Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-37533 | |
Entity Registrant Name | GCP Applied Technologies Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3936076 | |
Entity Address, Address Line One | 62 Whittemore Avenue | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02140-1623 | |
City Area Code | 617 | |
Local Phone Number | 876-1400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | GCP | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 72,974,610 | |
Entity Central Index Key | 0001644440 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||||
Income Statement [Abstract] | ||||||||
Net sales | $ 195.4 | $ 262.2 | $ 412.1 | $ 488.3 | ||||
Cost of goods sold | 119 | 163.2 | 253.8 | 307.1 | ||||
Gross profit | 76.4 | 99 | 158.3 | 181.2 | ||||
Selling, general and administrative expenses | 65.7 | 71.4 | 133.8 | 140.4 | ||||
Research and development expenses | 3.7 | 4.6 | 8.6 | 9.3 | ||||
Interest expense and related financing costs | 5 | 5.7 | 10.7 | 11.6 | ||||
Repositioning expenses | 1 | 5.8 | 3.7 | 11.2 | ||||
Restructuring expenses and asset impairments | 0.4 | 4.4 | 3.5 | 5 | ||||
Other income, net | (2.7) | (1.7) | (4.9) | (3.5) | ||||
Total costs and expenses | 73.1 | 90.2 | 155.4 | 174 | ||||
Income from continuing operations before income taxes | 3.3 | 8.8 | 2.9 | 7.2 | ||||
(Provision for) benefit from income taxes | (4.5) | (5.7) | (2.6) | 10.7 | ||||
(Loss) income from continuing operations | (1.2) | 3.1 | 0.3 | 17.9 | ||||
(Loss) income from discontinued operations, net of income taxes | 0 | (0.5) | (0.3) | 6.3 | ||||
Net (loss) income | (1.2) | 2.6 | 0 | 24.2 | ||||
Less: Net income attributable to noncontrolling interests | (0.1) | 0 | (0.2) | (0.2) | ||||
Net (loss) income attributable to GCP shareholders | (1.3) | 2.6 | (0.2) | 24 | ||||
Amounts Attributable to GCP Shareholders: | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders | (1.3) | 3.1 | 0.1 | 17.7 | ||||
(Loss) income from discontinued operations, net of income taxes | 0 | (0.5) | (0.3) | 6.3 | ||||
Net (loss) income attributable to GCP shareholders | $ (1.3) | $ 2.6 | $ (0.2) | $ 24 | ||||
Basic earnings (loss) per share: | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | [1] | $ (0.02) | $ 0.04 | $ 0 | $ 0.24 | |||
(Loss) income from discontinued operations, net of income taxes (in usd per share) | [1] | 0 | (0.01) | 0 | 0.09 | |||
Net (loss) income attributable to GCP shareholders (in usd per share) | [1],[2] | $ (0.02) | $ 0.04 | $ 0 | $ 0.33 | |||
Weighted average number of basic shares (in shares) | [1] | 72,900,000 | 72,600,000 | 72,900,000 | 72,500,000 | |||
Diluted earnings (loss) per share: | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in dollars per share) | [1] | $ (0.02) | $ 0.04 | $ 0 | $ 0.24 | |||
(Loss) income from discontinued operations, net of income taxes (in dollars per share) | [1] | 0 | (0.01) | 0 | 0.09 | |||
Net (loss) income attributable to GCP shareholders (in dollars per share) | [1],[2] | $ (0.02) | $ 0.04 | $ 0 | $ 0.33 | |||
Weighted average number of diluted shares (in shares) | 72,900,000 | 73,000,000 | [1] | 73,000,000 | [1] | 72,900,000 | [1] | |
[1] | Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations. | |||||||
[2] | Amounts may not sum due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (1.2) | $ 2.6 | $ 0 | $ 24.2 |
Other comprehensive income (loss): | ||||
Defined benefit pension and other postretirement plans, net of income taxes | 0 | 0 | 0.1 | 0 |
Currency translation adjustments, net of income taxes | 4.9 | (3.9) | (28.9) | (0.6) |
(Loss) gain from hedging activities, net of income taxes | (0.1) | 0 | 0.1 | (0.1) |
After-Tax Amount | 4.8 | (3.9) | (28.7) | (0.7) |
Comprehensive income (loss) | 3.6 | (1.3) | (28.7) | 23.5 |
Less: Comprehensive income attributable to noncontrolling interests | (0.1) | 0 | (0.2) | (0.2) |
Comprehensive income (loss) attributable to GCP shareholders | $ 3.5 | $ (1.3) | $ (28.9) | $ 23.3 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 318.2 | $ 325 |
Trade accounts receivable, net of allowance for credit losses of $7.3 million and $7.5 million, respectively | 148.9 | 183.7 |
Inventories, net | 98.5 | 95.9 |
Other current assets | 45.4 | 43.7 |
Total Current Assets | 611 | 648.3 |
Properties and equipment, net | 243.1 | 245.3 |
Operating lease right-of-use assets | 33.8 | 29.3 |
Goodwill | 200.3 | 208.9 |
Technology and other intangible assets, net | 72.7 | 80.7 |
Deferred income taxes | 17.5 | 26.1 |
Overfunded defined benefit pension plans | 23.6 | 25 |
Other assets | 38.3 | 38 |
Non-current assets held for sale | 0 | 0.5 |
Total Assets | 1,240.3 | 1,302.1 |
Current Liabilities | ||
Debt payable within one year | 2.7 | 2.7 |
Operating lease obligations payable within one year | 8 | 8.1 |
Accounts payable | 73.1 | 88.4 |
Other current liabilities | 92.1 | 113.6 |
Total Current Liabilities | 175.9 | 212.8 |
Debt payable after one year | 348.7 | 346.5 |
Income taxes payable | 35.2 | 41.4 |
Deferred income taxes | 11.9 | 13.1 |
Operating lease obligations | 26.5 | 21.6 |
Unrecognized tax benefits | 42.6 | 42.2 |
Underfunded and unfunded defined benefit pension plans | 68.7 | 67.5 |
Other liabilities | 15.6 | 15.9 |
Total Liabilities | 725.1 | 761 |
Commitments and Contingencies - Note 11 | ||
Stockholders' Equity | ||
Series A Junior Participating Preferred Stock, par value $0.01; 10,000,000 shares authorized, no shares issued or outstanding (Note 12) | 0 | 0 |
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 72,974,610 and 72,850,268, respectively | 0.7 | 0.7 |
Paid-in capital | 56.9 | 53.4 |
Accumulated earnings | 610 | 610.2 |
Accumulated other comprehensive loss | (145.7) | (117) |
Treasury stock | (8.9) | (8.6) |
Total GCP's Shareholders' Equity | 513 | 538.7 |
Noncontrolling interests | 2.2 | 2.4 |
Total Stockholders' Equity | 515.2 | 541.1 |
Total Liabilities and Stockholders' Equity | $ 1,240.3 | $ 1,302.1 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 7.3 | $ 7.5 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 72,974,610 | 72,850,268 |
Series A preferred stock | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | ||
Beginning balance (in shares) at Dec. 31, 2018 | 72,400,000 | 200,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 481.4 | $ 0.7 | $ (4.8) | $ 39.6 | $ 563.9 | $ (120) | $ 2 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net (loss) income | 24.2 | 24 | 0.2 | ||||||
Issuance of common stock in connection with stock plans (in shares) | [1] | 300,000 | |||||||
Share-based compensation | 5.6 | 5.6 | |||||||
Exercise of stock options (in shares) | 300,000 | ||||||||
Exercise of stock options | $ 5 | 5 | |||||||
Share repurchases (in shares) | 125,700 | 100,000 | [2] | ||||||
Share repurchases | [2] | $ (3.2) | $ (3.2) | ||||||
Other comprehensive income (loss) | (0.7) | (0.7) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 73,000,000 | 300,000 | |||||||
Ending balance at Jun. 30, 2019 | 512.3 | $ 0.7 | $ (8) | 50.2 | 587.9 | (120.7) | 2.2 | ||
Beginning balance (in shares) at Mar. 31, 2019 | 72,900,000 | 300,000 | |||||||
Beginning balance at Mar. 31, 2019 | 508 | $ 0.7 | $ (8) | 44.6 | 585.3 | (116.8) | 2.2 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net (loss) income | 2.6 | 2.6 | 0 | ||||||
Share-based compensation | 3.9 | 3.9 | |||||||
Exercise of stock options (in shares) | 100,000 | ||||||||
Exercise of stock options | 1.7 | 1.7 | |||||||
Other comprehensive income (loss) | (3.9) | (3.9) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 73,000,000 | 300,000 | |||||||
Ending balance at Jun. 30, 2019 | 512.3 | $ 0.7 | $ (8) | 50.2 | 587.9 | (120.7) | 2.2 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 73,200,000 | 300,000 | |||||||
Beginning balance at Dec. 31, 2019 | 541.1 | $ 0.7 | $ (8.6) | 53.4 | 610.2 | (117) | 2.4 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net (loss) income | 0 | (0.2) | 0.2 | ||||||
Issuance of common stock in connection with stock plans (in shares) | [1] | 100,000 | |||||||
Share-based compensation | $ 2.8 | 2.8 | |||||||
Exercise of stock options (in shares) | 40,000 | 0 | |||||||
Exercise of stock options | $ 0.7 | 0.7 | |||||||
Share repurchases (in shares) | 17,300 | 100,000 | [2] | ||||||
Share repurchases | [2] | $ (0.3) | $ (0.3) | ||||||
Other comprehensive income (loss) | (28.7) | (28.7) | |||||||
Dividends and other changes in noncontrolling interest | (0.4) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 73,300,000 | 400,000 | |||||||
Ending balance at Jun. 30, 2020 | 515.2 | $ 0.7 | $ (8.9) | 56.9 | 610 | (145.7) | 2.2 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 73,300,000 | 400,000 | |||||||
Beginning balance at Mar. 31, 2020 | 509.4 | $ 0.7 | $ (8.9) | 54.3 | 611.3 | (150.5) | 2.5 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net (loss) income | (1.2) | (1.3) | 0.1 | ||||||
Share-based compensation | 2.3 | 2.3 | |||||||
Exercise of stock options | 0.3 | 0.3 | |||||||
Other comprehensive income (loss) | 4.8 | 4.8 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 73,300,000 | 400,000 | |||||||
Ending balance at Jun. 30, 2020 | $ 515.2 | $ 0.7 | $ (8.9) | $ 56.9 | $ 610 | $ (145.7) | $ 2.2 | ||
[1] | The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding. | ||||||||
[2] | Refer to Note 15, “Stock Incentive Plans”, for further information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net (loss) income | $ 0 | $ 24.2 |
Less: (Loss) income from discontinued operations | (0.3) | 6.3 |
Income from continuing operations | 0.3 | 17.9 |
Reconciliation to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 22.7 | 21.1 |
Amortization of debt discount and financing costs | 0.7 | 0.7 |
Stock-based compensation expense | 2.3 | 5 |
Unrealized loss on foreign currency | 1.6 | 0 |
Deferred income taxes | (5.8) | (15.5) |
Loss (gain) on disposal of property and equipment | 0.1 | (0.2) |
Changes in assets and liabilities, excluding effect of currency translation: | ||
Trade accounts receivable | 30.3 | 9.5 |
Inventories | (5.1) | (6.8) |
Accounts payable | (13.5) | (17.6) |
Pension assets and liabilities, net | 1.6 | 2.5 |
Other assets and liabilities, net | (15.3) | (17.3) |
Net cash provided by (used in) operating activities from continuing operations | 19.9 | (0.7) |
Net cash used in operating activities from discontinued operations | (2.3) | (12.4) |
Net cash provided by (used in) operating activities | 17.6 | (13.1) |
INVESTING ACTIVITIES | ||
Capital expenditures | (18.8) | (27.7) |
Other investing activities | 0.4 | 0.5 |
Net cash used in investing activities from continuing operations | (18.4) | (27.2) |
Net cash used in investing activities from discontinued operations | 0 | (0.4) |
Net cash used in investing activities | (18.4) | (27.6) |
FINANCING ACTIVITIES | ||
Repayments under credit arrangements | 0 | (7.6) |
Payments on finance lease obligations | (0.4) | (0.4) |
Payments of tax withholding obligations related to employee equity awards | (0.3) | (3.2) |
Proceeds from exercise of stock options | 0.7 | 5 |
Payments of dividends to noncontrolling interests | (0.4) | 0 |
Net cash used in financing activities | (0.4) | (6.2) |
Effect of currency exchange rate changes on cash and cash equivalents | (5.6) | 0.6 |
Decrease in cash and cash equivalents | (6.8) | (46.3) |
Cash and cash equivalents, beginning of period | 325 | 326.1 |
Cash and cash equivalents, end of period | 318.2 | 279.8 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment purchases unpaid and included in accounts payable | $ 5.3 | $ 12.3 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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 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 and supplies in-transit monitoring systems for concrete producers. 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 GCP's continuing operations and segment results for all periods presented. Basis of Presentation The accompanying unaudited 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 intercompany balances and transactions have been eliminated in consolidation. 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 ("GAAP") and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information. The interim financial statements presented herein are unaudited and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in GCP's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019 (the "2019 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2019 was derived from the audited annual consolidated financial statements as of the period then ended. Certain information and footnote disclosures typically included in GCP's annual consolidated financial statements have been condensed or omitted. The unaudited financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations for the year ending December 31, 2020. Discontinued Operations On July 3, 2017, the Company completed the sale of Darex to Henkel. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provides for a series of delayed closings in certain non-U.S. jurisdictions. In conjunction with this transaction and applicable GAAP, the assets and liabilities related to Darex in the applicable delayed close countries have been reclassified and reflected as held for sale in the accompanying unaudited Consolidated Balance Sheets as of December 31, 2019, as discussed further in Note 19, "Discontinued Operations." Additionally, Darex results of operations and cash flows have been reclassified and reflected as "discontinued operations" in the accompanying unaudited Consolidated Statements of Operations and unaudited Consolidated Statements of Cash Flows for all periods presented. Unless otherwise noted, the information throughout the Notes to the accompanying unaudited Consolidated Financial Statements pertains only to the continuing operations of GCP. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. GCP's accounting measurements that are most affected by management's estimates of future events are disclosed in its 2019 Annual Report on Form 10-K. Actual results could differ from those estimates. On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus ("COVID-19") a global pandemic and recommended a number of restrictive measures to contain the spread. Many governments in the regions where GCP generates the majority of its revenue have adopted such policies, including social distancing and restrictions on construction activities deemed non-essential. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. While certain restrictive measures in some of the regions where GCP operates have been lifted by government authorities during the three months ended June 30, 2020, it is difficult to estimate with reasonable certainty at this time the duration and extent of the impact of the pandemic on the global economy, the Company's business, financial position and results of operations. GCP has made certain estimates within its financial statements related to the impact of COVID-19, including allowances for credit losses related to the estimated amount of receivables not expected to be collected and excess, obsolete or damaged inventories, future expected cash flows related to impairment assessments of goodwill and long-lived assets, incentive compensation accruals, contingent liabilities, and sales allowances related to volume rebates recognized based on anticipated sales volume. There may be changes to the Company's estimates in future periods due to uncertainty associated with the impact of COVID-19, the extent of which will depend largely on future developments, including new information which may emerge concerning the severity, duration and resurgence of the pandemic, additional and unanticipated actions by government authorities to further contain the spread of COVID-19 or address its impact, as well as the timing of development of an antiviral vaccine or a medical treatment to prevent further spread of the virus and facilitate recovery, among other things. Income Tax As a global enterprise, GCP is subject to a complex array of tax regulations and needs to make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. 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. Please refer to Note 8, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits. Foreign Currency Transactions and Translation Certain transactions of the Company and its subsidiaries are denominated in currencies other than their functional currency. Foreign currency exchange gains (losses) generated from the settlement and remeasurement of these transactions are recognized in earnings and presented within “Other income, net” in the Company’s accompanying unaudited Consolidated Statements of Operations. Net foreign currency transaction and remeasurement gains (losses) reflected in “Other income, net” were $0.6 million and $0.8 million for the three and six months ended June 30, 2020. Foreign currency transaction and remeasurement gains (losses) were immaterial for the three and six months ended June 30, 2019. Reclassifications Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts. Recently Adopted Accounting Standards Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which applies to most financial assets measured at amortized cost, as well as certain other instruments, including trade receivables, other receivables and other financial assets. Topic 326 replaces the incurred credit loss methodology with the expected credit loss model which requires recognition of an allowance against the assets’ amortized cost to reflect the amount expected to be collected. Expected credit losses are estimated over the contractual life of financial assets and recognized at inception. GCP has adopted Topic 326 effective January 1, 2020 using the modified retrospective approach. The adoption did not have a material impact on its financial position as of June 30, 2020 and results of operations and cash flows for the three and six months ended June 30, 2020. GCP did not recognize any cumulative effect adjustments to the retained earnings as of January 1, 2020 as a result of the adoption. The adoption of Topic 326 did not result in any significant modifications to the Company's policies related to recognizing allowance for trade receivables not expected to be collected which are disclosed in Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. Please refer to Note 3, "Accounts Receivable, Allowance for Credit Losses" for further information on the Company's policies and methodologies resulting from the adoption. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) . The amendments in this update eliminate the requirement to calculate the implied fair value of goodwill (Step 2) when measuring a goodwill impairment loss which is based on the excess of a reporting unit’s carrying amount over its fair value. The standard is effective for the Company for its annual or any interim goodwill impairment tests to be performed beginning on or after January 1, 2020. GCP adopted the standard effective January 1, 2020. The adoption did not have a material impact on its financial position, results of operations and cash flows upon adoption. Other During the three and six months ended June 30, 2020, except as discussed above, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the Annual Report on Form 10-K for the year ended December 31, 2019. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. |
Revenue from Lessor Arrangement
Revenue from Lessor Arrangements and Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
Revenues [Abstract] | |
Revenue from Lessor Arrangements and Contracts with Customers | Revenue from Lessor Arrangements and Contracts with Customers The majority of the Company’s revenue is generated from short-term arrangements associated with the production and sale of concrete admixtures and cement additives within its SCC operating segment, as well as sheet and liquid membrane systems and other specialty products designed to protect the building envelope within its SBM operating segment. For such arrangements, the transfer of control takes place at a point in time when products are shipped to the customer. Short-term arrangements within its SCC operating segment involve selling concrete admixtures and providing dispensers to customers. Such arrangements contain a lease element due to the customer's right to control the use of dispensers over a period of time in exchange for consideration. Dispenser leases have a non-cancelable lease term of thirty days or less. The Company classifies leases as operating and recognizes revenue on a straight line basis over the lease term. Revenue for concrete admixtures is recognized at the point of time when control is transferred to the customer. The Company generates revenue from long-term arrangements within its SCC operating segment, which generally consist of VERIFI ® and Ductilcrete sales arrangements. VERIFI ® sales arrangements involve installing equipment on the customers’ trucks and at their plants, as well as performing slump management and truck location tracking services. The installed equipment represents a lease since the customer has the right to control its use over a period of time in exchange for consideration. Slump management and truck location tracking services represent a separate performance obligation for which revenue is recognized over the performance period. The Company classifies leases as operating and recognizes revenue on a straight line basis over the lease term. The transaction price in VERIFI ® sales arrangements consists of fixed installation fees and other fixed payments included in the contract consideration, as well as slump management fees which are dependent on the quantity of material poured and represent variable consideration. The Company allocates the contract consideration and the variable consideration between the lease element and the services based on their relative stand-alone selling prices. Revenue related to variable consideration is recorded at the time the services are performed and constrained by the amount for which a significant revenue reversal is not probable to occur. Revenue generated from VERIFI ® sales arrangements represented less than 10% of the Company's consolidated revenue during the three and six months ended June 30, 2020 and 2019. The following table summarizes the revenue recognized for these sales arrangements for the three and six months ended June 30, 2020 and 2019 and distinguishes between the lease and the service revenue: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Lease revenue (1): Lease payments revenue $ 6.6 $ 6.8 $ 13.4 $ 13.2 Variable lease revenue 2.5 1.9 4.5 3.4 Total lease revenue $ 9.1 $ 8.7 $ 17.9 $ 16.6 Service revenue (2): Fixed fee revenue $ 0.1 $ — $ 0.2 $ — Variable fee revenue 1.5 1.2 2.8 2.2 Total service revenue $ 1.6 $ 1.2 $ 3.0 $ 2.2 Total revenue $ 10.7 $ 9.9 $ 20.9 $ 18.8 ________________________________ (1) Lease revenue consists of dispenser lease revenue, as well as an allocated portion of VERIFI ® fixed fees and variable slump management fees. Lease revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations. (2) Service revenue consists of an allocated portion of VERIFI ® fixed fees and variable slump management fees. Service revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, the Company’s total trade accounts receivable balance was $148.9 million and $183.7 million, respectively, of which $5.8 million and $5.6 million, respectively, was related to trade accounts receivable associated with lease revenue generated from certain SCC contracts. The future minimum lease payments receivable under the operating leases were not material as of June 30, 2020. Revenue generated from Ductilcrete sales arrangements represented less than 10% of the Company's consolidated revenue during the three and six months ended June 30, 2020 and 2019. The Company’s revenue is principally recognized as goods and services are delivered and performance obligations are satisfied upon delivery. The Company has certain long-term arrangements resulting in remaining obligations for which the work has not been performed or has been partially performed. As of June 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $8.6 million, including the estimated transaction price to be earned as revenue over the remaining term of these contracts, which is generally one For further information on revenue recognition related to product sale arrangements, please refer to Note 2, "Revenue from Lessor Arrangements and Contracts with Customers", to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. |
Accounts Receivable, Allowance
Accounts Receivable, Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Losses | Accounts Receivable, Allowance for Credit Losses Trade accounts receivable are amounts due from customers for products sold or services performed in the ordinary course of business and are stated at their estimated net realizable value representing amounts expected to be collected. Allowance for credit losses is recorded upon the initial recognition of trade accounts receivable and reviewed during each reporting period over their contractual life. Allowance for credit losses is measured based on historical loss rates and the impact of current and future conditions, including an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The Company evaluates the allowance for credit losses for the entire portfolio of trade accounts receivable on an aggregate basis due to similar risk characteristics of its customers based on similar industry and historical loss patterns. Accounts receivable balances are written off against the allowance for credit losses when the Company determines that the balances are not recoverable. Provisions for expected credit losses are recorded in "Selling, general and administrative expenses" in the accompanying unaudited Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, allowance for credit losses was $7.3 million and $7.5 million, respectively. The following table summarizes the activity for the allowance for credit losses during the three and six months ended June 30, 2020 and 2019: (In millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Beginning balance $ 7.4 $ 5.7 $ 7.5 $ 5.8 Provision for expected credit losses 0.3 1.0 0.7 1.5 Write offs (0.4) (0.5) (0.5) (1.0) Foreign currency translation adjustments — 0.1 (0.4) — Ending balance $ 7.3 $ 6.3 $ 7.3 $ 6.3 |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Raw materials $ 43.4 $ 40.0 In process 4.3 4.0 Finished products and other 50.8 51.9 Total inventories, net $ 98.5 $ 95.9 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to partially offset its business exposure to foreign currency risk on net investments in certain foreign subsidiaries. The Company enters into foreign currency forward contracts to offset a portion of the changes in the carrying amounts of its net investments in foreign operations due to fluctuations in foreign currency exchange rates. As of June 30, 2020, the Company was a party to four forward contracts with an aggregate notional amount of €40.0 million to hedge foreign currency exposure on net investments in certain of its European subsidiaries whose functional currency is the Euro. These forward contracts are designated as hedging instruments and recognized at fair value as assets or liabilities in the accompanying unaudited Consolidated Balance Sheets. Each contract has a notional amount of €10.0 million and matures annually starting on June 14, 2021 through June 17, 2024. During the three months ended June 30, 2020, GCP settled one contract with a notional amount of €10.0 million upon its maturity on June 15, 2020 and entered into a new contract with a notional amount of €10.0 million maturing on June 17, 2024. The forward contracts are designated and qualify as net investment hedges for which effectiveness is assessed based on the spot rate method. Please refer to Note 4, "Derivative Instruments", to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K for further information on net investment hedges. The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of June 30, 2020 and December 31, 2019: (In millions) June 30, 2020 December 31, 2019 Derivative assets (1) : Foreign exchange forward contracts $ 2.1 $ 1.1 Derivative liability (1) : Foreign exchange forward contracts $ (0.1) $ — __________________________ (1) The fair value of derivative instruments is measured based on expected future cash flows discounted at market interest rates using observable market inputs and classified as Level 2 within the fair value hierarchy. Fair value of derivative assets of $0.6 million and $1.5 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets. Fair value of derivative liability is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) related to forward contracts designated as net investment hedges for the three and six months ended June 30, 2020 and 2019: (In millions) Three Months Ended Three Months Ended Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gains (losses) on foreign exchange forward contracts $ 0.2 $ (0.8) $ 0.1 $ (0.2) (In millions) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gains (losses) on foreign exchange forward contracts $ 0.5 $ 0.5 $ 0.1 $ (0.2) __________________________ |
Debt and Other Borrowings
Debt and Other Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Other Borrowings | Debt and Other Borrowings Components of Debt and Other Borrowings The following is a summary of obligations under senior notes and other borrowings at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, 5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.6 million and $3.9 million, respectively, at June 30, 2020 and December 31, 2019 $ 346.4 $ 346.1 Revolving credit facility due 2023 (1) — — Other borrowings (2) 5.0 3.1 Total debt 351.4 349.2 Less: debt payable within one year 2.7 2.7 Debt payable after one year $ 348.7 $ 346.5 Weighted average interest rates on total debt obligations 5.5 % 5.5 % __________________________ (1) Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of June 30, 2020 and December 31, 2019. (2) Represents borrowings of $2.0 million and $1.8 million, respectively, at June 30, 2020 and December 31, 2019, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $3.0 million and $1.3 million, respectively, of finance lease obligations. The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at June 30, 2020: (In millions) Amount Remainder of 2020 $ 2.4 2021 0.7 2022 0.7 2023 0.7 2024 0.5 Thereafter 346.4 Total debt $ 351.4 5.5% Senior Notes GCP's outstanding 5.5% Senior Notes have an aggregate principal amount of $350.0 million maturing on April 15, 2026. Interest on the 5.5% Senior Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company made an interest payment of $9.6 million on April 15, 2020. The Indenture contains certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K. The Company was in compliance with all covenants and conditions under the Indenture as of June 30, 2020. There are no events of default under the Indenture as of June 30, 2020. Credit Agreement As of June 30, 2020 and December 31, 2019, there were no outstanding borrowings on the Revolving Credit Facility. There were $2.2 million and $5.9 million, respectively, in outstanding letters of credit which resulted in available credit of $347.8 million and $344.1 million, respectively. There were no interest payments on the Revolving Credit Facility during the three and six months ended June 30, 2020. The interest rate per annum applicable to the Revolving Credit Facility is equal to, at GCP’s option, either: (i) a base rate plus a margin ranging from 0.5% to 1.0%, or (ii) LIBOR plus a margin ranging from 1.5% to 2.0%, based upon the total leverage ratio of GCP and its restricted subsidiaries in both scenarios. The Credit Agreement contains conditions that would require mandatory principal payments in advance of the maturity date of the Revolving Credit Facility, as well as certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K. The Company was in compliance with all covenant terms as of June 30, 2020. There are no events of default as of June 30, 2020. Debt Issuance Costs GCP recognizes expenses directly associated with obtaining the Revolving Credit Facility as debt issuance costs which are presented within "Other assets" in the accompanying unaudited Consolidated Balance Sheets. Such costs are amortized over the term of the Revolving Credit Facility and included in “Interest expense and related financing costs” in the accompanying unaudited Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, the remaining unamortized debt issuance costs related to the Revolving Credit Facility were $2.6 million and $3.1 million, respectively. Debt Fair Value The carrying amount and fair value of GCP's debt and other borrowings were as follows: June 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.5% Senior Notes due in 2026 $ 346.4 $ 350.9 $ 346.1 $ 366.3 Other borrowings 5.0 5.0 3.1 3.1 Total debt $ 351.4 $ 355.9 $ 349.2 $ 369.4 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 fair value as of June 30, 2020 approximates the aggregate principal amount at maturity reduced by the unamortized debt issuance costs. |
Lessee Arrangements
Lessee Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating Lessee Arrangements | Lessee Arrangements The Company leases manufacturing and office facilities, as well as certain vehicles and equipment under operating leases. The following table summarizes components of lease expense for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, Six months ended June 30, (In millions) 2020 2019 2020 2019 Operating lease expense $ 3.0 $ 3.1 $ 6.2 $ 6.4 Variable lease expense 1.3 1.3 2.4 2.5 Short-term lease expense 0.8 0.5 1.4 0.9 Total lease expense $ 5.1 $ 4.9 $ 10.0 $ 9.8 The following table summarizes supplemental cash flow information related to leases during the six months ended June 30, 2020 and 2019: Six months ended June 30, (In millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6.2 $ 6.4 Operating lease right of use assets obtained in exchange for new lease obligations: Upon adoption of Topic 842 $ — $ 40.8 During the current period 11.8 2.8 Total $ 11.8 $ 43.6 |
Finance Lessee Arrangements | Lessee Arrangements The Company leases manufacturing and office facilities, as well as certain vehicles and equipment under operating leases. The following table summarizes components of lease expense for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, Six months ended June 30, (In millions) 2020 2019 2020 2019 Operating lease expense $ 3.0 $ 3.1 $ 6.2 $ 6.4 Variable lease expense 1.3 1.3 2.4 2.5 Short-term lease expense 0.8 0.5 1.4 0.9 Total lease expense $ 5.1 $ 4.9 $ 10.0 $ 9.8 The following table summarizes supplemental cash flow information related to leases during the six months ended June 30, 2020 and 2019: Six months ended June 30, (In millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6.2 $ 6.4 Operating lease right of use assets obtained in exchange for new lease obligations: Upon adoption of Topic 842 $ — $ 40.8 During the current period 11.8 2.8 Total $ 11.8 $ 43.6 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes attributable to continuing operations during the three months ended June 30, 2020 and 2019 was an income tax expense of $4.5 million and $5.7 million, respectively, representing effective tax rates of 136.4% and 64.8%, respectively. The difference between the U.S. federal income tax rate of 21.0% and GCP’s overall income tax rate for the three months ended June 30, 2020 was primarily due to the reversal of $3.2 million of tax benefits recognized during the three months ended March 31, 2020 related to the CARES Act, and a tax expense $0.4 million and $0.4 million, respectively, for unrecognized tax benefits and valuation allowances. During the three months ended March 31, 2020 as a result of the CARES Act, the Company recorded a $3.2 million benefit related to the carryback of its anticipated 2020 loss. As a result of changes to its forecasted income during the three months ended June 30, 2020, the Company no longer expects to have a net operating loss carryback for 2020 and has reversed the $3.2 million benefit . The difference between the U.S. federal income tax rate of 21.0% and GCP's overall income tax rate for the three months ended June 30, 2019 was primarily due to $2.2 million of tax expense relating to foreign tax rate differential. Income taxes attributable to continuing operations during the six months ended June 30, 2020 and 2019 was an income tax expense of $2.6 million and an income tax benefit of $10.7 million, respectively, representing effective tax rates of 89.7% and 148.6%, respectively. The difference between the U.S. federal income tax rate of 21.0% and GCP’s overall income tax rate for the six months ended June 30, 2020 was primarily due to a tax expense of $0.7 million and $1.0 million, respectively, for increases in unrecognized tax benefits and valuation allowances. The difference between the U.S. federal income tax rate of 21.0% and GCP's overall income tax rate for the six months ended June 30, 2019 was primarily due to the finalization of the Transition Tax regulations issued in January 2019, resulting in a tax benefit from the reversal of unrecognized tax benefits in the amount of $20.2 million, partially offset by a tax expense of $3.6 million on changes to GCP’s 2017 income tax liability and Transition Tax. Tax Reform As a result of the additional deductions and net operating loss carryback allowable to GCP under the CARES Act, GCP decreased its outstanding Transition Tax liability by $6.2 million during the six months ended June 30, 2020. GCP had previously elected to pay the Transition Tax over the eight-year period as provided in the 2017 Tax Act. As of June 30, 2020, the unpaid balance of the Transition Tax obligation is $35.2 million , net of overpayments and foreign tax credits. After considering overpayments, the outstanding payable is due between April 2023 and April 2025. During the year ended December 31, 2018, GCP recorded a $20.2 million liability for an unrecognized tax benefits related to certain capital gains recognized as a result of the application of the Transition Tax. As a result of clarifications contained in final regulations issued by the IRS in January 2019, GCP decreased its liability for unrecognized tax benefits by $20.2 million during the three months ended March 31, 2019. For additional information related to the 2017 Tax Act, please refer to Note 9, "Income Taxes," to the Company's Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. Repatriation In general, it is GCP's practice and intention to permanently reinvest the earnings of its foreign subsidiaries and repatriate earnings only when the tax impact is efficient. Valuation Allowance In evaluating GCP's ability to realize its deferred tax assets, 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 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. Income tax expense for valuation allowances was $0.4 million for the three months ended June 30, 2020. Such expense was immaterial during the three months ended June 30, 2019. During the six months ended June 30, 2020 and 2019, GCP incurred income tax expense for valuation allowances of $1.0 million and $0.5 million, respectively, recorded against deferred tax assets for prior net operating losses incurred primarily in Australia and India. Tax Sharing Agreement 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, GCP and Grace will indemnify and hold each other harmless in accordance with the principles outlined therein. Please refer to Note 17, "Related Party Transactions and Transactions with Grace" for further information on the Tax Sharing Agreement. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension Plans and Other Postretirement Benefit Plans | Pension Plans and Other Postretirement Benefit Plans 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. GCP records an asset or a liability to recognize the funded status of these pension plans in its accompanying unaudited Consolidated Balance Sheets. The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans: (In millions) June 30, 2020 December 31, 2019 Overfunded defined benefit pension plans $ 23.6 $ 25.0 Underfunded defined benefit pension plans (42.6) (40.8) Unfunded defined benefit pension plans (26.1) (26.7) Total underfunded and unfunded defined benefit pension plans (68.7) (67.5) Pension liabilities included in other current liabilities (0.9) (1.2) Net funded status $ (46.0) $ (43.7) Components of Net Periodic Benefit Cost The components of GCP's net periodic benefit cost for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, 2020 2019 Pension Pension (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 1.6 $ 0.2 $ 1.7 $ 0.6 Interest cost 1.2 1.0 1.5 1.3 Expected return on plan assets (1.7) (1.1) (1.6) (1.5) Amortization of prior service cost — 0.1 — — Net periodic benefit cost (1) $ 1.1 $ 0.2 $ 1.6 $ 0.4 Six Months Ended June 30, 2020 2019 Pension Pension (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 3.1 $ 0.4 $ 3.2 $ 1.3 Interest cost 2.5 2.1 2.9 2.7 Expected return on plan assets (3.3) (2.3) (3.2) (3.0) Amortization of prior service cost — 0.1 — — Net periodic benefit cost (1) $ 2.3 $ 0.3 $ 2.9 $ 1.0 ________________________________ (1) Service cost component of net periodic benefit cost is included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations. All other components of net periodic benefit cost are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations. Other Postretirement Benefit (OPEB) Plans GCP provides postretirement health care benefits for certain qualifying retired employees. As of June 30, 2020 and December 31, 2019, the related long-term liability was $2.1 million and $2.2 million, respectively. As of June 30, 2020 and December 31, 2019, accumulated other comprehensive income was $0.6 million and $0.7 million, respectively, net of related tax impact of $0.2 million as of the end of each period. The net periodic postretirement benefit cost for the three and six months ended June 30, 2020 and 2019 was immaterial. 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. GCP made contributions of $0.6 million and $0.7 million, respectively, to the U.S. pension plans during the three and six months ended June 30, 2020. There were no contributions made to these plans during the three and six months ended June 30, 2019. GCP intends to fund non-U.S. pension plans based on applicable legal requirements, as well as actuarial and trustee recommendations. During the three and six months ended June 30, 2020, GCP contributed $0.3 million and $0.8 million, respectively, to these non-U.S. plans. During the three and six months ended June 30, 2019, GCP contributed $0.6 million and $1.5 million, respectively, to these non-U.S. plans. Defined Contribution Retirement Plan GCP sponsors a defined contribution retirement plan for its employees in the U.S. which is a qualified plan under section 401(k) of the U.S. tax code. Under this plan, GCP contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee's salary or wages. Effective January 1, 2018, GCP amended the defined contribution plan whereby GCP contributes up to an additional 2% of 100% of applicable employee compensation subject to a three year vesting requirement. Applicable employees include those beginning employment with GCP on or after January 1, 2018 who are not eligible to participate in the GCP Applied Technologies Inc. Retirement Plan for Salaried Employees, which closed to new hires effective January 1, 2018. GCP's costs related to this benefit plan amounted to $0.9 million and $2.2 million, respectively, during the three and six months ended June 30, 2020 and $1.2 million and $2.5 million, respectively, during the three and six months ended June 30, 2019. These costs are included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations. |
Other Balance Sheet Information
Other Balance Sheet Information | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Accounts | Other Balance Sheet Information The following is a summary of other current assets at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Other Current Assets: Non-trade receivables $ 16.7 $ 22.1 Prepaid expenses and other current assets 13.5 13.4 Income taxes receivable 15.2 8.2 Total other current assets $ 45.4 $ 43.7 The following is a summary of other current liabilities at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Other Current Liabilities: Accrued customer volume rebates $ 18.0 $ 28.4 Accrued compensation (1) 14.7 16.0 Income taxes payable 8.6 10.4 Accrued interest 4.2 4.2 Pension liabilities 0.9 1.2 Restructuring liability 2.8 2.7 Other accrued liabilities 42.9 50.7 Total other current liabilities $ 92.1 $ 113.6 ________________________________ (1) Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs. Acquisitions On May 4, 2018, GCP acquired 100% of the outstanding capital stock of Clydebridge Holdings Limited which owns 100% of RIW Limited ("RIW"), a U.K.-based supplier of waterproofing solutions for commercial and residential construction applications. The aggregate purchase price of $29.5 million, net of cash acquired of $10.0 million, consisted of a net cash payment of $29.8 million, which was reduced by working capital adjustments of $0.3 million. At the closing of the acquisition of RIW, $2.8 million was placed into escrow which was ascribed to the purchase price and will be released to the sellers no later than December 30, 2020. The escrow was related to the sellers’ satisfaction of indemnity claims and general representations and warranties. As of June 30, 2020, $1.3 million of consideration was released from the escrow to the sellers based on the provisions of the related agreement. Please refer to Note 20, "Acquisitions and Dispositions" to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K for further information on this transaction. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesGCP enters into certain purchase commitments and is a party to many contracts containing guarantees and indemnification obligations, as described in Note 12, "Commitments and Contingencies" to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K. There have been no material changes to these commitments and obligations during the six months ended June 30, 2020. Although the outcome of each of the matters related to loss contingencies and obligations discussed below cannot be predicted with certainty, GCP has assessed the risk and has made accounting estimates and disclosures as required under GAAP. 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 wastes and other materials. GCP recognizes accrued liabilities for anticipated costs associated with response efforts if, based on the results of the assessment, it concluded that a probable liability has been incurred and the cost can be reasonably estimated. As of June 30, 2020 and December 31, 2019, GCP did not have any material environmental liabilities. GCP's environmental liabilities are reassessed whenever circumstances become better defined or response efforts and their costs can be better estimated. These liabilities are evaluated based on currently available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the method and extent of remediation at each site, existing technology, prior experience in contaminated site remediation and the apportionment of costs among potentially responsible parties. Financial Assurances Financial assurances have been established for a variety of purposes, including insurance, environmental matters and other matters. At June 30, 2020 and December 31, 2019, GCP had gross financial assurances issued and outstanding of $5.0 million and $5.9 million, respectively, which were composed of standby letters of credit. The letters of credit are related primarily to customer advances and other performance obligations as of June 30, 2020 and December 31, 2019. These arrangements guarantee the refund of advance payments received from customers in the event that the product is not delivered or warranty obligations are not fulfilled in accordance with the contract terms. These obligations could be called by the beneficiaries at any time before the expiration date of the particular letter of credit if the Company fails to meet certain contractual requirements. Lawsuits and Investigations From time to time, GCP and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations and proceedings which are managed and defended in the ordinary course of business. While GCP is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of such pending matters will have a material adverse effect on its overall financial condition, results of operations or cash flows for the three and six months ended June 30, 2020. GCP Brazil Indirect Tax Claim |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stockholder Rights Plan On March 15, 2019, the Board of Directors (the "Board") declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of GCP common stock with par value $0.01 per share and adopted a stockholder rights plan (the “Rights Agreement”), as described in Note 13, "Stockholders' Equity," to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K. The Rights were not becoming exercisable until 10 days after the public announcement that a person or group has become an “Acquiring Person” (as defined in the Rights Agreement) by obtaining beneficial ownership of 15% or more of the Company’s outstanding shares of common stock. If a stockholder’s beneficial ownership as of March 15, 2019 was at or above 15%, that stockholder’s existing ownership percentage would be grandfathered, but the Rights would become exercisable if at any time after an announcement that the stockholder increases its ownership percentage by 0.001% or more. The Rights were initially set to expire on March 14, 2020. On March 13, 2020, the Board approved an amendment to the Rights Agreement which raised the level of beneficial ownership for an Acquiring Person to 20% of the Company's outstanding shares of common stock and extended the final expiration date of the Rights Agreement to March 14, 2023, subject to stockholders' approval at GCP's 2020 Annual Meeting of Shareholders (the “Annual Meeting”). If a stockholder's beneficial ownership on March 15, 2019 was at or above 20%, that stockholder's existing ownership percentage would be grandfathered, but the Rights would become exercisable if the stockholder increases its ownership percentage by 0.001% or more. The amendment to the Rights Agreement was approved at the Annual Meeting held on May 28, 2020. Preferred Stock The Company is authorized to issue up to 50,000,000 shares of Preferred Stock with a par value of $0.01 per share. On March 15, 2019, GCP designated 10,000,000 shares of its Preferred Stock with a par value of $0.01 per share as Series A Junior Participating Preferred Stock. Stockholders' Equity Activity The following table summarizes the Company’s stockholders' equity activity during the three months ended June 30, 2020 and 2019. Common Stock Treasury Stock (In millions) Number of Shares Par Value Number of Shares Cost Additional Paid-in Capital Accumulated Earnings Accumulated Other Comprehensive Loss Noncontrolling Interests Total Stockholders' Equity Balance, March 31, 2019 72.9 $ 0.7 0.3 $ (8.0) $ 44.6 $ 585.3 $ (116.8) $ 2.2 $ 508.0 Net income — — — — — 2.6 — — 2.6 Share-based compensation — — — — 3.9 — — — 3.9 Exercise of stock options 0.1 — — — 1.7 — — — 1.7 Other comprehensive loss — — — — — — (3.9) — (3.9) Balance, June 30, 2019 73.0 $ 0.7 0.3 $ (8.0) $ 50.2 $ 587.9 $ (120.7) $ 2.2 $ 512.3 Balance, March 31, 2020 73.3 $ 0.7 0.4 $ (8.9) $ 54.3 $ 611.3 $ (150.5) $ 2.5 $ 509.4 Net (loss) income — — — — — (1.3) — 0.1 (1.2) Share-based compensation — — — — 2.3 — — — 2.3 Exercise of stock options — — — — 0.3 — — — 0.3 Other comprehensive income — — — — — — 4.8 — 4.8 Dividends and other changes in noncontrolling interest — — — — — — — (0.4) (0.4) Balance, June 30, 2020 73.3 $ 0.7 0.4 $ (8.9) $ 56.9 $ 610.0 $ (145.7) $ 2.2 $ 515.2 . |
Restructuring and Repositioning
Restructuring and Repositioning Expenses, Asset Impairments | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Repositioning Expenses, Asset Impairments | Restructuring and Repositioning Expenses, Asset Impairments GCP's Board of Directors approves all major restructuring and repositioning programs. Major restructuring programs may involve reorganizations, the discontinuation of significant product lines, the shutdown of significant facilities, or other major strategic initiatives. From time to time, GCP takes additional restructuring actions, including involuntary employee terminations that are not a part of a major program. Repositioning activities 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 associated with the Plans discussed below, as well as a review of strategic, financial and operational alternatives, are primarily related to consulting, professional services, and other employee-related costs associated with the Company’s organizational realignment and advancing its technology strategy. Due to the scope and complexity of the Company’s repositioning activities, the range of estimated repositioning expenses and capital expenditures could increase or decrease and the timing of incurrence could change. 2019 Restructuring and Repositioning Plan (the “2019 Plan”) On February 22, 2019, the Board of Directors approved a business restructuring and repositioning plan (the “2019 Plan”). The 2019 Plan is focused on GCP’s global supply chain strategy, processes and execution, including its manufacturing, purchasing, logistics, and warehousing operations. The plan also addresses GCP’s service delivery model, primarily in North America, to streamline the Company’s pursuit of combined admixture and VERIFI ® opportunities. The program is expected to be completed by December 31, 2020. Please refer to the tables below for financial information pertaining to the 2019 Plan. 2019 Phase 2 Restructuring and Repositioning Plan (the “2019 Phase 2 Plan") On July 31, 2019, the Board approved a business restructuring and repositioning plan to further optimize the design and footprint of the Company's global organization, primarily with respect to its general administration and business support functions, and streamline cross-functional activities (the “2019 Phase 2 Plan”). The 2019 Phase 2 Plan is expected to result in the net reduction of approximately 8%-10% of the Company's workforce. The program is expected to be completed by December 31, 2021. Please refer to the tables below for financial information pertaining to the 2019 Phase 2 Plan. Strategic Alternatives Plan On February 27, 2019, the Company announced a comprehensive review of strategic alternatives to enhance shareholder value. Over the course of this review, GCP contacted and engaged with both strategic industry players and private equity investors. This process did not result in a transaction that would provide adequate value to the Company's shareholders, and as a result, GCP has determined that it will be pursuing its standalone strategic and financial plan (the "Strategic Alternatives Plan"). Please refer to the below tables for financial information pertaining to the Strategic Alternatives Plan. The following table illustrates a summary of the charges incurred and planned in connection with the plans discussed above: (In millions) Severance/employee costs Asset Impairments Other Associated Costs Total Restructuring Repositioning Total Costs Capital Expenditures 2019 Plan: (1) Estimated Total Costs $2-3 $1 $1-2 $4-6 $11-12 $15-18 $2-3 Cumulative Costs to Date $0.9 $0.9 $0.3 $2.1 $10.4 $12.5 $1.7 2019 Phase 2 Plan: (2) Estimated Total Costs $13-16 $— $3-4 $16-20 $7-8 $23-28 $2 Cumulative Costs to Date $4.8 $0.3 $— $5.1 $4.3 $9.4 $0.4 (1) As of June 30, 2020, the cumulative restructuring costs incurred under the 2019 Plan since its inception were $2.1 million, of which $1.7 million was related to the SCC segment and $0.4 million was related to the SBM segment. (2) As of June 30, 2020, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $5.1 million, of which $3.0 million was attributable to the SCC segment and $2.1 million was attributable to the SBM segment. Estimated total pre-tax costs expected to be incurred in connection with the 2019 Phase 2 Plan decreased by approximately $2 million from the prior estimate due to lower than expected severance costs. The following tables represent the repositioning expenses incurred and cash payments made under the plans discussed above and other plans during each period: Three Months Ended June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 0.2 $ 0.7 $ — $ 0.1 $ — $ 1.0 Cash Paid for Repositioning Expenses 1.2 1.3 0.8 — 0.2 3.5 Capital Expenditures 0.5 0.2 — 0.2 0.7 1.6 Cash Paid for Capital Expenditures 0.5 0.1 — 0.3 0.6 1.5 Six Months Ended June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.6 $ 1.9 $ — $ 0.1 $ 0.1 $ 3.7 Cash Paid for Repositioning Expenses 4.5 2.8 1.0 — 0.2 8.5 Capital Expenditures 0.9 0.3 — 0.5 0.9 2.6 Cash Paid for Capital Expenditures 0.8 0.2 — 0.4 1.2 2.6 Three Months Ended June 30, 2019 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.3 $ — $ 2.5 $ 1.8 $ 0.2 $ 5.8 Cash Paid for Repositioning Expenses 1.9 — — 2.6 0.3 4.8 Capital Expenditures 0.2 — — — 0.9 1.1 Cash Paid for Capital Expenditures 0.2 — — — 1.0 1.2 Six Months Ended June 30, 2019 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 3.3 $ — $ 2.5 $ 5.1 $ 0.3 $ 11.2 Cash Paid for Repositioning Expenses 2.1 — — 7.7 1.5 11.3 Capital Expenditures 0.3 — — — 1.9 2.2 Cash Paid for Capital Expenditures 0.2 — — — 1.1 1.3 As of June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Cumulative Repositioning Expenses $ 10.4 $ 4.3 $ 3.1 $ 10.7 $ 9.7 Cumulative Cash Paid for Repositioning Expenses 10.1 3.8 3.0 10.7 9.6 Cumulative Capital Expenditure 1.7 0.4 — 1.4 13.3 Cumulative Cash Paid for Capital Expenditures 1.4 0.2 — 1.2 12.5 Restructuring Expenses and Asset Impairments The following restructuring expenses and asset impairment charges were incurred under the plans discussed above and other plans during each period: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Severance and other employee costs $ — $ 0.2 $ 1.9 $ 0.5 Asset impairments 0.2 3.8 1.2 4.0 Other associated costs 0.2 0.5 0.4 0.7 Total restructuring expenses and asset impairments $ 0.4 $ 4.5 $ 3.5 $ 5.2 Less: restructuring expenses and asset impairments reflected in discontinued operations — 0.1 — 0.2 Total restructuring expenses and asset impairments from continuing operations $ 0.4 $ 4.4 $ 3.5 $ 5.0 GCP incurred restructuring expenses and asset impairment charges related to its two operating segments and Corporate function as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 SCC $ 0.3 $ 1.3 $ 2.6 $ 1.9 SBM 0.1 3.2 0.9 3.2 Corporate — (0.1) — (0.1) Total restructuring expenses and asset impairments from continuing operations $ 0.4 $ 4.4 $ 3.5 $ 5.0 Restructuring expenses and asset impairments reflected in discontinued operations — 0.1 — 0.2 Total restructuring expenses and asset impairments $ 0.4 $ 4.5 $ 3.5 $ 5.2 Restructuring liabilities were $2.8 million and $2.7 million, respectively, as of June 30, 2020 and December 31, 2019. These liabilities are included within “Other current liabilities” in the accompanying unaudited Consolidated Balance Sheets. GCP settled in cash substantially all of the remaining liabilities related to the 2017 Plan during the six months ended June 30, 2020. The following table summarizes the Company’s restructuring liability activity: 2019 Plan 2019 Phase 2 Plan 2018 Plan 2017 Plan Severance and other employee costs Other Costs Severance and other employee costs Severance and other employee costs Other Costs Severance and other employee costs Total Balance, December 31, 2019 $ 0.2 $ — $ 0.9 $ 1.0 $ 0.4 $ 0.2 $ 2.7 Expense (1) 0.2 0.2 1.7 — — — 2.1 Payments (0.1) — (0.6) (0.2) (0.3) (0.1) (1.3) Impact of foreign currency and other — — — (0.1) (0.1) — (0.2) Balance, March 31, 2020 $ 0.3 $ 0.2 $ 2.0 $ 0.7 $ — $ 0.1 $ 3.3 Expense (1) — 0.1 — — 0.1 — 0.2 Payments (0.1) (0.1) (0.3) (0.1) (0.1) — (0.7) Balance, June 30, 2020 $ 0.2 $ 0.2 $ 1.7 $ 0.6 $ — $ 0.1 $ 2.8 ________________________________ |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
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 three and six months ended June 30, 2020 and 2019: Three Months Ended (In millions) Pre-Tax Amount Tax Benefit After-Tax Amount Currency translation adjustments (1) $ 4.7 $ 0.2 $ 4.9 Loss from hedging activities (0.1) — (0.1) Other comprehensive income attributable to GCP shareholders $ 4.6 $ 0.2 $ 4.8 Six Months Ended June 30, 2020 (In millions) Pre-Tax Amount Tax Expense After-Tax Amount Defined benefit pension and other postretirement plans $ 0.1 $ — $ 0.1 Currency translation adjustments (28.7) (0.2) (28.9) Gain from hedging activities 0.1 — 0.1 Other comprehensive loss attributable to GCP shareholders $ (28.5) $ (0.2) $ (28.7) Three Months Ended (In millions) Pre-Tax Amount Tax After-Tax Amount Currency translation adjustments $ (3.9) $ — $ (3.9) Other comprehensive loss attributable to GCP shareholders $ (3.9) $ — $ (3.9) Six Months Ended June 30, 2019 (In millions) Pre-Tax Amount Tax Benefit After-Tax Amount Currency translation adjustments (1) $ (0.6) — $ (0.6) Loss from hedging activities (0.1) — (0.1) Other comprehensive loss attributable to GCP shareholders $ (0.7) $ — $ (0.7) _____________________ (1) Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 5, "Derivative Instruments." The following tables present the changes in accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2020 and 2019: (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Balance, December 31, 2019 $ (2.7) $ (114.2) $ (0.1) $ (117.0) Current period other comprehensive income (loss) 0.1 (28.9) 0.1 (28.7) Balance, June 30, 2020 $ (2.6) $ (143.1) $ — $ (145.7) (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Balance, December 31, 2018 $ (2.2) $ (117.8) $ — $ (120.0) Current period other comprehensive loss — (0.6) (0.1) (0.7) Balance, June 30, 2019 $ (2.2) $ (118.4) $ (0.1) $ (120.7) Please refer to Note 9, "Pension Plans and Other Postretirement Benefit Plans," for a discussion of pension plans and other postretirement benefit plans. |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Stock-Based Compensation Accounting GCP grants stock options, restricted stock units (the "RSUs") and performance-based units (the "PBUs") with or without market conditions which vest upon the satisfaction of a performance condition and/or a service condition. Please refer to Note 17, "Stock Incentive Plans" to the Company's Consolidated Financial Statements included in the 2019 Annual Report in the Form 10-K for further information on these awards. GCP estimates the fair value of equity awards issued at the grant date which is recognized as stock-based compensation expense on a straight line basis, net of estimated forfeitures, over the employee’s requisite service period for each separately vesting portion of the award. Total stock-based compensation expense is included in "Income from continuing operations before income taxes" in the accompanying unaudited Consolidated Statements of Operations and was $1.5 million and $2.3 million, respectively, during the three and six months ended June 30, 2020, and $3.1 million and $5.0 million, respectively, during the three and six months ended June 30, 2019. The Company issues new shares of common stock upon exercise of stock options. In accordance with certain provisions of the GCP Equity and Incentive Plan (the "Plan"), GCP withholds and retains shares issued to certain holders of GCP awards in order to fulfill statutory tax withholding requirements for the employees. During the six months ended June 30, 2020 and 2019, GCP withheld and retained approximately 17,300 shares and 125,700 shares, respectively, in a non-cash transaction with a cost of $0.3 million and $3.2 million, respectively, which were reflected as "Share Repurchases" in the accompanying unaudited Consolidated Statements of Stockholders' Equity. During the six months ended June 30, 2020 and 2019, cash payments for such tax withholding obligations were $0.3 million and $3.2 million, respectively. As of June 30, 2020, approximately 7.5 million shares of common stock were reserved and available for future grant under the Plan. Stock Options There were no stock options granted during the three and six months ended June 30, 2020. The following assumptions were utilized in the Black-Scholes option pricing model for estimating the fair value of GCP's stock options granted during the six months ended June 30, 2019: Six Months Ended June 30, Assumptions used to calculate expense for stock options: 2019 Risk-free interest rate 2.35 - 2.64% Average life of options (years) 5.5 - 6.5 Volatility 28.02 - 28.59% Dividend yield — Weighted average fair value per stock option $8.74 The following table sets forth information relating to stock options denominated in GCP stock during the six months ended June 30, 2020: Stock Option Activity Number Of Weighted Weighted Aggregated Outstanding, December 31, 2019 1,284 $ 22.66 3.18 $ 3,171 Options exercised (40) 18.22 Options forfeited/expired/canceled (285) 19.88 Outstanding, June 30, 2020 959 $ 23.67 3.62 $ 522 Exercisable, June 30, 2020 792 $ 22.92 3.23 $ 522 Vested and expected to vest, June 30, 2020 950 $ 23.63 3.60 $ 522 The weighted average grant date fair value of options granted during the three months ended June 30, 2019 was $9.58. The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value, determined as the difference between GCP's closing stock price on the last trading day of June 30, 2020 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. Total intrinsic value of all options exercised during the six months ended June 30, 2020 was $0.1 million, and during the three and six months ended June 30, 2019 were $0.8 million and $2.5 million, respectively. At June 30, 2020, total unrecognized stock-based compensation expense for stock options outstanding was $0.4 million and is expected to be recognized over the weighted-average period of approximately 1.0 years. 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. As of June 30, 2020, $7.9 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 approximately 1.8 years. RSUs The Company grants RSUs which are time-based, non-performance units. RSUs generally vest over a three year period, with some awards vesting in substantially equal amounts each year over three years and some awards vesting 100% after the third year from the date of grant. A smaller number of RSUs were designated as sign-on awards which are used for the purposes of attracting key employees and covering outstanding awards from prior employers. Such awards generally vest 100% after two years from the date of grant . RSUs are recorded at fair value on the grant date. 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 following table sets forth the RSU activity for the six months ended June 30, 2020: RSU Activity Number Of Weighted Outstanding, December 31, 2019 156 $ 27.33 RSUs settled (48) 28.14 RSUs forfeited (2) 22.83 RSUs granted 190 21.11 RSUs outstanding, June 30, 2020 296 $ 23.16 Expected to vest as of June 30, 2020 276 $ 23.23 There were no RSUs granted during the three months ended June 30, 2020. The weighted average grant date fair value of RSUs granted during the three months ended June 30, 2019 was $29.52 per share. The weighted average grant date fair value of RSUs granted during the six months ended June 30, 2020 and 2019 was $21.11 and $26.91 per share, respectively. During the six months ended June 30, 2020 and 2019, GCP distributed 48,000 shares and 237,000 shares, respectively, to settle RSUs upon vesting. The fair value of RSUs vested during the six months ended June 30, 2020 and 2019 was $1.0 million and $6.1 million, respectively. PBUs PBUs are performance-based units which are granted by the Company either with or without market conditions and recorded at fair value on the grant date. The performance criteria for PBUs granted in 2020 and 2019 include a 3-year cumulative adjusted diluted earnings per share metric that is modified, up or down, based on the Company's total shareholder return ("TSR") relative to the performance of the Russell 3000 Specialty Chemicals and Building Materials Indices. For PBUs granted in 2018, such metric is modified, up or down, based on the Company's TSR relative to the performance of the Russell 3000 Index. The number of shares 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 employees. The 2020, 2019 and 2018 awards will become vested, if at all, three years from the grant date once actual performance is certified by the Board's Compensation Committee. Vesting is also subject to the employees' continued employment through the vesting date. The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the six months ended June 30, 2020 and 2019: Six Months Ended June 30, Assumptions used to calculate expense for PBUs: 2020 2019 Expected Term (Remaining Performance Period) 2.85 2.86 Expected volatility 29.85% 28.46% Risk-free interest rate 1.21% 2.48% Expected dividends — — Correlation coefficient 53.43% 54.81% Median correlation coefficient of constituents 54.01% 57.09% The following table sets forth the PBU activity for the six months ended June 30, 2020: PBU Activity Number Of Weighted Outstanding, December 31, 2019 382 $ 29.51 PBU's settled — — PBU's forfeited (114) 28.18 PBU's granted 146 22.41 Outstanding, June 30, 2020 414 $ 27.37 The weighted average grant date fair value of PBUs granted during the six months ended June 30, 2020 and 2019 was $22.41 and $27.40 per share, respectively. During the six months ended June 30, 2019, GCP distributed 76461 sh |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerators (Loss) income from continuing operations attributable to GCP shareholders $ (1.3) $ 3.1 $ 0.1 $ 17.7 (Loss) income from discontinued operations, net of income taxes — (0.5) (0.3) 6.3 Net (loss) income attributable to GCP shareholders $ (1.3) $ 2.6 $ (0.2) $ 24.0 Denominators Weighted average common shares—basic calculation 72.9 72.6 72.9 72.5 Dilutive effect of employee stock awards (2) — 0.4 0.1 0.4 Weighted average common shares—diluted calculation 72.9 73.0 73.0 72.9 Basic earnings (loss) per share: (2) (Loss) income from continuing operations attributable to GCP shareholders $ (0.02) $ 0.04 $ — $ 0.24 (Loss) income from discontinued operations, net of income taxes $ — $ (0.01) $ — $ 0.09 Net (loss) income attributable to GCP shareholders (1) $ (0.02) $ 0.04 $ — $ 0.33 Diluted earnings (loss) per share: (2) (Loss) income from continuing operations attributable to GCP shareholders $ (0.02) $ 0.04 $ — $ 0.24 (Loss) income from discontinued operations, net of income taxes $ — $ (0.01) $ — $ 0.09 Net (loss) income attributable to GCP shareholders (1) $ (0.02) $ 0.04 $ — $ 0.33 ________________________________ (1) Amounts may not sum due to rounding. (2) Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations. GCP uses the treasury stock method to compute diluted earnings (loss) per share. During the three months ended June 30, 2020, there were no anti-dilutive shares based on the treasury stock method as a result of a loss from continuing operations incurred during the period. During the six months ended June 30, 2020, 0.8 million of anti-dilutive stock awards were excluded from the computation of diluted earnings per share during each period based on the treasury stock method as a result of income from continuing operations generated during the periods then ended. During the three and six months ended June 30, 2019, 0.6 million of such anti-dilutive stock awards were excluded from the computation of diluted earnings per share. |
Related Party Transactions and
Related Party Transactions and Transactions with Grace | 6 Months Ended |
Jun. 30, 2020 | |
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. Tax Sharing Agreement In connection with the Separation, the Company and Grace entered into a Tax Sharing Agreement which 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, as well as 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 including 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). Grace is responsible for all U.S. federal, state and foreign income taxes including 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 up to the Separation date. As of June 30, 2020 and December 31, 2019, GCP has recorded $3.5 million of indemnified receivables in "Other assets" and $0.9 million and $1.0 million, respectively, of indemnified payables in "Other current liabilities" in the accompanying unaudited Consolidated Balance Sheets. |
Operating Segment and Geographi
Operating Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment and Geographic Information | Operating Segment and Geographic Information GCP is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. Specialty Construction Chemicals ("SCC") operating segment manufactures and markets concrete admixtures and cement additives and supplies in-transit monitoring systems for concrete producers. Specialty Building Materials ("SBM") operating segment manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, as well as fireproofing and other products designed to protect the building envelope. Operating Segment Data The following table presents information related to GCP's operating segments: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Net Sales Specialty Construction Chemicals $ 115.9 $ 150.4 $ 241.3 $ 282.1 Specialty Building Materials 79.5 111.8 170.8 206.2 Total net sales $ 195.4 $ 262.2 $ 412.1 $ 488.3 Segment Operating Income Specialty Construction Chemicals segment operating income $ 9.9 $ 14.2 $ 17.8 $ 22.1 Specialty Building Materials segment operating income 11.0 22.3 24.7 38.2 Total segment operating income $ 20.9 $ 36.5 $ 42.5 $ 60.3 Reconciliation of Operating Segment Data to Financial Statements Corporate expenses directly related to the operating segments are allocated to the segment's operating income. GCP excludes from the segments' operating income certain functional costs, certain impacts of foreign currency exchange, as well as certain corporate costs and other costs included in the table below. GCP also excludes from the segment's operating income certain ongoing defined benefit pension costs recognized during each reporting period, which include service and interest costs, the effect of expected returns on plan assets and amortization of prior service costs/credits. GCP believes that the exclusion of certain corporate costs and pension costs provides a better indicator of its operating segment performance since such costs are not managed at an operating segment level. Total segment operating income for the three and six months ended June 30, 2020 and 2019 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Total segment operating income (1) $ 20.9 $ 36.5 $ 42.5 $ 60.3 Corporate costs (6.3) (9.4) (12.1) (19.3) Certain pension costs (1.3) (2.0) (2.6) (3.9) Shareholder activism and other related costs (2) (3.8) (1.1) (7.4) (3.6) Repositioning expenses (1.0) (5.8) (3.7) (11.2) Restructuring expenses and asset impairments (0.4) (4.4) (3.5) (5.0) Third-party and other acquisition-related costs (0.2) — (0.7) (0.1) Legacy product, environmental and other claims — (0.1) — (0.1) Net income attributable to noncontrolling interests 0.1 — 0.2 0.2 Interest expense, net (4.7) (4.9) (9.8) (10.1) Income from continuing operations before income taxes $ 3.3 $ 8.8 $ 2.9 $ 7.2 __________________________ (1) Certain amounts related to COVID-19 costs have been reclassified between segments' operating income and corporate expenses that do not get allocated directly to the segments. Such reclassifications have not materially affected previously reported amounts. (2) Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of our shareholders seeking changes in the composition of our Board of Directors and nomination of candidates to stand for election at the 2019 and 2020 Annual Shareholders' Meetings, as well as other related matters. Disaggregation of Total Net Sales The Company disaggregates its revenue from contracts with customers by operating segments, which it believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Geographic Area Data The table below presents information related to the geographic areas in which GCP operates. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Net Sales United States $ 106.3 $ 126.6 $ 219.3 $ 234.4 Canada and Other 6.0 9.2 12.2 14.9 Total North America 112.3 135.8 231.5 249.3 Europe Middle East Africa 34.6 52.3 78.9 98.7 Asia Pacific 39.7 58.9 80.0 109.6 Latin America 8.8 15.2 21.7 30.7 Total $ 195.4 $ 262.2 $ 412.1 $ 488.3 Sales are attributed to geographic areas based on customer location. With the exception of the U.S. presented in the table above, there were no individually significant countries with sales exceeding 10% of total sales during the three and six months ended June 30, 2020 and 2019. There were no customers that individually accounted for 10% or more of the Company's accounts receivable balance as of June 30, 2020 and December 31, 2019. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
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”). The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provides for a series of delayed closings in certain non-U.S. jurisdictions for which sale proceeds were received on the July 3, 2017 closing date. The delayed closings implement the legal transfer of the Darex business in the delayed closing jurisdictions in accordance with local law. In January 2020, the final remaining delayed closing in Venezuela was completed which did not result in a gain or a loss recognized during the six months ended June 30, 2020. During the six months ended June 30, 2019, the Company completed the delayed closing in Indonesia and recorded an after-tax gain on sale of $7.2 million. Up to the time of the delayed closings, the results of the operations of the Darex business within the delayed close countries are reported as “(Loss) income from discontinued operations, net of income taxes” in the accompanying unaudited Consolidated Statements of Operations, with the exception of operations in Venezuela which were deconsolidated during 2017. As of December 31, 2019, an asset of $0.5 million related to operations in Venezuela and a liability of $0.5 million related to the deferred sale proceeds received on July 3, 2017 were recognized in "Non-current assets held for sale" and “Other current liabilities” in the Consolidated Balance Sheets. During the six months ended June 30, 2020, GCP derecognized the entire asset and liability amounts due to completing the delayed closing in Venezuela and recognizing the related sale proceeds. As of June 30, 2020, there were no remaining assets held for sale and no remaining liabilities for the consideration received on July 3, 2017 related to the delayed closings in connection with the sale of Darex. The following table includes a reconciliation of the gain on the sale of the Darex business related to delayed close entities recorded during the six months ended June 30, 2019: Six Months Ended June 30, (In millions) 2019 Net proceeds included in gain $ 12.7 Net assets derecognized (3.1) Gain recognized before income taxes 9.6 Tax effect of gain recognized (2.4) Gain recognized after income taxes $ 7.2 In connection with the Disposition and related gain, as noted above, the Company recorded tax expense of $2.4 million within discontinued operations during the six months ended June 30, 2019. 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 38 months following the closing date. Under the Amended Purchase Agreement, GCP is required to indemnify Henkel for certain possible future tax liabilities. As of June 30, 2020 and December 31, 2019, GCP has recorded an indemnification payable of $0.9 million as a result of the Disposition. The following table sets forth the components of "(Loss) income from discontinued operations, net of income taxes" in the accompanying unaudited Consolidated Statements of Operations (1) : Three Months Ended June 30, Six Months Ended June 30, (In millions) 2019 2020 2019 Net sales $ — $ — $ — Cost of goods sold — — — Gross profit — — — Selling, general and administrative expenses 0.6 0.2 0.9 Restructuring expenses and asset impairments 0.1 — 0.2 Gain on sale of business — — (9.6) Other (income) expenses, net (0.1) 0.1 — (Loss) income from discontinued operations before income taxes (0.6) (0.3) 8.5 Benefit (provision) for income taxes 0.1 — (2.2) (Loss) income from discontinued operations, net of income taxes $ (0.5) $ (0.3) $ 6.3 _____________________ (1) There was no activity during the three months ended June 30, 2020. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Related Party Transaction During the three months ended June 30, 2020, Starboard Value LP and certain of its affiliates ('Starboard") with an ownership interest of approximately 9% of the Company's outstanding common shares, filed a proxy statement with the SEC seeking an election of eight of its nominees to the GCP Board of Directors at the Company’s upcoming 2020 Annual Meeting of Shareholders (the “Annual Meeting”). At the Annual Meeting held on May 28, 2020, GCP stockholders voted to elect all eight nominees designated by Starboard to serve on GCP's Board of Directors. On July 2, 2020, the Company agreed to reimburse Starboard up to an amount of approximately $2.0 million for fees and expenses it incurred in connection with the election of its nominees. The Company paid $2.0 million of such costs to Starboard subsequent to July 2, 2020. Sale of Corporate Headquarters On July 2, 2020, GCP entered into a Real Estate Purchase and Sale Agreement (the "Agreement") with IQHQ, L.P. for a sale and subsequent leaseback of its corporate headquarters located at 62 Whittemore Avenue, Cambridge, Massachusetts 02140 for total consideration of $125.0 million in a transaction that closed on July 31, 2020. On the closing date, the Company received cash proceeds of $122.5 million, net of the related transaction costs and commissions, pursuant to the sale of the property. The initial rent-free lease term of eighteen months commenced on July 31, 2020 and can be extended for an additional six months at GCP's option, subject to monthly rental payments of $0.6 million. Under the terms of the lease, GCP is required to pay operating expenses, utilities, insurance, real estate taxes and assessments applicable to the property, as well as certain repairs and maintenance costs. The Company is currently assessing the impact of the transaction on its results of operations, financial position and cash flows as the accounting for the transaction was incomplete as of the financial statements issuance date. Share Repurchase Program On July 30, 2020, the Board of Directors (the “Board”) of GCP authorized a program to repurchase up to $100 million of the Company’s common stock which is effective through July 30, 2022. Share repurchases under the program may be made from time to time at Board's discretion through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act. The share repurchase program is subject to a periodic review by the Board and may be suspended periodically or discontinued at any time. The Company plans to fund repurchases from its existing cash balance. No shares were repurchased by the Company subsequent to July 30, 2020. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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 intercompany balances and transactions have been eliminated in consolidation. 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 ("GAAP") and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information. The interim financial statements presented herein are unaudited and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in GCP's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019 (the "2019 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2019 was derived from the audited annual consolidated financial statements as of the period then ended. Certain information and footnote disclosures typically included in GCP's annual consolidated financial statements have been condensed or omitted. The unaudited financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations for the year ending December 31, 2020. |
Discontinued Operations | Discontinued Operations On July 3, 2017, the Company completed the sale of Darex to Henkel. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provides for a series of delayed closings in certain non-U.S. jurisdictions. In conjunction with this transaction and applicable GAAP, the assets and liabilities related to Darex in the applicable delayed close countries have been reclassified and reflected as held for sale in the accompanying unaudited Consolidated Balance Sheets as of December 31, 2019, as discussed further in Note 19, "Discontinued Operations." Additionally, Darex results of operations and cash flows have been reclassified and reflected as "discontinued operations" in the accompanying unaudited Consolidated Statements of Operations and unaudited Consolidated Statements of Cash Flows for all periods presented. |
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 amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. GCP's accounting measurements that are most affected by management's estimates of future events are disclosed in its 2019 Annual Report on Form 10-K. Actual results could differ from those estimates. On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus ("COVID-19") a global pandemic and recommended a number of restrictive measures to contain the spread. Many governments in the regions where GCP generates the majority of its revenue have adopted such policies, including social distancing and restrictions on construction activities deemed non-essential. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. While certain restrictive measures in some of the regions where GCP operates have been lifted by government authorities during the three months ended June 30, 2020, it is difficult to estimate with reasonable certainty at this time the duration and extent of the impact of the pandemic on the global economy, the Company's business, financial position and results of operations. GCP has made certain estimates within its financial statements related to the impact of COVID-19, including allowances for credit losses related to the estimated amount of receivables not expected to be collected and excess, obsolete or damaged inventories, future expected cash flows related to impairment assessments of goodwill and long-lived assets, incentive compensation accruals, contingent liabilities, and sales allowances related to volume rebates recognized based on anticipated sales volume. There may be changes to the Company's estimates in future periods due to uncertainty associated with the impact of COVID-19, the extent of which will depend largely on future developments, including new information which may emerge concerning the severity, duration and resurgence of the pandemic, additional and unanticipated actions by government authorities to further contain the spread of COVID-19 or address its impact, as well as the timing of development of an antiviral vaccine or a medical treatment to prevent further spread of the virus and facilitate recovery, among other things. |
Income Tax | Income Tax As a global enterprise, GCP is subject to a complex array of tax regulations and needs to make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. 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. Please refer to Note 8, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Certain transactions of the Company and its subsidiaries are denominated in currencies other than their functional currency. Foreign currency exchange gains (losses) generated from the settlement and remeasurement of these transactions are recognized in earnings and presented within “Other income, net” in the Company’s accompanying unaudited Consolidated Statements of Operations. Net foreign currency transaction and remeasurement gains (losses) reflected in “Other income, net” were $0.6 million and $0.8 million for the three and six months ended June 30, 2020. Foreign currency transaction and remeasurement gains (losses) were immaterial for the three and six months ended June 30, 2019. |
Reclassifications | Reclassifications |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which applies to most financial assets measured at amortized cost, as well as certain other instruments, including trade receivables, other receivables and other financial assets. Topic 326 replaces the incurred credit loss methodology with the expected credit loss model which requires recognition of an allowance against the assets’ amortized cost to reflect the amount expected to be collected. Expected credit losses are estimated over the contractual life of financial assets and recognized at inception. GCP has adopted Topic 326 effective January 1, 2020 using the modified retrospective approach. The adoption did not have a material impact on its financial position as of June 30, 2020 and results of operations and cash flows for the three and six months ended June 30, 2020. GCP did not recognize any cumulative effect adjustments to the retained earnings as of January 1, 2020 as a result of the adoption. The adoption of Topic 326 did not result in any significant modifications to the Company's policies related to recognizing allowance for trade receivables not expected to be collected which are disclosed in Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. Please refer to Note 3, "Accounts Receivable, Allowance for Credit Losses" for further information on the Company's policies and methodologies resulting from the adoption. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) . The amendments in this update eliminate the requirement to calculate the implied fair value of goodwill (Step 2) when measuring a goodwill impairment loss which is based on the excess of a reporting unit’s carrying amount over its fair value. The standard is effective for the Company for its annual or any interim goodwill impairment tests to be performed beginning on or after January 1, 2020. GCP adopted the standard effective January 1, 2020. The adoption did not have a material impact on its financial position, results of operations and cash flows upon adoption. Other During the three and six months ended June 30, 2020, except as discussed above, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the Annual Report on Form 10-K for the year ended December 31, 2019. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K. |
Revenue from Lessor Arrangeme_2
Revenue from Lessor Arrangements and Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenues [Abstract] | |
Components of Operating Lease and Service Revenue | The following table summarizes the revenue recognized for these sales arrangements for the three and six months ended June 30, 2020 and 2019 and distinguishes between the lease and the service revenue: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Lease revenue (1): Lease payments revenue $ 6.6 $ 6.8 $ 13.4 $ 13.2 Variable lease revenue 2.5 1.9 4.5 3.4 Total lease revenue $ 9.1 $ 8.7 $ 17.9 $ 16.6 Service revenue (2): Fixed fee revenue $ 0.1 $ — $ 0.2 $ — Variable fee revenue 1.5 1.2 2.8 2.2 Total service revenue $ 1.6 $ 1.2 $ 3.0 $ 2.2 Total revenue $ 10.7 $ 9.9 $ 20.9 $ 18.8 ________________________________ (1) Lease revenue consists of dispenser lease revenue, as well as an allocated portion of VERIFI ® fixed fees and variable slump management fees. Lease revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations. (2) Service revenue consists of an allocated portion of VERIFI ® fixed fees and variable slump management fees. Service revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations. |
Accounts Receivable, Allowanc_2
Accounts Receivable, Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the allowance for credit losses during the three and six months ended June 30, 2020 and 2019: (In millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Beginning balance $ 7.4 $ 5.7 $ 7.5 $ 5.8 Provision for expected credit losses 0.3 1.0 0.7 1.5 Write offs (0.4) (0.5) (0.5) (1.0) Foreign currency translation adjustments — 0.1 (0.4) — Ending balance $ 7.3 $ 6.3 $ 7.3 $ 6.3 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Raw materials $ 43.4 $ 40.0 In process 4.3 4.0 Finished products and other 50.8 51.9 Total inventories, net $ 98.5 $ 95.9 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Investment Hedges in Balance Sheets | The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of June 30, 2020 and December 31, 2019: (In millions) June 30, 2020 December 31, 2019 Derivative assets (1) : Foreign exchange forward contracts $ 2.1 $ 1.1 Derivative liability (1) : Foreign exchange forward contracts $ (0.1) $ — __________________________ |
Net Investment Hedges in Consolidated Statements of Operations and Comprehensive Income | The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) related to forward contracts designated as net investment hedges for the three and six months ended June 30, 2020 and 2019: (In millions) Three Months Ended Three Months Ended Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gains (losses) on foreign exchange forward contracts $ 0.2 $ (0.8) $ 0.1 $ (0.2) (In millions) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gains (losses) on foreign exchange forward contracts $ 0.5 $ 0.5 $ 0.1 $ (0.2) __________________________ (1) The amount is presented net of tax benefit (expense) of $0.2 million and ($0.2 million), respectively, for the three and six months ended June 30, 2020. The amount is presented net of tax benefit of $0.1 million for the three and six months ended June 30, 2019. |
Debt and Other Borrowings (Tabl
Debt and Other Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Components of Debt and Other Borrowings | The following is a summary of obligations under senior notes and other borrowings at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, 5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.6 million and $3.9 million, respectively, at June 30, 2020 and December 31, 2019 $ 346.4 $ 346.1 Revolving credit facility due 2023 (1) — — Other borrowings (2) 5.0 3.1 Total debt 351.4 349.2 Less: debt payable within one year 2.7 2.7 Debt payable after one year $ 348.7 $ 346.5 Weighted average interest rates on total debt obligations 5.5 % 5.5 % __________________________ (1) Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of June 30, 2020 and December 31, 2019. (2) Represents borrowings of $2.0 million and $1.8 million, respectively, at June 30, 2020 and December 31, 2019, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $3.0 million and $1.3 million, respectively, of finance lease obligations. |
Principal Maturities of Debt and Finance Lease Obligations Outstanding | The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at June 30, 2020: (In millions) Amount Remainder of 2020 $ 2.4 2021 0.7 2022 0.7 2023 0.7 2024 0.5 Thereafter 346.4 Total debt $ 351.4 |
Carrying Amounts and Fair Values of Debt Instruments | The carrying amount and fair value of GCP's debt and other borrowings were as follows: June 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.5% Senior Notes due in 2026 $ 346.4 $ 350.9 $ 346.1 $ 366.3 Other borrowings 5.0 5.0 3.1 3.1 Total debt $ 351.4 $ 355.9 $ 349.2 $ 369.4 |
Lessee Arrangements (Tables)
Lessee Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease Expense | The following table summarizes components of lease expense for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, Six months ended June 30, (In millions) 2020 2019 2020 2019 Operating lease expense $ 3.0 $ 3.1 $ 6.2 $ 6.4 Variable lease expense 1.3 1.3 2.4 2.5 Short-term lease expense 0.8 0.5 1.4 0.9 Total lease expense $ 5.1 $ 4.9 $ 10.0 $ 9.8 Six months ended June 30, (In millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6.2 $ 6.4 Operating lease right of use assets obtained in exchange for new lease obligations: Upon adoption of Topic 842 $ — $ 40.8 During the current period 11.8 2.8 Total $ 11.8 $ 43.6 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans | The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans: (In millions) June 30, 2020 December 31, 2019 Overfunded defined benefit pension plans $ 23.6 $ 25.0 Underfunded defined benefit pension plans (42.6) (40.8) Unfunded defined benefit pension plans (26.1) (26.7) Total underfunded and unfunded defined benefit pension plans (68.7) (67.5) Pension liabilities included in other current liabilities (0.9) (1.2) Net funded status $ (46.0) $ (43.7) |
Components of Net Periodic Benefit Cost (Income) | Components of Net Periodic Benefit Cost The components of GCP's net periodic benefit cost for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, 2020 2019 Pension Pension (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 1.6 $ 0.2 $ 1.7 $ 0.6 Interest cost 1.2 1.0 1.5 1.3 Expected return on plan assets (1.7) (1.1) (1.6) (1.5) Amortization of prior service cost — 0.1 — — Net periodic benefit cost (1) $ 1.1 $ 0.2 $ 1.6 $ 0.4 Six Months Ended June 30, 2020 2019 Pension Pension (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 3.1 $ 0.4 $ 3.2 $ 1.3 Interest cost 2.5 2.1 2.9 2.7 Expected return on plan assets (3.3) (2.3) (3.2) (3.0) Amortization of prior service cost — 0.1 — — Net periodic benefit cost (1) $ 2.3 $ 0.3 $ 2.9 $ 1.0 ________________________________ |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | The following is a summary of other current assets at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Other Current Assets: Non-trade receivables $ 16.7 $ 22.1 Prepaid expenses and other current assets 13.5 13.4 Income taxes receivable 15.2 8.2 Total other current assets $ 45.4 $ 43.7 |
Schedule of Other Current Liabilities | The following is a summary of other current liabilities at June 30, 2020 and December 31, 2019: (In millions) June 30, December 31, Other Current Liabilities: Accrued customer volume rebates $ 18.0 $ 28.4 Accrued compensation (1) 14.7 16.0 Income taxes payable 8.6 10.4 Accrued interest 4.2 4.2 Pension liabilities 0.9 1.2 Restructuring liability 2.8 2.7 Other accrued liabilities 42.9 50.7 Total other current liabilities $ 92.1 $ 113.6 ________________________________ (1) Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity | The following table summarizes the Company’s stockholders' equity activity during the three months ended June 30, 2020 and 2019. Common Stock Treasury Stock (In millions) Number of Shares Par Value Number of Shares Cost Additional Paid-in Capital Accumulated Earnings Accumulated Other Comprehensive Loss Noncontrolling Interests Total Stockholders' Equity Balance, March 31, 2019 72.9 $ 0.7 0.3 $ (8.0) $ 44.6 $ 585.3 $ (116.8) $ 2.2 $ 508.0 Net income — — — — — 2.6 — — 2.6 Share-based compensation — — — — 3.9 — — — 3.9 Exercise of stock options 0.1 — — — 1.7 — — — 1.7 Other comprehensive loss — — — — — — (3.9) — (3.9) Balance, June 30, 2019 73.0 $ 0.7 0.3 $ (8.0) $ 50.2 $ 587.9 $ (120.7) $ 2.2 $ 512.3 Balance, March 31, 2020 73.3 $ 0.7 0.4 $ (8.9) $ 54.3 $ 611.3 $ (150.5) $ 2.5 $ 509.4 Net (loss) income — — — — — (1.3) — 0.1 (1.2) Share-based compensation — — — — 2.3 — — — 2.3 Exercise of stock options — — — — 0.3 — — — 0.3 Other comprehensive income — — — — — — 4.8 — 4.8 Dividends and other changes in noncontrolling interest — — — — — — — (0.4) (0.4) Balance, June 30, 2020 73.3 $ 0.7 0.4 $ (8.9) $ 56.9 $ 610.0 $ (145.7) $ 2.2 $ 515.2 . |
Restructuring and Repositioni_2
Restructuring and Repositioning Expenses, Asset Impairments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | (In millions) Severance/employee costs Asset Impairments Other Associated Costs Total Restructuring Repositioning Total Costs Capital Expenditures 2019 Plan: (1) Estimated Total Costs $2-3 $1 $1-2 $4-6 $11-12 $15-18 $2-3 Cumulative Costs to Date $0.9 $0.9 $0.3 $2.1 $10.4 $12.5 $1.7 2019 Phase 2 Plan: (2) Estimated Total Costs $13-16 $— $3-4 $16-20 $7-8 $23-28 $2 Cumulative Costs to Date $4.8 $0.3 $— $5.1 $4.3 $9.4 $0.4 (1) As of June 30, 2020, the cumulative restructuring costs incurred under the 2019 Plan since its inception were $2.1 million, of which $1.7 million was related to the SCC segment and $0.4 million was related to the SBM segment. (2) As of June 30, 2020, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $5.1 million, of which $3.0 million was attributable to the SCC segment and $2.1 million was attributable to the SBM segment. Estimated total pre-tax costs expected to be incurred in connection with the 2019 Phase 2 Plan decreased by approximately $2 million from the prior estimate due to lower than expected severance costs. The following tables represent the repositioning expenses incurred and cash payments made under the plans discussed above and other plans during each period: Three Months Ended June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 0.2 $ 0.7 $ — $ 0.1 $ — $ 1.0 Cash Paid for Repositioning Expenses 1.2 1.3 0.8 — 0.2 3.5 Capital Expenditures 0.5 0.2 — 0.2 0.7 1.6 Cash Paid for Capital Expenditures 0.5 0.1 — 0.3 0.6 1.5 Six Months Ended June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.6 $ 1.9 $ — $ 0.1 $ 0.1 $ 3.7 Cash Paid for Repositioning Expenses 4.5 2.8 1.0 — 0.2 8.5 Capital Expenditures 0.9 0.3 — 0.5 0.9 2.6 Cash Paid for Capital Expenditures 0.8 0.2 — 0.4 1.2 2.6 Three Months Ended June 30, 2019 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.3 $ — $ 2.5 $ 1.8 $ 0.2 $ 5.8 Cash Paid for Repositioning Expenses 1.9 — — 2.6 0.3 4.8 Capital Expenditures 0.2 — — — 0.9 1.1 Cash Paid for Capital Expenditures 0.2 — — — 1.0 1.2 Six Months Ended June 30, 2019 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 3.3 $ — $ 2.5 $ 5.1 $ 0.3 $ 11.2 Cash Paid for Repositioning Expenses 2.1 — — 7.7 1.5 11.3 Capital Expenditures 0.3 — — — 1.9 2.2 Cash Paid for Capital Expenditures 0.2 — — — 1.1 1.3 As of June 30, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Cumulative Repositioning Expenses $ 10.4 $ 4.3 $ 3.1 $ 10.7 $ 9.7 Cumulative Cash Paid for Repositioning Expenses 10.1 3.8 3.0 10.7 9.6 Cumulative Capital Expenditure 1.7 0.4 — 1.4 13.3 Cumulative Cash Paid for Capital Expenditures 1.4 0.2 — 1.2 12.5 The following restructuring expenses and asset impairment charges were incurred under the plans discussed above and other plans during each period: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Severance and other employee costs $ — $ 0.2 $ 1.9 $ 0.5 Asset impairments 0.2 3.8 1.2 4.0 Other associated costs 0.2 0.5 0.4 0.7 Total restructuring expenses and asset impairments $ 0.4 $ 4.5 $ 3.5 $ 5.2 Less: restructuring expenses and asset impairments reflected in discontinued operations — 0.1 — 0.2 Total restructuring expenses and asset impairments from continuing operations $ 0.4 $ 4.4 $ 3.5 $ 5.0 GCP incurred restructuring expenses and asset impairment charges related to its two operating segments and Corporate function as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 SCC $ 0.3 $ 1.3 $ 2.6 $ 1.9 SBM 0.1 3.2 0.9 3.2 Corporate — (0.1) — (0.1) Total restructuring expenses and asset impairments from continuing operations $ 0.4 $ 4.4 $ 3.5 $ 5.0 Restructuring expenses and asset impairments reflected in discontinued operations — 0.1 — 0.2 Total restructuring expenses and asset impairments $ 0.4 $ 4.5 $ 3.5 $ 5.2 |
Schedule of Restructuring Liability | The following table summarizes the Company’s restructuring liability activity: 2019 Plan 2019 Phase 2 Plan 2018 Plan 2017 Plan Severance and other employee costs Other Costs Severance and other employee costs Severance and other employee costs Other Costs Severance and other employee costs Total Balance, December 31, 2019 $ 0.2 $ — $ 0.9 $ 1.0 $ 0.4 $ 0.2 $ 2.7 Expense (1) 0.2 0.2 1.7 — — — 2.1 Payments (0.1) — (0.6) (0.2) (0.3) (0.1) (1.3) Impact of foreign currency and other — — — (0.1) (0.1) — (0.2) Balance, March 31, 2020 $ 0.3 $ 0.2 $ 2.0 $ 0.7 $ — $ 0.1 $ 3.3 Expense (1) — 0.1 — — 0.1 — 0.2 Payments (0.1) (0.1) (0.3) (0.1) (0.1) — (0.7) Balance, June 30, 2020 $ 0.2 $ 0.2 $ 1.7 $ 0.6 $ — $ 0.1 $ 2.8 ________________________________ |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 three and six months ended June 30, 2020 and 2019: Three Months Ended (In millions) Pre-Tax Amount Tax Benefit After-Tax Amount Currency translation adjustments (1) $ 4.7 $ 0.2 $ 4.9 Loss from hedging activities (0.1) — (0.1) Other comprehensive income attributable to GCP shareholders $ 4.6 $ 0.2 $ 4.8 Six Months Ended June 30, 2020 (In millions) Pre-Tax Amount Tax Expense After-Tax Amount Defined benefit pension and other postretirement plans $ 0.1 $ — $ 0.1 Currency translation adjustments (28.7) (0.2) (28.9) Gain from hedging activities 0.1 — 0.1 Other comprehensive loss attributable to GCP shareholders $ (28.5) $ (0.2) $ (28.7) Three Months Ended (In millions) Pre-Tax Amount Tax After-Tax Amount Currency translation adjustments $ (3.9) $ — $ (3.9) Other comprehensive loss attributable to GCP shareholders $ (3.9) $ — $ (3.9) Six Months Ended June 30, 2019 (In millions) Pre-Tax Amount Tax Benefit After-Tax Amount Currency translation adjustments (1) $ (0.6) — $ (0.6) Loss from hedging activities (0.1) — (0.1) Other comprehensive loss attributable to GCP shareholders $ (0.7) $ — $ (0.7) _____________________ (1) Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 5, "Derivative Instruments." |
Schedule of Changes of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following tables present the changes in accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2020 and 2019: (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Balance, December 31, 2019 $ (2.7) $ (114.2) $ (0.1) $ (117.0) Current period other comprehensive income (loss) 0.1 (28.9) 0.1 (28.7) Balance, June 30, 2020 $ (2.6) $ (143.1) $ — $ (145.7) (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Hedging Activities Total Balance, December 31, 2018 $ (2.2) $ (117.8) $ — $ (120.0) Current period other comprehensive loss — (0.6) (0.1) (0.7) Balance, June 30, 2019 $ (2.2) $ (118.4) $ (0.1) $ (120.7) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Assumptions for Estimating the Fair Value of Stock Options | The following assumptions were utilized in the Black-Scholes option pricing model for estimating the fair value of GCP's stock options granted during the six months ended June 30, 2019: Six Months Ended June 30, Assumptions used to calculate expense for stock options: 2019 Risk-free interest rate 2.35 - 2.64% Average life of options (years) 5.5 - 6.5 Volatility 28.02 - 28.59% Dividend yield — Weighted average fair value per stock option $8.74 |
Summary of Stock Option Activity | The following table sets forth information relating to stock options denominated in GCP stock during the six months ended June 30, 2020: Stock Option Activity Number Of Weighted Weighted Aggregated Outstanding, December 31, 2019 1,284 $ 22.66 3.18 $ 3,171 Options exercised (40) 18.22 Options forfeited/expired/canceled (285) 19.88 Outstanding, June 30, 2020 959 $ 23.67 3.62 $ 522 Exercisable, June 30, 2020 792 $ 22.92 3.23 $ 522 Vested and expected to vest, June 30, 2020 950 $ 23.63 3.60 $ 522 |
Summary of Restricted Stock Units Award Activity | The following table sets forth the RSU activity for the six months ended June 30, 2020: RSU Activity Number Of Weighted Outstanding, December 31, 2019 156 $ 27.33 RSUs settled (48) 28.14 RSUs forfeited (2) 22.83 RSUs granted 190 21.11 RSUs outstanding, June 30, 2020 296 $ 23.16 Expected to vest as of June 30, 2020 276 $ 23.23 |
Schedule of Assumptions for Estimating the Fair Value of PBUs | The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the six months ended June 30, 2020 and 2019: Six Months Ended June 30, Assumptions used to calculate expense for PBUs: 2020 2019 Expected Term (Remaining Performance Period) 2.85 2.86 Expected volatility 29.85% 28.46% Risk-free interest rate 1.21% 2.48% Expected dividends — — Correlation coefficient 53.43% 54.81% Median correlation coefficient of constituents 54.01% 57.09% |
Summary of Performance-Based Units Activity | The following table sets forth the PBU activity for the six months ended June 30, 2020: PBU Activity Number Of Weighted Outstanding, December 31, 2019 382 $ 29.51 PBU's settled — — PBU's forfeited (114) 28.18 PBU's granted 146 22.41 Outstanding, June 30, 2020 414 $ 27.37 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerators and Denominators Used in Calculating Basic and Diluted Earnings Per Share | The following table sets forth a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerators (Loss) income from continuing operations attributable to GCP shareholders $ (1.3) $ 3.1 $ 0.1 $ 17.7 (Loss) income from discontinued operations, net of income taxes — (0.5) (0.3) 6.3 Net (loss) income attributable to GCP shareholders $ (1.3) $ 2.6 $ (0.2) $ 24.0 Denominators Weighted average common shares—basic calculation 72.9 72.6 72.9 72.5 Dilutive effect of employee stock awards (2) — 0.4 0.1 0.4 Weighted average common shares—diluted calculation 72.9 73.0 73.0 72.9 Basic earnings (loss) per share: (2) (Loss) income from continuing operations attributable to GCP shareholders $ (0.02) $ 0.04 $ — $ 0.24 (Loss) income from discontinued operations, net of income taxes $ — $ (0.01) $ — $ 0.09 Net (loss) income attributable to GCP shareholders (1) $ (0.02) $ 0.04 $ — $ 0.33 Diluted earnings (loss) per share: (2) (Loss) income from continuing operations attributable to GCP shareholders $ (0.02) $ 0.04 $ — $ 0.24 (Loss) income from discontinued operations, net of income taxes $ — $ (0.01) $ — $ 0.09 Net (loss) income attributable to GCP shareholders (1) $ (0.02) $ 0.04 $ — $ 0.33 ________________________________ (1) Amounts may not sum due to rounding. (2) Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations. |
Operating Segment and Geograp_2
Operating Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Data | The following table presents information related to GCP's operating segments: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Net Sales Specialty Construction Chemicals $ 115.9 $ 150.4 $ 241.3 $ 282.1 Specialty Building Materials 79.5 111.8 170.8 206.2 Total net sales $ 195.4 $ 262.2 $ 412.1 $ 488.3 Segment Operating Income Specialty Construction Chemicals segment operating income $ 9.9 $ 14.2 $ 17.8 $ 22.1 Specialty Building Materials segment operating income 11.0 22.3 24.7 38.2 Total segment operating income $ 20.9 $ 36.5 $ 42.5 $ 60.3 |
Reconciliation of Operating Segment Data to Financial Statements | Total segment operating income for the three and six months ended June 30, 2020 and 2019 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Total segment operating income (1) $ 20.9 $ 36.5 $ 42.5 $ 60.3 Corporate costs (6.3) (9.4) (12.1) (19.3) Certain pension costs (1.3) (2.0) (2.6) (3.9) Shareholder activism and other related costs (2) (3.8) (1.1) (7.4) (3.6) Repositioning expenses (1.0) (5.8) (3.7) (11.2) Restructuring expenses and asset impairments (0.4) (4.4) (3.5) (5.0) Third-party and other acquisition-related costs (0.2) — (0.7) (0.1) Legacy product, environmental and other claims — (0.1) — (0.1) Net income attributable to noncontrolling interests 0.1 — 0.2 0.2 Interest expense, net (4.7) (4.9) (9.8) (10.1) Income from continuing operations before income taxes $ 3.3 $ 8.8 $ 2.9 $ 7.2 __________________________ (1) Certain amounts related to COVID-19 costs have been reclassified between segments' operating income and corporate expenses that do not get allocated directly to the segments. Such reclassifications have not materially affected previously reported amounts. (2) Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of our shareholders seeking changes in the composition of our Board of Directors and nomination of candidates to stand for election at the 2019 and 2020 Annual Shareholders' Meetings, as well as other related matters. |
Net Sales by Geographic Area | The table below presents information related to the geographic areas in which GCP operates. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Net Sales United States $ 106.3 $ 126.6 $ 219.3 $ 234.4 Canada and Other 6.0 9.2 12.2 14.9 Total North America 112.3 135.8 231.5 249.3 Europe Middle East Africa 34.6 52.3 78.9 98.7 Asia Pacific 39.7 58.9 80.0 109.6 Latin America 8.8 15.2 21.7 30.7 Total $ 195.4 $ 262.2 $ 412.1 $ 488.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reconciliation of Gain on Disposal | The following table includes a reconciliation of the gain on the sale of the Darex business related to delayed close entities recorded during the six months ended June 30, 2019: Six Months Ended June 30, (In millions) 2019 Net proceeds included in gain $ 12.7 Net assets derecognized (3.1) Gain recognized before income taxes 9.6 Tax effect of gain recognized (2.4) Gain recognized after income taxes $ 7.2 |
Financial Results and Other Effects Related to Discontinued Operations | The following table sets forth the components of "(Loss) income from discontinued operations, net of income taxes" in the accompanying unaudited Consolidated Statements of Operations (1) : Three Months Ended June 30, Six Months Ended June 30, (In millions) 2019 2020 2019 Net sales $ — $ — $ — Cost of goods sold — — — Gross profit — — — Selling, general and administrative expenses 0.6 0.2 0.9 Restructuring expenses and asset impairments 0.1 — 0.2 Gain on sale of business — — (9.6) Other (income) expenses, net (0.1) 0.1 — (Loss) income from discontinued operations before income taxes (0.6) (0.3) 8.5 Benefit (provision) for income taxes 0.1 — (2.2) (Loss) income from discontinued operations, net of income taxes $ (0.5) $ (0.3) $ 6.3 _____________________ (1) There was no activity during the three months ended June 30, 2020. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)segment | Jul. 03, 2017USD ($) | |
Class of Stock [Line Items] | |||
Number of operating segments | segment | 2 | ||
Net foreign currency transaction and remeasurement gains (losses) | $ 0.6 | $ 0.8 | |
Disposed of by Sale | Darex | |||
Class of Stock [Line Items] | |||
Consideration received | $ 1,060 |
Revenue from Lessor Arrangeme_3
Revenue from Lessor Arrangements and Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Revenues [Abstract] | ||
Lease component, lease term (or less) | 30 days | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 148.9 | $ 183.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, remaining performance obligation | $ 8.6 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction | 5 years | |
Trade accounts receivable, lease revenue | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 5.8 | $ 5.6 |
Revenue from Lessor Arrangeme_4
Revenue from Lessor Arrangements and Contracts with Customers - Operating Lease and Service Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lease revenue: | ||||
Total revenue | $ 195.4 | $ 262.2 | $ 412.1 | $ 488.3 |
VERIFI Sales Arrangements | ||||
Lease revenue: | ||||
Lease payments revenue | 6.6 | 6.8 | 13.4 | 13.2 |
Variable lease revenue | 2.5 | 1.9 | 4.5 | 3.4 |
Total lease revenue | 9.1 | 8.7 | 17.9 | 16.6 |
Total service revenue | 1.6 | 1.2 | 3 | 2.2 |
Total revenue | 10.7 | 9.9 | 20.9 | 18.8 |
VERIFI Sales Arrangements | Fixed fee revenue | ||||
Lease revenue: | ||||
Total service revenue | 0.1 | 0 | 0.2 | 0 |
VERIFI Sales Arrangements | Variable fee revenue | ||||
Lease revenue: | ||||
Total service revenue | $ 1.5 | $ 1.2 | $ 2.8 | $ 2.2 |
Accounts Receivable, Allowanc_3
Accounts Receivable, Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 7.4 | $ 5.7 | $ 7.5 | $ 5.8 |
Provision for expected credit losses | 0.3 | 1 | 0.7 | 1.5 |
Write offs | (0.4) | (0.5) | (0.5) | (1) |
Foreign currency translation adjustments | 0 | 0.1 | (0.4) | 0 |
Ending balance | $ 7.3 | $ 6.3 | $ 7.3 | $ 6.3 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 43.4 | $ 40 |
In process | 4.3 | 4 |
Finished products and other | 50.8 | 51.9 |
Total inventories, net | 98.5 | 95.9 |
Finished Products Purchased | ||
Inventory [Line Items] | ||
Finished products and other | $ 11 | $ 10.6 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 3 Months Ended | |
Jun. 30, 2020EUR (€)derivative_instrument | Jun. 15, 2020EUR (€) | |
Derivative [Line Items] | ||
Number of contracts settled | derivative_instrument | 1 | |
Notional amount settled | € 10,000,000 | |
Forward exchange forward contracts | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative_instrument | 4 | |
Aggregate notional amount | € 40,000,000 | € 10,000,000 |
Forward contract maturing 2020 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 10,000,000 | |
Forward contract maturing 2021 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 10,000,000 | |
Forward contract maturing 2022 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 10,000,000 | |
Forward contract maturing 2023 | ||
Derivative [Line Items] | ||
Aggregate notional amount | € 10,000,000 |
Derivative Instruments - Net In
Derivative Instruments - Net Investment Hedges in Balance Sheets (Details) - Forward exchange forward contracts - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative assets | $ 2.1 | $ 1.1 |
Derivative liability | (0.1) | $ 0 |
Derivative assets, current | 0.6 | |
Derivative assets, noncurrent | $ 1.5 |
Derivative Instruments - Net _2
Derivative Instruments - Net Investment Hedges in Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Gains (losses) on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit | $ 4.9 | $ (3.9) | $ (28.9) | $ (0.6) |
Forward exchange forward contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) on foreign exchange forward contracts - other income, net | 0.2 | 0.1 | 0.5 | 0.1 |
Gains (losses) on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit | (0.8) | (0.2) | 0.5 | (0.2) |
Gains (losses) on foreign exchange forward contracts - cumulative translation adjustments, tax (benefit) expense | $ (0.2) | $ (0.1) | $ 0.2 | $ (0.1) |
Debt and Other Borrowings - Com
Debt and Other Borrowings - Components of Debt (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 351,400,000 | $ 349,200,000 |
Less: debt payable within one year | 2,700,000 | 2,700,000 |
Debt payable after one year | $ 348,700,000 | $ 346,500,000 |
Weighted average interest rates on total debt obligations | 5.50% | 5.50% |
Finance lease obligations | $ 3,000,000 | $ 1,300,000 |
Senior Notes | 5.5% Senior Notes due in 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 346,400,000 | 346,100,000 |
Stated interest rate | 5.50% | |
Unamortized debt issuance cost | $ 3,600,000 | 3,900,000 |
Line of credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 0 |
Aggregate available principal amount | 350,000,000 | 350,000,000 |
Unamortized debt issuance cost | 2,600,000 | 3,100,000 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 5,000,000 | 3,100,000 |
Lines of credit and other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,000,000 | $ 1,800,000 |
Debt and Other Borrowings - Pri
Debt and Other Borrowings - Principal Maturities of Debt Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Remainder of 2020 | $ 2.4 | |
2021 | 0.7 | |
2022 | 0.7 | |
2023 | 0.7 | |
2024 | 0.5 | |
Thereafter | 346.4 | |
Total debt | $ 351.4 | $ 349.2 |
Debt and Other Borrowings - Nar
Debt and Other Borrowings - Narrative (Details) - USD ($) | Apr. 15, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Senior Notes | 5.5% Senior Notes due in 2026 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.50% | 5.50% | ||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | ||
Interest payment | $ 9,600,000 | |||
Unamortized debt issuance cost | 3,600,000 | 3,600,000 | $ 3,900,000 | |
Line of credit | ||||
Debt Instrument [Line Items] | ||||
Available credit | 347,800,000 | 347,800,000 | 344,100,000 | |
Line of credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | 0 | 0 | 0 | |
Interest payments | 0 | 0 | ||
Unamortized debt issuance cost | 2,600,000 | $ 2,600,000 | 3,100,000 | |
Line of credit | Revolving credit facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Line of credit | Revolving credit facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Line of credit | Revolving credit facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Line of credit | Revolving credit facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Line of credit | Letter of credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 2,200,000 | $ 2,200,000 | $ 5,900,000 |
Debt and Other Borrowings - Car
Debt and Other Borrowings - Carrying Amounts and Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
5.5% Senior Notes due in 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.50% | |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 351.4 | $ 349.2 |
Carrying Amount | Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 5 | 3.1 |
Carrying Amount | 5.5% Senior Notes due in 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 346.4 | 346.1 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 355.9 | 369.4 |
Fair Value | Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 5 | 3.1 |
Fair Value | 5.5% Senior Notes due in 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 350.9 | $ 366.3 |
Lessee Arrangements - Lease Exp
Lessee Arrangements - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 3 | $ 3.1 | $ 6.2 | $ 6.4 |
Variable lease expense | 1.3 | 1.3 | 2.4 | 2.5 |
Short-term lease expense | 0.8 | 0.5 | 1.4 | 0.9 |
Total lease expense | $ 5.1 | $ 4.9 | $ 10 | $ 9.8 |
Lessee Arrangements - Supplemen
Lessee Arrangements - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 6.2 | $ 6.4 | ||
Operating lease right of use assets obtained in exchange for new lease obligations: | $ 11.8 | $ 43.6 | $ 2.8 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||
ASU 2016-02 - Topic 842 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating lease right of use assets obtained in exchange for new lease obligations: | $ 40.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||
Income tax expense (benefit) | $ 4.5 | $ 5.7 | $ 2.6 | $ (10.7) | |||
Effective tax rate | 136.40% | 64.80% | 89.70% | 148.60% | |||
Tax benefit (reversal) resulting from CARES Act | $ (3.2) | $ 3.2 | |||||
Tax expense on unrecognized tax benefits | 0.4 | $ 0.7 | |||||
Valuation allowance expense | 0.4 | 1 | $ 0.5 | ||||
Tax expense relating to foreign tax rate differential | $ 2.2 | ||||||
Transition Tax, tax benefit from the release of an uncertain tax position | $ 20.2 | ||||||
Tax expense, Tax Cuts and Jobs Act | $ 3.6 | ||||||
Transition Tax liability (release) | 6.2 | $ 20.2 | |||||
Transition Tax obligation | $ 35.2 | $ 35.2 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plans - Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Pension plans and other postretirement benefit plans | ||
Overfunded defined benefit pension plans | $ 23.6 | $ 25 |
Underfunded and unfunded defined benefit pension plans | (68.7) | (67.5) |
Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Overfunded defined benefit pension plans | 23.6 | 25 |
Underfunded and unfunded defined benefit pension plans | (68.7) | (67.5) |
Pension liabilities included in other current liabilities | (0.9) | (1.2) |
Net funded status | (46) | (43.7) |
Underfunded defined benefit pension plans | Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Underfunded and unfunded defined benefit pension plans | (42.6) | (40.8) |
Unfunded defined benefit pension plans | Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Underfunded and unfunded defined benefit pension plans | $ (26.1) | $ (26.7) |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 1.6 | $ 1.7 | $ 3.1 | $ 3.2 |
Interest cost | 1.2 | 1.5 | 2.5 | 2.9 |
Expected return on plan assets | (1.7) | (1.6) | (3.3) | (3.2) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | 1.1 | 1.6 | 2.3 | 2.9 |
Non-U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.2 | 0.6 | 0.4 | 1.3 |
Interest cost | 1 | 1.3 | 2.1 | 2.7 |
Expected return on plan assets | (1.1) | (1.5) | (2.3) | (3) |
Amortization of prior service cost | 0.1 | 0 | 0.1 | 0 |
Net periodic benefit cost (income) | $ 0.2 | $ 0.4 | $ 0.3 | $ 1 |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) | Jan. 01, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Pension plans and other postretirement benefit plans | ||||||
Accumulated other comprehensive income, tax impact | $ 200,000 | $ 200,000 | $ 200,000 | |||
Defined contribution plan, percentage that the employer contributes of employee contributions under 401(k) plan | 100.00% | 100.00% | ||||
Defined contribution plan, maximum percentage of employee compensation match by employer to defined contribution plan | 6.00% | |||||
Defined contribution plan, additional maximum percentage of employee compensation match by employer to defined contribution plan | 2.00% | |||||
Defined contribution plan, vesting requirement | 3 years | |||||
Defined contribution plan, costs | 900,000 | $ 1,200,000 | $ 2,200,000 | $ 2,500,000 | ||
Non-U.S. | ||||||
Pension plans and other postretirement benefit plans | ||||||
Defined benefit plan expense | 200,000 | 600,000 | 400,000 | 1,300,000 | ||
United States | ||||||
Pension plans and other postretirement benefit plans | ||||||
Defined benefit plan expense | 1,600,000 | 1,700,000 | 3,100,000 | 3,200,000 | ||
Postretirement Health Care | ||||||
Pension plans and other postretirement benefit plans | ||||||
Long-term liability | 2,100,000 | 2,100,000 | 2,200,000 | |||
Accumulated other comprehensive income | 600,000 | 600,000 | $ 700,000 | |||
Pension Plans | Non-U.S. | ||||||
Pension plans and other postretirement benefit plans | ||||||
Employer contributions | 300,000 | 600,000 | 800,000 | 1,500,000 | ||
Pension Plans | United States | ||||||
Pension plans and other postretirement benefit plans | ||||||
Employer contributions | $ 600,000 | $ 0 | $ 700,000 | $ 0 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other Current Assets: | ||
Non-trade receivables | $ 16.7 | $ 22.1 |
Prepaid expenses and other current assets | 13.5 | 13.4 |
Income taxes receivable | 15.2 | 8.2 |
Total other current assets | $ 45.4 | $ 43.7 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Other Current Liabilities: | |||
Accrued customer volume rebates | $ 18 | $ 28.4 | |
Accrued compensation | 14.7 | 16 | |
Income taxes payable | 8.6 | 10.4 | |
Accrued interest | 4.2 | 4.2 | |
Pension liabilities | 0.9 | 1.2 | |
Restructuring liability | 2.8 | $ 3.3 | 2.7 |
Other accrued liabilities | 42.9 | 50.7 | |
Total other current liabilities | $ 92.1 | $ 113.6 |
Other Balance Sheet Informati_5
Other Balance Sheet Information - Additional Information (Details) - USD ($) $ in Millions | May 04, 2018 | Jun. 30, 2020 |
RIW Limited | Clydebridge Holdings | ||
Business Acquisition [Line Items] | ||
Percentage of stock acquired | 100.00% | |
Clydebridge Holdings | ||
Business Acquisition [Line Items] | ||
Percentage of stock acquired | 100.00% | |
Consideration transferred | $ 29.5 | |
Cash acquired | 10 | |
Payments to acquire businesses | 29.8 | |
Working capital adjustments | 0.3 | |
Escrow released | $ 2.8 | |
Escrow deposit released | $ 1.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Reduction in taxes | |||
Loss Contingencies [Line Items] | |||
Gain related to income tax settlement, net | $ 1.3 | ||
Legal fees and other charges related to tax settlement | $ 0.4 | ||
Amended Credit Agreement | Standby Letter of Credit | |||
Loss Contingencies [Line Items] | |||
Gross financial assurances issued and outstanding | $ 5 | $ 5.9 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Mar. 13, 2020 | Mar. 15, 2019purchase_right$ / sharesshares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Equity [Abstract] | ||||
Common stock dividend, number of preferred share purchase rights for each share of common stock | purchase_right | 1 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred share purchase right, period after acquisition announcement after which rights become exercisable | 10 days | |||
Preferred share purchase right, minimum beneficial ownership percentage change for rights to become exercisable | 20.00% | 15.00% | ||
Preferred share purchase right, minimum beneficial ownership percentage for grandfathered treatment | 20.00% | 15.00% | ||
Preferred share purchase right, minimum ownership percentage at which existing rights become exercisable | 0.001% | 0.001% | ||
Preferred stock, authorized (in shares) | 50,000,000 | |||
Schedule Of Equity [Line Items] | ||||
Preferred stock, authorized (in shares) | 50,000,000 | |||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | |||
Series A preferred stock | ||||
Equity [Abstract] | ||||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |
Schedule Of Equity [Line Items] | ||||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | $ 509.4 | $ 508 | $ 541.1 | $ 481.4 | |
Net (loss) income | (1.2) | 2.6 | 0 | 24.2 | |
Share-based compensation | 2.3 | 3.9 | $ 2.8 | 5.6 | |
Exercise of stock options (in shares) | 40,000 | ||||
Exercise of stock options | 0.3 | 1.7 | $ 0.7 | 5 | |
Share repurchases | [1] | (0.3) | (3.2) | ||
Current period other comprehensive loss | 4.8 | (3.9) | (28.7) | (0.7) | |
Dividends and other changes in noncontrolling interest | (0.4) | ||||
Ending balance | $ 515.2 | $ 512.3 | $ 515.2 | $ 512.3 | |
Share repurchases (in shares) | (17,300) | (125,700) | |||
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance (in shares) | 73,300,000 | 72,900,000 | 73,200,000 | 72,400,000 | |
Beginning balance | $ 0.7 | $ 0.7 | $ 0.7 | $ 0.7 | |
Issuance of common stock in connection with stock plans (in shares) | [2] | 100,000 | 300,000 | ||
Exercise of stock options (in shares) | 100,000 | 0 | 300,000 | ||
Ending balance (in shares) | 73,300,000 | 73,000,000 | 73,300,000 | 73,000,000 | |
Ending balance | $ 0.7 | $ 0.7 | $ 0.7 | $ 0.7 | |
Treasury Stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance (in shares) | 400,000 | 300,000 | 300,000 | 200,000 | |
Beginning balance | $ (8.9) | $ (8) | $ (8.6) | $ (4.8) | |
Share repurchases | [1] | $ (0.3) | $ (3.2) | ||
Ending balance (in shares) | 400,000 | 300,000 | 400,000 | 300,000 | |
Ending balance | $ (8.9) | $ (8) | $ (8.9) | $ (8) | |
Share repurchases (in shares) | [1] | (100,000) | (100,000) | ||
Additional Paid-in Capital | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | 54.3 | 44.6 | $ 53.4 | $ 39.6 | |
Share-based compensation | 2.3 | 3.9 | 2.8 | 5.6 | |
Exercise of stock options | 0.3 | 1.7 | 0.7 | 5 | |
Ending balance | 56.9 | 50.2 | 56.9 | 50.2 | |
Accumulated Earnings | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | 611.3 | 585.3 | 610.2 | 563.9 | |
Net (loss) income | (1.3) | 2.6 | (0.2) | 24 | |
Ending balance | 610 | 587.9 | 610 | 587.9 | |
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | (150.5) | (116.8) | (117) | (120) | |
Current period other comprehensive loss | 4.8 | (3.9) | (28.7) | (0.7) | |
Ending balance | (145.7) | (120.7) | (145.7) | (120.7) | |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | 2.5 | 2.2 | 2.4 | 2 | |
Net (loss) income | 0.1 | 0 | 0.2 | 0.2 | |
Dividends and other changes in noncontrolling interest | (0.4) | ||||
Ending balance | $ 2.2 | $ 2.2 | $ 2.2 | $ 2.2 | |
[1] | Refer to Note 15, “Stock Incentive Plans”, for further information. | ||||
[2] | The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding. |
Restructuring and Repositioni_3
Restructuring and Repositioning Expenses, Asset Impairments - Estimated and Actual Costs (Details) $ in Millions | Jun. 30, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Decrease in expected costs | $ 2 |
2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 12.5 |
Capital expenditures to date | 1.7 |
2019 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 15 |
Estimated capital expenditures | 2 |
2019 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 18 |
Estimated capital expenditures | 3 |
2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Estimated capital expenditures | 2 |
Cost to date | 9.4 |
Capital expenditures to date | 0.4 |
2019 Phase 2 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 23 |
2019 Phase 2 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 28 |
Total Restructuring | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.1 |
Total Restructuring | 2019 Plan | Specialty Construction Chemicals | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 1.7 |
Total Restructuring | 2019 Plan | Specialty Building Materials | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.4 |
Total Restructuring | 2019 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 4 |
Total Restructuring | 2019 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 6 |
Total Restructuring | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 5.1 |
Total Restructuring | 2019 Phase 2 Plan | Specialty Construction Chemicals | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 3 |
Total Restructuring | 2019 Phase 2 Plan | Specialty Building Materials | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.1 |
Total Restructuring | 2019 Phase 2 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 16 |
Total Restructuring | 2019 Phase 2 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 20 |
Severance/employee costs | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.9 |
Severance/employee costs | 2019 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 2 |
Severance/employee costs | 2019 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 3 |
Severance/employee costs | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 4.8 |
Severance/employee costs | 2019 Phase 2 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 13 |
Severance/employee costs | 2019 Phase 2 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 16 |
Asset Impairments | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 1 |
Cost to date | 0.9 |
Asset Impairments | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 0 |
Cost to date | 0.3 |
Other Associated Costs | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.3 |
Other Associated Costs | 2019 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 1 |
Other Associated Costs | 2019 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 2 |
Other Associated Costs | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0 |
Other Associated Costs | 2019 Phase 2 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 3 |
Other Associated Costs | 2019 Phase 2 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 4 |
Repositioning | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 10.4 |
Capital expenditures to date | 10.1 |
Repositioning | 2019 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 11 |
Repositioning | 2019 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 12 |
Repositioning | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 4.3 |
Capital expenditures to date | 3.8 |
Repositioning | 2019 Phase 2 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 7 |
Repositioning | 2019 Phase 2 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | $ 8 |
Restructuring and Repositioni_4
Restructuring and Repositioning Expenses, Asset Impairments - Narrative (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring and Related Activities [Abstract] | |||
Number of operating segments | segment | 2 | ||
Restructuring liability | $ | $ 2.8 | $ 3.3 | $ 2.7 |
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected reduction in workforce, percent | 8.00% | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected reduction in workforce, percent | 10.00% |
Restructuring and Repositioni_5
Restructuring and Repositioning Expenses, Asset Impairments - Repositioning and Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 0.2 | $ 2.1 | |||
Cash paid | 0.7 | $ 1.3 | |||
2019 Plan, Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.2 | $ 1.3 | $ 1.6 | $ 3.3 | |
Cash paid | 1.2 | 1.9 | 4.5 | 2.1 | |
2019 Plan, Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.5 | 0.2 | 0.9 | 0.3 | |
Cash paid | 0.5 | 0.2 | 0.8 | 0.2 | |
2019 Plan Phase 2, Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.7 | 0 | 1.9 | 0 | |
Cash paid | 1.3 | 0 | 2.8 | 0 | |
2019 Plan Phase 2, Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.2 | 0 | 0.3 | 0 | |
Cash paid | 0.1 | 0 | 0.2 | 0 | |
Strategic Alternatives Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0 | 2.5 | 0 | 2.5 | |
Cash paid | 0.8 | 0 | 1 | 0 | |
Strategic Alternatives, Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0 | 0 | 0 | 0 | |
Cash paid | 0 | 0 | 0 | 0 | |
2018 Plan, Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.1 | 1.8 | 0.1 | 5.1 | |
Cash paid | 0 | 2.6 | 0 | 7.7 | |
2017 Plan, Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0 | 0.2 | 0.1 | 0.3 | |
Cash paid | 0.2 | 0.3 | 0.2 | 1.5 | |
2018 Plan, Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.2 | 0 | 0.5 | 0 | |
Cash paid | 0.3 | 0 | 0.4 | 0 | |
2017 Plan, Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0.7 | 0.9 | 0.9 | 1.9 | |
Cash paid | 0.6 | 1 | 1.2 | 1.1 | |
Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 1 | 5.8 | 3.7 | 11.2 | |
Cash paid | 3.5 | 4.8 | 8.5 | 11.3 | |
Capital Expenditures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 1.6 | 1.1 | 2.6 | 2.2 | |
Cash paid | $ 1.5 | $ 1.2 | $ 2.6 | $ 1.3 |
Restructuring and Repositioni_6
Restructuring and Repositioning Expenses, Asset Impairments - Restructuring Expenses and Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and other employee costs | $ 0 | $ 0.2 | $ 1.9 | $ 0.5 |
Asset impairments | 0.2 | 3.8 | 1.2 | 4 |
Other associated costs | 0.2 | 0.5 | 0.4 | 0.7 |
Total restructuring expenses and asset impairments | 0.4 | 4.5 | 3.5 | 5.2 |
Less: restructuring expenses and asset impairments reflected in discontinued operations | 0 | 0.1 | 0 | 0.2 |
Total restructuring expenses and asset impairments from continuing operations | $ 0.4 | $ 4.4 | $ 3.5 | $ 5 |
Restructuring and Repositioni_7
Restructuring and Repositioning Expenses, Asset Impairments - Restructuring Costs by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring expenses and asset impairments from continuing operations | $ 0.4 | $ 4.4 | $ 3.5 | $ 5 |
Restructuring expenses and asset impairments reflected in discontinued operations | 0 | 0.1 | 0 | 0.2 |
Total restructuring expenses and asset impairments | 0.4 | 4.5 | 3.5 | 5.2 |
Operating Segments | SCC | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring expenses and asset impairments from continuing operations | 0.3 | 1.3 | 2.6 | 1.9 |
Operating Segments | SBM | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring expenses and asset impairments from continuing operations | 0.1 | 3.2 | 0.9 | 3.2 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring expenses and asset impairments from continuing operations | $ 0 | $ (0.1) | $ 0 | $ (0.1) |
Restructuring and Repositioni_8
Restructuring and Repositioning Expenses, Asset Impairments - Cumulative (Details) $ in Millions | Jun. 30, 2020USD ($) |
2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | $ 12.5 |
Capital expenditures to date | 1.7 |
2019 Plan | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 10.4 |
Capital expenditures to date | 10.1 |
2019 Plan, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 1.7 |
Capital expenditures to date | 1.4 |
2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 9.4 |
Capital expenditures to date | 0.4 |
2019 Phase 2 Plan | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 4.3 |
Capital expenditures to date | 3.8 |
2019 Plan Phase 2, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.4 |
Capital expenditures to date | 0.2 |
Strategic Alternatives Plan | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 3.1 |
Capital expenditures to date | 3 |
Strategic Alternatives, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0 |
Capital expenditures to date | 0 |
2018 Plan, Repositioning | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 10.7 |
Capital expenditures to date | 10.7 |
2018 Plan, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 1.4 |
Capital expenditures to date | 1.2 |
2017 Plan, Repositioning | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 9.7 |
Capital expenditures to date | 9.6 |
2017 Plan, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 13.3 |
Capital expenditures to date | $ 12.5 |
Restructuring and Repositioni_9
Restructuring and Repositioning Expenses, Asset Impairments - Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 3.3 | $ 2.7 | $ 2.7 | ||
Expense | 0.2 | 2.1 | |||
Payments | (0.7) | (1.3) | |||
Impact of foreign currency and other | (0.2) | ||||
Ending balance | 2.8 | 3.3 | 2.8 | ||
2019 Plan | Severance and other employee costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0.3 | 0.2 | 0.2 | ||
Expense | 0 | 0.2 | |||
Payments | (0.1) | (0.1) | |||
Impact of foreign currency and other | 0 | ||||
Ending balance | 0.2 | 0.3 | 0.2 | ||
2019 Plan | Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0.2 | 0 | 0 | ||
Expense | 0.1 | 0.2 | |||
Payments | (0.1) | 0 | |||
Impact of foreign currency and other | 0 | ||||
Ending balance | 0.2 | 0.2 | 0.2 | ||
2019 Plan | Asset Impairments | Specialty Construction Chemicals | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 0.1 | 1.1 | |||
2019 Plan | Asset Impairments | Specialty Building Materials | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 0.1 | 0.1 | |||
2019 Phase 2 Plan | Severance and other employee costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 2 | 0.9 | 0.9 | ||
Expense | 0 | 1.7 | |||
Payments | (0.3) | (0.6) | |||
Impact of foreign currency and other | 0 | ||||
Ending balance | 1.7 | 2 | 1.7 | ||
2018 Plan, Repositioning | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 0.1 | $ 1.8 | 0.1 | $ 5.1 | |
Payments | 0 | (2.6) | 0 | (7.7) | |
2018 Plan, Repositioning | Severance and other employee costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0.7 | 1 | 1 | ||
Expense | 0 | 0 | |||
Payments | (0.1) | (0.2) | |||
Impact of foreign currency and other | (0.1) | ||||
Ending balance | 0.6 | 0.7 | 0.6 | ||
2018 Plan, Repositioning | Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0.4 | 0.4 | ||
Expense | 0.1 | 0 | |||
Payments | (0.1) | (0.3) | |||
Impact of foreign currency and other | (0.1) | ||||
Ending balance | 0 | 0 | 0 | ||
2017 Plan, Repositioning | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 0 | 0.2 | 0.1 | 0.3 | |
Payments | (0.2) | $ (0.3) | (0.2) | $ (1.5) | |
2017 Plan, Repositioning | Severance and other employee costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0.1 | 0.2 | 0.2 | ||
Expense | 0 | 0 | |||
Payments | 0 | (0.1) | |||
Impact of foreign currency and other | 0 | ||||
Ending balance | $ 0.1 | $ 0.1 | $ 0.1 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | $ 4.6 | $ (3.9) | $ (28.5) | $ (0.7) |
Tax Benefit | 0.2 | 0 | (0.2) | 0 |
After-Tax Amount | 4.8 | (3.9) | (28.7) | (0.7) |
Defined benefit pension and other postretirement plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | 0.1 | |||
Tax Benefit | 0 | |||
After-Tax Amount | 0.1 | 0 | ||
Currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | 4.7 | (3.9) | (28.7) | (0.6) |
Tax Benefit | 0.2 | 0 | (0.2) | 0 |
After-Tax Amount | 4.9 | $ (3.9) | (28.9) | (0.6) |
Gain/loss hedging activities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | (0.1) | 0.1 | (0.1) | |
Tax Benefit | 0 | 0 | 0 | |
After-Tax Amount | $ (0.1) | $ 0.1 | $ (0.1) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Changes in AOCI, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in accumulated other comprehensive income (loss), net of tax | ||||
Beginning balance | $ 509.4 | $ 508 | $ 541.1 | $ 481.4 |
Current period other comprehensive loss | 4.8 | (3.9) | (28.7) | (0.7) |
Ending balance | 515.2 | 512.3 | 515.2 | 512.3 |
Defined Benefit Pension and Other Postretirement Plans | ||||
Changes in accumulated other comprehensive income (loss), net of tax | ||||
Beginning balance | (2.7) | (2.2) | ||
Current period other comprehensive loss | 0.1 | 0 | ||
Ending balance | (2.6) | (2.2) | (2.6) | (2.2) |
Currency Translation Adjustments | ||||
Changes in accumulated other comprehensive income (loss), net of tax | ||||
Beginning balance | (114.2) | (117.8) | ||
Current period other comprehensive loss | (28.9) | (0.6) | ||
Ending balance | (143.1) | (118.4) | (143.1) | (118.4) |
Hedging Activities | ||||
Changes in accumulated other comprehensive income (loss), net of tax | ||||
Beginning balance | (0.1) | 0 | ||
Current period other comprehensive loss | 0.1 | (0.1) | ||
Ending balance | 0 | (0.1) | 0 | (0.1) |
Total | ||||
Changes in accumulated other comprehensive income (loss), net of tax | ||||
Beginning balance | (150.5) | (116.8) | (117) | (120) |
Current period other comprehensive loss | 4.8 | (3.9) | (28.7) | (0.7) |
Ending balance | $ (145.7) | $ (120.7) | $ (145.7) | $ (120.7) |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock compensation (benefit) expense | $ 1.5 | $ 3.1 | $ 2.3 | $ 5 | |
Share repurchases (in shares) | 17,300 | 125,700 | |||
Share repurchases | [1] | $ 0.3 | $ 3.2 | ||
Cash payments for tax withholding obligations | $ 0.3 | 3.2 | |||
Shares of common stock reserved and available for future grant (in shares) | 7,500,000 | 7,500,000 | |||
Weighted average grant date fair value of options granted (in usd per share) | $ 9.58 | ||||
Intrinsic value of all options exercised | $ 0.8 | $ 0.1 | 2.5 | ||
Fair value of awards vested | $ 1 | $ 6.1 | |||
Performance period | 3 years | ||||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense for stock options | $ 0.4 | $ 0.4 | |||
Unrecognized stock-based compensation expense for stock options, period of recognition | 1 year | ||||
Restricted Stock Units (RSUs) and Performance Based Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense for stock options, period of recognition | 1 year 9 months 18 days | ||||
Total unrecognized compensation expense related to the RSU and PBU awards | $ 7.9 | $ 7.9 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Granted (in shares) | 0 | 190,000 | |||
Weighted average grant date fair value (in usd per share) | $ 29.52 | $ 21.11 | $ 26.91 | ||
Amount settled in period (in shares) | 48,000 | 237,000 | |||
Restricted Stock Units (RSUs) | Vesting 1, Year 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 33.33% | ||||
Restricted Stock Units (RSUs) | Vesting 1, Year 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 33.33% | ||||
Restricted Stock Units (RSUs) | Vesting 1, Year 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 33.33% | ||||
Restricted Stock Units (RSUs) | Vesting 2, Year 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0.00% | ||||
Restricted Stock Units (RSUs) | Vesting 2, Year 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0.00% | ||||
Restricted Stock Units (RSUs) | Vesting 2, Year 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 100.00% | ||||
Performance Based Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Granted (in shares) | 146,000 | ||||
Weighted average grant date fair value (in usd per share) | $ 22.41 | $ 27.40 | |||
Amount settled in period (in shares) | 76,461 | ||||
Fair value of awards vested | $ 2 | ||||
Performance Based Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected payout, percent of target | 0.00% | ||||
Performance Based Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected payout, percent of target | 200.00% | ||||
Sign-On Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Award vesting percentage | 100.00% | ||||
[1] | Refer to Note 15, “Stock Incentive Plans”, for further information. |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Options, Valuation Assumptions (Details) - Stock Option | 6 Months Ended |
Jun. 30, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 2.35% |
Risk-free interest rate, maximum | 2.64% |
Volatility, minimum | 28.02% |
Volatility, maximum | 28.59% |
Dividend yield | 0.00% |
Weighted average fair value per stock option (in usd per share) | $ 8.74 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average life of options | 5 years 6 months |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average life of options | 6 years 6 months |
Stock Incentive Plans - Stock_2
Stock Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number Of Shares (in thousands) | ||
Outstanding, beginning balance (in shares) | 1,284 | |
Options exercised (in shares) | (40) | |
Options forfeited/expired/canceled (in shares) | (285) | |
Outstanding, ending balance (in shares) | 959 | 1,284 |
Exercisable, end of period (in shares) | 792 | |
Vested and expected to vest, end of period (in shares) | 950 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in usd per share) | $ 22.66 | |
Options exercised (in usd per share) | 18.22 | |
Options forfeited/expired/canceled (in usd per share) | 19.88 | |
Outstanding, ending balance (in usd per share) | 23.67 | $ 22.66 |
Exercisable, end of period (in usd per share) | 22.92 | |
Vested and expected to vest, end of period (in usd per share) | $ 23.63 | |
Other Disclosures | ||
Outstanding, weighted-average remaining contractual term | 3 years 7 months 13 days | 3 years 2 months 4 days |
Exercisable, weighted-average remaining contractual term | 3 years 2 months 23 days | |
Vested and expected to vest, weighted-average remaining contractual term | 3 years 7 months 6 days | |
Outstanding, aggregated intrinsic value | $ 522 | $ 3,171 |
Exercisable, aggregated intrinsic value | 522 | |
Vested and expected to vest, aggregated intrinsic value | $ 522 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units Award Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Number Of Shares (in thousands) | ||||
Outstanding, beginning balance (in shares) | 156,000 | |||
Settled (in shares) | (48,000) | |||
Forfeited (in shares) | (2,000) | |||
Granted (in shares) | 0 | 190,000 | ||
Outstanding, ending balance (in shares) | 296,000 | 296,000 | ||
RSUs expected to vest (in shares) | 276,000 | 276,000 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning balance (in usd per share) | $ 27.33 | |||
Settled (in usd per share) | 28.14 | |||
Forfeited (in used per share) | 22.83 | |||
Granted (in usd per share) | $ 29.52 | 21.11 | $ 26.91 | |
Outstanding, ending balance (in usd per share) | $ 23.16 | 23.16 | ||
RSUs expected to vest (in usd per share) | $ 23.23 | $ 23.23 |
Stock Incentive Plans - PBUs, V
Stock Incentive Plans - PBUs, Valuation Assumptions (Details) - Performance Based Units | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Term (Remaining Performance Period) | 2 years 10 months 6 days | 2 years 10 months 9 days |
Expected volatility | 29.85% | 28.46% |
Risk-free interest rate | 1.21% | 2.48% |
Expected dividends | 0.00% | 0.00% |
Correlation coefficient | 53.43% | 54.81% |
Median correlation coefficient of constituents | 54.01% | 57.09% |
Stock Incentive Plans - Perform
Stock Incentive Plans - Performance Based Units Award Activity (Details) - Performance Based Units - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Number Of Shares (in thousands) | ||
Outstanding, beginning balance (in shares) | 382 | |
Settled (in shares) | 0 | |
Forfeited (in shares) | (114) | |
Granted (in shares) | 146 | |
Outstanding, ending balance (in shares) | 414 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in usd per share) | $ 29.51 | |
Settled (in usd per share) | 0 | |
Forfeited (in used per share) | 28.18 | |
Granted (in usd per share) | 22.41 | $ 27.40 |
Outstanding, ending balance (in usd per share) | $ 27.37 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||||
Numerators | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders | $ (1.3) | $ 3.1 | $ 0.1 | $ 17.7 | ||||
(Loss) income from discontinued operations, net of income taxes | 0 | (0.5) | (0.3) | 6.3 | ||||
Net (loss) income attributable to GCP shareholders | $ (1.3) | $ 2.6 | $ (0.2) | $ 24 | ||||
Denominators | ||||||||
Weighted average common shares—basic calculation (in shares) | [1] | 72,900,000 | 72,600,000 | 72,900,000 | 72,500,000 | |||
Dilutive effect of employee stock awards (in shares) | 0 | 400,000 | 100,000 | 400,000 | ||||
Weighted average common shares—diluted calculation (in shares) | 72,900,000 | 73,000,000 | [1] | 73,000,000 | [1] | 72,900,000 | [1] | |
Basic earnings (loss) per share: | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in usd per share) | [1] | $ (0.02) | $ 0.04 | $ 0 | $ 0.24 | |||
(Loss) income from discontinued operations, net of income taxes (in usd per share) | [1] | 0 | (0.01) | 0 | 0.09 | |||
Net (loss) income attributable to GCP shareholders (in usd per share) | [1],[2] | (0.02) | 0.04 | 0 | 0.33 | |||
Diluted earnings (loss) per share | ||||||||
(Loss) income from continuing operations attributable to GCP shareholders (in dollars per share) | [1] | (0.02) | 0.04 | 0 | 0.24 | |||
(Loss) income from discontinued operations, net of income taxes (in dollars per share) | [1] | 0 | (0.01) | 0 | 0.09 | |||
Net (loss) income attributable to GCP shareholders (in dollars per share) | [1],[2] | $ (0.02) | $ 0.04 | $ 0 | $ 0.33 | |||
Antidilutive securities excluded from computation of earnings per share, treasury stock method (in shares) | 0 | 600,000 | 800,000 | 600,000 | ||||
[1] | Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations. | |||||||
[2] | Amounts may not sum due to rounding. |
Related Party Transactions an_2
Related Party Transactions and Transactions with Grace (Details) - W.R. Grace & Co. - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other assets | ||
Related Party Transaction [Line Items] | ||
Indemnified receivables, tax | $ 3.5 | $ 3.5 |
Other current liabilities | ||
Related Party Transaction [Line Items] | ||
Indemnified payables, tax | $ 0.9 | $ 1 |
Operating Segment and Geograp_3
Operating Segment and Geographic Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Operating Segment and Geograp_4
Operating Segment and Geographic Information - Schedule of Operating Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Sales | ||||
Net sales | $ 195.4 | $ 262.2 | $ 412.1 | $ 488.3 |
Segment Operating Income | ||||
Operating income | 36.5 | 42.5 | 60.3 | |
Specialty Construction Chemicals | ||||
Net Sales | ||||
Net sales | 115.9 | 150.4 | 241.3 | 282.1 |
Segment Operating Income | ||||
Operating income | 9.9 | 14.2 | 17.8 | 22.1 |
Specialty Building Materials | ||||
Net Sales | ||||
Net sales | 79.5 | 111.8 | 170.8 | 206.2 |
Segment Operating Income | ||||
Operating income | $ 11 | $ 22.3 | $ 24.7 | $ 38.2 |
Operating Segment and Geograp_5
Operating Segment and Geographic Information - Reconciliation of Segment Data to Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 36.5 | $ 42.5 | $ 60.3 | |
Corporate costs | $ (65.7) | (71.4) | (133.8) | (140.4) |
Repositioning expenses | (1) | (5.8) | (3.7) | (11.2) |
Restructuring expenses and asset impairments | (0.4) | (4.4) | (3.5) | (5) |
Net income attributable to noncontrolling interests | 0.1 | 0 | 0.2 | 0.2 |
Income from continuing operations before income taxes | 3.3 | 8.8 | 2.9 | 7.2 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Corporate costs | (6.3) | (9.4) | (12.1) | (19.3) |
Restructuring expenses and asset impairments | 0 | 0.1 | 0 | 0.1 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Certain pension costs | (1.3) | (2) | (2.6) | (3.9) |
Shareholder activism and other related costs | (3.8) | (1.1) | (7.4) | (3.6) |
Repositioning expenses | (1) | (5.8) | (3.7) | (11.2) |
Restructuring expenses and asset impairments | (0.4) | (4.4) | (3.5) | (5) |
Third-party and other acquisition-related costs | (0.2) | 0 | (0.7) | (0.1) |
Legacy product, environmental and other claims | 0 | (0.1) | 0 | (0.1) |
Net income attributable to noncontrolling interests | 0.1 | 0 | 0.2 | 0.2 |
Interest expense, net | (4.7) | (4.9) | (9.8) | (10.1) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 20.9 | $ 36.5 | $ 42.5 | $ 60.3 |
Operating Segment and Geograp_6
Operating Segment and Geographic Information - Geographic Area Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 195.4 | $ 262.2 | $ 412.1 | $ 488.3 |
Total North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 112.3 | 135.8 | 231.5 | 249.3 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 106.3 | 126.6 | 219.3 | 234.4 |
Canada and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6 | 9.2 | 12.2 | 14.9 |
Europe Middle East Africa | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 34.6 | 52.3 | 78.9 | 98.7 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 39.7 | 58.9 | 80 | 109.6 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 8.8 | $ 15.2 | $ 21.7 | $ 30.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | Jul. 03, 2017 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Non-current assets held for sale | $ 0 | $ 500,000 | ||
Disposed of by Sale | Darex | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration received/receivable for disposal | $ 1,060,000,000 | |||
After-tax gain on sale | $ 7,200,000 | |||
Non-current assets held for sale | 0 | 500,000 | ||
Tax effect of gain recognized | $ 2,400,000 | |||
Term of transition services agreement | 38 months | |||
Indemnification payable | 900,000 | 900,000 | ||
Disposed of by Sale | Darex | Other current liabilities | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, deferred consideration | $ 0 | $ 500,000 |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Gain on Disposal (Details) - Darex - Disposed of by Sale $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net proceeds included in gain | $ 12.7 |
Net assets derecognized | (3.1) |
Gain recognized before income taxes | 9.6 |
Tax effect of gain recognized | (2.4) |
Gain recognized after income taxes | $ 7.2 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations, net of income taxes | $ 0 | $ (0.5) | $ (0.3) | $ 6.3 |
Darex | Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Cost of goods sold | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0.6 | 0.2 | 0.9 | |
Restructuring expenses and asset impairments | 0.1 | 0 | 0.2 | |
Gain on sale of business | 0 | 0 | (9.6) | |
Other (income) expenses, net | (0.1) | 0.1 | 0 | |
(Loss) income from discontinued operations before income taxes | (0.6) | (0.3) | 8.5 | |
Benefit (provision) for income taxes | 0.1 | 0 | (2.2) | |
(Loss) income from discontinued operations, net of income taxes | $ (0.5) | $ (0.3) | $ 6.3 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 05, 2020shares | Jul. 31, 2020USD ($) | Jul. 02, 2020USD ($) | May 28, 2020numberOfDirectors | Aug. 05, 2020USD ($) | Jun. 30, 2020numberOfDirectors | Jul. 30, 2020USD ($) |
Starboard | |||||||
Subsequent Event [Line Items] | |||||||
Number of directors appointed by noncontrolling interest | numberOfDirectors | 8 | 8 | |||||
GCP Applied Technologies | Starboard | |||||||
Subsequent Event [Line Items] | |||||||
Noncontrolling interest ownership percentage | 9.00% | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Consideration from sale of corporate headquarters | $ 125,000,000 | ||||||
Proceeds from sale of corporate headquarters | $ 122,500,000 | ||||||
Lease term | 18 months | ||||||
Lease renewal term | 6 months | ||||||
Minimum monthly rental payments | $ 600,000 | ||||||
Share repurchase program, authorized amount | $ 100,000,000 | ||||||
Stock repurchased (in shares) | shares | 0 | ||||||
Subsequent Event | Starboard | |||||||
Subsequent Event [Line Items] | |||||||
Reimbursement of director fees, maximum | $ 2,000,000 | ||||||
Reimbursement of director fees | $ 2,000,000 |