||
Estimated transition expenses to be classified within discontinued operations | 11 | |||||
2017 Restructuring and Repositioning Plan, Repositioning Activities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 8 | |||||
Repositioning expenses | 4.5 | |||||
Total cash payments for repositioning costs | 2 | |||||
2017 Restructuring and Repositioning Plan, Repositioning Activities | Minimum | Capital Expenditures | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 10 | |||||
2017 Restructuring and Repositioning Plan, Repositioning Activities | Maximum | Capital Expenditures | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated transition expenses | 15 | |||||
Total | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring liability | 12.8 | 1.1 | 1.4 | $ 0.8 | ||
Repositioning expenses | 20.1 | 1.9 | 11.5 | |||
Total cash payments for repositioning costs | 8.5 | 3.6 | $ 10.9 | |||
Separation-Related Repositioning | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Repositioning expenses | 5.3 | 15.3 | $ 20.6 | |||
Separation-Related Repositioning | Capital Expenditures | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total cash payments for repositioning costs | 1.9 | 6.9 | ||||
Separation-Related Repositioning | Professional Fees and Employee-Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total cash payments for repositioning costs | $ 4.2 | 17.7 | ||||
Separation-Related Repositioning | Repositioning Tax Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total cash payments for repositioning costs | $ 2.5 | |||||
Asia Pacific | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of manufacturing plants | plant | 3 |
Restructuring and Repositioni80
Restructuring and Repositioning Expenses - Restructuring Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments | $ 21.3 | $ 1.9 | $ 11.6 |
Less: restructuring expenses and asset impairments reflected in discontinued operations | 7.8 | 0 | 1.8 |
Total restructuring expenses and asset impairments from continuing operations | 13.5 | 1.9 | 9.8 |
Severance and other employee costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments | 19.9 | 1.9 | 11.5 |
Facility exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments | 0.2 | 0 | 0 |
Asset impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments | $ 1.2 | $ 0 | $ 0.1 |
Restructuring and Repositioni81
Restructuring and Repositioning Expenses - Restructuring Costs by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments from continuing operations | $ 13.5 | $ 1.9 | $ 9.8 |
Restructuring expenses and asset impairments reflected in discontinued operations | 7.8 | 0 | 1.8 |
Total restructuring expenses and asset impairments | 21.3 | 1.9 | 11.6 |
Operating Segments | SCC | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments from continuing operations | 6.2 | 1.2 | 6.5 |
Operating Segments | SBM | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments from continuing operations | 4.1 | 0.7 | 3.2 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses and asset impairments from continuing operations | $ 3.2 | $ 0 | $ 0.1 |
Restructuring and Repositioni82
Restructuring and Repositioning Expenses - Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Expense | $ 9.8 | $ 15.3 | $ 0 |
Other plans | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1.1 | 1.4 | 0.8 |
Expense | 0.5 | 1.9 | 11.5 |
Payments | (0.5) | (3.6) | (10.9) |
Impact of foreign currency and other | 0 | 1.4 | 0 |
Ending balance | 1.1 | 1.1 | 1.4 |
Total | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1.1 | 1.4 | 0.8 |
Expense | 20.1 | 1.9 | 11.5 |
Payments | (8.5) | (3.6) | (10.9) |
Impact of foreign currency and other | 0.1 | 1.4 | 0 |
Ending balance | 12.8 | 1.1 | 1.4 |
Severance and other employee costs | 2017 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Expense | 19.5 | 0 | 0 |
Payments | (8) | 0 | 0 |
Impact of foreign currency and other | 0.1 | 0 | 0 |
Ending balance | 11.6 | 0 | 0 |
Facility exit costs | 2017 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Expense | 0.1 | 0 | 0 |
Payments | 0 | 0 | 0 |
Impact of foreign currency and other | 0 | 0 | 0 |
Ending balance | $ 0.1 | $ 0 | $ 0 |
Restructuring and Repositioni83
Restructuring and Repositioning Expenses - Separation-Related Repositioning Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | 17 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | $ 9.8 | $ 15.3 | $ 0 | |
Separation-Related Repositioning | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | 5.3 | 15.3 | $ 20.6 | |
Separation-Related Repositioning | Professional fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | 3.4 | 7.8 | ||
Separation-Related Repositioning | Software and IT implementation fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | 0.9 | 3 | ||
Separation-Related Repositioning | Employee-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | $ 1 | $ 4.5 |
Other Comprehensive Income (L84
Other Comprehensive Income (Loss) - Pre-Tax, Tax, and After-Tax Components of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
After-Tax Amount | |||
Total other comprehensive income (loss) | $ 61.9 | $ (19.7) | $ (61.8) |
Other comprehensive income attributable to GCP shareholders | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | 62 | (19.9) | (61.3) |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | (0.1) | 0 | (0.4) |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 61.3 | (21.1) | (61.7) |
Total other comprehensive income (loss) | 61.9 | (19.9) | (61.7) |
Amortization of net prior service credit | |||
Pre-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | (0.2) | (0.1) | 0.1 |
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0 | 0 | (0.1) |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (0.2) | (0.1) | 0 |
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 | 0.7 | 1.2 | 0.5 |
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | (0.2) | (0.4) | (0.1) |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0.5 | 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 | |||
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 | |||
Assumption of net prior service credit and net actuarial loss, pre-tax | 0 | 0.6 | |
Other comprehensive income (loss), pre-tax | 0.5 | ||
Tax Benefit/ (Expense) | |||
Assumption of net prior service credit and net actuarial loss, tax | 0 | (0.2) | |
Other comprehensive income (loss), tax | (0.2) | ||
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | 0.3 | 0 | 0.4 |
Total other comprehensive income (loss) | 0.3 | 0 | 0.4 |
Currency translation adjustments | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | 61.7 | (19.9) | (62.3) |
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 | 61.7 | (19.9) | (62.3) |
Total other comprehensive income (loss) | 61.7 | (19.9) | (62.3) |
Loss from hedging activities | |||
Pre-Tax Amount | |||
Other comprehensive income (loss), pre-tax | (0.2) | 0 | 0.4 |
Tax Benefit/ (Expense) | |||
Other comprehensive income (loss), tax | 0.1 | 0 | (0.2) |
After-Tax Amount | |||
Assumption of net prior service credit and net actuarial loss, after-tax | (0.7) | (1.2) | 0.2 |
Total other comprehensive income (loss) | $ (0.1) | $ 0 | $ 0.2 |
Other Comprehensive Income (L85
Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)country | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | $ (139) | $ 474.1 | $ 607.4 |
Total other comprehensive income (loss) | 61.9 | (19.7) | (61.8) |
Ending balance | 492 | (139) | 474.1 |
Defined Benefit Pension and Other Postretirement Plans | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | 0.1 | 0.1 | (0.3) |
Other comprehensive income (loss) before reclassifications | 0.3 | 0 | 0.4 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0.3 | 0 | 0.4 |
Ending balance | 0.4 | 0.1 | 0.1 |
Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | (147.7) | (127.8) | (65.5) |
Other comprehensive income (loss) before reclassifications | 61.7 | (19.9) | (62.3) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive income (loss) | 61.7 | (19.9) | (62.3) |
Ending balance | (86) | (147.7) | (127.8) |
Hedging Activities | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | 0 | 0 | (0.2) |
Other comprehensive income (loss) before reclassifications | (0.7) | (1.2) | 0.2 |
Amounts reclassified from accumulated other comprehensive income | 0.6 | 1.2 | 0 |
Total other comprehensive income (loss) | (0.1) | 0 | 0.2 |
Ending balance | (0.1) | 0 | 0 |
Total | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | (147.6) | (127.7) | (66) |
Other comprehensive income (loss) before reclassifications | 61.3 | (21.1) | (61.7) |
Amounts reclassified from accumulated other comprehensive income | 0.6 | 1.2 | 0 |
Total other comprehensive income (loss) | 61.9 | (19.9) | (61.7) |
Ending balance | $ (85.7) | $ (147.6) | $ (127.7) |
Minimum | |||
Changes in accumulated other comprehensive income (loss), net of tax | |||
Number of countries in which entity operates, more than | country | 35 |
Related Party Transactions an86
Related Party Transactions and Transactions with Grace - Related Party Expenses and Agreements (Details) - W.R. Grace & Co. - USD ($) $ in Millions | Feb. 03, 2016 | Feb. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||
General corporate expenses allocated to the Company | $ 2 | $ 54.8 | ||
Indemnified receivables, tax | $ 7.2 | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Transition period | 18 months | |||
Other current liabilities | ||||
Related Party Transaction [Line Items] | ||||
Indemnified payables, tax | $ 2.7 |
Related Party Transactions an87
Related Party Transactions and Transactions with Grace - Parent Company Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Total net transfers to parent | $ (675.1) | $ (112.4) | |
W.R. Grace & Co. | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | $ (675.1) | (112.4) | |
Share-based compensation | 0 | (3.7) | |
Other, net | (83.6) | (3.5) | |
Transfers to parent, net per Consolidated Statements of Cash Flows | (758.7) | (119.6) | |
W.R. Grace & Co. | Cash pooling and general financing activities | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | (688) | (306.1) | |
W.R. Grace & Co. | GCP expenses funded by parent | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | 6.6 | 54.6 | |
W.R. Grace & Co. | Corporate costs allocations | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | 2 | 54.8 | |
W.R. Grace & Co. | Provision for income taxes | |||
Related Party Transaction [Line Items] | |||
Total net transfers to parent | $ 4.3 | $ 84.3 |
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, 2017 | Dec. 31, 2016 | |
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 | $ 83.6 | $ 3.5 | |
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 | $ 36 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 11, 2017 | Feb. 03, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock issued, par value (in usd per share) | $ 0.01 | $ 0.01 | ||||
Total cash and non-cash stock-based compensation cost | $ 9.2 | $ 7.2 | $ 4.5 | |||
Income tax benefit recognized for stock-based compensation | $ 4.8 | $ 4.7 | 1.7 | |||
Number of shares repurchased | 47,000 | 112,000 | ||||
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 | $ 9.8 | $ 9.3 | $ 8.4 | |||
Unrecognized stock-based compensation expense for stock options | $ 0.7 | |||||
Unrecognized stock-based compensation expense, period of recognition | 8 months | |||||
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% | |||||
Employee Stock Option, 7 Year Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option awards, contractual term | 7 years | |||||
Employee Stock Option, 10 Year Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option awards, contractual term | 10 years | |||||
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 2 months 12 days | |||||
Total unrecognized compensation expense related to the RSU and PBU awards | $ 5.4 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
RSUs vested (in shares) | 64,572 | |||||
Weighted average grant date fair value of RSUs vested (in usd per share) | $ 17.14 | |||||
Number of shares distributed | 107,000 | 25,000 | ||||
Fully vested awards settled in cash | $ 0.9 | $ 0.5 | ||||
Awards granted (in shares) | 327,000 | 95,000 | ||||
Weighted average grant date fair value (in usd per share) | $ 17.36 | $ 26.44 | ||||
Awards forfeited (in shares) | 23,000 | 86,000 | ||||
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% | |||||
Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Income tax benefit recognized for stock-based compensation | $ 2 | |||||
2016 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares of common stock available for issuance | 9,100,000 | |||||
Number of shares repurchased | 47,000 | 112,000 | ||||
2016 Stock Incentive Plan | Performance Based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 166,821 | |||||
Weighted average grant date fair value (in usd per share) | $ 28.29 | $ 17.04 | ||||
Percent of units expected to settle in common stock | 100.00% | |||||
Performance period | 3 years | 3 years | ||||
2016 Stock Incentive Plan | Performance Based Units | 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards forfeited (in shares) | 15,382 | |||||
2016 Stock Incentive Plan | Performance Based Units | 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards forfeited (in shares) | 35,505 | |||||
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% | 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% | 200.00% | ||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period (in shares) | 8,000,000 | |||||
Number of shares distributed | 100,000 | 100,000 |
Stock Incentive Plans - Valuati
Stock Incentive Plans - Valuation Assumptions (Stock Options) (Details) - Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.83% | 0.93% | |
Risk-free interest rate, maximum | 2.11% | 1.24% | |
Risk-free interest rate | 1.30% | ||
Volatility, minimum | 31.42% | 29.60% | 23.00% |
Volatility, maximum | 31.96% | 33.20% | 27.20% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Average fair value per stock option (in usd per share) | $ 9.17 | $ 4.89 | $ 18.43 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average life of options (years) | 5 years 6 months | 4 years | 3 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average life of options (years) | 6 years 6 months | 5 years | 4 years |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number Of Shares (in thousands) | |||
Outstanding, beginning balance (in shares) | 2,236 | 2,122 | 0 |
Options exercised (in shares) | 811 | 601 | |
Options forfeited/expired/canceled (in shares) | 52 | 126 | |
Options granted (in shares) | 749 | 241 | |
Outstanding, end balance (in shares) | 2,122 | 1,636 | 2,122 |
Exercisable, end of period (in shares) | 895 | 844 | 895 |
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in usd per share) | $ 14.36 | $ 16.92 | $ 0 |
Options exercised (in usd per share) | 10.08 | 14.69 | |
Options forfeited/expired/canceled (in usd per share) | 16.58 | 19.76 | |
Options granted (in usd per share) | 17.23 | 26.51 | |
Outstanding, ending balance (in usd per share) | 16.92 | 18.94 | 16.92 |
Exercisable, end of period (in usd per share) | $ 15.43 | $ 17.78 | $ 15.43 |
Other Disclosures | |||
Outstanding, weighted-average remaining contractual term | 3 years 9 months 11 days | 3 years 6 months 26 days | |
Exercisable, weighted-average remaining contractual term | 2 years 1 month 28 days | 1 year 9 months | |
Outstanding, aggregated intrinsic value | $ 20,748 | $ 21,597 | $ 20,748 |
Exercisable, aggregated intrinsic value | $ 20,748 | $ 12,118 | $ 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 | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number Of Shares (in thousands) | |||
Outstanding, beginning balance (in shares) | 265 | 538 | 0 |
RSUs settled (in shares) | 31 | 141 | |
RSUs forfeited (in shares) | 23 | 86 | |
RSUs granted (in shares) | 327 | 95 | |
RSUs outstanding, ending balance (in shares) | 538 | 406 | 538 |
RSUs vested and outstanding (in shares) | 77 | 0 | 77 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in usd per share) | $ 17 | $ 17.22 | $ 0 |
RSUs settled (in usd per share) | 16.90 | 17.19 | |
RSUs forfeited (in usd per share) | 17.29 | 18.34 | |
RSUs granted (in usd per share) | 17.36 | 26.44 | |
RSUs outstanding, ending balance (in usd per share) | 17.22 | 19.15 | 17.22 |
RSUs vested and outstanding (in usd per share) | $ 17.23 | $ 0 | $ 17.23 |
Stock Incentive Plans - Restr93
Stock Incentive Plans - Restricted Stock Units Vesting and Settlement (Details) - Restricted Stock Units (RSUs) shares in Thousands | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Vesting in 2018 | 163 |
Number of Shares Vesting in 2019 | 219 |
Number of Shares Vesting in 2020 | 24 |
Settled in Cash in 2018 | 10.00% |
Settled in Cash in 2019 | 0.00% |
Settled in Cash in 2020 | 0.00% |
Settled in Stock in 2018 | 90.00% |
Settled in Stock in 2019 | 100.00% |
Settled in Stock in 2020 | 100.00% |
Stock Incentive Plans - Valua94
Stock Incentive Plans - Valuation Assumptions (Performance Based Units) (Details) - Performance Based Units | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Term (Remaining Performance Period) | 2 years 10 months 2 days |
Expected volatility | 28.00% |
Risk-free interest rate | 1.41% |
Expected Dividends | 0.00% |
Correlation coefficient | 46.83% |
Average correlation coefficient of constituents | 42.33% |
Operating Segment Information -
Operating Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Concentration Risk [Line Items] | |
Number of operating segments | 2 |
Long-lived assets | Geographic concentration risk | United Kingdom | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 30.00% |
Operating Segment Information96
Operating Segment Information - Schedule of Operating Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 289.5 | $ 282.4 | $ 287.2 | $ 225.3 | $ 261.4 | $ 263.4 | $ 284 | $ 237.7 | $ 1,084.4 | $ 1,046.5 | $ 1,092.4 |
Segment Operating Income | 172.8 | 186.6 | 183.3 | ||||||||
Depreciation and Amortization | 36.8 | 29.8 | 27 | ||||||||
Capital Expenditures | 45 | 40.9 | 30.1 | ||||||||
Total Assets | 1,703 | 1,089.8 | 1,703 | 1,089.8 | 833.1 | ||||||
Specialty Construction Chemicals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 615.7 | 623.8 | 694.3 | ||||||||
Specialty Building Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 468.7 | 422.7 | 398.1 | ||||||||
Operating Segments | Specialty Construction Chemicals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 615.7 | 623.8 | 694.3 | ||||||||
Segment Operating Income | 63.4 | 72.6 | 83.7 | ||||||||
Depreciation and Amortization | 21.3 | 20 | 18 | ||||||||
Capital Expenditures | 23.9 | 23.6 | 21.8 | ||||||||
Total Assets | 419.9 | 335.9 | 419.9 | 335.9 | 318.4 | ||||||
Operating Segments | Specialty Building Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 468.7 | 422.7 | 398.1 | ||||||||
Segment Operating Income | 109.4 | 114 | 99.6 | ||||||||
Depreciation and Amortization | 13.2 | 9.6 | 7.8 | ||||||||
Capital Expenditures | 8.5 | 5.7 | 7 | ||||||||
Total Assets | 409.3 | 273.3 | 409.3 | 273.3 | 227.4 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and Amortization | 2.3 | 0.2 | 1.2 | ||||||||
Capital Expenditures | 12.6 | 11.6 | 1.3 | ||||||||
Total Assets | 851.3 | 317.2 | 851.3 | 317.2 | 130 | ||||||
Discontinued Operations, Held-for-sale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 22.5 | $ 163.4 | $ 22.5 | $ 163.4 | $ 157.3 |
Operating Segment Information97
Operating Segment Information - Reconciliation of Operating Segment Data to Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Corporate costs | $ (296.5) | $ (266.3) | $ (257.7) |
Loss on sale of product line | (2.1) | 0 | 0 |
Currency and other financial losses in Venezuela(1) | (40.1) | (3) | (63) |
Restructuring expenses | (9.8) | (15.3) | 0 |
Restructuring expenses and asset impairments | (13.5) | (1.9) | (9.8) |
Gain on termination and curtailment of pension and other postretirement plans | 6.6 | 0.8 | 0 |
Net income attributable to noncontrolling interests | 0.5 | 1 | 0.6 |
(Loss) income from continuing operations before income taxes | (28.3) | 35.3 | 56.6 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating income | 172.8 | 186.6 | 183.3 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | (36.4) | (38.4) | (31.1) |
Restructuring expenses and asset impairments | (3.2) | 0 | (0.1) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Certain pension costs | (9) | (7.2) | (3.8) |
Loss on sale of product line | (2.1) | ||
Currency and other financial losses in Venezuela(1) | (39.1) | 0 | (63) |
Litigation settlement | (4) | 0 | 0 |
Legacy product, environmental and other claims | (0.6) | 0 | 0 |
Restructuring expenses | (9.8) | (15.3) | 0 |
Restructuring expenses and asset impairments | (13.5) | (1.9) | (9.8) |
Pension MTM adjustment and other related costs, net | (14.1) | (22.6) | (17.1) |
Gain on termination and curtailment of pension and other postretirement plans | 6.6 | 0.8 | 0 |
Third-party and other acquisition-related costs | (6.8) | (0.6) | 0 |
Other financing costs | (6) | (1.2) | 0 |
Amortization of acquired inventory fair value adjustment | (2.9) | (1.3) | 0 |
Tax indemnification adjustments | (2.8) | 0 | 0 |
Interest expense, net | (61.1) | (64.6) | (2.5) |
Net income attributable to noncontrolling interests | 0.5 | 1 | $ 0.6 |
Prior Segment - Darex Packaging Technologies Business | Corporate | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | $ 5.4 | $ 10.3 |
Operating Segment Information98
Operating Segment Information - Sales by Product Group (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | $ 289.5 | $ 282.4 | $ 287.2 | $ 225.3 | $ 261.4 | $ 263.4 | $ 284 | $ 237.7 | $ 1,084.4 | $ 1,046.5 | $ 1,092.4 |
Specialty Construction Chemicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 615.7 | 623.8 | 694.3 | ||||||||
Specialty Construction Chemicals | Concrete | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 455.6 | 469.1 | 532.7 | ||||||||
Specialty Construction Chemicals | Cement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 160.1 | 154.7 | 161.6 | ||||||||
Specialty Building Materials | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 468.7 | 422.7 | 398.1 | ||||||||
Specialty Building Materials | Building Envelope | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 263.3 | 236.3 | 234.7 | ||||||||
Specialty Building Materials | Residential Building Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | 80.3 | 89.2 | 79.3 | ||||||||
Specialty Building Materials | Specialty Construction Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net Sales | $ 125.1 | $ 97.2 | $ 84.1 |
Operating Segment Information99
Operating Segment Information - Geographic Area Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 289.5 | $ 282.4 | $ 287.2 | $ 225.3 | $ 261.4 | $ 263.4 | $ 284 | $ 237.7 | $ 1,084.4 | $ 1,046.5 | $ 1,092.4 |
Properties and equipment, net | 216.6 | 192.6 | 216.6 | 192.6 | 156.2 | ||||||
Goodwill, intangibles and other assets | 313.8 | 189.9 | 313.8 | 189.9 | 139.2 | ||||||
Total North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 540.7 | 509.1 | 471.6 | ||||||||
Properties and equipment, net | 141.6 | 127 | 141.6 | 127 | 87.7 | ||||||
Goodwill, intangibles and other assets | 116.7 | 89.7 | 116.7 | 89.7 | 36.9 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 509.2 | 476.6 | 440.8 | ||||||||
Properties and equipment, net | 138.5 | 124.3 | 138.5 | 124.3 | 85.2 | ||||||
Goodwill, intangibles and other assets | 109 | 82 | 109 | 82 | 34.1 | ||||||
Canada and Puerto Rico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 31.5 | 32.5 | 30.8 | ||||||||
Properties and equipment, net | 3.1 | 2.7 | 3.1 | 2.7 | 2.5 | ||||||
Goodwill, intangibles and other assets | 7.7 | 7.7 | 7.7 | 7.7 | 2.8 | ||||||
Europe Middle East Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 244.5 | 225.6 | 235.9 | ||||||||
Properties and equipment, net | 32.1 | 24.3 | 32.1 | 24.3 | 26.9 | ||||||
Goodwill, intangibles and other assets | 151.2 | 55.3 | 151.2 | 55.3 | 60 | ||||||
Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 229.2 | 241.2 | 251.3 | ||||||||
Properties and equipment, net | 31.4 | 30 | 31.4 | 30 | 31.3 | ||||||
Goodwill, intangibles and other assets | 18.6 | 17.7 | 18.6 | 17.7 | 18 | ||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 70 | 70.6 | 133.6 | ||||||||
Properties and equipment, net | 11.5 | 11.3 | 11.5 | 11.3 | 10.3 | ||||||
Goodwill, intangibles and other assets | $ 27.3 | $ 27.2 | $ 27.3 | $ 27.2 | $ 24.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Numerators | |||||||||||||||
(Loss) income from continuing operations attributable to GCP shareholders | $ (69.1) | $ (18.1) | $ 1.3 | $ (25) | $ (5.6) | $ 10.9 | $ 16.7 | $ 5.6 | $ (110.9) | $ 27.6 | $ 0 | ||||
Income from discontinued operations, net of income taxes | (15.1) | 677.3 | (6) | 8.1 | 9 | 10.4 | 13.6 | 12.2 | 664.3 | 45.2 | 40.1 | ||||
Net income attributable to GCP shareholders | $ (84.2) | $ 659.2 | $ (4.7) | $ (16.9) | $ 3.4 | $ 21.3 | $ 30.3 | $ 17.8 | $ 553.4 | $ 72.8 | $ 40.1 | ||||
Denominators | |||||||||||||||
Weighted average common shares—basic calculation (in shares) | 71,500,000 | 70,800,000 | 70,500,000 | ||||||||||||
Dilutive effect of employee stock awards (in shares) | 0 | 900,000 | 0 | ||||||||||||
Weighted average common shares—diluted calculation (in shares) | [1] | 71,500,000 | 71,700,000 | 70,500,000 | |||||||||||
Basic (loss) earnings per share | |||||||||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | $ (0.96) | $ (0.25) | $ 0.02 | $ (0.35) | $ (0.08) | $ 0.15 | $ 0.24 | $ 0.08 | $ (1.55) | $ 0.39 | $ 0 | ||||
Income from discontinued operations, net of income taxes (in usd per share) | (0.21) | 9.46 | (0.08) | 0.11 | 0.13 | 0.15 | 0.19 | 0.17 | 9.29 | 0.64 | 0.57 | ||||
Net income attributable to GCP shareholders (in usd per share) | (1.17) | 9.21 | (0.07) | (0.24) | 0.05 | 0.30 | 0.43 | 0.25 | 7.74 | [2] | 1.03 | [2] | 0.57 | [2] | |
Diluted (loss) earnings per share | |||||||||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | (0.96) | (0.25) | 0.02 | (0.35) | (0.08) | 0.15 | 0.23 | 0.08 | (1.55) | [1] | 0.38 | [1] | 0 | [1] | |
Income from discontinued operations, net of income taxes (in usd per share) | (0.21) | 9.46 | (0.08) | 0.11 | 0.13 | 0.14 | 0.19 | 0.17 | 9.29 | [1] | 0.63 | [1] | 0.57 | [1] | |
Net income attributable to GCP shareholders (in usd per share) | $ (1.17) | $ 9.21 | $ (0.07) | $ (0.24) | $ 0.05 | $ 0.30 | $ 0.42 | $ 0.25 | $ 7.74 | [1],[2] | $ 1.02 | [1],[2] | $ 0.57 | [1],[2] | |
Number of shares repurchased in connection with equity compensation programs | 47,000 | 112,000 | |||||||||||||
Value of common stock repurchased in connection with equity compensation programs | $ 1.3 | [3] | $ 2.1 | ||||||||||||
Stock Option | |||||||||||||||
Diluted (loss) earnings per share | |||||||||||||||
Dilutive securities excluded from computation of earnings per share (in shares) | 600,000 | ||||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | 100,000 | |||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||||
Diluted (loss) earnings per share | |||||||||||||||
Dilutive securities excluded from computation of earnings per share (in shares) | 400,000 | ||||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | ||||||||||||||
[1] | Dilutive effect only applicable to periods where there is net income from continuing operations. | ||||||||||||||
[2] | Amounts may not sum due to rounding | ||||||||||||||
[3] | As of December 31, 2017, GCP repurchased approximately 47,000 shares of Company common stock for $1.3 million in connection with its equity compensation programs; number of shares is not included in the table above due to rounding. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Nov. 09, 2016 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 198.2 | $ 198.2 | $ 198.2 | $ 114.9 | $ 97.7 | |||
Proceeds from sale of product line | 2.9 | 0 | 0 | |||||
Loss on sale of product line | $ 2.1 | $ 0 | $ 0 | |||||
Non-core Halex Net Assets | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from sale of product line | $ 3 | |||||||
Loss on sale of product line | 2.1 | |||||||
Disposal group, goodwill | 1.3 | |||||||
Non-core Halex Net Assets | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Customer lists | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 1.5 | |||||||
Ductilcrete | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of stock acquired | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Consideration transferred | $ 32.1 | |||||||
Cash acquired | 1.5 | |||||||
Goodwill | $ 14 | $ 14 | $ 14 | $ 14 | ||||
Goodwill useful life | 15 years | |||||||
Revenue of acquiree since acquisition date | 1.2 | |||||||
Earnings of acquiree since acquisition date | $ 0.1 | |||||||
Stirling Lloyd | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of stock acquired | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Consideration transferred | $ 91.1 | |||||||
Cash acquired | 16.1 | |||||||
Goodwill | $ 59.6 | |||||||
Revenue of acquiree since acquisition date | $ 33.1 | |||||||
Earnings of acquiree since acquisition date | 2.8 | |||||||
Halex | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of stock acquired | 100.00% | 100.00% | ||||||
Consideration transferred | $ 46 | |||||||
Cash acquired | 2.4 | |||||||
Goodwill | $ 14.7 | $ 14.7 | 14.7 | $ 14.7 | ||||
Goodwill useful life | 15 years | |||||||
Selling, General and Administrative Expenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition-related costs | $ 2.1 | $ 2.1 | $ 2.1 |
Acquisitions and Disposition102
Acquisitions and Dispositions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 09, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 198.2 | $ 114.9 | $ 97.7 | |||
Ductilcrete | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 2.5 | |||||
Other current assets | 0.2 | |||||
Properties and equipment | 0.1 | |||||
Goodwill | 14 | 14 | ||||
Intangible assets | 15.5 | |||||
Accounts payable | (0.2) | |||||
Net assets acquired | $ 32.1 | |||||
Stirling Lloyd | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 6.8 | |||||
Other current assets | 3.1 | |||||
Inventories | 4.2 | |||||
Properties and equipment | 3.4 | |||||
Goodwill | 59.6 | |||||
Intangible assets | 26.9 | |||||
Accounts payable | (2.9) | |||||
Other current liabilities | (4.2) | |||||
Other liabilities | (5.8) | |||||
Net assets acquired | $ 91.1 | |||||
Halex | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 3.2 | |||||
Other current assets | 0.5 | |||||
Inventories | 9.7 | |||||
Properties and equipment | 1.4 | |||||
Goodwill | 14.7 | $ 14.7 | ||||
Intangible assets | 20.4 | |||||
Accounts payable | (1.5) | |||||
Other current liabilities | (2.2) | |||||
Other liabilities | (0.2) | |||||
Net assets acquired | $ 46 |
Acquisitions and Disposition103
Acquisitions and Dispositions - Schedule of Finite-Lived Intangible Assets Acquired (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Nov. 09, 2016 | Jun. 30, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 15.5 | $ 26.9 | |
Ductilcrete | Customer lists | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 10.2 | ||
Weighted average amortization period | 11 years | ||
Ductilcrete | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 4.5 | ||
Weighted average amortization period | 13 years | ||
Ductilcrete | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 0.8 | ||
Weighted average amortization period | 10 years | ||
Stirling Lloyd | Customer lists | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 15 | ||
Weighted average amortization period | 10 years | ||
Stirling Lloyd | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 9.8 | ||
Weighted average amortization period | 11 years | ||
Stirling Lloyd | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 2.1 | ||
Weighted average amortization period | 10 years | ||
Halex | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 20.4 | ||
Halex | Customer lists | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 16.5 | ||
Weighted average amortization period | 15 years | ||
Halex | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 3.7 | ||
Weighted average amortization period | 12 years | ||
Halex | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 0.2 | ||
Weighted average amortization period | 10 years |
Acquisitions and Disposition104
Acquisitions and Dispositions - Schedule of Pro Forma Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Revenue | $ 1,108.9 | $ 1,101.3 |
(Loss) income from continuing operations | $ (103.4) | $ 28.3 |
Quarterly Summary and Statis105
Quarterly Summary and Statistical Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2017 | May 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||
Net sales | $ 289.5 | $ 282.4 | $ 287.2 | $ 225.3 | $ 261.4 | $ 263.4 | $ 284 | $ 237.7 | $ 1,084.4 | $ 1,046.5 | $ 1,092.4 | |||||
Gross profit | 110.3 | 106.5 | 115 | 85.3 | 97.6 | 108.6 | 118.2 | 93.2 | 417.1 | 417.6 | 407.4 | |||||
Net income | (83.9) | 659.3 | (4.6) | (16.9) | 3.5 | 21.5 | 30.6 | 18.2 | 553.9 | 73.8 | 40.7 | |||||
(Loss) income from continuing operations attributable to GCP shareholders | (69.1) | (18.1) | 1.3 | (25) | (5.6) | 10.9 | 16.7 | 5.6 | (110.9) | 27.6 | 0 | |||||
Income from discontinued operations, net of income taxes | (15.1) | 677.3 | (6) | 8.1 | 9 | 10.4 | 13.6 | 12.2 | 664.3 | 45.2 | 40.1 | |||||
Net income attributable to GCP shareholders | $ (84.2) | $ 659.2 | $ (4.7) | $ (16.9) | $ 3.4 | $ 21.3 | $ 30.3 | $ 17.8 | $ 553.4 | $ 72.8 | $ 40.1 | |||||
Basic earnings per share: | ||||||||||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | $ (0.96) | $ (0.25) | $ 0.02 | $ (0.35) | $ (0.08) | $ 0.15 | $ 0.24 | $ 0.08 | $ (1.55) | $ 0.39 | $ 0 | |||||
Income from discontinued operations, net of income taxes (in usd per share) | (0.21) | 9.46 | (0.08) | 0.11 | 0.13 | 0.15 | 0.19 | 0.17 | 9.29 | 0.64 | 0.57 | |||||
Net income attributable to GCP shareholders (in usd per share) | (1.17) | 9.21 | (0.07) | (0.24) | 0.05 | 0.30 | 0.43 | 0.25 | 7.74 | [1] | 1.03 | [1] | 0.57 | [1] | ||
Diluted earnings per share | ||||||||||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | (0.96) | (0.25) | 0.02 | (0.35) | (0.08) | 0.15 | 0.23 | 0.08 | (1.55) | [2] | 0.38 | [2] | 0 | [2] | ||
Income from discontinued operations, net of income taxes (in usd per share) | (0.21) | 9.46 | (0.08) | 0.11 | 0.13 | 0.14 | 0.19 | 0.17 | 9.29 | [2] | 0.63 | [2] | 0.57 | [2] | ||
Net income attributable to GCP shareholders (in usd per share) | $ (1.17) | $ 9.21 | $ (0.07) | $ (0.24) | $ 0.05 | $ 0.30 | $ 0.42 | $ 0.25 | $ 7.74 | [1],[2] | $ 1.02 | [1],[2] | $ 0.57 | [1],[2] | ||
Foreign exchange remeasurement loss | $ 1.2 | $ 7.1 | $ 3.4 | |||||||||||||
Pension Plans | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||
Annual mark-to-market adjustment | $ (11.2) | $ (19.9) | ||||||||||||||
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||
Gain recognized in 2017 after income taxes | $ 678.9 | |||||||||||||||
Gain (Loss) due to Subsidiary in Highly Inflationary Economy | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||
Foreign exchange remeasurement loss | 2.9 | |||||||||||||||
Other Income | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||
Foreign exchange remeasurement loss | $ 0.5 | $ 3 | ||||||||||||||
[1] | Amounts may not sum due to rounding | |||||||||||||||
[2] | Dilutive effect only applicable to periods where there is net income from continuing operations. |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Jul. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of product line | $ 2.9 | $ 0 | $ 0 | ||
Unrecognized tax benefits | 34.1 | 7.4 | 3.9 | $ 5.3 | |
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration received/receivable for disposal | $ 1,060 | ||||
Proceeds from sale of product line | $ 25.1 | ||||
Term of Transition Services Agreement | 24 months | ||||
Term of Master Tolling Agreement | 24 months | ||||
Indemnification payable | 3.3 | ||||
Pre-tax gain on sale of disposal group | 880.8 | ||||
Provision for income taxes | 201.9 | ||||
Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | Other Liabilities | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Deferred consideration | $ 68.7 | ||||
Darex Packaging Technologies Business | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax gain on sale of disposal group | 880.8 | 0 | 0 | ||
Provision for income taxes | 210.2 | $ 25.5 | $ 28.3 | ||
Unrecognized tax benefits | 32.4 | ||||
Minimum | Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Estimated future consideration | 17 | ||||
Term of delayed closings in foreign jurisdictions | 3 months | ||||
Maximum | Darex Packaging Technologies Business | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Estimated future consideration | $ 19 | ||||
Term of delayed closings in foreign jurisdictions | 24 months |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Gain on Disposal (Details) - Darex Packaging Technologies Business - Discontinued Operations, Disposed of by Sale $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net proceeds included in gain recognized in 2017 | $ 996.3 |
Less: Transaction costs | 15.9 |
Less: Net assets derecognized in 2017 | 99.6 |
Gain recognized in 2017 before income taxes | 880.8 |
Less: Tax effect of gain recognized in 2017 | 201.9 |
Gain recognized in 2017 after income taxes | $ 678.9 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income from discontinued operations, net of income taxes | $ (15.1) | $ 677.3 | $ (6) | $ 8.1 | $ 9 | $ 10.4 | $ 13.6 | $ 12.2 | $ 664.3 | $ 45.2 | $ 40.1 |
Darex Packaging Technologies Business | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | 169.5 | 309.3 | 326.2 | ||||||||
Cost of goods sold | 111.9 | 198.2 | 217.4 | ||||||||
Selling, general and administrative expenses | 44.9 | 33.4 | 32.4 | ||||||||
Research and development expenses | 2.3 | 4.6 | 4.8 | ||||||||
Repositioning expenses | 0 | 0 | 0 | ||||||||
Restructuring expenses | 7.8 | 0 | 1.8 | ||||||||
Loss in Venezuela | 1.1 | 0 | 4.4 | ||||||||
Gain on sale of business | (880.8) | 0 | 0 | ||||||||
Other non-operating expenses, net | 7.7 | 2.4 | (3.2) | ||||||||
Provision for income taxes | (210.2) | (25.5) | (28.3) | ||||||||
Less: Net income attributable to noncontrolling interests | (0.1) | 0 | (0.2) | ||||||||
Income from discontinued operations, net of income taxes | $ 664.3 | $ 45.2 | $ 40.1 |
Discontinued Operations - Carry
Discontinued Operations - Carrying Amounts of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 0 | $ 16.3 | $ 13.6 |
Current assets held for sale | 19.7 | 108 | |
Noncurrent assets held for sale | 2.8 | 55.4 | |
Current liabilities held for sale | 7.8 | 48.2 | |
Noncurrent liabilities held for sale | 0.3 | 20.9 | |
Darex Packaging Technologies Business | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 0 | 16.3 | |
Trade accounts receivable | 8.4 | 50.5 | |
Inventories | 10.6 | 32.3 | |
Other current assets | 0.7 | 8.9 | |
Current assets held for sale | 19.7 | 108 | |
Properties and equipment, net | 2.2 | 39.6 | |
Goodwill | 0 | 4.4 | |
Technology and other intangible assets, net | 0 | 0.4 | |
Deferred income taxes | 0 | 6.4 | |
Other assets | 0.6 | 4.6 | |
Noncurrent assets held for sale | 2.8 | 55.4 | |
Accounts payable | 6.4 | 26.7 | |
Other current liabilities | 1.4 | 21.5 | |
Current liabilities held for sale | 7.8 | 48.2 | |
Deferred income taxes | 0 | 2.3 | |
Underfunded and unfunded defined benefit pension plans | 0.3 | 14.8 | |
Other liabilities | 0 | 3.8 | |
Noncurrent liabilities held for sale | $ 0.3 | $ 20.9 |
Schedule II - Valuation & Qu110
Schedule II - Valuation & Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowances for notes and accounts receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 4.5 | $ 5.8 | $ 4.6 |
Additions charged to costs and expenses | 0.8 | 0.2 | 2.8 |
Deductions | 0 | (1.9) | (2.3) |
Other, net | 0.4 | 0.4 | 0.7 |
Balance at end of period | 5.7 | 4.5 | 5.8 |
Inventory obsolescence reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 2.6 | 2.7 | 3.5 |
Additions charged to costs and expenses | 4.7 | 0 | 0 |
Deductions | (4.8) | (0.1) | (0.8) |
Other, net | (0.1) | 0 | 0 |
Balance at end of period | 2.4 | 2.6 | 2.7 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 2.3 | 2 | 1.8 |
Additions charged to costs and expenses | 21.8 | 0.4 | 0.5 |
Deductions | (0.3) | (0.1) | (0.3) |
Other, net | 0.1 | 0 | 0 |
Balance at end of period | $ 23.9 | $ 2.3 | $ 2 |