Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, $0.01 par value per share | |
Trading Symbol | GCP | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 73,327,077 | |
Entity Central Index Key | 0001644440 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||
Net sales | $ 222.8 | $ 216.7 | |
Cost of goods sold | 136.3 | 133.9 | |
Gross profit | 86.5 | 82.8 | |
Selling, general and administrative expenses | 66.6 | 68.1 | |
Research and development expenses | 4.5 | 4.9 | |
Interest expense and related financing costs | 5.6 | 5.7 | |
Repositioning expenses | 1.3 | 2.7 | |
Restructuring expenses and asset write offs | 7.6 | 3.1 | |
Other income, net | (1.7) | (2.2) | |
Total costs and expenses | 83.9 | 82.3 | |
Income from continuing operations before income taxes | 2.6 | 0.5 | |
(Provision for) benefit from income taxes | (1) | 1.6 | |
Income from continuing operations | 1.6 | 2.1 | |
Loss from discontinued operations, net of income taxes | 0 | (0.3) | |
Net income | 1.6 | 1.8 | |
Less: Net income attributable to noncontrolling interests | (0.1) | (0.1) | |
Net income attributable to GCP shareholders | 1.5 | 1.7 | |
Amounts Attributable to GCP Shareholders: | |||
Income from continuing operations attributable to GCP shareholders | 1.5 | 2 | |
Loss from discontinued operations, net of income taxes | 0 | (0.3) | |
Net income attributable to GCP shareholders | $ 1.5 | $ 1.7 | |
Basic earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in usd per share) | [1] | $ 0.02 | $ 0.03 |
Loss from discontinued operations, net of income taxes (in usd per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in usd per share) | [1],[2] | $ 0.02 | $ 0.02 |
Weighted average number of basic shares (in shares) | [1] | 73.2 | 72.9 |
Diluted earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in dollars per share) | [1] | $ 0.02 | $ 0.03 |
Loss from discontinued operations, net of income taxes (in dollars per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in dollars per share) | [1],[2] | $ 0.02 | $ 0.02 |
Weighted average number of diluted shares (in shares) | [1] | 73.4 | 73 |
[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 (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1.6 | $ 1.8 |
Other comprehensive loss: | ||
Defined benefit pension and other postretirement plans, net of income taxes | 0 | 0.1 |
Currency translation adjustments, net of income taxes | (8) | (33.8) |
Gain from hedging activities, net of income taxes | 0 | 0.2 |
Total other comprehensive loss | (8) | (33.5) |
Comprehensive loss | (6.4) | (31.7) |
Less: Comprehensive income attributable to noncontrolling interests | (0.1) | (0.1) |
Comprehensive loss attributable to GCP shareholders | $ (6.5) | $ (31.8) |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 472.9 | $ 482.7 |
Trade accounts receivable, net of allowance for credit losses of $6.7 million and $7.0 million, respectively | 161.9 | 169.4 |
Inventories, net | 117.1 | 98.4 |
Other current assets | 43.9 | 41.2 |
Total Current Assets | 795.8 | 791.7 |
Properties and equipment, net | 216.6 | 225.6 |
Operating lease right-of-use assets | 37.7 | 40 |
Goodwill | 212.8 | 215 |
Technology and other intangible assets, net | 68.1 | 70.9 |
Deferred income taxes | 9.6 | 9.6 |
Overfunded defined benefit pension plans | 30 | 29.7 |
Other assets | 35.2 | 35.1 |
Total Assets | 1,405.8 | 1,417.6 |
Current Liabilities | ||
Debt payable within one year | 2.4 | 2.8 |
Operating lease obligations payable within one year | 7.6 | 8 |
Accounts payable | 94 | 87.8 |
Other current liabilities | 113.4 | 125.8 |
Total Current Liabilities | 217.4 | 224.4 |
Debt payable after one year | 349 | 348.9 |
Income taxes payable | 28.4 | 28.4 |
Deferred income taxes | 14.8 | 14.9 |
Operating lease obligations | 25.4 | 26.2 |
Unrecognized tax benefits | 41.2 | 41 |
Underfunded and unfunded defined benefit pension plans | 63 | 62.9 |
Other liabilities | 16 | 16.8 |
Total Liabilities | 755.2 | 763.5 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, par value $0.01; 50,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 73,251,641 and 73,082,066, respectively | 0.7 | 0.7 |
Paid-in capital | 65.5 | 61.9 |
Accumulated earnings | 711.8 | 710.3 |
Accumulated other comprehensive loss | (118.5) | (110.5) |
Treasury stock | (11.4) | (10.7) |
Total GCP's Shareholders' Equity | 648.1 | 651.7 |
Noncontrolling interests | 2.5 | 2.4 |
Total Stockholders' Equity | 650.6 | 654.1 |
Total Liabilities and Stockholders' Equity | $ 1,405.8 | $ 1,417.6 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 6.7 | $ 7 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
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) | 73,251,641 | 73,082,066 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' 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, 2019 | 73,200,000 | 300,000 | |||||||
Beginning balance at Dec. 31, 2019 | $ 541 | $ 0.7 | $ (8.6) | $ 53.4 | $ 610.1 | $ (117) | $ 2.4 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 1.8 | 1.7 | 0.1 | ||||||
Issuance of common stock in connection with stock plans (in shares) | [1] | 100,000 | |||||||
Share-based compensation | 0.5 | 0.5 | |||||||
Exercise of stock options | [1] | $ 0.4 | 0.4 | ||||||
Share repurchases (in shares) | 15,800 | 100,000 | [2] | ||||||
Share repurchases | [2] | $ (0.3) | $ (0.3) | ||||||
Current period other comprehensive loss | (33.5) | (33.5) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 73,300,000 | 400,000 | |||||||
Ending balance at Mar. 31, 2020 | 509.9 | $ 0.7 | $ (8.9) | 54.3 | 611.8 | (150.5) | 2.5 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 73,500,000 | 400,000 | |||||||
Beginning balance at Dec. 31, 2020 | 654.1 | $ 0.7 | $ (10.7) | 61.9 | 710.3 | (110.5) | 2.4 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 1.6 | 1.5 | 0.1 | ||||||
Issuance of common stock in connection with stock plans (in shares) | [1] | 100,000 | |||||||
Share-based compensation | [3] | 1.4 | 1.4 | ||||||
Exercise of stock options (in shares) | [1] | 100,000 | |||||||
Exercise of stock options | [1] | $ 2.2 | 2.2 | ||||||
Share repurchases (in shares) | 29,800 | 100,000 | [2] | ||||||
Share repurchases | [2] | $ (0.7) | $ (0.7) | ||||||
Current period other comprehensive loss | (8) | (8) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 73,700,000 | 500,000 | |||||||
Ending balance at Mar. 31, 2021 | $ 650.6 | $ 0.7 | $ (11.4) | $ 65.5 | $ 711.8 | $ (118.5) | $ 2.5 | ||
[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 14, “Stock Incentive Plans”, for further information. | ||||||||
[3] | During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options, RSUs and PBUs. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total stock compensation (benefit) expense | $ 1.7 | $ 0.8 |
2019 Phase 2 Plan | ||
Total stock compensation (benefit) expense | $ 0.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 1.6 | $ 1.8 |
Less: Loss from discontinued operations | 0 | (0.3) |
Income from continuing operations | 1.6 | 2.1 |
Reconciliation to net cash provided by operating activities: | ||
Depreciation and amortization | 11.3 | 11 |
Amortization of debt discount and financing costs | 0.4 | 0.4 |
Stock-based compensation expense | 1 | 0.8 |
Unrealized (gain) loss on foreign currency | (2.3) | 0.5 |
Deferred income taxes | (0.2) | (4.9) |
Loss (gain) on disposal of property and equipment | 1.1 | (0.1) |
Changes in assets and liabilities, excluding effect of currency translation: | ||
Trade accounts receivable | 5 | 17.4 |
Inventories | (19.9) | (11.4) |
Accounts payable | 9.9 | 6.6 |
Pension assets and liabilities, net | 1.1 | 1 |
Other assets and liabilities, net | (8.3) | (9.1) |
Net cash provided by operating activities from continuing operations | 0.7 | 14.3 |
Net cash used in operating activities from discontinued operations | 0 | (0.9) |
Net cash provided by operating activities | 0.7 | 13.4 |
INVESTING ACTIVITIES | ||
Capital expenditures | (8.1) | (9.2) |
Other investing activities | 0 | 0.4 |
Net cash used in investing activities | (8.1) | (8.8) |
FINANCING ACTIVITIES | ||
Repayments under credit arrangements | (0.3) | 0 |
Payments on finance lease obligations | (0.2) | (0.2) |
Payments of tax withholding obligations related to employee equity awards | (0.7) | (0.3) |
Proceeds from exercise of stock options | 1.8 | 0.4 |
Net cash provided by (used in) financing activities from continuing operations | 0.6 | (0.1) |
Effect of currency exchange rate changes on cash and cash equivalents | (3) | (9.3) |
Decrease in cash and cash equivalents | (9.8) | (4.8) |
Cash and cash equivalents, beginning of period | 482.7 | 325 |
Cash and cash equivalents, end of period | 472.9 | 320.2 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment purchases unpaid and included in accounts payable | $ 3 | $ 5.5 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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 Applied Technologies Inc. ("GCP", or the "Company") 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. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provided for a series of delayed closings in certain non-U.S. jurisdictions. 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. 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 ("U.S. 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, 2020 (the "2020 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2020 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 months ended March 31, 2021 are not necessarily indicative of the results of operations for the year ending December 31, 2021. Revisions of Previously Issued Consolidated Financial Statements In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified freight expense accrual and other errors in its previously filed unaudited quarterly consolidated financial statements for the first three quarterly periods of 2020. The Company considered the guidance in ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), ASC Topic 250-10-S99-1, Assessing Materiality , and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , (“ASC 250-10-S99-2”) in evaluating whether the Company’s previously issued unaudited consolidated financial statements were materially misstated. The Company concluded the errors were not material individually or in the aggregate to the previously issued consolidated financial statements. In accordance with ASC 250-10-S99-2, the Company has corrected these errors by revising previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020 in connection with the filing of this Form 10-Q. The accompanying footnotes have been corrected to reflect the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020. Please refer to Note 18, “Revisions of Previously Issued Consolidated Financial Statements” for reconciliations between as previously reported and as revised quarterly amounts, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. 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 2020 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. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. Despite progress in vaccination efforts, 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 resurgence of the pandemic, as well as additional and unanticipated actions by government authorities to further contain the spread of COVID-19, which may result in extended ongoing business disruptions. 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 7, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits. 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 In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes ). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. GCP adopted the guidance effective January 1, 2021. The adoption did not have a material impact on its results of operations, financial position and cash flows. Other During the three months ended March 31, 2021, 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, 2020. 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 2020 Annual Report on Form 10-K. |
Revenue from Lessor Arrangement
Revenue from Lessor Arrangements and Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
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. 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 Company recognizes lease and service revenue for these arrangements. Revenue generated from VERIFI® sales arrangements represented less than 10% of the Company's consolidated revenue during the three and three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021 and 2020, the Company recognized lease revenue of $9.4 million and $8.8 million, respectively, and service revenue of $2.0 million and $1.4 million, respectively. Lease revenue consists of dispenser lease revenue of $6.1 million, as well as an allocated portion of VERIFI® fixed fees and variable slump management fees. Service revenue consists of an allocated portion of VERIFI® fixed fees and variable slump management fees. Lease and service revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations. Revenue generated from Ductilcrete sales arrangements represented less than 10% of the Company's consolidated revenue during the three months ended March 31, 2021 and 2020. 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 March 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $9.4 million, including the estimated transaction price to be earned as revenue over the remaining term of these contracts, which is generally one |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Raw materials $ 50.6 $ 41.3 In process 4.4 4.2 Finished products and other 62.1 52.9 Total inventories, net $ 117.1 $ 98.4 The "Finished products and other" category presented in the table above includes "other" inventories, which consist of finished products purchased rather than produced by GCP of $10.0 million |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, 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. 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 2020 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 March 31, 2021 and December 31, 2020: (In millions) March 31, 2021 December 31, 2020 Derivative assets (1) : Foreign exchange forward contracts $ 0.8 $ — Derivative liability (1) : Foreign exchange forward contracts $ (0.6) $ (1.8) __________________________ (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. As of March 31, 2021, fair value of derivative assets of $0.2 million and $0.6 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets, and fair value of derivative liability of $0.6 million is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. As of December 31, 2020, fair value of derivative liabilities of $0.4 million and $1.4 million, respectively, is recorded within "Other Current Liabilities" and "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 Loss related to forward contracts designated as net investment hedges for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (In millions) Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gain on foreign exchange forward contracts $ 0.2 $ 1.4 $ 0.3 $ 1.3 _______________________ (1) The amounts are presented net of tax expense of $0.4 million during each of the three months ended March 31, 2021 and 2020. |
Debt and Other Borrowings
Debt and Other Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, 5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.2 million and $3.3 million, respectively, at March 31, 2021 and December 31, 2020 $ 346.8 $ 346.6 Revolving credit facility due 2023 (1) — — Other borrowings (2) 4.6 5.1 Total debt 351.4 351.7 Less: debt payable within one year 2.4 2.8 Debt payable after one year $ 349.0 $ 348.9 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 March 31, 2021 and December 31, 2020. (2) Represents borrowings of $1.7 million and $2.1 million, respectively, at March 31, 2021 and December 31, 2020, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $2.9 million and $3.0 million, respectively, of finance lease obligations. The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at March 31, 2021: (In millions) Amount Remainder of 2021 $ 2.3 2022 0.8 2023 0.7 2024 0.7 2025 0.1 Thereafter 346.8 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, 2021. 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 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenants and conditions under the Indenture as of March 31, 2021. There are no events of default under the Indenture as of March 31, 2021. Credit Agreement As of March 31, 2021 and December 31, 2020, there were no outstanding borrowings on the Revolving Credit Facility. There were $2.6 million in outstanding letters of credit which resulted in available credit of $347.4 million as of March 31, 2021 and December 31, 2020. There were no interest payments on the Revolving Credit Facility during the three months ended March 31, 2021 and 2020. 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 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenant terms as of March 31, 2021. There are no events of default as of March 31, 2021. 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 March 31, 2021 and December 31, 2020, the remaining unamortized debt issuance costs related to the Revolving Credit Facility were $1.9 million and $2.2 million, respectively. Debt Fair Value The carrying amount and fair value of GCP's debt and other borrowings were as follows: March 31, 2021 December 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.5% Senior Notes due in 2026 $ 346.8 $ 360.1 $ 346.6 $ 362.0 Other borrowings 4.6 4.6 5.1 5.1 Total debt $ 351.4 $ 364.7 $ 351.7 $ 367.1 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. As of March 31, 2021, the fair value was higher than the carrying amount due to higher bond market prices. The carrying amount represents the aggregate principal amount at maturity reduced by the unamortized debt issuance costs. |
Lessee Arrangements
Lessee Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
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 months ended March 31, 2021 and 2020: Three months ended March 31, (In millions) 2021 2020 Operating lease expense $ 4.3 $ 3.2 Variable lease expense 1.0 1.1 Short-term lease expense 0.6 0.6 Total lease expense $ 5.9 $ 4.9 The following table summarizes supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020: Three months ended March 31, (In millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2.6 $ 3.2 Operating lease right of use assets obtained in exchange for new lease obligations 1.4 7.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes attributable to continuing operations during the three months ended March 31, 2021 and 2020 was an income tax expense (benefit) of $1.0 million and $(1.6) million, respectively, representing effective tax rates of 38.5% and (320.0)%, 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 March 31, 2021, was primarily due to income tax expense on unrecognized tax benefits of $0.3 million. 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 March 31, 2020 was primarily due to benefits recognized as a result of the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The CARES Act allowed for accelerated interest and depreciation deductions which caused GCP to estimate net operating losses in 2019 and 2020. Under the CARES Act, those losses can be carried back to offset prior taxable income that was taxed at the U.S. federal income tax rate of 35%. This resulted in an income tax benefit of $2.8 million, offset by increases in unrecognized tax benefits of $0.4 million and valuation allowance expense of $0.6 million. 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. During the three months ended March 31, 2021 GCP incurred no income tax expense for valuation allowances. During the three months ended March 31, 2020, GCP incurred income tax expense for valuation allowances of $0.6 million recorded against deferred tax assets for net operating losses primarily in Argentina and Australia Tax Sharing Agreement In connection with the legal separation and transfer of W.R. Grace & Co.'s ("Grace") construction products and packaging technologies businesses to the Company through a dividend distribution of all of the then-outstanding common stock of GCP to Grace shareholders on February 3, 2016 (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 16, "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 | 3 Months Ended |
Mar. 31, 2021 | |
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) March 31, 2021 December 31, 2020 Overfunded defined benefit pension plans $ 30.0 $ 29.7 Underfunded defined benefit pension plans (34.2) (33.3) Unfunded defined benefit pension plans (28.8) (29.6) Total underfunded and unfunded defined benefit pension plans (63.0) (62.9) Pension liabilities included in other current liabilities (1.4) (1.4) Net funded status $ (34.4) $ (34.6) Components of Net Periodic Benefit Cost The components of GCP's net periodic benefit cost for the three months ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 Pension Pension (In millions) U.S. Non-U.S. Total U.S. Non-U.S. Total Service cost $ 1.5 $ 0.3 $ 1.8 $ 1.5 $ 0.2 $ 1.7 Interest cost 1.2 0.7 1.9 1.3 1.1 2.4 Expected return on plan assets (1.5) (0.8) (2.3) (1.6) (1.2) (2.8) Net periodic benefit cost (1) $ 1.2 $ 0.2 $ 1.4 $ 1.2 $ 0.1 $ 1.3 ________________________________ (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 costs are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations. Pension 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 U.S. GAAP. GCP made contributions of $0.2 million and $0.1 million, respectively, to the U.S. pension plans during the three months ended March 31, 2021 and 2020. GCP intends to fund non-U.S. pension plans based on applicable legal requirements, as well as actuarial and trustee recommendations. During the three months ended March 31, 2021 and 2020, GCP contributed $0.2 million and $0.5 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. Additionally, GCP contributes up to 2% of a full amount 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 was closed to new hires effective January 1, 2018. GCP's costs related to this benefit plan amounted to $1.0 million and $1.3 million, respectively, during the three months ended March 31, 2021 and 2020. 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 | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information The following is a summary of other current assets at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Other Current Assets: Non-trade receivables $ 19.2 $ 20.4 Prepaid expenses and other current assets 15.6 11.1 Income taxes receivable 9.1 9.7 Total other current assets $ 43.9 $ 41.2 The following is a summary of other current liabilities at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Other Current Liabilities: Accrued customer volume rebates $ 15.2 $ 24.4 Accrued compensation (1) 18.3 25.0 Income taxes payable 6.7 7.1 Accrued interest 8.8 4.0 Pension liabilities 1.4 1.4 Restructuring liability 16.7 18.0 Other accrued liabilities 46.3 45.9 Total other current liabilities $ 113.4 $ 125.8 ________________________________ (1) Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies GCP 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 2020 Annual Report in the Form 10-K. There have been no material changes to these commitments and obligations during the three months ended March 31, 2021, except as described below. Although the outcome of each of the matters related to loss contingencies and obligations cannot be predicted with certainty, GCP has assessed the risk and has made accounting estimates and disclosures as required under U.S. 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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020, GCP had gross financial assurances issued and outstanding of $6.1 million and $6.8 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 March 31, 2021 and December 31, 2020. 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 Henkel AG & Co. KGaA Matters In July 2017, GCP completed the sale of its Darex business to Henkel AG & Co. KGaA (the "Henkel"). The Purchase and Sale Agreement with Henkel regarding the sale of the Darex Business dated July 3, 2017, (the “SAPA”) contains obligations for the Company as sellers to indemnify Henkel as buyer for certain matters, such as breaches of representations and warranties, taxes, as well as certain covenants and liabilities. On March 30, 2021, Henkel filed suit in the United States District Court for the District of Delaware against the Company, seeking indemnification for alleged breaches of representations and warranties under the SAPA. Henkel is seeking damages of approximately $11 million, which consist of a claim amount of approximately $16 million, net of a contractual deductible of $5 million. The Company believes that it has meritorious defenses against the plaintiff’s claims and intends to defend this action vigorously. Although the Company does not believe that resolution of this matter will have a material adverse effect on its business or financial condition, at this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or a range of estimates, of potential losses, if any, that might result from an adverse resolution of this matter. Other Matters 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, except as disclosed above, will have a material adverse effect on its overall financial condition, results of operations or cash flows for the three months ended March 31, 2021. However, the results of such pending legal matters and claims cannot be predicted with sufficient certainty since unfavorable resolutions are possible and could materially affect GCP's financial position, results of operations, or cash flows. In the event of unexpected subsequent developments and due to the inherent unpredictability of these matters, there can be no assurance that the Company’s assessment of any claim will reflect the ultimate outcome. An adverse outcome in certain matters could, from time to time, have a material adverse effect on GCP's consolidated financial position, results of operations and cash flows in particular quarterly or annual periods. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity 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 the 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 during the three months ended March 31, 2021. |
Restructuring and Repositioning
Restructuring and Repositioning Expenses, Asset Write Offs | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Repositioning Expenses, Asset Write Offs | Restructuring and Repositioning Expenses, Asset Write Offs GCP's Board of Directors (the "Board") 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. 2021 Restructuring and Repositioning Plan (the “2021 Plan”) On March 30, 2021, the Board approved a business restructuring and repositioning plan (the “2021 Plan”) related to the relocation of the Company’s corporate headquarters to the Atlanta, Georgia area, the closure of its Cambridge, Massachusetts campus, the build-out of a new global research and development center near the Boston /Cambridge area, as well as the consolidation of other regional facilities and offices, including an organizational redesign, which is expected to lower costs. The program is expected to be completed by June 30, 2022. 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 was substantially completed as of March 31, 2021. 2019 Restructuring and Repositioning Plan (the “2019 Plan”) On February 22, 2019, the Board 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 was substantially completed as of December 31, 2020. The following table illustrates a summary of the charges incurred and planned in connection with restructuring and repositioning plans discussed above: (In millions) Severance/employee costs Asset Write Offs Other Associated Costs Total Restructuring Repositioning Total Costs Capital Expenditures 2019 Plan: (1) Cumulative Costs incurred to Date $0.9 $0.9 $0.3 $2.1 $10.5 $12.6 $2.2 2019 Phase 2 Plan: (2) Cumulative Costs incurred to Date $26.0 $0.5 $— $26.5 $7.3 $33.8 $0.4 2021 Plan: (3) Estimated Total Costs $11-13 $8-9 $5 $24-27 $2 $26-29 $6 Cumulative Costs incurred to Date $4.3 $2.1 $0.2 $6.6 $— $6.6 $— (1) As of March 31, 2021, 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 March 31, 2021, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $26.5 million, of which $7.1 million was attributable to the SCC segment, $7.0 million was attributable to the SBM segment, and $12.4 million was attributable to the Corporate function. (3) As of March 31, 2021, the cumulative restructuring costs incurred under the 2021 Plan since its inception were $6.6 million, of which $2.6 million was related to the SCC segment, $1.7 million was related to the SBM segment, and $2.3 million was attributable to the Corporate function. 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 March 31, 2021 (In millions) 2019 Plan 2019 Plan Phase 2 Total Repositioning Expenses $ — $ 1.3 $ 1.3 Cash Paid for Repositioning Expenses — 1.4 1.4 Capital Expenditures 0.1 — 0.1 Cash Paid for Capital Expenditures 0.1 — 0.1 Three Months Ended March 31, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.4 $ 1.2 $ — $ — $ 0.1 $ 2.7 Cash Paid for Repositioning Expenses 3.3 1.5 0.2 — — 5.0 Capital Expenditures 0.4 0.1 — 0.3 0.2 1.0 Cash Paid for Capital Expenditures 0.3 0.1 — 0.1 0.6 1.1 As of March 31, 2021 (In millions) 2019 Plan 2019 Plan Phase 2 Cumulative Repositioning Expenses $ 10.5 $ 7.3 Cumulative Cash Paid for Repositioning Expenses 10.5 6.5 Cumulative Capital Expenditure 2.2 0.4 Cumulative Cash Paid for Capital Expenditures 2.1 0.4 Restructuring Expenses and Asset Write Offs The following restructuring expenses and asset write offs were incurred under the plans discussed above and other plans during each period: Three Months Ended March 31, (In millions) 2021 2020 Severance and other employee costs $ 5.2 $ 1.9 Asset write offs 2.2 1.0 Other associated costs 0.2 0.2 Total restructuring expenses and asset write offs $ 7.6 $ 3.1 GCP incurred restructuring expenses and asset write offs related to its two operating segments and Corporate function as follows: Three Months Ended March 31, (In millions) 2021 2020 SCC $ 2.9 $ 2.3 SBM 1.8 0.8 Corporate 2.9 — Total restructuring expenses and asset write offs $ 7.6 $ 3.1 Restructuring liabilities were $16.7 million and $18.0 million, respectively, as of March 31, 2021 and December 31, 2020. These liabilities are included within “Other current liabilities” in the accompanying unaudited Consolidated Balance Sheets. The following table summarizes the Company’s restructuring liability activity: 2021 Plan 2019 Plan 2019 Phase 2 Plan 2018 Plan (In millions) Severance and other employee costs Severance and other employee costs Other Costs Severance and other employee costs Severance and other employee costs Total Balance, December 31, 2020 $ — $ 0.1 $ 0.1 $ 17.3 $ 0.5 $ 18.0 Expense (1)(2) 4.5 — — 0.2 — $ 4.7 Payments (0.2) — — (5.7) — $ (5.9) Impact of foreign currency and other — — — (0.1) — $ (0.1) Balance, March 31, 2021 $ 4.3 $ 0.1 $ 0.1 $ 11.7 $ 0.5 $ 16.7 ________________________________ (1) Asset write offs of $2.1 million attributable to the Corporate function during the three months ended March 31, 2021 are related to the 2021 Plan. Additionally, GCP incurred $0.1 million of asset write offs attributable to the SCC segment as a part of the 2019 Plan and 2019 Phase 2 Plan during the three months ended March 31, 2021. These asset write offs are recorded with a corresponding reduction to "Properties and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. These expenses are not recorded with a corresponding adjustment to the restructuring liability and therefore, are not included in the table above. |
Other Comprehensive Loss
Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss The following tables present the pre-tax, tax benefit (expense), and after-tax components of GCP's other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended (In millions) Pre-Tax Amount Tax Expense After-Tax Amount Currency translation adjustments (1) $ (7.6) $ (0.4) $ (8.0) Other comprehensive loss attributable to GCP shareholders $ (7.6) $ (0.4) $ (8.0) Three Months Ended March 31, 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 (1) (33.4) (0.4) (33.8) Gain from hedging activities 0.2 — 0.2 Other comprehensive loss attributable to GCP shareholders $ (33.1) $ (0.4) $ (33.5) _____________________ (1) Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 4, "Derivative Instruments." The following tables present the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020: (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Total Balance, December 31, 2020 $ (3.1) $ (107.4) $ (110.5) Current-period other comprehensive loss — (8.0) (8.0) Balance, March 31, 2021 $ (3.1) $ (115.4) $ (118.5) (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 loss 0.1 (33.8) 0.2 (33.5) Balance, March 31, 2020 $ (2.6) $ (148.0) $ 0.1 $ (150.5) Please refer to Note 8, "Pension Plans and Other Postretirement Benefit Plans," for a discussion of pension plans and other postretirement benefit plans. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Stock-Based Compensation Accounting GCP grants restricted stock units ("RSUs"), as well as stock options and performance-based units ("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 2020 Annual Report in the Form 10-K for further information on these awards. Total stock-based compensation expense included in "Income from continuing operations before income taxes" in the accompanying unaudited Consolidated Statements of Operations was $1.7 million and $0.8 million, respectively, during the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options and RSUs and PBUs, as described in Note 12, "Restructuring and Repositioning Expenses, Asset Write Offs". The Company issues new shares of common stock upon exercise of stock options and vesting of RSUs and PBUs. 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 three months ended March 31, 2021 and 2020, GCP withheld and retained approximately 29,800 shares and 15,800 shares, respectively, in a non-cash transaction with a cost of $0.7 million and $0.3 million, respectively, which were reflected as "Share Repurchases" in the accompanying unaudited Consolidated Statements of Stockholders' Equity. During the three months ended March 31, 2021 and 2020, cash payments for such tax withholding obligations were $0.7 million and $0.3 million, respectively. As of March 31, 2021, total unrecognized compensation expense of $1.7 million was related to stock options with market conditions and $8.1 million to the RSU and PBU awards. Such expense is expected to be recognized over the remaining weighted-average service period of approximately 2.5 years for stock options with market conditions and 2.0 years for RSU and PBU awards. Stock Options Approximately 122,000 options were exercised during the three months ended March 31, 2021 with a weighted average exercise price of $17.25. Total intrinsic value of these options was approximately $1.0 million. Restricted Stock Units The following table sets forth the RSU activity for the three months ended March 31, 2021: RSU Activity Number Of Weighted Outstanding, December 31, 2020 305 $ 22.14 RSUs settled 88 23.97 RSUs forfeited 2 24.37 RSUs granted 90 26.10 RSUs outstanding, March 31, 2021 305 $ 22.79 Expected to vest as of March 31, 2021 301 $ 22.78 The weighted average grant date fair value of RSUs granted during the three months ended March 31, 2021 and 2020 was $26.10 and $21.11 per share, respectively. During the three months ended March 31, 2021 and 2020, GCP distributed 88,000 shares and 43,000 shares, respectively, to settle RSUs upon vesting. The fair value of RSUs vested during the three months ended March 31, 2021 and 2020 was $2.2 million and $0.9 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 2021 includes the following metrics: (i) a 2-year cumulative free cash flow target metric for approximately 33.3% of awards; (ii) a 2-year cumulative adjusted earnings before interest, tax, depreciation and amortization metric for approximately 33.3% of awards; (iii) the Company’s 2-year total shareholder return (“TSR”) relative to the performance of the Russell 3000 Specialty Building Materials Index and the peer group approved by the Board’s Compensation Committee. 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 awards will become vested, if at all, two 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 grant date fair value of PBUs without market conditions is determined based on the closing market price of the Company’s common stock on the date of grant. The grant date fair value of PBUs with market conditions based on relative TSR is determined using a Monte Carlo simulation. The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, Assumptions used to calculate expense for PBUs: 2021 2020 Expected Term (Remaining Performance Period) 1.81 2.85 Expected volatility 51.48% 29.85% Risk-free interest rate 0.14% 1.21% Expected dividends — — Median correlation coefficient of constituents 54.00% 54.01% The following table sets forth the PBU activity for the three months ended March 31, 2021: PBU Activity Number Of Weighted Outstanding, December 31, 2020 343 $ 28.10 PBU's forfeited 136 32.08 PBU's granted 80 27.29 Outstanding, March 31, 2021 287 $ 25.96 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, (In millions, except per share amounts) 2021 2020 Numerators Income from continuing operations attributable to GCP shareholders $ 1.5 $ 2.0 Loss from discontinued operations, net of income taxes — (0.3) Net income attributable to GCP shareholders $ 1.5 $ 1.7 Denominators Weighted average common shares—basic calculation 73.2 72.9 Dilutive effect of employee stock awards (2) 0.2 0.1 Weighted average common shares—diluted calculation 73.4 73.0 Basic earnings (loss) per share: (2) Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — Net income attributable to GCP shareholders (1) $ 0.02 $ 0.02 Diluted earnings (loss) per share: (2) Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — Net income attributable to GCP shareholders (1) $ 0.02 $ 0.02 ________________________________ (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. |
Related Party Transactions and
Related Party Transactions and Transactions with Grace | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Transactions with Grace | Related Party Transactions and Transactions with Grace 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 March 31, 2021 and December 31, 2020, GCP has recorded $1.8 million of indemnified receivables in "Other assets" and $1.0 million of indemnified payables in "Other current liabilities" in the accompanying unaudited Consolidated Balance Sheets. |
Operating Segment and Geographi
Operating Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
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 provides products, services and technologies to the concrete and cement industries, including concrete add-mixtures and cement, as well as in-transit monitoring and management systems, which reduce the cost and improve the performance and quality of cement, concrete, mortar, masonry, and other cementitious-based construction materials. 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 March 31, (In millions) 2021 2020 Net Sales Specialty Construction Chemicals $ 123.9 $ 125.4 Specialty Building Materials 98.9 91.3 Total net sales $ 222.8 $ 216.7 Segment Operating Income Specialty Construction Chemicals segment operating income $ 6.1 $ 8.5 Specialty Building Materials segment operating income 19.4 14.1 Total segment operating income $ 25.5 $ 22.6 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 months ended March 31, 2021 and 2020 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations: Three Months Ended March 31, (In millions) 2021 2020 Total segment operating income (1) $ 25.5 $ 22.6 Corporate costs (7.2) (5.9) Certain pension costs (1.4) (1.3) Shareholder activism and other related costs (2) — (3.6) Repositioning expenses (1.3) (2.7) Restructuring expenses and asset write offs (7.6) (3.1) Third-party and other acquisition-related costs (0.1) (0.5) Net income attributable to noncontrolling interests 0.1 0.1 Interest expense, net (5.4) (5.1) Income from continuing operations before income taxes $ 2.6 $ 0.5 __________________________ (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 GCP shareholders seeking changes in the composition of the Company's Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, 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 March 31, (In millions) 2021 2020 Net Sales United States $ 112.1 $ 113.0 Canada and Other 6.0 6.2 Total North America 118.1 119.2 Europe Middle East Africa 44.6 44.3 Asia Pacific 46.7 40.3 Latin America 13.4 12.9 Total $ 222.8 $ 216.7 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 months ended March 31, 2021 and 2020. There were no customers that individually accounted for 10% or more of the Company's accounts receivable balance as of March 31, 2021 and December 31, 2020. |
Revisions of Previously Issued
Revisions of Previously Issued Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Revisions of Previously Issued Consolidated Financial Statements | Revisions of Previously Issued Consolidated Financial Statements As described in Note 1, “Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies,” the following tables set forth the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020. GCP Applied Technologies Inc. Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2020 (In millions, except per share amounts) As Previously Reported Adjustments As Revised Net sales $ 216.7 $ — $ 216.7 Cost of goods sold 134.8 (0.9) 133.9 Gross profit 81.9 0.9 82.8 Selling, general and administrative expenses 68.1 — 68.1 Research and development expenses 4.9 — 4.9 Interest expense and related financing costs 5.7 — 5.7 Repositioning expenses 2.7 — 2.7 Restructuring expenses and asset write offs 3.1 — 3.1 Other income, net (2.2) — (2.2) Total costs and expenses 82.3 — 82.3 Loss (income) from continuing operations before income taxes (0.4) 0.9 0.5 Benefit from income taxes 1.9 (0.3) 1.6 Income from continuing operations 1.5 0.6 2.1 Loss from discontinued operations, net of income taxes (0.3) — (0.3) Net income 1.2 0.6 1.8 Less: Net income attributable to noncontrolling interests (0.1) — (0.1) Net income attributable to GCP shareholders $ 1.1 $ 0.6 $ 1.7 Amounts Attributable to GCP Shareholders: Income from continuing operations attributable to GCP shareholders 1.4 $ 0.6 $ 2.0 Loss from discontinued operations, net of income taxes (0.3) — (0.3) Net income attributable to GCP shareholders $ 1.1 $ 0.6 $ 1.7 Earnings (Loss) Per Share Attributable to GCP Shareholders Basic earnings (loss) per share: Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.01 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — $ — Net income attributable to GCP shareholders $ 0.02 $ — $ 0.02 Weighted average number of basic shares 72.9 — 72.9 Diluted earnings (loss) per share: Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.01 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — $ — Net income attributable to GCP shareholders $ 0.02 $ — $ 0.02 Weighted average number of diluted shares 73.0 — 73.0 GCP Applied Technologies Inc. Consolidated Statements of Comprehensive Loss (unaudited) Three Months Ended March 31, 2020 (In millions) As Previously Reported Adjustments As Revised Net income $ 1.2 $ 0.6 $ 1.8 Other comprehensive loss: Defined benefit pension and other postretirement plans, net of income taxes 0.1 — 0.1 Currency translation adjustments, net of income taxes (33.8) — (33.8) Gain from hedging activities, net of income taxes 0.2 — 0.2 Total other comprehensive loss (33.5) — (33.5) Comprehensive loss (32.3) 0.6 (31.7) Less: Comprehensive income attributable to noncontrolling interests (0.1) — (0.1) Comprehensive loss attributable to GCP shareholders $ (32.4) $ 0.6 $ (31.8) GCP Applied Technologies Inc. Consolidated Statements of Stockholders' Equity (unaudited) (In millions) As Previously Reported Adjustments As Revised Total Stockholders' Equity: Balance, December 31, 2019 $ 541.1 $ (0.1) $ 541.0 Net income 1.2 0.6 1.8 Share-based compensation 0.5 — 0.5 Exercise of stock options 0.4 — 0.4 Share repurchases (0.3) — (0.3) Other comprehensive loss (33.5) — (33.5) Balance, March 31, 2020 $ 509.4 $ 0.5 $ 509.9 GCP Applied Technologies Inc. Consolidated Statements of Cash Flows (unaudited) Three Months Ended March 31, 2020 (In millions) As Previously Reported Adjustments As Revised OPERATING ACTIVITIES Net income $ 1.2 $ 0.6 $ 1.8 Less: Loss from discontinued operations (0.3) — (0.3) Income from continuing operations 1.5 0.6 2.1 Reconciliation to net cash provided by operating activities: Depreciation and amortization 11.0 — 11.0 Amortization of debt discount and financing costs 0.4 — 0.4 Stock-based compensation expense 0.8 — 0.8 Unrealized loss on foreign currency 0.5 — 0.5 Deferred income taxes (5.2) 0.3 (4.9) Loss on disposal of property and equipment (0.1) — (0.1) Changes in assets and liabilities, excluding effect of currency translation: Trade accounts receivable 17.4 — 17.4 Inventories (11.4) — (11.4) Accounts payable 6.6 — 6.6 Pension assets and liabilities, net 1.0 — 1.0 Other assets and liabilities, net (8.5) (0.6) (9.1) Net cash provided by operating activities from continuing operations 14.0 0.3 14.3 Net cash used in operating activities from discontinued operations (0.9) — (0.9) Net cash provided by operating activities 13.1 0.3 13.4 INVESTING ACTIVITIES Capital expenditures (8.9) (0.3) (9.2) Other investing activities 0.4 — 0.4 Net cash used in investing activities (8.5) (0.3) (8.8) FINANCING ACTIVITIES Payments on finance lease obligations (0.2) — (0.2) Payments of tax withholding obligations related to employee equity awards (0.3) — (0.3) Proceeds from exercise of stock options 0.4 — 0.4 Net cash used in financing activities from continuing operations (0.1) — (0.1) Effect of currency exchange rate changes on cash and cash equivalents (9.3) — (9.3) Decrease in cash and cash equivalents (4.8) — (4.8) Cash and cash equivalents, beginning of period 325.0 — 325.0 Cash and cash equivalents, end of period $ 320.2 $ — $ 320.2 Supplemental disclosure of non-cash investing activities: Property and equipment purchases unpaid and included in accounts payable $ 5.5 $ — $ 5.5 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 ("U.S. 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, 2020 (the "2020 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2020 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 months ended March 31, 2021 are not necessarily indicative of the results of operations for the year ending December 31, 2021. |
Revisions of Previously Issued Consolidated Financial Statements | Revisions of Previously Issued Consolidated Financial Statements In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified freight expense accrual and other errors in its previously filed unaudited quarterly consolidated financial statements for the first three quarterly periods of 2020. The Company considered the guidance in ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), ASC Topic 250-10-S99-1, Assessing Materiality , and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , (“ASC 250-10-S99-2”) in evaluating whether the Company’s previously issued unaudited consolidated financial statements were materially misstated. The Company concluded the errors were not material individually or in the aggregate to the previously issued consolidated financial statements. In accordance with ASC 250-10-S99-2, the Company has corrected these errors by revising previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020 in connection with the filing of this Form 10-Q. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 2020 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. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. Despite progress in vaccination efforts, 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 resurgence of the pandemic, as well as additional and unanticipated actions by government authorities to further contain the spread of COVID-19, which may result in extended ongoing business disruptions. |
Income Tax | Income Tax |
Reclassifications | Reclassifications |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes ). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. GCP adopted the guidance effective January 1, 2021. The adoption did not have a material impact on its results of operations, financial position and cash flows. |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Raw materials $ 50.6 $ 41.3 In process 4.4 4.2 Finished products and other 62.1 52.9 Total inventories, net $ 117.1 $ 98.4 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020: (In millions) March 31, 2021 December 31, 2020 Derivative assets (1) : Foreign exchange forward contracts $ 0.8 $ — Derivative liability (1) : Foreign exchange forward contracts $ (0.6) $ (1.8) __________________________ (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. As of March 31, 2021, fair value of derivative assets of $0.2 million and $0.6 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets, and fair value of derivative liability of $0.6 million is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. As of December 31, 2020, fair value of derivative liabilities of $0.4 million and $1.4 million, respectively, is recorded within "Other Current Liabilities" and "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. |
Net Investment Hedges in Consolidated Statements of Operations and Comprehensive Loss | The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss related to forward contracts designated as net investment hedges for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (In millions) Other Income, net Cumulative Translation Adjustments (1) Other Income, net Cumulative Translation Adjustments (1) Gain on foreign exchange forward contracts $ 0.2 $ 1.4 $ 0.3 $ 1.3 _______________________ (1) The amounts are presented net of tax expense of $0.4 million during each of the three months ended March 31, 2021 and 2020. |
Debt and Other Borrowings (Tabl
Debt and Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt and Other Borrowings | The following is a summary of obligations under senior notes and other borrowings at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, 5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.2 million and $3.3 million, respectively, at March 31, 2021 and December 31, 2020 $ 346.8 $ 346.6 Revolving credit facility due 2023 (1) — — Other borrowings (2) 4.6 5.1 Total debt 351.4 351.7 Less: debt payable within one year 2.4 2.8 Debt payable after one year $ 349.0 $ 348.9 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 March 31, 2021 and December 31, 2020. (2) Represents borrowings of $1.7 million and $2.1 million, respectively, at March 31, 2021 and December 31, 2020, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $2.9 million and $3.0 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 March 31, 2021: (In millions) Amount Remainder of 2021 $ 2.3 2022 0.8 2023 0.7 2024 0.7 2025 0.1 Thereafter 346.8 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: March 31, 2021 December 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 5.5% Senior Notes due in 2026 $ 346.8 $ 360.1 $ 346.6 $ 362.0 Other borrowings 4.6 4.6 5.1 5.1 Total debt $ 351.4 $ 364.7 $ 351.7 $ 367.1 |
Lessee Arrangements (Tables)
Lessee Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease Expense | The following table summarizes components of lease expense for the three months ended March 31, 2021 and 2020: Three months ended March 31, (In millions) 2021 2020 Operating lease expense $ 4.3 $ 3.2 Variable lease expense 1.0 1.1 Short-term lease expense 0.6 0.6 Total lease expense $ 5.9 $ 4.9 The following table summarizes supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020: Three months ended March 31, (In millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2.6 $ 3.2 Operating lease right of use assets obtained in exchange for new lease obligations 1.4 7.7 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) March 31, 2021 December 31, 2020 Overfunded defined benefit pension plans $ 30.0 $ 29.7 Underfunded defined benefit pension plans (34.2) (33.3) Unfunded defined benefit pension plans (28.8) (29.6) Total underfunded and unfunded defined benefit pension plans (63.0) (62.9) Pension liabilities included in other current liabilities (1.4) (1.4) Net funded status $ (34.4) $ (34.6) |
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 months ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 Pension Pension (In millions) U.S. Non-U.S. Total U.S. Non-U.S. Total Service cost $ 1.5 $ 0.3 $ 1.8 $ 1.5 $ 0.2 $ 1.7 Interest cost 1.2 0.7 1.9 1.3 1.1 2.4 Expected return on plan assets (1.5) (0.8) (2.3) (1.6) (1.2) (2.8) Net periodic benefit cost (1) $ 1.2 $ 0.2 $ 1.4 $ 1.2 $ 0.1 $ 1.3 ________________________________ (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 costs are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations. |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | The following is a summary of other current assets at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Other Current Assets: Non-trade receivables $ 19.2 $ 20.4 Prepaid expenses and other current assets 15.6 11.1 Income taxes receivable 9.1 9.7 Total other current assets $ 43.9 $ 41.2 |
Schedule of Other Current Liabilities | The following is a summary of other current liabilities at March 31, 2021 and December 31, 2020: (In millions) March 31, December 31, Other Current Liabilities: Accrued customer volume rebates $ 15.2 $ 24.4 Accrued compensation (1) 18.3 25.0 Income taxes payable 6.7 7.1 Accrued interest 8.8 4.0 Pension liabilities 1.4 1.4 Restructuring liability 16.7 18.0 Other accrued liabilities 46.3 45.9 Total other current liabilities $ 113.4 $ 125.8 ________________________________ (1) Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs. |
Restructuring and Repositioni_2
Restructuring and Repositioning Expenses, Asset Write Offs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | The following table illustrates a summary of the charges incurred and planned in connection with restructuring and repositioning plans discussed above: (In millions) Severance/employee costs Asset Write Offs Other Associated Costs Total Restructuring Repositioning Total Costs Capital Expenditures 2019 Plan: (1) Cumulative Costs incurred to Date $0.9 $0.9 $0.3 $2.1 $10.5 $12.6 $2.2 2019 Phase 2 Plan: (2) Cumulative Costs incurred to Date $26.0 $0.5 $— $26.5 $7.3 $33.8 $0.4 2021 Plan: (3) Estimated Total Costs $11-13 $8-9 $5 $24-27 $2 $26-29 $6 Cumulative Costs incurred to Date $4.3 $2.1 $0.2 $6.6 $— $6.6 $— (1) As of March 31, 2021, 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 March 31, 2021, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $26.5 million, of which $7.1 million was attributable to the SCC segment, $7.0 million was attributable to the SBM segment, and $12.4 million was attributable to the Corporate function. (3) As of March 31, 2021, the cumulative restructuring costs incurred under the 2021 Plan since its inception were $6.6 million, of which $2.6 million was related to the SCC segment, $1.7 million was related to the SBM segment, and $2.3 million was attributable to the Corporate function. 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 March 31, 2021 (In millions) 2019 Plan 2019 Plan Phase 2 Total Repositioning Expenses $ — $ 1.3 $ 1.3 Cash Paid for Repositioning Expenses — 1.4 1.4 Capital Expenditures 0.1 — 0.1 Cash Paid for Capital Expenditures 0.1 — 0.1 Three Months Ended March 31, 2020 (In millions) 2019 Plan 2019 Plan Phase 2 Strategic Alternatives Plan 2018 Plan 2017 Plan Total Repositioning Expenses $ 1.4 $ 1.2 $ — $ — $ 0.1 $ 2.7 Cash Paid for Repositioning Expenses 3.3 1.5 0.2 — — 5.0 Capital Expenditures 0.4 0.1 — 0.3 0.2 1.0 Cash Paid for Capital Expenditures 0.3 0.1 — 0.1 0.6 1.1 As of March 31, 2021 (In millions) 2019 Plan 2019 Plan Phase 2 Cumulative Repositioning Expenses $ 10.5 $ 7.3 Cumulative Cash Paid for Repositioning Expenses 10.5 6.5 Cumulative Capital Expenditure 2.2 0.4 Cumulative Cash Paid for Capital Expenditures 2.1 0.4 The following restructuring expenses and asset write offs were incurred under the plans discussed above and other plans during each period: Three Months Ended March 31, (In millions) 2021 2020 Severance and other employee costs $ 5.2 $ 1.9 Asset write offs 2.2 1.0 Other associated costs 0.2 0.2 Total restructuring expenses and asset write offs $ 7.6 $ 3.1 GCP incurred restructuring expenses and asset write offs related to its two operating segments and Corporate function as follows: Three Months Ended March 31, (In millions) 2021 2020 SCC $ 2.9 $ 2.3 SBM 1.8 0.8 Corporate 2.9 — Total restructuring expenses and asset write offs $ 7.6 $ 3.1 |
Schedule of Restructuring Liability | The following table summarizes the Company’s restructuring liability activity: 2021 Plan 2019 Plan 2019 Phase 2 Plan 2018 Plan (In millions) Severance and other employee costs Severance and other employee costs Other Costs Severance and other employee costs Severance and other employee costs Total Balance, December 31, 2020 $ — $ 0.1 $ 0.1 $ 17.3 $ 0.5 $ 18.0 Expense (1)(2) 4.5 — — 0.2 — $ 4.7 Payments (0.2) — — (5.7) — $ (5.9) Impact of foreign currency and other — — — (0.1) — $ (0.1) Balance, March 31, 2021 $ 4.3 $ 0.1 $ 0.1 $ 11.7 $ 0.5 $ 16.7 ________________________________ (1) Asset write offs of $2.1 million attributable to the Corporate function during the three months ended March 31, 2021 are related to the 2021 Plan. Additionally, GCP incurred $0.1 million of asset write offs attributable to the SCC segment as a part of the 2019 Plan and 2019 Phase 2 Plan during the three months ended March 31, 2021. These asset write offs are recorded with a corresponding reduction to "Properties and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. These expenses are not recorded with a corresponding adjustment to the restructuring liability and therefore, are not included in the table above. |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Pre-tax, Tax, and After-tax Components of Other Comprehensive Loss | The following tables present the pre-tax, tax benefit (expense), and after-tax components of GCP's other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended (In millions) Pre-Tax Amount Tax Expense After-Tax Amount Currency translation adjustments (1) $ (7.6) $ (0.4) $ (8.0) Other comprehensive loss attributable to GCP shareholders $ (7.6) $ (0.4) $ (8.0) Three Months Ended March 31, 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 (1) (33.4) (0.4) (33.8) Gain from hedging activities 0.2 — 0.2 Other comprehensive loss attributable to GCP shareholders $ (33.1) $ (0.4) $ (33.5) _____________________ (1) Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 4, "Derivative Instruments." |
Schedule of Changes of Accumulated Other Comprehensive Loss, Net of Tax | The following tables present the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020: (In millions) Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Total Balance, December 31, 2020 $ (3.1) $ (107.4) $ (110.5) Current-period other comprehensive loss — (8.0) (8.0) Balance, March 31, 2021 $ (3.1) $ (115.4) $ (118.5) (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 loss 0.1 (33.8) 0.2 (33.5) Balance, March 31, 2020 $ (2.6) $ (148.0) $ 0.1 $ (150.5) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Units Award Activity | The following table sets forth the RSU activity for the three months ended March 31, 2021: RSU Activity Number Of Weighted Outstanding, December 31, 2020 305 $ 22.14 RSUs settled 88 23.97 RSUs forfeited 2 24.37 RSUs granted 90 26.10 RSUs outstanding, March 31, 2021 305 $ 22.79 Expected to vest as of March 31, 2021 301 $ 22.78 |
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 three months ended March 31, 2021 and 2020: Three Months Ended March 31, Assumptions used to calculate expense for PBUs: 2021 2020 Expected Term (Remaining Performance Period) 1.81 2.85 Expected volatility 51.48% 29.85% Risk-free interest rate 0.14% 1.21% Expected dividends — — Median correlation coefficient of constituents 54.00% 54.01% |
Summary of Performance-Based Units Activity | The following table sets forth the PBU activity for the three months ended March 31, 2021: PBU Activity Number Of Weighted Outstanding, December 31, 2020 343 $ 28.10 PBU's forfeited 136 32.08 PBU's granted 80 27.29 Outstanding, March 31, 2021 287 $ 25.96 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, (In millions, except per share amounts) 2021 2020 Numerators Income from continuing operations attributable to GCP shareholders $ 1.5 $ 2.0 Loss from discontinued operations, net of income taxes — (0.3) Net income attributable to GCP shareholders $ 1.5 $ 1.7 Denominators Weighted average common shares—basic calculation 73.2 72.9 Dilutive effect of employee stock awards (2) 0.2 0.1 Weighted average common shares—diluted calculation 73.4 73.0 Basic earnings (loss) per share: (2) Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — Net income attributable to GCP shareholders (1) $ 0.02 $ 0.02 Diluted earnings (loss) per share: (2) Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — Net income attributable to GCP shareholders (1) $ 0.02 $ 0.02 ________________________________ (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) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Data | The following table presents information related to GCP's operating segments: Three Months Ended March 31, (In millions) 2021 2020 Net Sales Specialty Construction Chemicals $ 123.9 $ 125.4 Specialty Building Materials 98.9 91.3 Total net sales $ 222.8 $ 216.7 Segment Operating Income Specialty Construction Chemicals segment operating income $ 6.1 $ 8.5 Specialty Building Materials segment operating income 19.4 14.1 Total segment operating income $ 25.5 $ 22.6 |
Reconciliation of Operating Segment Data to Financial Statements | Total segment operating income for the three months ended March 31, 2021 and 2020 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations: Three Months Ended March 31, (In millions) 2021 2020 Total segment operating income (1) $ 25.5 $ 22.6 Corporate costs (7.2) (5.9) Certain pension costs (1.4) (1.3) Shareholder activism and other related costs (2) — (3.6) Repositioning expenses (1.3) (2.7) Restructuring expenses and asset write offs (7.6) (3.1) Third-party and other acquisition-related costs (0.1) (0.5) Net income attributable to noncontrolling interests 0.1 0.1 Interest expense, net (5.4) (5.1) Income from continuing operations before income taxes $ 2.6 $ 0.5 __________________________ (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 GCP shareholders seeking changes in the composition of the Company's Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, 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 March 31, (In millions) 2021 2020 Net Sales United States $ 112.1 $ 113.0 Canada and Other 6.0 6.2 Total North America 118.1 119.2 Europe Middle East Africa 44.6 44.3 Asia Pacific 46.7 40.3 Latin America 13.4 12.9 Total $ 222.8 $ 216.7 |
Revisions of Previously Issue_2
Revisions of Previously Issued Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | GCP Applied Technologies Inc. Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2020 (In millions, except per share amounts) As Previously Reported Adjustments As Revised Net sales $ 216.7 $ — $ 216.7 Cost of goods sold 134.8 (0.9) 133.9 Gross profit 81.9 0.9 82.8 Selling, general and administrative expenses 68.1 — 68.1 Research and development expenses 4.9 — 4.9 Interest expense and related financing costs 5.7 — 5.7 Repositioning expenses 2.7 — 2.7 Restructuring expenses and asset write offs 3.1 — 3.1 Other income, net (2.2) — (2.2) Total costs and expenses 82.3 — 82.3 Loss (income) from continuing operations before income taxes (0.4) 0.9 0.5 Benefit from income taxes 1.9 (0.3) 1.6 Income from continuing operations 1.5 0.6 2.1 Loss from discontinued operations, net of income taxes (0.3) — (0.3) Net income 1.2 0.6 1.8 Less: Net income attributable to noncontrolling interests (0.1) — (0.1) Net income attributable to GCP shareholders $ 1.1 $ 0.6 $ 1.7 Amounts Attributable to GCP Shareholders: Income from continuing operations attributable to GCP shareholders 1.4 $ 0.6 $ 2.0 Loss from discontinued operations, net of income taxes (0.3) — (0.3) Net income attributable to GCP shareholders $ 1.1 $ 0.6 $ 1.7 Earnings (Loss) Per Share Attributable to GCP Shareholders Basic earnings (loss) per share: Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.01 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — $ — Net income attributable to GCP shareholders $ 0.02 $ — $ 0.02 Weighted average number of basic shares 72.9 — 72.9 Diluted earnings (loss) per share: Income from continuing operations attributable to GCP shareholders $ 0.02 $ 0.01 $ 0.03 Loss from discontinued operations, net of income taxes $ — $ — $ — Net income attributable to GCP shareholders $ 0.02 $ — $ 0.02 Weighted average number of diluted shares 73.0 — 73.0 GCP Applied Technologies Inc. Consolidated Statements of Comprehensive Loss (unaudited) Three Months Ended March 31, 2020 (In millions) As Previously Reported Adjustments As Revised Net income $ 1.2 $ 0.6 $ 1.8 Other comprehensive loss: Defined benefit pension and other postretirement plans, net of income taxes 0.1 — 0.1 Currency translation adjustments, net of income taxes (33.8) — (33.8) Gain from hedging activities, net of income taxes 0.2 — 0.2 Total other comprehensive loss (33.5) — (33.5) Comprehensive loss (32.3) 0.6 (31.7) Less: Comprehensive income attributable to noncontrolling interests (0.1) — (0.1) Comprehensive loss attributable to GCP shareholders $ (32.4) $ 0.6 $ (31.8) GCP Applied Technologies Inc. Consolidated Statements of Stockholders' Equity (unaudited) (In millions) As Previously Reported Adjustments As Revised Total Stockholders' Equity: Balance, December 31, 2019 $ 541.1 $ (0.1) $ 541.0 Net income 1.2 0.6 1.8 Share-based compensation 0.5 — 0.5 Exercise of stock options 0.4 — 0.4 Share repurchases (0.3) — (0.3) Other comprehensive loss (33.5) — (33.5) Balance, March 31, 2020 $ 509.4 $ 0.5 $ 509.9 GCP Applied Technologies Inc. Consolidated Statements of Cash Flows (unaudited) Three Months Ended March 31, 2020 (In millions) As Previously Reported Adjustments As Revised OPERATING ACTIVITIES Net income $ 1.2 $ 0.6 $ 1.8 Less: Loss from discontinued operations (0.3) — (0.3) Income from continuing operations 1.5 0.6 2.1 Reconciliation to net cash provided by operating activities: Depreciation and amortization 11.0 — 11.0 Amortization of debt discount and financing costs 0.4 — 0.4 Stock-based compensation expense 0.8 — 0.8 Unrealized loss on foreign currency 0.5 — 0.5 Deferred income taxes (5.2) 0.3 (4.9) Loss on disposal of property and equipment (0.1) — (0.1) Changes in assets and liabilities, excluding effect of currency translation: Trade accounts receivable 17.4 — 17.4 Inventories (11.4) — (11.4) Accounts payable 6.6 — 6.6 Pension assets and liabilities, net 1.0 — 1.0 Other assets and liabilities, net (8.5) (0.6) (9.1) Net cash provided by operating activities from continuing operations 14.0 0.3 14.3 Net cash used in operating activities from discontinued operations (0.9) — (0.9) Net cash provided by operating activities 13.1 0.3 13.4 INVESTING ACTIVITIES Capital expenditures (8.9) (0.3) (9.2) Other investing activities 0.4 — 0.4 Net cash used in investing activities (8.5) (0.3) (8.8) FINANCING ACTIVITIES Payments on finance lease obligations (0.2) — (0.2) Payments of tax withholding obligations related to employee equity awards (0.3) — (0.3) Proceeds from exercise of stock options 0.4 — 0.4 Net cash used in financing activities from continuing operations (0.1) — (0.1) Effect of currency exchange rate changes on cash and cash equivalents (9.3) — (9.3) Decrease in cash and cash equivalents (4.8) — (4.8) Cash and cash equivalents, beginning of period 325.0 — 325.0 Cash and cash equivalents, end of period $ 320.2 $ — $ 320.2 Supplemental disclosure of non-cash investing activities: Property and equipment purchases unpaid and included in accounts payable $ 5.5 $ — $ 5.5 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021segment | Jul. 03, 2017USD ($) | |
Class of Stock [Line Items] | ||
Number of operating segments | segment | 2 | |
Disposed of by Sale | Darex | ||
Class of Stock [Line Items] | ||
Consideration received | $ | $ 1,060 |
Revenue from Lessor Arrangeme_2
Revenue from Lessor Arrangements and Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net sales | $ 222.8 | $ 216.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, remaining performance obligation | $ 9.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | 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]: 2021-04-01 | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction | 5 years | |
VERIFI Sales Arrangements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Operating lease income | $ 9.4 | 8.8 |
Service revenue | 2 | $ 1.4 |
Net sales | $ 6.1 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 50.6 | $ 41.3 |
In process | 4.4 | 4.2 |
Finished products and other | 62.1 | 52.9 |
Total inventories, net | 117.1 | 98.4 |
Finished Products Purchased | ||
Inventory [Line Items] | ||
Finished products and other | $ 10 | $ 9.1 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions | Mar. 31, 2021EUR (€)derivative_instrument |
Foreign exchange forward contracts | |
Derivative [Line Items] | |
Number of derivative instruments | derivative_instrument | 4 |
Aggregate notional amount | € 40 |
Forward contract maturing 2021 | |
Derivative [Line Items] | |
Aggregate notional amount | 10 |
Forward contract maturing 2022 | |
Derivative [Line Items] | |
Aggregate notional amount | 10 |
Forward contract maturing 2023 | |
Derivative [Line Items] | |
Aggregate notional amount | 10 |
Forward contract maturing 2024 | |
Derivative [Line Items] | |
Aggregate notional amount | € 10 |
Derivative Instruments - Net In
Derivative Instruments - Net Investment Hedges in Balance Sheets (Details) - Foreign exchange forward contracts - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative asset | $ 0.8 | $ 0 |
Derivative liability | (0.6) | (1.8) |
Derivative assets, current | 0.2 | |
Derivative assets, noncurrent | $ 0.6 | |
Derivative liability, current | 0.4 | |
Derivative liability, noncurrent | $ 1.4 |
Derivative Instruments - Net _2
Derivative Instruments - Net Investment Hedges in Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Gain on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit | $ (8) | $ (33.8) |
Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain on foreign exchange forward contracts - other income, net | 0.2 | 0.3 |
Gain on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit | 1.4 | 1.3 |
Gain on foreign exchange forward contracts - cumulative translation adjustments, tax (benefit) expense | $ 0.4 | $ 0.4 |
Debt and Other Borrowings - Com
Debt and Other Borrowings - Components of Debt (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 351,400,000 | $ 351,700,000 |
Less: debt payable within one year | 2,400,000 | 2,800,000 |
Debt payable after one year | $ 349,000,000 | $ 348,900,000 |
Weighted average interest rates on total debt obligations | 5.50% | 5.50% |
Finance lease obligations | $ 2,900,000 | $ 3,000,000 |
Senior notes | 5.5% Senior notes due in 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 346,800,000 | 346,600,000 |
Revolving credit facility due 2023 | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 0 |
Aggregate available principal amount | 350,000,000 | 350,000,000 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 4,600,000 | 5,100,000 |
Lines of credit and other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,700,000 | $ 2,100,000 |
Debt and Other Borrowings - Pri
Debt and Other Borrowings - Principal Maturities of Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Remainder of 2021 | $ 2.3 | |
2022 | 0.8 | |
2023 | 0.7 | |
2024 | 0.7 | |
2025 | 0.1 | |
Thereafter | 346.8 | |
Total debt | $ 351.4 | $ 351.7 |
Debt and Other Borrowings - Nar
Debt and Other Borrowings - Narrative (Details) - USD ($) | Apr. 15, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Senior Notes | 5.5% Senior Notes due in 2026 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.50% | |||
Aggregate principal amount | $ 350,000,000 | |||
Unamortized debt issuance cost | 3,200,000 | $ 3,300,000 | ||
Senior Notes | 5.5% Senior Notes due in 2026 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Interest payment | $ 9,600,000 | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Available credit | 347,400,000 | 347,400,000 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | 0 | 0 | ||
Interest payments | 0 | $ 0 | ||
Unamortized debt issuance cost | 1,900,000 | 2,200,000 | ||
Line of Credit | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 2,600,000 | $ 2,600,000 |
Debt and Other Borrowings - Car
Debt and Other Borrowings - Carrying Amounts and Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
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 | $ 351.7 |
Carrying Amount | Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 4.6 | 5.1 |
Carrying Amount | 5.5% Senior Notes due in 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 346.8 | 346.6 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 364.7 | 367.1 |
Fair Value | Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 4.6 | 5.1 |
Fair Value | 5.5% Senior Notes due in 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 360.1 | $ 362 |
Lessee Arrangements - Lease Exp
Lessee Arrangements - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 4.3 | $ 3.2 |
Variable lease expense | 1 | 1.1 |
Short-term lease expense | 0.6 | 0.6 |
Total lease expense | $ 5.9 | $ 4.9 |
Lessee Arrangements - Supplemen
Lessee Arrangements - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jul. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 2.6 | $ 3.2 | ||
Operating lease right of use assets obtained in exchange for new lease obligations | 1.4 | $ 7.7 | ||
Operating lease right-of-use assets | $ 37.7 | $ 40 | ||
IQHQ, L.P | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Lease term | 18 months | |||
Operating lease right-of-use assets | $ 8.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Benefit from income taxes | $ 1 | $ (1.6) |
Effective tax rate | 38.50% | (320.00%) |
Transition Tax, tax benefit from the release of an uncertain tax position | $ 0.3 | |
Income tax benefit, before CARES Act impacts | $ 2.8 | |
Tax expense on unrecognized tax benefits | 0.4 | |
Valuation allowance expense (benefit) | $ 0.6 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Pension plans and other postretirement benefit plans | ||
Overfunded defined benefit pension plans | $ 30 | $ 29.7 |
Underfunded and unfunded defined benefit pension plans | (63) | (62.9) |
Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Overfunded defined benefit pension plans | 30 | 29.7 |
Underfunded and unfunded defined benefit pension plans | (63) | (62.9) |
Pension liabilities included in other current liabilities | (1.4) | (1.4) |
Net funded status | (34.4) | (34.6) |
Underfunded defined benefit pension plans | Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Underfunded and unfunded defined benefit pension plans | (34.2) | (33.3) |
Unfunded defined benefit pension plans | Pension Plans | ||
Pension plans and other postretirement benefit plans | ||
Underfunded and unfunded defined benefit pension plans | $ (28.8) | $ (29.6) |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 1.8 | $ 1.7 |
Interest cost | 1.9 | 2.4 |
Expected return on plan assets | (2.3) | (2.8) |
Net periodic benefit cost | 1.4 | 1.3 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 1.5 | 1.5 |
Interest cost | 1.2 | 1.3 |
Expected return on plan assets | (1.5) | (1.6) |
Net periodic benefit cost | 1.2 | 1.2 |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0.3 | 0.2 |
Interest cost | 0.7 | 1.1 |
Expected return on plan assets | (0.8) | (1.2) |
Net periodic benefit cost | $ 0.2 | $ 0.1 |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2021 | Mar. 31, 2020 |
Pension plans and other postretirement benefit plans | |||
Defined contribution plan, percentage that the employer contributes of employee contributions under 401(k) plan | 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 | $ 1 | $ 1.3 | |
Pension Plans | United States | |||
Pension plans and other postretirement benefit plans | |||
Employer contributions | 0.2 | 0.1 | |
Pension Plans | Non-U.S. | |||
Pension plans and other postretirement benefit plans | |||
Employer contributions | $ 0.2 | $ 0.5 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Other Current Assets: | ||
Non-trade receivables | $ 19.2 | $ 20.4 |
Prepaid expenses and other current assets | 15.6 | 11.1 |
Income taxes receivable | 9.1 | 9.7 |
Total other current assets | $ 43.9 | $ 41.2 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Other Current Liabilities: | ||
Accrued customer volume rebates | $ 15.2 | $ 24.4 |
Accrued compensation | 18.3 | 25 |
Income taxes payable | 6.7 | 7.1 |
Accrued interest | 8.8 | 4 |
Pension liabilities | 1.4 | 1.4 |
Restructuring liability | 16.7 | 18 |
Other accrued liabilities | 46.3 | 45.9 |
Total other current liabilities | $ 113.4 | $ 125.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | |||
Damages of approximately | $ 11 | ||
Claim amount of approximately | 16 | ||
Net of contractual deductible | $ 5 | ||
Amended Credit Agreement | Standby Letter of Credit | |||
Loss Contingencies [Line Items] | |||
Gross financial assurances issued and outstanding | $ 6.1 | $ 6.8 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Jul. 30, 2020 | |
Equity [Abstract] | ||
Share repurchase program, authorized amount | $ 100 | |
Stock repurchased (in shares) | 0 |
Restructuring and Repositioni_3
Restructuring and Repositioning Expenses, Asset Write Offs - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Jul. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Number of operating segments | segment | 2 | ||
Restructuring liability | $ | $ 16.7 | $ 18 | |
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_4
Restructuring and Repositioning Expenses, Asset Write Offs - Estimated and Actual Costs (Details) $ in Millions | Mar. 31, 2021USD ($) |
2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | $ 12.6 |
Capital expenditures to date | 2.2 |
2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 33.8 |
Capital expenditures to date | 0.4 |
2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 6.6 |
Capital expenditures to date | 0 |
Estimated capital expenditures | 6 |
2021 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 26 |
2021 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 29 |
Severance/employee costs | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.9 |
Severance/employee costs | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 26 |
Severance/employee costs | 2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 4.3 |
Severance/employee costs | 2021 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 11 |
Severance/employee costs | 2021 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 13 |
Asset Write Offs | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.9 |
Asset Write Offs | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.5 |
Asset Write Offs | 2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.1 |
Asset Write Offs | 2021 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 8 |
Asset Write Offs | 2021 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 9 |
Other Associated Costs | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.3 |
Other Associated Costs | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0 |
Other Associated Costs | 2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.2 |
Estimated costs | 5 |
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 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 26.5 |
Total Restructuring | 2019 Phase 2 Plan | Specialty Construction Chemicals | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 7.1 |
Total Restructuring | 2019 Phase 2 Plan | Specialty Building Materials | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 7 |
Total Restructuring | 2019 Phase 2 Plan | Corporate Function | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 12.4 |
Total Restructuring | 2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 6.6 |
Total Restructuring | 2021 Plan | Specialty Construction Chemicals | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.6 |
Total Restructuring | 2021 Plan | Specialty Building Materials | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 1.7 |
Total Restructuring | 2021 Plan | Corporate Function | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.3 |
Total Restructuring | 2021 Plan | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 24 |
Total Restructuring | 2021 Plan | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs | 27 |
Repositioning | 2019 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 10.5 |
Capital expenditures to date | 10.5 |
Repositioning | 2019 Phase 2 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 7.3 |
Capital expenditures to date | 6.5 |
Repositioning | 2021 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0 |
Estimated costs | $ 2 |
Restructuring and Repositioni_5
Restructuring and Repositioning Expenses, Asset Write Offs - Repositioning and Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 4.7 | |
Cash paid | 5.9 | |
2019 Plan, Repositioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | $ 1.4 |
Cash paid | 0 | 3.3 |
2019 Plan, Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0.1 | 0.4 |
Cash paid | 0.1 | 0.3 |
2019 Plan Phase 2, Repositioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 1.3 | 1.2 |
Cash paid | 1.4 | 1.5 |
2019 Plan Phase 2, Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0.1 |
Cash paid | 0 | 0.1 |
Strategic Alternatives Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | |
Cash paid | 0.2 | |
Strategic Alternatives, Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | |
Cash paid | 0 | |
2018 Plan, Repositioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | |
Cash paid | 0 | |
2018 Plan, Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0.3 | |
Cash paid | 0.1 | |
2017 Plan, Repositioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0.1 | |
Cash paid | 0 | |
2017 Plan, Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0.2 | |
Cash paid | 0.6 | |
Repositioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 1.3 | 2.7 |
Cash paid | 1.4 | 5 |
Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0.1 | 1 |
Cash paid | $ 0.1 | $ 1.1 |
Restructuring and Repositioni_6
Restructuring and Repositioning Expenses, Asset Write Offs - Cumulative (Details) $ in Millions | Mar. 31, 2021USD ($) |
2019 Plan, Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | $ 12.6 |
Capital expenditures to date | 2.2 |
2019 Plan, Repositioning | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 10.5 |
Capital expenditures to date | 10.5 |
2019 Plan, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 2.2 |
Capital expenditures to date | 2.1 |
2019 Phase 2 Plan, Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 33.8 |
Capital expenditures to date | 0.4 |
2019 Phase 2 Plan, Repositioning | Repositioning | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 7.3 |
Capital expenditures to date | 6.5 |
2019 Plan Phase 2, Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Cost to date | 0.4 |
Capital expenditures to date | $ 0.4 |
Restructuring and Repositioni_7
Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Expenses and Asset Write Offs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | ||
Severance and other employee costs | $ 5.2 | $ 1.9 |
Asset write offs | 2.2 | 1 |
Other associated costs | 0.2 | 0.2 |
Total restructuring expenses and asset write offs | $ 7.6 | $ 3.1 |
Restructuring and Repositioni_8
Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Costs by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expenses and asset write offs from continuing operations | $ 7.6 | $ 3.1 |
Total restructuring expenses and asset write offs | 7.6 | 3.1 |
Operating Segments | SCC | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expenses and asset write offs from continuing operations | 2.9 | 2.3 |
Operating Segments | SBM | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expenses and asset write offs from continuing operations | 1.8 | 0.8 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expenses and asset write offs from continuing operations | $ 2.9 | $ 0 |
Restructuring and Repositioni_9
Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 18 | |
Expense | 4.7 | |
Payments | (5.9) | |
Impact of foreign currency and other | (0.1) | |
Ending balance | 16.7 | |
Total stock compensation (benefit) expense | 1.7 | $ 0.8 |
2021 Plan | Severance and other employee costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Expense | 4.5 | |
Payments | (0.2) | |
Impact of foreign currency and other | 0 | |
Ending balance | 4.3 | |
2021 Plan | Asset Write Offs | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 2.1 | |
2019 Plan | Severance and other employee costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.1 | |
Expense | 0 | |
Payments | 0 | |
Impact of foreign currency and other | 0 | |
Ending balance | 0.1 | |
2019 Plan | Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.1 | |
Expense | 0 | |
Payments | 0 | |
Impact of foreign currency and other | 0 | |
Ending balance | 0.1 | |
2019 Plan | Asset Write Offs | Specialty Construction Chemicals | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 0.1 | |
2019 Phase 2 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Total stock compensation (benefit) expense | 0.7 | |
2019 Phase 2 Plan | Severance and other employee costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 17.3 | |
Expense | 0.2 | |
Payments | (5.7) | |
Impact of foreign currency and other | (0.1) | |
Ending balance | 11.7 | |
2018 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 0 | |
Payments | $ 0 | |
2018 Plan | Severance and other employee costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.5 | |
Expense | 0 | |
Payments | 0 | |
Impact of foreign currency and other | 0 | |
Ending balance | $ 0.5 |
Other Comprehensive Loss - Comp
Other Comprehensive Loss - Components of Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-Tax Amount | $ (7.6) | $ (33.1) |
Tax Expense | (0.4) | (0.4) |
Total other comprehensive loss | (8) | (33.5) |
Defined benefit pension and other postretirement plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-Tax Amount | 0.1 | |
Tax Expense | 0 | |
Total other comprehensive loss | 0 | 0.1 |
Currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-Tax Amount | (7.6) | (33.4) |
Tax Expense | (0.4) | (0.4) |
Total other comprehensive loss | $ (8) | (33.8) |
Gain from hedging activities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-Tax Amount | 0.2 | |
Tax Expense | 0 | |
Total other comprehensive loss | $ 0.2 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) - Changes in AOCI, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | $ 654.1 | $ 541 |
Current period other comprehensive loss | (8) | (33.5) |
Ending balance | 650.6 | 509.9 |
Defined Benefit Pension and Other Postretirement Plans | ||
Changes in accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (3.1) | (2.7) |
Current period other comprehensive loss | 0 | 0.1 |
Ending balance | (3.1) | (2.6) |
Currency Translation Adjustments | ||
Changes in accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (107.4) | (114.2) |
Current period other comprehensive loss | (8) | (33.8) |
Ending balance | (115.4) | (148) |
Hedging Activities | ||
Changes in accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (0.1) | |
Current period other comprehensive loss | 0.2 | |
Ending balance | 0.1 | |
Total | ||
Changes in accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (110.5) | (117) |
Current period other comprehensive loss | (8) | (33.5) |
Ending balance | $ (118.5) | $ (150.5) |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock compensation (benefit) expense | $ 1.7 | $ 0.8 | |
Share repurchases (in shares) | 29,800 | 15,800 | |
Share repurchases | [1] | $ 0.7 | $ 0.3 |
Cash payments for tax withholding obligations | 0.7 | 0.3 | |
Fair value of awards vested | 2.2 | $ 0.9 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense related to the RSU and PBU awards | $ 1.7 | ||
Unrecognized stock-based compensation expense for stock options, period of recognition | 2 years 6 months | ||
Exercise of stock options (in shares) | 122,000 | ||
Weighted average exercise price (in usd per share) | $ 17.25 | ||
Intrinsic value of all options exercised | $ 1 | ||
Restricted Stock Units (RSUs) and Performance Based Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense related to the RSU and PBU awards | $ 8.1 | ||
Unrecognized stock-based compensation expense for stock options, period of recognition | 2 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in usd per share) | $ 26.10 | $ 21.11 | |
Amount settled in period (in shares) | 88,000 | 43,000 | |
Performance Based Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in usd per share) | $ 27.29 | $ 22.41 | |
Share-based compensation granted period | 2 years | ||
Performance period | 2 years | ||
Cumulative on cash flow target metric | 33.30% | ||
Share-based compensation Approved by board during the period | 2 years | ||
Award vesting period | 2 years | ||
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% | ||
2019 Phase 2 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock compensation (benefit) expense | $ 0.7 | ||
[1] | Refer to Note 14, “Stock Incentive Plans”, for further information. |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units Award Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number Of Shares (in thousands) | ||
Outstanding, beginning balance (in shares) | 305 | |
Settled (in shares) | 88 | |
Forfeited (in shares) | 2 | |
Granted (in shares) | 90 | |
Outstanding, ending balance (in shares) | 305 | |
RSUs expected to vest (in shares) | 301 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in usd per share) | $ 22.14 | |
Settled (in usd per share) | 23.97 | |
Forfeited (in used per share) | 24.37 | |
Granted (in usd per share) | 26.10 | $ 21.11 |
Outstanding, ending balance (in usd per share) | 22.79 | |
RSUs expected to vest (in usd per share) | $ 22.78 |
Stock Incentive Plans - PBUs, V
Stock Incentive Plans - PBUs, Valuation Assumptions (Details) - Performance Based Units | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Term (Remaining Performance Period) | 1 year 9 months 21 days | 2 years 10 months 6 days |
Expected volatility | 51.48% | 29.85% |
Risk-free interest rate | 0.14% | 1.21% |
Expected dividends | 0.00% | 0.00% |
Median correlation coefficient of constituents | 54.00% | 54.01% |
Stock Incentive Plans - Perform
Stock Incentive Plans - Performance Based Units Award Activity (Details) - Performance Based Units - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number Of Shares (in thousands) | ||
Outstanding, beginning balance (in shares) | 343 | |
Forfeited (in shares) | 136 | |
Granted (in shares) | 80 | |
Outstanding, ending balance (in shares) | 287 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in usd per share) | $ 28.10 | |
Forfeited (in used per share) | 32.08 | |
Granted (in usd per share) | 27.29 | $ 22.41 |
Outstanding, ending balance (in usd per share) | $ 25.96 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Numerators | |||
Income from continuing operations attributable to GCP shareholders | $ 1.5 | $ 2 | |
Loss from discontinued operations, net of income taxes | 0 | (0.3) | |
Net income attributable to GCP shareholders | $ 1.5 | $ 1.7 | |
Denominators | |||
Weighted average common shares—basic calculation (in shares) | [1] | 73.2 | 72.9 |
Dilutive effect of employee stock awards (in shares) | 0.2 | 0.1 | |
Weighted average common shares—diluted calculation (in shares) | [1] | 73.4 | 73 |
Basic earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in usd per share) | [1] | $ 0.02 | $ 0.03 |
Loss from discontinued operations, net of income taxes (in usd per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in usd per share) | [1],[2] | 0.02 | 0.02 |
Diluted earnings (loss) per share | |||
Income from continuing operations attributable to GCP shareholders (in dollars per share) | [1] | 0.02 | 0.03 |
Loss from discontinued operations, net of income taxes (in dollars per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in dollars per share) | [1],[2] | $ 0.02 | $ 0.02 |
Antidilutive securities excluded from computation of earnings per share, treasury stock method (in shares) | 0.6 | 0.6 | |
[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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Other Assets | ||
Related Party Transaction [Line Items] | ||
Indemnified receivables, tax | $ 1.8 | |
Other Current Liabilities | ||
Related Party Transaction [Line Items] | ||
Indemnified payables, tax | $ 1 |
Operating Segment and Geograp_3
Operating Segment and Geographic Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Sales | ||
Net sales | $ 222.8 | $ 216.7 |
Segment Operating Income | ||
Operating income | 22.6 | |
Specialty Construction Chemicals | ||
Net Sales | ||
Net sales | 123.9 | 125.4 |
Segment Operating Income | ||
Operating income | 6.1 | 8.5 |
Specialty Building Materials | ||
Net Sales | ||
Net sales | 98.9 | 91.3 |
Segment Operating Income | ||
Operating income | $ 19.4 | $ 14.1 |
Operating Segment and Geograp_5
Operating Segment and Geographic Information - Reconciliation of Segment Data to Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 22.6 | |
Corporate costs | $ (66.6) | (68.1) |
Repositioning expenses | (1.3) | (2.7) |
Restructuring expenses and asset write offs | (7.6) | (3.1) |
Net income attributable to noncontrolling interests | 0.1 | 0.1 |
Income from continuing operations before income taxes | 2.6 | 0.5 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 25.5 | 22.6 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Corporate costs | (7.2) | (5.9) |
Restructuring expenses and asset write offs | (2.9) | 0 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Certain pension costs | (1.4) | (1.3) |
Shareholder activism and other related costs | 0 | (3.6) |
Repositioning expenses | (1.3) | (2.7) |
Restructuring expenses and asset write offs | (7.6) | (3.1) |
Third-party and other acquisition-related costs | (0.1) | (0.5) |
Net income attributable to noncontrolling interests | 0.1 | 0.1 |
Interest expense, net | $ (5.4) | $ (5.1) |
Operating Segment and Geograp_6
Operating Segment and Geographic Information - Geographic Area Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 222.8 | $ 216.7 |
Total North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 118.1 | 119.2 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 112.1 | 113 |
Canada and Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6 | 6.2 |
Europe Middle East Africa | ||
Segment Reporting Information [Line Items] | ||
Net sales | 44.6 | 44.3 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 46.7 | 40.3 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 13.4 | $ 12.9 |
Revisions of Previously Issue_3
Revisions of Previously Issued Consolidated Financial Statements - Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ 222.8 | $ 216.7 | |
Cost of goods sold | 136.3 | 133.9 | |
Gross profit | 86.5 | 82.8 | |
Selling, general and administrative expenses | 66.6 | 68.1 | |
Research and development expenses | 4.5 | 4.9 | |
Interest expense and related financing costs | 5.6 | 5.7 | |
Repositioning expenses | 1.3 | 2.7 | |
Restructuring expenses and asset write offs | 7.6 | 3.1 | |
Other income, net | (1.7) | (2.2) | |
Total costs and expenses | 83.9 | 82.3 | |
Loss (income) from continuing operations before income taxes | 2.6 | 0.5 | |
Benefit from income taxes | (1) | 1.6 | |
Income from continuing operations | 1.6 | 2.1 | |
Loss from discontinued operations, net of income taxes | 0 | (0.3) | |
Net income | 1.6 | 1.8 | |
Less: Net income attributable to noncontrolling interests | (0.1) | (0.1) | |
Net income attributable to GCP shareholders | 1.5 | 1.7 | |
Amounts Attributable to GCP Shareholders: | |||
Income from continuing operations attributable to GCP shareholders | 1.5 | 2 | |
Loss from discontinued operations, net of income taxes | 0 | (0.3) | |
Net income attributable to GCP shareholders | $ 1.5 | $ 1.7 | |
Basic earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in usd per share) | [1] | $ 0.02 | $ 0.03 |
Loss from discontinued operations, net of income taxes (in usd per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in usd per share) | [1],[2] | $ 0.02 | $ 0.02 |
Weighted average number of basic shares (in shares) | [1] | 73.2 | 72.9 |
Diluted earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in dollars per share) | [1] | $ 0.02 | $ 0.03 |
Loss from discontinued operations, net of income taxes (in dollars per share) | [1] | 0 | 0 |
Net income attributable to GCP shareholders (in dollars per share) | [1],[2] | $ 0.02 | $ 0.02 |
Weighted average number of diluted shares (in shares) | [1] | 73.4 | 73 |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ 216.7 | ||
Cost of goods sold | 134.8 | ||
Gross profit | 81.9 | ||
Selling, general and administrative expenses | 68.1 | ||
Research and development expenses | 4.9 | ||
Interest expense and related financing costs | 5.7 | ||
Repositioning expenses | 2.7 | ||
Restructuring expenses and asset write offs | 3.1 | ||
Other income, net | (2.2) | ||
Total costs and expenses | 82.3 | ||
Loss (income) from continuing operations before income taxes | (0.4) | ||
Benefit from income taxes | 1.9 | ||
Income from continuing operations | 1.5 | ||
Loss from discontinued operations, net of income taxes | (0.3) | ||
Net income | 1.2 | ||
Less: Net income attributable to noncontrolling interests | (0.1) | ||
Net income attributable to GCP shareholders | 1.1 | ||
Amounts Attributable to GCP Shareholders: | |||
Income from continuing operations attributable to GCP shareholders | 1.4 | ||
Loss from discontinued operations, net of income taxes | (0.3) | ||
Net income attributable to GCP shareholders | $ 1.1 | ||
Basic earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in usd per share) | $ 0.02 | ||
Loss from discontinued operations, net of income taxes (in usd per share) | 0 | ||
Net income attributable to GCP shareholders (in usd per share) | $ 0.02 | ||
Weighted average number of basic shares (in shares) | 72.9 | ||
Diluted earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in dollars per share) | $ 0.02 | ||
Loss from discontinued operations, net of income taxes (in dollars per share) | 0 | ||
Net income attributable to GCP shareholders (in dollars per share) | $ 0.02 | ||
Weighted average number of diluted shares (in shares) | 73 | ||
Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ 0 | ||
Cost of goods sold | (0.9) | ||
Gross profit | 0.9 | ||
Selling, general and administrative expenses | 0 | ||
Research and development expenses | 0 | ||
Interest expense and related financing costs | 0 | ||
Repositioning expenses | 0 | ||
Restructuring expenses and asset write offs | 0 | ||
Other income, net | 0 | ||
Total costs and expenses | 0 | ||
Loss (income) from continuing operations before income taxes | 0.9 | ||
Benefit from income taxes | (0.3) | ||
Income from continuing operations | 0.6 | ||
Loss from discontinued operations, net of income taxes | 0 | ||
Net income | 0.6 | ||
Less: Net income attributable to noncontrolling interests | 0 | ||
Net income attributable to GCP shareholders | 0.6 | ||
Amounts Attributable to GCP Shareholders: | |||
Income from continuing operations attributable to GCP shareholders | 0.6 | ||
Loss from discontinued operations, net of income taxes | 0 | ||
Net income attributable to GCP shareholders | $ 0.6 | ||
Basic earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in usd per share) | $ 0.01 | ||
Loss from discontinued operations, net of income taxes (in usd per share) | 0 | ||
Net income attributable to GCP shareholders (in usd per share) | $ 0 | ||
Weighted average number of basic shares (in shares) | 0 | ||
Diluted earnings (loss) per share: | |||
Income from continuing operations attributable to GCP shareholders (in dollars per share) | $ 0.01 | ||
Loss from discontinued operations, net of income taxes (in dollars per share) | 0 | ||
Net income attributable to GCP shareholders (in dollars per share) | $ 0 | ||
Weighted average number of diluted shares (in shares) | 0 | ||
[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. |
Revisions of Previously Issue_4
Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | $ 1.6 | $ 1.8 |
Other comprehensive loss: | ||
Defined benefit pension and other postretirement plans, net of income taxes | 0 | 0.1 |
Currency translation adjustments, net of income taxes | (8) | (33.8) |
Gain from hedging activities, net of income taxes | 0 | 0.2 |
Total other comprehensive loss | (8) | (33.5) |
Comprehensive loss | (6.4) | (31.7) |
Less: Comprehensive income attributable to noncontrolling interests | (0.1) | (0.1) |
Comprehensive loss attributable to GCP shareholders | $ (6.5) | (31.8) |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | 1.2 | |
Other comprehensive loss: | ||
Defined benefit pension and other postretirement plans, net of income taxes | 0.1 | |
Currency translation adjustments, net of income taxes | (33.8) | |
Gain from hedging activities, net of income taxes | 0.2 | |
Total other comprehensive loss | (33.5) | |
Comprehensive loss | (32.3) | |
Less: Comprehensive income attributable to noncontrolling interests | (0.1) | |
Comprehensive loss attributable to GCP shareholders | (32.4) | |
Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | 0.6 | |
Other comprehensive loss: | ||
Defined benefit pension and other postretirement plans, net of income taxes | 0 | |
Currency translation adjustments, net of income taxes | 0 | |
Gain from hedging activities, net of income taxes | 0 | |
Total other comprehensive loss | 0 | |
Comprehensive loss | 0.6 | |
Less: Comprehensive income attributable to noncontrolling interests | 0 | |
Comprehensive loss attributable to GCP shareholders | $ 0.6 |
Revisions of Previously Issue_5
Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | $ 654.1 | $ 541 | ||
Net income | 1.6 | 1.8 | ||
Share-based compensation | 1.4 | [1] | 0.5 | |
Exercise of stock options | [2] | 2.2 | 0.4 | |
Share repurchases | [3] | (0.7) | (0.3) | |
Other comprehensive loss | (8) | (33.5) | ||
Ending balance | $ 650.6 | 509.9 | ||
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | 541.1 | |||
Net income | 1.2 | |||
Share-based compensation | 0.5 | |||
Exercise of stock options | 0.4 | |||
Share repurchases | (0.3) | |||
Other comprehensive loss | (33.5) | |||
Ending balance | 509.4 | |||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | (0.1) | |||
Net income | 0.6 | |||
Share-based compensation | 0 | |||
Exercise of stock options | 0 | |||
Share repurchases | 0 | |||
Other comprehensive loss | 0 | |||
Ending balance | $ 0.5 | |||
[1] | During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options, RSUs and PBUs. | |||
[2] | The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding. | |||
[3] | Refer to Note 14, “Stock Incentive Plans”, for further information. |
Revisions of Previously Issue_6
Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 1.6 | $ 1.8 |
Less: Loss from discontinued operations | 0 | (0.3) |
Income from continuing operations | 1.6 | 2.1 |
Reconciliation to net cash provided by operating activities: | ||
Depreciation and amortization | 11.3 | 11 |
Amortization of debt discount and financing costs | 0.4 | 0.4 |
Stock-based compensation expense | 1 | 0.8 |
Unrealized (gain) loss on foreign currency | (2.3) | 0.5 |
Deferred income taxes | (0.2) | (4.9) |
Loss (gain) on disposal of property and equipment | 1.1 | (0.1) |
Changes in assets and liabilities, excluding effect of currency translation: | ||
Trade accounts receivable | 5 | 17.4 |
Inventories | (19.9) | (11.4) |
Accounts payable | 9.9 | 6.6 |
Pension assets and liabilities, net | 1.1 | 1 |
Other assets and liabilities, net | (8.3) | (9.1) |
Net cash provided by operating activities from continuing operations | 0.7 | 14.3 |
Net cash used in operating activities from discontinued operations | 0 | (0.9) |
Net cash provided by operating activities | 0.7 | 13.4 |
INVESTING ACTIVITIES | ||
Capital expenditures | (8.1) | (9.2) |
Other investing activities | 0 | 0.4 |
Net cash used in investing activities | (8.1) | (8.8) |
FINANCING ACTIVITIES | ||
Payments on finance lease obligations | (0.2) | (0.2) |
Payments of tax withholding obligations related to employee equity awards | (0.7) | (0.3) |
Proceeds from exercise of stock options | 1.8 | 0.4 |
Net cash provided by (used in) financing activities from continuing operations | 0.6 | (0.1) |
Effect of currency exchange rate changes on cash and cash equivalents | (9.3) | |
Decrease in cash and cash equivalents | $ (9.8) | (4.8) |
Cash and cash equivalents, beginning of period | 325 | |
Cash and cash equivalents, end of period | 320.2 | |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment purchases unpaid and included in accounts payable | 5.5 | |
As Previously Reported | ||
OPERATING ACTIVITIES | ||
Net income | 1.2 | |
Less: Loss from discontinued operations | (0.3) | |
Income from continuing operations | 1.5 | |
Reconciliation to net cash provided by operating activities: | ||
Depreciation and amortization | 11 | |
Amortization of debt discount and financing costs | 0.4 | |
Stock-based compensation expense | 0.8 | |
Unrealized (gain) loss on foreign currency | 0.5 | |
Deferred income taxes | (5.2) | |
Loss (gain) on disposal of property and equipment | (0.1) | |
Changes in assets and liabilities, excluding effect of currency translation: | ||
Trade accounts receivable | 17.4 | |
Inventories | (11.4) | |
Accounts payable | 6.6 | |
Pension assets and liabilities, net | 1 | |
Other assets and liabilities, net | (8.5) | |
Net cash provided by operating activities from continuing operations | 14 | |
Net cash used in operating activities from discontinued operations | (0.9) | |
Net cash provided by operating activities | 13.1 | |
INVESTING ACTIVITIES | ||
Capital expenditures | (8.9) | |
Other investing activities | 0.4 | |
Net cash used in investing activities | (8.5) | |
FINANCING ACTIVITIES | ||
Payments on finance lease obligations | (0.2) | |
Payments of tax withholding obligations related to employee equity awards | (0.3) | |
Proceeds from exercise of stock options | 0.4 | |
Net cash provided by (used in) financing activities from continuing operations | (0.1) | |
Effect of currency exchange rate changes on cash and cash equivalents | (9.3) | |
Decrease in cash and cash equivalents | (4.8) | |
Cash and cash equivalents, beginning of period | 325 | |
Cash and cash equivalents, end of period | 320.2 | |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment purchases unpaid and included in accounts payable | 5.5 | |
Adjustments | ||
OPERATING ACTIVITIES | ||
Net income | 0.6 | |
Less: Loss from discontinued operations | 0 | |
Income from continuing operations | 0.6 | |
Reconciliation to net cash provided by operating activities: | ||
Depreciation and amortization | 0 | |
Amortization of debt discount and financing costs | 0 | |
Stock-based compensation expense | 0 | |
Unrealized (gain) loss on foreign currency | 0 | |
Deferred income taxes | 0.3 | |
Loss (gain) on disposal of property and equipment | 0 | |
Changes in assets and liabilities, excluding effect of currency translation: | ||
Trade accounts receivable | 0 | |
Inventories | 0 | |
Accounts payable | 0 | |
Pension assets and liabilities, net | 0 | |
Other assets and liabilities, net | (0.6) | |
Net cash provided by operating activities from continuing operations | 0.3 | |
Net cash used in operating activities from discontinued operations | 0 | |
Net cash provided by operating activities | 0.3 | |
INVESTING ACTIVITIES | ||
Capital expenditures | (0.3) | |
Other investing activities | 0 | |
Net cash used in investing activities | (0.3) | |
FINANCING ACTIVITIES | ||
Payments on finance lease obligations | 0 | |
Payments of tax withholding obligations related to employee equity awards | 0 | |
Proceeds from exercise of stock options | 0 | |
Net cash provided by (used in) financing activities from continuing operations | 0 | |
Effect of currency exchange rate changes on cash and cash equivalents | 0 | |
Decrease in cash and cash equivalents | 0 | |
Cash and cash equivalents, beginning of period | 0 | |
Cash and cash equivalents, end of period | 0 | |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment purchases unpaid and included in accounts payable | $ 0 |