Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document and Entity Information | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Trading Symbol | GRA | |
Entity Registrant Name | W. R. GRACE & CO. | |
Entity Address, Address Line One | 7500 Grace Drive | |
Entity Address, City or Town | Columbia | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21044-4098 | |
City Area Code | (410) | |
Local Phone Number | 531-4000 | |
Entity Central Index Key | 0001045309 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-13953 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,190,280 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Tax Identification Number | 65-0773649 | |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 419.4 | $ 470.5 | $ 1,259.6 | $ 1,453.6 |
Cost of goods sold | 263 | 279.5 | 824.3 | 864.6 |
Gross profit | 156.4 | 191 | 435.3 | 589 |
Selling, general and administrative expenses | 68.1 | 74.2 | 211.1 | 223.7 |
Research and development expenses | 15.6 | 14.9 | 49.3 | 48.2 |
Costs related to legacy matters | 30.6 | 3.7 | 36.1 | 52.1 |
Equity in earnings of unconsolidated affiliate | (1.3) | (3.8) | (5.9) | (13.9) |
Restructuring and repositioning expenses | 2.4 | 3.4 | 29 | 12.1 |
Gain (Loss) on Extinguishment of Debt | (39.4) | 0 | (39.4) | 0 |
Interest and Debt Expense Excluding Loss on Debt Extinguishment | 19.8 | 18.6 | 57.3 | 58.2 |
Other (income) expense, net | 5.3 | (1.1) | (12.1) | (3.2) |
Total costs and expenses | 179.9 | 109.9 | 404.2 | 377.2 |
Income (loss) before income taxes | (23.5) | 81.1 | 31.1 | 211.8 |
(Provision for) benefit from income taxes | 30.2 | (27.3) | 8.1 | (57) |
Net income (loss) | 6.7 | 53.8 | 39.2 | 154.8 |
Less: Net (income) loss attributable to noncontrolling interests | 0.3 | (0.1) | 2.5 | (0.2) |
Net income (loss) attributable to W. R. Grace & Co. shareholders | $ 7 | $ 53.7 | $ 41.7 | $ 154.6 |
Basic earnings per share: | ||||
Net income (loss) (in dollars per share) | $ 0.11 | $ 0.81 | $ 0.63 | $ 2.31 |
Weighted average number of basic shares (in shares) | 66.2 | 66.7 | 66.3 | 66.8 |
Diluted earnings per share: | ||||
Net income (loss) (in dollars per shares) | $ 0.11 | $ 0.80 | $ 0.63 | $ 2.31 |
Weighted average number of diluted shares (in shares) | 66.2 | 66.8 | 66.3 | 66.9 |
Dividends per common share (in dollars per shares) | $ 0.30 | $ 0.27 | $ 0.90 | $ 0.81 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6.7 | $ 53.8 | $ 39.2 | $ 154.8 |
Other comprehensive income (loss), net of income taxes: | ||||
Defined benefit pension and other postretirement plans | 0 | (0.1) | (0.2) | (0.3) |
Currency translation adjustments | (20.9) | 22.4 | (25.9) | 27.3 |
Gain (loss) from hedging activities | 3 | (0.5) | 1.2 | (9.6) |
Total other comprehensive income (loss) | (17.9) | 21.8 | (24.9) | 17.4 |
Comprehensive income (loss) | (11.2) | 75.6 | 14.3 | 172.2 |
Less: comprehensive (income) loss attributable to noncontrolling interests | 0.3 | (0.1) | 2.5 | (0.2) |
Comprehensive income (loss) attributable to W. R. Grace & Co. shareholders | $ (10.9) | $ 75.5 | $ 16.8 | $ 172 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 39.2 | $ 154.8 |
Reconciliation to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 77.1 | 75.3 |
Equity in earnings of unconsolidated affiliate | (5.9) | (13.9) |
Dividends received from unconsolidated affiliate | 10 | 0 |
Costs related to legacy matters | 36.1 | 52.1 |
Cash paid for legacy matters | 17.1 | 13.8 |
Provision for (benefit from) income taxes | (8.1) | 57 |
Cash paid for income taxes | (35.6) | (39.6) |
Income tax refunds received | 7.6 | 7.1 |
Loss on early extinguishment of debt | 39.4 | 0 |
Payment for Debt Extinguishment or Debt Prepayment Cost | (37.9) | 0 |
Interest expense and related financing costs | 57.3 | 58.2 |
Defined benefit pension expense | 10.2 | 13.9 |
Cash paid under defined benefit pension arrangements | (13) | (12.3) |
Net (gain) loss on sales of investments and disposals of assets | 21.8 | 2.2 |
Changes in assets and liabilities, excluding effect of currency translation and acquisitions: | ||
Trade accounts receivable | 74.6 | 11.6 |
Inventories | 56.3 | (58) |
Accounts payable | (34.3) | 13.6 |
All other items, net | 0.8 | 18.4 |
Net cash provided by (used for) operating activities | 259.1 | 268.4 |
INVESTING ACTIVITIES | ||
Cash paid for capital expenditures | (123.8) | (142.6) |
Business acquired, net of cash acquired | (2) | (22.8) |
Other investing activities, net | (27.9) | (4.4) |
Net cash provided by (used for) investing activities | (153.7) | (169.8) |
FINANCING ACTIVITIES | ||
Borrowings under credit arrangements | 12.2 | 10.3 |
Repayments of Debt and Lease Obligation | 31.3 | 17.5 |
Proceeds from Issuance of Unsecured Debt | 750 | 0 |
Repayment of notes | (700) | 0 |
Cash paid for debt financing costs | (7.9) | 0 |
Cash paid for repurchases of common stock | (40.4) | (29.8) |
Proceeds from exercise of stock options | 0 | 19.1 |
Dividends paid to shareholders | (60.2) | (54.6) |
Other financing activities, net | (4.2) | (4.9) |
Net cash provided by (used for) financing activities | (119.7) | (77.4) |
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | 0.3 | (3.3) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (14) | 17.9 |
Cash, cash equivalents, and restricted cash, beginning of period | 282.9 | 201 |
Cash, cash equivalents, and restricted cash, end of period | 268.9 | 218.9 |
Supplemental disclosure of cash flow information | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 46.1 | 39.1 |
Capital expenditures in accounts payable | 23.2 | 39.4 |
Expenditures for other investing activities included in accounts payable | $ 0.8 | $ 16.2 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 268.7 | $ 282.5 |
Restricted cash and cash equivalents | 0.2 | 0.4 |
Trade accounts receivable, less allowance of $3.1 (2019—$13.3) | 239.8 | 307 |
Inventories | 255.7 | 309.9 |
Other current assets | 69.2 | 235.1 |
Total Current Assets | 833.6 | 1,134.9 |
Properties and equipment, net of accumulated depreciation and amortization of $1,512.5 (2019—$1,497.0) | 1,156.5 | 1,143.8 |
Goodwill | 559 | 556.9 |
Technology and other intangible assets, net | 326.3 | 342.8 |
Deferred income taxes | 555.8 | 517.6 |
Investment in unconsolidated affiliate | 167.4 | 181.9 |
Other assets | 51.8 | 54.7 |
Total Assets | 3,650.4 | 3,932.6 |
Current Liabilities | ||
Debt payable within one year | 18.8 | 23.1 |
Accounts payable | 210.2 | 302.3 |
Other current liabilities | 266.2 | 419.7 |
Total Current Liabilities | 495.2 | 745.1 |
Debt payable after one year | 1,985.6 | 1,957.3 |
Defined Benefit Pension Plan Liabilities Noncurrent Unfunded | 449.4 | 434.6 |
Defined Benefit Pension Plan Liabilities Noncurrent Underfunded | 83.1 | 85.2 |
Other liabilities | 316.6 | 308.2 |
Total Liabilities | 3,329.9 | 3,530.4 |
Commitments and Contingencies—Note 8 | ||
Equity | ||
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 66,190,280 (2019—66,735,913) | 0.7 | 0.7 |
Paid-in capital | 470.4 | 477.9 |
Retained earnings | 712.1 | 730.5 |
Treasury stock, at cost: shares: 11,266,353 (2019—10,720,720) | (920.6) | (892.2) |
Accumulated other comprehensive income (loss) | 53.9 | 78.8 |
Total W. R. Grace & Co. Shareholders’ Equity | 316.5 | 395.7 |
Noncontrolling interests | 4 | 6.5 |
Total Equity | 320.5 | 402.2 |
Total Liabilities and Equity | $ 3,650.4 | $ 3,932.6 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.1 | $ 13.3 |
Accumulated depreciation | $ 1,509.9 | $ 1,497 |
Common stock issued, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock issued, shares outstanding (in shares) | 66,190,280 | 66,735,913 |
Treasury stock, at cost (shares) | 11,266,353 | 10,720,720 |
Consolidated Statements of Equi
Consolidated Statements of Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock and Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Balance, December 31, 2019 at Dec. 31, 2018 | $ 337 | $ 481.8 | $ 676.7 | $ (895.5) | $ 67.9 | $ 6.1 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 24.6 | 0 | 24.7 | 0 | 0 | (0.1) |
Repurchase of common stock | (4.8) | 0 | 0 | (4.8) | 0 | 0 |
Payments in consideration of employee tax obligations related to stock-based compensation | (4.3) | (4.3) | 0 | 0 | 0 | 0 |
Stock-based compensation | 1.9 | 1.9 | 0 | 0 | 0 | 0 |
Exercise of stock options | 9.2 | (2.2) | 0 | 11.4 | 0 | 0 |
Shares issued | (0.3) | (7.4) | 0 | 7.1 | 0 | 0 |
Dividends declared | (18.1) | 0 | (18.1) | 0 | 0 | 0 |
Other comprehensive (loss) income | 8.6 | 0 | 0 | 0 | 8.6 | 0 |
Balance, September 30, 2020 at Mar. 31, 2019 | 353.8 | 469.8 | 683.3 | (881.8) | 76.5 | 6 |
Balance, December 31, 2019 at Dec. 31, 2018 | 337 | 481.8 | 676.7 | (895.5) | 67.9 | 6.1 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 154.8 | |||||
Other comprehensive (loss) income | 17.4 | 17.4 | ||||
Balance, September 30, 2020 at Sep. 30, 2019 | 451.7 | 475.4 | 776.9 | (892.2) | 85.3 | 6.3 |
Balance, December 31, 2019 at Mar. 31, 2019 | 353.8 | 469.8 | 683.3 | (881.8) | 76.5 | 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 76.4 | 0 | 76.2 | 0 | 0 | 0.2 |
Repurchase of common stock | (25) | 0 | 0 | (25) | 0 | 0 |
Payments in consideration of employee tax obligations related to stock-based compensation | (0.6) | (0.6) | 0 | 0 | 0 | 0 |
Stock-based compensation | 3.7 | 3.7 | 0 | 0 | 0 | 0 |
Exercise of stock options | 8.8 | (2.4) | 0 | 11.2 | 0 | 0 |
Shares issued | 1.4 | (0.5) | 0 | 1.9 | 0 | 0 |
Dividends declared | (18.2) | 0 | (18.2) | 0 | 0 | 0 |
Other comprehensive (loss) income | (13) | 0 | 0 | 0 | (13) | 0 |
Balance, September 30, 2020 at Jun. 30, 2019 | 387.3 | 470 | 741.3 | (893.7) | 63.5 | 6.2 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 53.8 | 0 | 53.7 | 0 | 0 | 0.1 |
Stock-based compensation | 5.8 | 5.8 | 0 | 0 | 0 | 0 |
Exercise of stock options | 1.1 | (0.4) | 0 | 1.5 | 0 | 0 |
Dividends declared | (18.1) | 0 | (18.1) | 0 | 0 | 0 |
Other comprehensive (loss) income | 21.8 | 0 | 0 | 0 | 21.8 | 0 |
Balance, September 30, 2020 at Sep. 30, 2019 | 451.7 | 475.4 | 776.9 | (892.2) | 85.3 | 6.3 |
Balance, December 31, 2019 at Dec. 31, 2019 | 402.2 | 478.6 | 730.5 | (892.2) | 78.8 | 6.5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 42.1 | 0 | 42 | 0 | 0 | 0.1 |
Repurchase of common stock | (40.4) | 0 | 0 | (40.4) | 0 | 0 |
Payments in consideration of employee tax obligations related to stock-based compensation | (4.1) | (4.1) | 0 | 0 | 0 | 0 |
Stock-based compensation | 2.9 | 2.9 | 0 | 0 | 0 | 0 |
Shares issued | 0 | (10.3) | 0 | 10.3 | 0 | 0 |
Dividends declared | (20.2) | 0 | (20.2) | 0 | 0 | 0 |
Other comprehensive (loss) income | 1.4 | 0 | 0 | 0 | 1.4 | 0 |
Balance, September 30, 2020 at Mar. 31, 2020 | 383.9 | 467.1 | 752.3 | (922.3) | 80.2 | 6.6 |
Balance, December 31, 2019 at Dec. 31, 2019 | 402.2 | 478.6 | 730.5 | (892.2) | 78.8 | 6.5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 39.2 | |||||
Other comprehensive (loss) income | (24.9) | (24.9) | ||||
Balance, September 30, 2020 at Sep. 30, 2020 | 320.5 | 471.1 | 712.1 | (920.6) | 53.9 | 4 |
Balance, December 31, 2019 at Mar. 31, 2020 | 383.9 | 467.1 | 752.3 | (922.3) | 80.2 | 6.6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (9.6) | 0 | (7.3) | 0 | 0 | (2.3) |
Stock-based compensation | 2.9 | 2.9 | 0 | 0 | 0 | 0 |
Shares issued | 0.8 | (0.7) | 0 | 1.5 | 0 | 0 |
Dividends declared | (20) | 0 | (20) | 0 | 0 | 0 |
Other comprehensive (loss) income | (8.4) | 0 | 0 | 0 | (8.4) | 0 |
Balance, September 30, 2020 at Jun. 30, 2020 | 349.6 | 469.3 | 725 | (920.8) | 71.8 | 4.3 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6.7 | 0 | 7 | 0 | 0 | (0.3) |
Stock-based compensation | 2 | 2 | 0 | 0 | 0 | 0 |
Shares issued | 0 | (0.2) | 0 | 0.2 | 0 | 0 |
Dividends declared | (19.9) | 0 | (19.9) | 0 | 0 | 0 |
Other comprehensive (loss) income | (17.9) | 0 | 0 | 0 | (17.9) | 0 |
Balance, September 30, 2020 at Sep. 30, 2020 | $ 320.5 | $ 471.1 | $ 712.1 | $ (920.6) | $ 53.9 | $ 4 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies | W. R. Grace & Co., through its subsidiaries, is engaged in the production and sale of specialty chemicals and specialty materials on a global basis through two reportable business segments: Grace Catalysts Technologies, which includes catalysts and related products and technologies used in petrochemical, refining, and other chemical manufacturing applications; and Grace Materials Technologies, which includes specialty materials, including silica-based and silica-alumina-based materials, used in pharma/consumer, coatings, and chemical process applications. W. R. Grace & Co. conducts all of its business through a single wholly owned subsidiary, W. R. Grace & Co.–Conn. (“Grace–Conn.”). Grace–Conn. owns all of the assets, properties and rights of W. R. Grace & Co. on a consolidated basis, either directly or through subsidiaries. Basis of Presentation The interim Consolidated Financial Statements presented herein are unaudited and should be read in conjunction with the Consolidated Financial Statements presented in the Company’s 2019 Annual Report on Form 10-K. Such interim Consolidated 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 as discussed below. All significant intercompany accounts and transactions have been eliminated. The results of operations for the nine-month interim period ended September 30, 2020 , are not necessarily indicative of the results of operations to be attained for the year ending December 31, 2020 . Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. Actual amounts could differ from those estimates, and the differences could be material. Changes in estimates are recorded in the period identified. Grace’s accounting measurements that are most affected by management’s estimates of future events are: • The effective tax rate and realization values of net deferred tax assets, which depend on projections of future taxable income; • Pension and postretirement liabilities, which depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 6); • Carrying values of goodwill and other intangible assets, which depend on assumptions of future earnings and cash flows; and • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate obligation, such as litigation and arbitration; and product, environmental, and other legacy liabilities (see Note 8). Reclassifications Certain amounts in prior years’ Consolidated Financial Statements have been reclassified to conform to the current year presentation. Such reclassifications have not materially affected previously reported amounts in the Consolidated Financial Statements. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This update clarifies and amends existing guidance, including removing certain exceptions to the general principles in Topic 740, and improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740. This update is effective for Grace on January 1, 2021, with early adoption permitted. Grace is currently evaluating the effect and timing of adoption. Recently Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This update is intended to ease the potential burden in accounting for and recognizing the effects of reference rate reform. It provides optional practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. This update became effective on March 12, 2020, and is available for use through December 31, 2022. Grace expects to utilize the practical expedients provided by this update in accounting for contract modifications and/or hedging transactions during the effective period. Grace expects the update to significantly reduce the effects of reference rate reform on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20).” This update revises disclosure requirements related to defined benefit pension and other postretirement plans. Grace adopted this update in the 2020 first quarter, and it did not have a material effect on the Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” This update requires companies to implement an impairment model based on expected credit losses, rather than probable incurred losses. Grace adopted this update in the 2020 first quarter, and it did not have a material effect on the Consolidated Financial Statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are stated at the lower of cost or net realizable value, and cost is determined using FIFO. Inventories consisted of the following at September 30, 2020 , and December 31, 2019 : (In millions) September 30, December 31, Raw materials $ 58.6 $ 64.2 In process 43.0 55.7 Finished products 120.4 154.4 Other 33.7 35.6 Total inventory $ 255.7 $ 309.9 During the three months ended June 30, 2020, Grace implemented changes to its Refining Technologies manufacturing operations to improve capital and operating efficiencies. This included key organizational changes and optimization of plant and manufacturing processes at Grace’s three hydroprocessing catalyst manufacturing sites. As a result of these changes, Grace recorded a pre-tax charge of $19.7 million related to a write-off of inventory now deemed obsolete based on the process changes. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Components of Debt (In millions) September 30, December 31, 2018 U.S. dollar term loan, net of unamortized debt issuance costs of $6.3 (2019—$7.2) $ 924.7 $ 930.9 Senior notes due 2027, net of unamortized debt issuance costs of $10.5 739.5 — Senior notes due 2024, net of unamortized debt issuance costs of $2.0 (2019—$2.4) 298.0 297.6 Debt payable to unconsolidated affiliate 35.5 47.4 Senior notes due 2021, net of unamortized debt issuance costs (2019—$2.7) — 697.3 Other borrowings 6.7 7.2 Total debt 2,004.4 1,980.4 Less debt payable within one year 18.8 23.1 Debt payable after one year $ 1,985.6 $ 1,957.3 Weighted average interest rates on total debt 3.4 % 3.8 % See Note 4 for a discussion of the fair value of Grace’s debt. Grace also maintains a $400 million revolving credit facility. As of September 30, 2020 , the available credit under this facility was reduced to $391.8 million by outstanding letters of credit. The principal maturities of debt outstanding at September 30, 2020 , were as follows: (In millions) Remainder of 2020 $ 6.6 2021 17.4 2022 16.1 2023 15.7 2024 313.1 Thereafter 1,635.5 Total debt $ 2,004.4 Senior Notes due 2027 On June 26, 2020, Grace–Conn. (the “Issuer”) and certain of the Company’s existing domestic subsidiaries (together with the Company, the “Guarantors”), completed the sale of $750 million aggregate principal amount of 4.875% Notes due 2027 (the “Senior Notes due 2027”) for net proceeds of $741.6 million . The Senior Notes due 2027 were priced at 100% of par and were offered and sold pursuant to exemptions from registration under the Securities Act of 1933, as amended (the "Securities Act"). The Senior Notes due 2027 were issued pursuant to an indenture, dated as of September 16, 2014 (the “Base Indenture”), as supplemented by that certain third supplemental indenture, dated as of June 26, 2020 (the “Third Supplemental Indenture”), by and among the Issuer, the Guarantors and the trustee thereunder (the “Trustee”). The Base Indenture, together with the Third Supplemental Indenture, are referred to below as the “Indenture.” On July 13, 2020, Grace used the net proceeds, together with cash on hand, to redeem the $700.0 million Senior Notes due 2021 for $748.0 million , including $10.1 million of interest accrued through the date of redemption and a $37.9 million make-whole premium. During the three months ended September 30, 2020, Grace recognized a charge related to the debt refinancing of $39.4 million , including the make-whole premium. Interest is payable on the Senior Notes due 2027 on each June 15 and December 15, commencing December 15, 2020. Grace may redeem all or a portion of the Senior Notes due 2027 at any time prior to June 15, 2023, at a price equal to 100% of the principal amount of the Senior Notes due 2027 redeemed plus accrued and unpaid interest, if any, to but excluding the redemption date plus a make-whole premium. At any time on or after June 15, 2023, Grace may redeem the Senior Notes due 2027, in whole or in part, at the redemption prices set forth in the Third Supplemental Indenture, in each case plus accrued and unpaid interest, if any, to but excluding the redemption date. The Senior Notes due 2027 will mature on June 15, 2027. If a change of control of the Company occurs while the Senior Notes due 2027 are rated below investment grade, or is followed by a below investment grade rating, subject to certain exceptions, each holder shall have the right to require that the Issuer repurchase all or a portion of such holder’s Senior Notes due 2027 at a purchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, on the Senior Notes due 2027 repurchased, to but excluding, the date of repurchase. The Senior Notes due 2027 and guarantees are senior unsecured obligations of the Issuer and the Guarantors, respectively, and will rank equally with all of the existing and future unsubordinated obligations of the Issuer and the Guarantors, respectively. The Senior Notes due 2027 and the guarantees are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to the debt and other liabilities of the Company’s non-guarantor subsidiaries. The Senior Notes due 2027 were issued subject to covenants that limit the ability of the Company, the Issuer, and certain of the Company’s subsidiaries to: (i) incur liens on assets; (ii) enter into sale and leaseback transactions larger than the greater of $100 million or 2.5% of total assets; and (iii) merge or consolidate with another company; subject to certain exceptions and qualifications. Grace is in compliance with those covenants. The Senior Notes due 2027 were issued subject to customary events of default, which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the Indenture; failure to pay certain other indebtedness; failure to discharge a final judgment for payment of the greater of (i) $100 million and (ii) 2.5% of Total Assets (as defined in the Indenture) or more (excluding any amounts covered by insurance or indemnities) rendered against the Issuer or any of its significant subsidiaries; and certain events of bankruptcy or insolvency. Generally, if any event of default occurs, the Trustee or the holders of at least 30% in aggregate principal amount of the then outstanding series of Senior Notes due 2027 may declare all the Senior Notes due 2027 of such series to be due and payable immediately. The foregoing is a summary of the Senior Notes due 2027 and the related indentures, does not purport to be complete, and is qualified in its entirety by reference to the full texts thereof. Grace has filed the full text of such documents with the SEC, which are readily available on the internet at www.sec.gov. |
Fair Value Measurements and Ris
Fair Value Measurements and Risk | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Risk | Certain of Grace’s assets and liabilities are reported at fair value on a gross basis. ASC 820 “Fair Value Measurements and Disclosures” defines fair value as the value that would be received at the measurement date in the principal or “most advantageous” market. Grace uses principal market data, whenever available, to value assets and liabilities that are required to be reported at fair value. Grace has identified the following financial assets and liabilities that are subject to the fair value analysis required by ASC 820: Fair Value of Debt and Other Financial Instruments Debt payable is recorded at carrying value. Fair value is determined based on Level 2 inputs, including expected future cash flows (discounted at market interest rates), estimated current market prices and quotes from financial institutions. At September 30, 2020 , and December 31, 2019 , the carrying amounts, net of unamortized debt issuance costs and discounts (see Note 3), and fair values of Grace’s debt were as follows: September 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 2018 U.S. dollar term loan $ 924.7 $ 906.6 $ 930.9 $ 938.1 Senior notes due 2027 739.5 764.7 — — Senior notes due 2024 298.0 317.4 297.6 329.2 Senior notes due 2021 — — 697.3 727.1 Other borrowings 42.2 42.2 54.6 54.6 Total debt $ 2,004.4 $ 2,030.9 $ 1,980.4 $ 2,049.0 At September 30, 2020 , the recorded values of other financial instruments such as cash equivalents and trade receivables and payables approximated their fair values, based on the short-term maturities and floating rate characteristics of these instruments. Currency Derivatives Because Grace operates and/or sells to customers in over 60 countries and in over 30 currencies, its results are exposed to fluctuations in currency exchange rates. Grace seeks to minimize exposure to these fluctuations by matching sales with expenditures in the same currencies, but it is not always possible to do so. From time to time, Grace uses financial instruments such as currency forward contracts, options, swaps, or combinations thereof to reduce the risk of certain specific transactions. However, Grace does not have a policy of hedging all exposures, because management does not believe that such a level of hedging would be cost-effective. Forward contracts with maturities of not more than 36 months are used and designated as cash flow hedges of forecasted repayments of intercompany loans. The effective portion of gains and losses on these currency hedges is recorded in “accumulated other comprehensive income (loss)” and reclassified into “other (income) expense, net” to offset the remeasurement of the underlying hedged loans. Forward points are excluded from the assessment of effectiveness and amortized to income on a systematic basis. Grace also enters into foreign currency forward contracts and swaps to hedge a portion of its net outstanding monetary assets and liabilities. These forward contracts and swaps are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in their fair value are recorded in “other (income) expense, net,” in the Consolidated Statements of Operations. These forward contracts and swaps are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. The valuation of Grace’s currency exchange rate forward contracts and swaps is determined using an income approach. Inputs used to value currency exchange rate forward contracts and swaps consist of: (1) spot rates, which are quoted by various financial institutions; (2) forward points, which are primarily affected by changes in interest rates; and (3) discount rates used to present value future cash flows, which are based on the London Interbank Offered Rate (LIBOR) curve or overnight indexed swap rates. Total notional amounts for forward contracts and swaps outstanding as of September 30, 2020 , were $71.6 million . Cross-Currency Swap Agreements Grace uses cross-currency swaps designated as cash flow hedges to manage fluctuations in currency exchange rates and interest rates on variable rate debt. Gains and losses on these cash flow hedges are recorded in “accumulated other comprehensive income (loss)” and reclassified into “other (income) expense, net” and “interest expense and related financing costs” during the hedged period. In connection with the 2018 U.S. dollar term loan, Grace entered into cross-currency swaps beginning on November 5, 2018, and maturing on March 31, 2023, to synthetically convert $600.0 million of U.S. dollar-denominated floating rate debt into €525.9 million of euro-denominated debt fixed at 1.785% . The valuation of these cross-currency swaps is determined using an income approach, using LIBOR and EURIBOR (Euro Interbank Offered Rate) swap curves, currency basis spreads, and euro/U.S. dollar exchange rates. Debt and Interest Rate Swap Agreements Grace uses interest rate swaps designated as cash flow hedges to manage fluctuations in interest rates on variable rate debt. The effective portion of gains and losses on these interest rate cash flow hedges is recorded in “accumulated other comprehensive income (loss)” and reclassified into “interest expense and related financing costs” during the hedged interest period. In connection with the 2018 U.S. dollar term loan, Grace entered into interest rate swaps beginning on April 3, 2018, and maturing on March 31, 2023, fixing the LIBOR component of the interest on $100.0 million of term debt at 2.775% . The valuation of these interest rate swaps is determined using an income approach, using prevailing market interest rates and discount rates to present value future cash flows based on the forward LIBOR yield curves. Credit risk is also incorporated into derivative valuations. The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 , and December 31, 2019 : Fair Value Measurements at September 30, 2020, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities Currency derivatives $ 7.0 $ — $ 7.0 $ — Interest rate derivatives 6.0 — 6.0 $ — Variable-to-fixed cross-currency derivatives 19.9 — 19.9 — Total Liabilities $ 32.9 $ — $ 32.9 $ — Fair Value Measurements at December 31, 2019, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 6.1 $ — $ 6.1 $ — Variable-to-fixed cross-currency derivatives 3.4 — 3.4 — Total Assets $ 9.5 $ — $ 9.5 $ — Liabilities Currency derivatives $ 0.9 $ — $ 0.9 $ — Interest rate derivatives 3.4 — 3.4 — Total Liabilities $ 4.3 $ — $ 4.3 $ — The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of September 30, 2020 , and December 31, 2019 : September 30, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ — Other current assets $ (1.4 ) Currency contracts Other assets — Other liabilities 7.3 Interest rate contracts Other current assets — Other current liabilities 2.5 Interest rate contracts Other assets — Other liabilities 3.5 Variable-to-fixed cross-currency swaps Other current assets — Other current assets (0.8 ) Variable-to-fixed cross-currency swaps Other assets — Other liabilities 20.7 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current liabilities 1.1 Total derivatives $ — $ 32.9 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.1 Other current assets $ (3.1 ) Currency contracts Other assets 4.0 Other liabilities 4.0 Interest rate contracts Other current assets — Other current liabilities 1.0 Interest rate contracts Other assets — Other liabilities 2.4 Variable-to-fixed cross-currency swaps Other current assets 10.2 Other current liabilities — Variable-to-fixed cross-currency swaps Other liabilities (6.8 ) Other liabilities — Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current assets (0.2 ) Currency contracts Other current assets — Other current liabilities 0.2 Total derivatives $ 9.5 $ 4.3 The following tables present the location and amount of gains and losses on derivative instruments included in the Consolidated Statements of Operations or, when applicable, gains and losses initially recognized in other comprehensive income (loss) (“OCI”) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (0.3 ) Interest expense $ (0.6 ) Variable-to-fixed cross-currency swaps 1.4 Interest expense (0.1 ) Variable-to-fixed cross-currency swaps (22.0 ) Other expense (22.0 ) Total derivatives $ (20.9 ) $ (22.7 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.4 ) Nine Months Ended September 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (3.8 ) Interest expense $ (1.2 ) Currency contracts(1) 2.7 Other expense 3.2 Variable-to-fixed cross-currency swaps 7.1 Interest expense 4.2 Variable-to-fixed cross-currency swaps (24.6 ) Other expense (24.6 ) Total derivatives $ (18.6 ) $ (18.4 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (2.2 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.6) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Three Months Ended September 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (0.5 ) Interest expense $ (0.2 ) Currency contracts(1) 3.8 Other expense 3.8 Variable-to-fixed cross-currency swaps 2.5 Interest expense 3.2 Variable-to-fixed cross-currency swaps 22.3 Other expense 22.3 Total derivatives $ 28.1 $ 29.1 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.2 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $0.7 million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Nine Months Ended September 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (3.4 ) Interest expense $ (0.2 ) Currency contracts(1) 4.6 Other expense 3.8 Variable-to-fixed cross-currency swaps 0.4 Interest expense 10.4 Variable-to-fixed cross-currency swaps 25.3 Other expense 25.3 Total derivatives $ 26.9 $ 39.3 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.1 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $2.1 million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. The following tables present the total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are reported. Three Months Ended September 30, 2020 2019 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (19.8 ) $ (5.3 ) $ (18.6 ) $ 1.1 Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Gain (loss) reclassified from accumulated OCI into income $ (0.6 ) $ — $ (0.2 ) $ — Variable-to-fixed cross-currency swaps Gain (loss) reclassified from accumulated OCI into income (0.1 ) (22.0 ) 3.2 22.3 Currency contracts Gain (loss) reclassified from accumulated OCI into income — — — 3.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — — — 0.7 Nine Months Ended September 30, 2020 2019 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (57.3 ) $ 12.1 $ (58.2 ) $ 3.2 Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Gain (loss) reclassified from accumulated OCI into income $ (1.2 ) $ — $ (0.2 ) $ — Variable-to-fixed cross-currency swaps Gain (loss) reclassified from accumulated OCI into income 4.2 (24.6 ) 10.4 25.3 Currency contracts Gain (loss) reclassified from accumulated OCI into income — 3.2 — 3.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — 1.1 — 2.1 Net Investment Hedges Grace uses cross-currency swaps as derivative hedging instruments in certain net investment hedges of its non-U.S. subsidiaries. The gains and losses attributable to these net investment hedges, adjusted for the impact of excluded components, are recorded net of tax to “currency translation adjustments” within “accumulated other comprehensive income (loss)” to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to “currency translation adjustments” is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in the fair value of the hedging instrument related to time value, which are excluded from the assessment of hedge effectiveness, are recorded directly to interest expense on a systematic basis. These gains were $0.6 million and $2.3 million for the three and nine months ended September 30, 2020 , and $0.9 million and $2.5 million for the corresponding prior-year periods. At September 30, 2020 , the notional amount of €170.0 million of Grace’s cross-currency swaps was designated as a hedging instrument of its net investment in its European subsidiaries. The following table presents the amount of gains and losses on derivative instruments designated as net investment hedges, recorded to “currency translation adjustments” within “accumulated other comprehensive income (loss)” for the three and nine months ended September 30, 2020 and 2019 . There were no reclassifications of the effective portion of net investment hedges out of OCI and into earnings for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ (8.1 ) $ 8.1 $ (5.7 ) $ 12.4 Credit Risk Grace is exposed to credit risk in its trade accounts receivable. Grace’s credit evaluation policies mitigate credit risk exposures, and it has a history of minimal credit losses. Grace does not generally require collateral for its trade accounts receivable, but may require a bank letter of credit in certain instances, particularly when selling to customers in cash-restricted countries. Grace may also be exposed to credit risk in its derivatives contracts. Grace monitors counterparty credit risk and currently does not anticipate nonperformance by counterparties to its derivatives. Grace’s derivative contracts are with internationally recognized commercial financial institutions. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Grace’s effective tax rates for the nine months ended September 30, 2020 and 2019 , were (26.0)% and 26.9% , respectively. Grace’s effective tax rate for the nine months ended September 30, 2020 , was negative primarily due to the net benefit of the Global Intangible Low-Taxed Income (“GILTI”) High-Tax Exclusion (“HTE”) in the U.S. and was partially offset by income taxed in jurisdictions with higher statutory tax rates than the U.S., recognition of certain state valuation allowances, and the expiration of unexercised stock options, as well as the impact of a write-off of previously capitalized engineering and site costs. On July 20, 2020, the U.S. Treasury Department released final regulations related to the GILTI HTE. Grace has recognized a benefit in the three and nine months ended September 30, 2020, associated with the GILTI HTE regulations that resulted in a retroactive tax benefit related to 2018 and 2019 of approximately $23 million . Grace’s effective tax rate for the nine months ended September 30, 2019 , was higher than the U.S. federal statutory rate primarily due to income taxed in jurisdictions with higher statutory tax rates than the U.S. and the net impact of the GILTI tax in the U.S., partially offset by discrete benefits related to changes in tax law and to the favorable resolution of uncertain tax positions. As of September 30, 2020 , and December 31, 2019 , Grace had $315.5 million and $302.5 million , respectively, in federal tax credit carryforwards before unrecognized tax benefits. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension Plans and Other Postretirement Benefit Plans | Pension Plans The following table presents the funded status of Grace’s pension plans: (In millions) September 30, December 31, Overfunded defined benefit pension plans $ 9.5 $ 8.5 Underfunded defined benefit pension plans (83.1 ) (85.2 ) Unfunded defined benefit pension plans (449.4 ) (434.6 ) Total underfunded and unfunded defined benefit pension plans (532.5 ) (519.8 ) Pension liabilities included in other current liabilities (15.1 ) (14.8 ) Net funded status $ (538.1 ) $ (526.1 ) Fully-funded plans include several advance-funded plans where the fair value of the plan assets exceeds the projected benefit obligation (“PBO”). Underfunded plans include a group of advance-funded plans that are underfunded on a PBO basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis, and therefore, the entire PBO is unfunded. The following tables present the components of net periodic benefit cost (income). Three Months Ended September 30, 2020 2019 (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 4.8 $ 2.8 $ 3.9 $ 2.2 Interest cost 7.5 1.1 9.6 1.4 Expected return on plan assets (12.1 ) (0.3 ) (12.1 ) (0.3 ) Amortization of prior service credit (0.2 ) — (0.2 ) — Net periodic benefit cost (income) $ — $ 3.6 $ 1.2 $ 3.3 Nine Months Ended September 30, 2020 2019 (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 14.2 $ 8.2 $ 11.8 $ 6.5 Interest cost 22.6 3.1 28.7 4.1 Expected return on plan assets (36.2 ) (0.8 ) (36.2 ) (0.7 ) Amortization of prior service credit (0.5 ) — (0.5 ) — Net periodic benefit cost (income) $ 0.1 $ 10.5 $ 3.8 $ 9.9 Plan Contributions and Funding Grace intends to continue to satisfy its funding obligations under the U.S. qualified pension plans and to comply with all of the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). For ERISA purposes, funded status is calculated on a different basis than under U.S. GAAP. Grace intends to continue to fund non-U.S. pension plans based on applicable legal requirements and actuarial recommendations. Defined Contribution Retirement Plans Grace sponsors a defined contribution retirement plan for its employees in the United States. This plan is qualified under section 401(k) of the U.S. tax code. Currently, Grace contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee’s salary or wages. Grace’s cost related to this benefit plan for the three and nine months ended September 30, 2020 , was $3.7 million and $10.6 million compared with $3.5 million and $10.4 million for the corresponding prior-year periods . U.S. salaried employees and certain U.S. hourly employees hired on or after January 1, 2017, and employees in Germany hired on or after January 1, 2016, participate in enhanced defined contribution plans instead of defined benefit pension plans. For the U.S. plan, Grace contributes 4% of an individual employee’s salary or wages. For the German plan, contributions vary based on the individual employee’s contributions and other factors. Grace’s cost related to these enhanced defined contribution plans established in the U.S. and Germany for the three and nine months ended September 30, 2020 , was $1.0 million and $3.1 million compared with $0.8 million and $2.3 million for the corresponding prior-year periods . |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 9 Months Ended |
Sep. 30, 2020 | |
Other Balance Sheet Accounts [Abstract] | |
Other Balance Sheet Accounts | (In millions) September 30, December 31, Other Current Assets Non-trade accounts receivable $ 29.9 $ 24.1 Income taxes receivable 5.8 4.2 Fair value of currency, interest rate, and commodity contracts (see Note 4) 2.9 15.6 Plant under construction—unconsolidated affiliate (see Note 15) — 173.9 Other current assets 30.6 17.3 $ 69.2 $ 235.1 (In millions) September 30, December 31, Other Current Liabilities Accrued compensation $ 56.3 $ 53.6 Deferred revenue (see Note 13) 35.9 35.0 Liability for dam spillway replacement (see Note 8) 20.0 4.7 Environmental contingencies (see Note 8) 21.4 17.8 Accrued interest (see Note 3) 18.2 13.3 Pension liabilities (see Note 6) 15.1 14.8 Operating lease liabilities 9.7 9.3 Income taxes payable (see Note 5) 8.4 8.6 Liability to unconsolidated affiliate for plant under construction (see Note 15) — 173.9 Other accrued liabilities 81.2 88.7 $ 266.2 $ 419.7 Accrued compensation includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. (In millions) September 30, December 31, Other Liabilities Environmental contingencies (see Note 8) $ 89.3 $ 97.5 Liability for dam spillway replacement (see Note 8) 69.9 61.7 Fair value of currency and interest rate contracts (see Note 4) 31.5 13.2 Operating lease liabilities 25.5 26.2 Legacy product liability (see Note 8) 24.0 24.0 Deferred revenue (see Note 13) 21.9 29.5 Retained obligations of divested businesses 12.4 12.7 Asset retirement obligations 9.5 9.4 Deferred income taxes 8.0 7.5 Unrecognized tax benefits 3.9 4.1 Other noncurrent liabilities 20.7 22.4 $ 316.6 $ 308.2 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Legacy Matters Over the years, Grace operated numerous types of businesses that are no longer part of its ongoing operations. As Grace divested or otherwise ceased operating these businesses, it retained certain liabilities and obligations, which Grace refers to as legacy liabilities. These liabilities include product, environmental and other liabilities. Although the outcome of each of the matters discussed below cannot be predicted with certainty, Grace has assessed its risk and has recorded estimated liabilities as required under U.S. GAAP. Legacy Product Liabilities Grace emerged from an asbestos-related Chapter 11 bankruptcy on February 3, 2014 (the “Effective Date”). Under its plan of reorganization, all pending and future asbestos-related claims are channeled for resolution to either a personal injury trust (the “PI Trust”) or a property damage trust (the “PD Trust”). The trusts are the sole recourse for holders of asbestos-related claims. The channeling injunctions issued by the bankruptcy court prohibit holders of asbestos-related claims from asserting such claims directly against Grace. Grace has satisfied all of its financial obligations to the PI Trust. Grace has contingent financial obligations remaining to the PD Trust. With respect to property damage claims related to Grace’s former Zonolite attic insulation product (“ZAI PD Claims”), the PD Trust was funded with $49.4 million (net of $15 million of attorneys’ fees) to pay claims and expenses. Grace is also obligated to make up to 10 contingent deferred payments of $8 million per year to the PD Trust during the 20 -year period beginning on the fifth anniversary of the Effective Date, with each such payment due only if the assets of the PD Trust in respect of ZAI PD Claims fall below $10 million during the preceding year. As of September 30, 2020 , the PD Trust has paid out approximately $36 million in ZAI PD Claims and expenses, leaving a balance of approximately $19 million , including the benefit of net investment gains. Due to the limited claims history, the unique nature of this product, and the uncertainty of future claims patterns, an actuarial analysis was completed to estimate the range of possible future payments. The analysis was conducted by a third-party actuarial firm directed by Grace and using historical claims data provided by the ZAI trustee. Certain key assumptions employed in the analysis were (1) projections of the future number of filed claims, assuming a percentage increase in claims during earlier years and annual decreases in later years; (2) application of historical percentages of claims closed with indemnity payment compared to total closed claims, applied on a regional basis; and (3) application of the average claim payout, which reflects the average indemnity cost per claim closing with payment. As a result of the analysis and taking into account the relative uncertainty of future claims activity, Grace determined that contingent funding obligations beyond 2024 are not reasonably estimable. Grace estimates that the reasonable range of payments over the period of 2020 to 2024 is expected to be between $16 million and $24 million and projects that the first payment could be due in 2022. In the 2019 fourth quarter, Grace recorded a $24.0 million liability related to probable future obligations to fund the PD Trust for ZAI PD Claims. Grace’s maximum financial obligation over the next 19 years is $80.0 million , and no single year’s obligation can exceed $8.0 million . With respect to other asbestos property damage claims (“Other PD Claims”), claims unresolved as of the Effective Date are to be litigated in the bankruptcy court and any future claims are to be litigated in a federal district court, in each case pursuant to procedures approved by the bankruptcy court. To the extent any such Other PD Claims are determined to be allowed claims, they are to be paid in cash by the PD Trust. Grace is obligated to make a payment to the PD Trust every six months in the amount of any Other PD Claims allowed during the preceding six months plus interest (if applicable) and the amount of PD Trust expenses for the preceding six months (the “PD Obligation”). Grace has not paid any Other PD Claims since emergence. Annual expenses have been approximately $0.2 million per year. The aggregate amount to be paid under the PD Obligation is not capped, and Grace may be obligated to make additional payments to the PD Trust in respect of the PD Obligation. Grace has accrued for those unresolved Other PD Claims that it believes are probable and estimable. Grace has not accrued for other unresolved or unasserted Other PD Claims as it does not believe that payment is probable. All payments to the PD Trust required after the Effective Date are secured by the Company’s obligation to issue 77,372,257 shares of Company common stock to the PD Trust in the event of default, subject to customary anti-dilution provisions. This summary of the commitments and contingencies related to the Chapter 11 proceeding does not purport to be complete and is qualified in its entirety by reference to the plan of reorganization and the exhibits and documents related thereto, which have been filed with the SEC and are readily available on the internet at www.sec.gov. Legacy Environmental Liabilities Grace is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to its manufacturing operations. Grace has procedures in place to minimize such contingencies; nevertheless, it has liabilities associated with past operations and additional claims may arise in the future, which may be material. To address its legacy liabilities, Grace accrues for anticipated costs of response efforts where an assessment has indicated that a probable liability has been incurred and the cost can be reasonably estimated. These accruals do not take into account any discounting for the time value of money. Grace’s environmental liabilities are reassessed regularly and adjusted when circumstances become better defined or response efforts and their costs can be better estimated, typically as a matter moves through the life-cycle of environmental investigation and remediation. These liabilities are evaluated based on currently available information relating to the nature and extent of contamination, risk assessments, feasibility of response actions, and apportionment amongst other potentially responsible parties, all evaluated in light of prior experience. At September 30, 2020 , Grace’s estimated liability for legacy environmental response costs totaled $110.7 million , compared with $115.3 million at December 31, 2019 , and was included in “other current liabilities” and “other liabilities” in the Consolidated Balance Sheets. These amounts are based on agreements in place or on Grace’s estimate of costs where no formal remediation plan or agreement to pay exists, yet there is sufficient information to estimate response costs. Vermiculite-Related Matters Grace purchased a vermiculite mine in Libby, Montana, in 1963 and operated it until 1990. Vermiculite concentrate from the Libby mine was used in the manufacture of attic insulation and other products. Some of the vermiculite ore contained naturally occurring asbestos. Grace is engaged with the U.S. Environmental Protection Agency (the “EPA”) and other federal, state, and local governmental agencies in a remedial investigation and feasibility study (“RI/FS”) of the Libby mine and the surrounding area, known as Operable Unit 3 (“OU3”). The RI/FS will study the specific areas within OU3 requiring remediation and will identify possible remedial action alternatives. Possible remedial actions within OU3 are wide-ranging, from institutional controls such as land use restrictions, to more active measures involving soil removal, containment projects, or other protective measures. As part of the RI/FS process, Grace contracted an engineering and consulting firm to develop a range of possible remedial alternatives and associated cost estimates for OU3. Based on this work, Grace recorded a pre-tax charge of $70.0 million in the 2018 third quarter for the estimated costs of remediation of OU3. Grace believes that this amount should provide for a protective remedy meeting the statutory requirements of the Comprehensive Environmental Response, Compensation, and Liability Act. The estimated costs of remediation are preliminary and consist of several components, each of which may vary significantly as the remedial alternatives are further developed. It is reasonably possible that the ultimate costs of remediation could range between $30 million and $170 million . Grace is working closely with the EPA, and the ultimate remedy will be determined by the EPA after the RI/FS is finalized. Such remedy will be set forth in a Record of Decision (“ROD”) that is currently expected to be issued by the EPA in 2023. Costs associated with the more active remedial alternatives would be expected to be incurred over a decade or more. Grace will reevaluate its estimated liability as remedial alternatives evolve based on further work by the engineering and consulting firm and discussions with the EPA as the RI/FS process moves toward a ROD. Technical memoranda expected prior to the issuance of the ROD may provide insight into the likely remedial alternatives ultimately selected, allowing Grace to update its cost of remediation estimate. Depending on the remedial alternatives that the EPA selects in the ROD, the total cost of remediating OU3 may exceed Grace’s current estimate by material amounts. The amounts set forth above do not include possible liability for natural resources damage. Based on ecological studies conducted by the EPA, Grace does not believe that natural resources damage has occurred. However, if a party were to be successful in asserting a natural resources damage claim, liability related to such obligation could be material. Grace has cooperated with the EPA in investigating and remediating a number of formerly owned or operated sites that processed Libby vermiculite into finished products. Grace has recorded a liability for remaining expected response costs, including costs for EPA oversight and potential future site remediation, where a review has indicated that liability is probable and the cost is estimable. The EPA may commence additional investigations in the future at other sites that processed Libby vermiculite. Liability for unaccrued additional investigation and remediation costs is probable but not yet estimable, and could be material. Grace’s estimated liability for response costs that are currently estimable for OU3 and vermiculite processing sites outside of Libby at September 30, 2020 , and December 31, 2019 , totaled $72.4 million and $76.0 million , respectively. It is possible that Grace’s ultimate liability for these vermiculite-related matters will exceed current estimates by material amounts. Non-Vermiculite-Related Environmental Matters At September 30, 2020 , and December 31, 2019 , Grace’s estimated legacy environmental liability for response costs at sites not related to its former vermiculite mining and processing activities totaled $38.3 million and $39.3 million , respectively. This liability relates to Grace’s former businesses or operations, including its share of liability at off-site disposal facilities. Grace’s estimated liability is based upon regulatory requirements and environmental conditions at each site. As Grace receives new information, its estimated liability may change materially. Other Legacy Liabilities Beginning in 1971, as part of implementing a wet milling process at the Libby, Montana, vermiculite mine, Grace constructed a dam at the mine property that now prevents vermiculite ore tailings from moving into nearby creeks and rivers. Ongoing operation of the dam is regulated by the Montana Department of Natural Resources and Conservation (“DNRC”). In April 2019, the DNRC renewed the permit necessary for operation of the dam. Grace is legally obligated to operate the dam and construct a new spillway in accordance with the latest permit conditions. Construction of the new dam spillway at the former mine site is a key element of Grace’s overall remediation strategy. The project includes both an upper spillway and a lower spillway that are being managed as two separate projects with different engineering design and construction timelines. In 2019, Grace contracted a third-party engineering and consulting firm to develop an initial range of cost estimates for the total project. Based on this work, Grace recorded a pre-tax liability of $68.0 million in 2019 for the estimated costs of the project. These costs were preliminary and subject to change as new information becomes available, including defining the final scope of the projects through the contract bidding process. During the three months ended September 30, 2020, Grace completed a review of contractor bids for the replacement of the upper spillway. Based on a current assessment of the project requirements, Grace increased its cost estimate for this portion of the project by $27.0 million , bringing the estimate for the total project to $95.0 million . Regarding the lower spillway, final engineering will be completed and submitted to the state of Montana for design approval in 2021, after which Grace will seek contract bids for this portion of the project. Grace believes it is reasonably possible that the ultimate costs of the two spillway projects could range between $80 million and $120 million . As Grace receives new information, its estimated liability may change materially. Construction of the spillways will begin in 2021 and is expected to take three to four years . Commercial and Financial Commitments and Contingencies Purchase Commitments Grace uses purchase commitments to ensure supply and to minimize the volatility of major components of direct manufacturing costs including natural gas, certain metals, rare earths, and other materials. Such commitments are for quantities that Grace fully expects to use in its normal operations. Guarantees and Indemnification Obligations Grace is a party to many contracts containing guarantees and indemnification obligations. These contracts primarily consist of: • Product warranties with respect to certain products sold to customers in the ordinary course of business. These warranties typically provide that products will conform to specifications. Grace accrues a warranty liability on a transaction-specific basis depending on the individual facts and circumstances related to each sale. • Performance guarantees offered to customers under certain licensing arrangements. Grace has not established a liability for these arrangements based on past performance. • Licenses of intellectual property by Grace to third parties in which Grace has agreed to indemnify the licensee against third party infringement claims. • Contracts providing for the sale or spin-off of a former business unit or product line in which Grace has agreed to indemnify the buyer or resulting entity against certain liabilities related to activities prior to the closing of the transaction, including environmental, tax, and employee liabilities. • Indemnification obligations of Grace as a tenant of real property leases; and guarantees of real property lease obligations of third parties, typically arising out of (a) leases entered into by former subsidiaries of Grace, or (b) the assignment or sublease of a lease by Grace to a third party. Financial Assurances Financial assurances have been established for a variety of purposes, including insurance and environmental matters, trade-related commitments and other matters. As of September 30, 2020 , Grace had gross financial assurances issued and outstanding of $140.7 million , composed of $79.6 million of surety bonds issued by various insurance companies and $61.1 million of standby letters of credit and other financial assurances issued by various banks. |
Restructuring Expenses and Repo
Restructuring Expenses and Repositioning Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses and Repositioning Expenses | Restructuring Expenses Restructuring activity in the three and nine months ended September 30, 2020 , primarily related to an increase in estimated contractual costs related to a 2018 plant exit. Restructuring activity in the three and nine months ended September 30, 2019 , primarily related to severance costs pertaining to the idling of our methanol-to-olefins (“MTO”) manufacturing facility. These costs are included in “restructuring and repositioning expenses” in the Consolidated Statements of Operations, and are not included in segment operating income. The following table presents restructuring expenses by reportable segment for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Catalysts Technologies $ — $ 0.1 $ 2.8 $ 2.2 Materials Technologies (0.1 ) — 0.2 1.2 Corporate — 0.1 — (0.2 ) Total restructuring expenses $ (0.1 ) $ 0.2 $ 3.0 $ 3.2 The following table presents components of the change in the restructuring liability from December 31, 2019 , to September 30, 2020 . (In millions) Balance, December 31, 2019 $ 3.8 Accruals for severance and other costs 3.0 Payments (2.2 ) Balance, September 30, 2020 $ 4.6 Substantially all costs related to the restructuring programs are expected to be paid by June 30, 2023, but could be paid earlier subject to negotiations around certain plant exit costs. Repositioning Expenses Repositioning expenses for the three and nine months ended September 30, 2020 , were $2.5 million and $26.0 million , respectively, compared with $3.2 million and $8.9 million for the corresponding prior-year periods . During the three months ended June 30, 2020, Grace implemented changes to its Refining Technologies manufacturing operations and global footprint to drive capital and operating efficiencies and to support global growth. Grace, in agreement with its local joint venture partner, discontinued the previously announced project to build a full-scale fluid catalytic cracking catalysts plant in the Middle East. As a result, repositioning expenses for the nine months ended September 30, 2020, included a pre-tax charge of $19.7 million ( $2.5 million of which is attributable to Grace’s joint venture partner) to write off engineering and site costs. Repositioning expenses for the three and nine months ended September 30, 2019 , primarily related to a multi-year program to transform manufacturing and business processes to extend Grace’s competitive advantages and improve its cost position. |
Other (Income) Expense, net
Other (Income) Expense, net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, net | Components of other (income) expense, net are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Business interruption insurance recoveries $ — $ — $ (16.3 ) $ — Defined benefit pension (income) expense other than service cost (4.0 ) (1.6 ) (11.8 ) (4.6 ) Hurricane-related costs 10.6 — 10.6 — Third-party acquisition-related costs 0.3 1.4 3.8 2.7 Net (gain) loss on sales of investments and disposals of assets 1.0 1.0 3.6 2.4 Currency transaction effects 1.6 0.1 (0.4 ) (0.7 ) Other miscellaneous (income) expense (4.2 ) (2.0 ) (1.6 ) (3.0 ) Total other (income) expense, net $ 5.3 $ (1.1 ) $ (12.1 ) $ (3.2 ) During the three months ended September 30, 2020, Hurricane Laura caused severe and widespread damage to Lake Charles, Louisiana, and surrounding communities, including catastrophic damage to the regional power grid. The hurricane-related costs were primarily due to on-site power generation, incremental operations and logistics costs to supply customers during the outage, temporary housing and employee assistance, and property damage and clean-up. In addition to the amounts shown above, Grace’s equity in earnings from unconsolidated affiliate was reduced by $1.1 million due to hurricane-related costs incurred by the joint venture. In July 2019, a North American FCC catalysts customer filed for bankruptcy protection after announcing it would not resume refinery operations following a fire in its refinery. Grace received $16.3 million during the six months ended June 30, 2020, under its business interruption insurance policy. Including the $8.0 million received in the 2019 fourth quarter, Grace received $24.3 million of insurance recoveries related to this event, reflecting approximately eight quarters of the impact of the incident on earnings. This claim has been fully resolved. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | The following tables present the pre-tax, tax, and after-tax components of Grace’s other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, 2020 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Currency translation adjustments $ (22.7 ) $ 1.8 $ (20.9 ) Gain (loss) from hedging activities 4.0 (1.0 ) 3.0 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (18.7 ) $ 0.8 $ (17.9 ) Nine Months Ended September 30, 2020 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.2 ) $ — $ (0.2 ) Currency translation adjustments (27.2 ) 1.3 (25.9 ) Gain (loss) from hedging activities 2.0 (0.8 ) 1.2 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (25.4 ) $ 0.5 $ (24.9 ) Three Months Ended September 30, 2019 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.1 ) $ — $ (0.1 ) Currency translation adjustments 24.2 (1.8 ) 22.4 Gain (loss) from hedging activities (0.7 ) 0.2 (0.5 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 23.4 $ (1.6 ) $ 21.8 Nine Months Ended September 30, 2019 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.4 ) $ 0.1 $ (0.3 ) Currency translation adjustments 30.2 (2.9 ) 27.3 Gain (loss) from hedging activities (13.7 ) 4.1 (9.6 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 16.1 $ 1.3 $ 17.4 The following tables present the changes in accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2020 and 2019 : Nine Months Ended September 30, 2020 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2019 $ (0.5 ) $ 92.7 $ (13.4 ) $ 78.8 Other comprehensive income (loss) before reclassifications — (25.9 ) (10.6 ) (36.5 ) Amounts reclassified from accumulated other comprehensive income (loss) (0.2 ) — 11.8 11.6 Net current-period other comprehensive income (loss) (0.2 ) (25.9 ) 1.2 (24.9 ) Balance, September 30, 2020 $ (0.7 ) $ 66.8 $ (12.2 ) $ 53.9 Nine Months Ended September 30, 2019 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2018 $ 0.2 $ 76.2 $ (8.5 ) $ 67.9 Other comprehensive income (loss) before reclassifications — 27.3 18.9 46.2 Amounts reclassified from accumulated other comprehensive income (loss) (0.3 ) — (28.5 ) (28.8 ) Net current-period other comprehensive income (loss) (0.3 ) 27.3 (9.6 ) 17.4 Balance, September 30, 2019 $ (0.1 ) $ 103.5 $ (18.1 ) $ 85.3 Grace is a global enterprise operating in many countries with local currency generally deemed to be the functional currency for accounting purposes. The currency translation amount represents the adjustments necessary to translate the balance sheets valued in local currencies to the U.S. dollar as of the end of each period presented, and to translate revenues and expenses at average exchange rates for each period presented, as well as amounts related to net investment hedges. See Note 4 for a discussion of hedging activities. See Note 6 for a discussion of pension plans. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerators Net income (loss) attributable to W. R. Grace & Co. shareholders $ 7.0 $ 53.7 $ 41.7 $ 154.6 Denominators Weighted average common shares—basic calculation 66.2 66.7 66.3 66.8 Dilutive effect of employee stock options — 0.1 — 0.1 Weighted average common shares—diluted calculation 66.2 66.8 66.3 66.9 Basic earnings per share $ 0.11 $ 0.81 $ 0.63 $ 2.31 Diluted earnings per share $ 0.11 $ 0.80 $ 0.63 $ 2.31 There were 1.5 million and 1.7 million anti-dilutive options outstanding for the three and nine months ended September 30, 2020 , compared with 1.1 million and 0.8 million for the corresponding prior-year periods . On February 8, 2017, the Company announced that its Board of Directors had authorized a share repurchase program of up to $250 million . On February 28, 2020, Grace announced that its Board of Directors had increased its share repurchase authorization to $250 million , including approximately $83 million remaining under the previously announced program. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company’s shares, strategic priorities for the deployment of capital, and general market and economic conditions. Grace temporarily suspended its share repurchase program in early March 2020 in light of the COVID-19 pandemic. As a result, during the three months ended September 30, 2020, Grace did not repurchase Company common stock. During the nine months ended September 30, 2020 and 2019 , the Company repurchased 673,807 shares and 409,769 shares of Company common stock for $40.4 million and $29.8 million , respectively, pursuant to the terms of the share repurchase program. As of September 30, 2020 , $235.0 million |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Revenues | Grace generates revenues from customer arrangements primarily by manufacturing and delivering specialty chemicals and specialty materials, and by licensing technology through its two reportable segments. See Note 14 for additional information about Grace’s reportable segments. Disaggregation of Revenue The following tables present Grace's revenues by geography and product group, within its respective reportable segments, for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 North America Europe Middle East Africa (EMEA) Asia Pacific Latin America Total Refining Catalysts $ 46.0 $ 74.9 $ 21.0 $ 6.6 $ 148.5 Polyolefin and Chemical Catalysts 42.1 58.3 52.3 4.5 157.2 Total Catalysts Technologies 88.1 133.2 73.3 11.1 305.7 Pharma/Consumer 15.8 12.3 5.1 5.4 38.6 Coatings 6.2 16.4 9.8 2.9 35.3 Chemical process 7.4 16.7 9.4 1.0 34.5 Other 1.1 4.1 0.1 — 5.3 Total Materials Technologies 30.5 49.5 24.4 9.3 113.7 Total Grace $ 118.6 $ 182.7 $ 97.7 $ 20.4 $ 419.4 Nine Months Ended September 30, 2020 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 150.8 $ 209.0 $ 85.7 $ 20.8 $ 466.3 Polyolefin and Chemical Catalysts 124.0 167.2 153.6 11.6 456.4 Total Catalysts Technologies 274.8 376.2 239.3 32.4 922.7 Pharma/Consumer 45.4 39.3 16.4 14.6 115.7 Coatings 19.1 48.9 27.1 6.6 101.7 Chemical process 21.9 50.9 27.6 4.9 105.3 Other 3.0 10.9 0.3 — 14.2 Total Materials Technologies 89.4 150.0 71.4 26.1 336.9 Total Grace $ 364.2 $ 526.2 $ 310.7 $ 58.5 $ 1,259.6 Three Months Ended September 30, 2019 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 69.9 $ 70.3 $ 48.1 $ 7.6 $ 195.9 Polyolefin and Chemical Catalysts 41.7 71.6 48.6 3.6 165.5 Total Catalysts Technologies 111.6 141.9 96.7 11.2 361.4 Pharma/Consumer 8.8 12.6 5.0 4.8 31.2 Coatings 6.0 16.5 8.4 2.8 33.7 Chemical process 10.1 21.1 7.2 1.1 39.5 Other 1.0 3.5 0.2 — 4.7 Total Materials Technologies 25.9 53.7 20.8 8.7 109.1 Total Grace $ 137.5 $ 195.6 $ 117.5 $ 19.9 $ 470.5 Nine Months Ended September 30, 2019 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 214.0 $ 210.6 $ 133.9 $ 27.5 $ 586.0 Polyolefin and Chemical Catalysts 140.3 222.7 145.6 12.2 520.8 Total Catalysts Technologies 354.3 433.3 279.5 39.7 1,106.8 Pharma/Consumer 30.7 45.4 15.4 14.5 106.0 Coatings 20.0 53.8 26.9 6.8 107.5 Chemical process 28.2 60.7 23.0 4.8 116.7 Other 4.7 11.1 0.6 0.2 16.6 Total Materials Technologies 83.6 171.0 65.9 26.3 346.8 Total Grace $ 437.9 $ 604.3 $ 345.4 $ 66.0 $ 1,453.6 Contract Balances Grace invoices customers for product sales once performance obligations have been satisfied, generally at the point of delivery, at which point payment becomes unconditional. Accordingly, Grace’s product sales contracts generally do not give rise to material contract assets or liabilities under ASC 606; however, from time to time certain customers may pay in advance, which results in a contract liability. In the technology licensing business, Grace typically invoices licensees at the time that contractual milestones are achieved. However, in respect of the milestone billings, Grace is frequently obligated to provide services in future periods, and this results in recording contract liabilities. The following table presents Grace’s deferred revenue balances as of September 30, 2020 , and December 31, 2019 : (In millions) September 30, December 31, Current $ 35.9 $ 35.0 Noncurrent 21.9 29.5 Total $ 57.8 $ 64.5 Grace records deferred revenues when cash payments are received or due in advance of performance. The change in deferred revenue reflects cash payments from customers received or due in advance of satisfying performance obligations, offset by $6.8 million and $22.9 million of revenue recognized for the three and nine months ended September 30, 2020 , respectively, that was included in the deferred revenue balance as of December 31, 2019 . The noncurrent portion of deferred revenue will be recognized as performance obligations under the technology licensing agreements are satisfied, which is expected to be over the next four years . Remaining performance obligations represent the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $150 million as of September 30, 2020 , and includes certain amounts reported as deferred revenue above. In accordance with the available practical expedient, Grace does not disclose information about remaining performance obligations that have original expected durations of one year or less, which generally relate to customer prepayments on product sales and are generally satisfied in less than one year. Grace expects to recognize revenue related to remaining performance obligations over several years, as follows: Year Approximate percentage of revenue related to remaining performance obligations recognized Remainder of 2020 6 % 2021 26 % 2022 21 % 2023 15 % Thereafter through 2030 32 % For the three and nine months ended September 30, 2020 and 2019 , revenue recognized from performance obligations related to prior periods was not material. Grace has not capitalized any costs to obtain or fulfill contracts with customers under ASC 606. No material impairment losses have been recognized on any receivables or contract assets arising from contracts with customers. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Grace is a global producer of specialty chemicals and specialty materials. Grace’s two reportable business segments are Grace Catalysts Technologies and Grace Materials Technologies. Grace Catalysts Technologies includes catalysts and related products and technologies used in petrochemical, refining, and other chemical manufacturing applications. Advanced Refining Technologies LLC (“ART”), Grace’s joint venture with Chevron U.S.A. Inc. (“Chevron”), is managed in this segment. (See Note 15.) Grace Catalysts Technologies comprises two operating segments, Grace Refining Technologies and Grace Specialty Catalysts, which are aggregated into one reportable segment based upon similar economic characteristics, the nature of the products and production processes, type and class of customer, and channels of distribution. Grace Materials Technologies includes specialty materials, including silica-based and silica-alumina-based materials, used in pharma/consumer, coatings, and chemical process applications. The table below presents information related to Grace’s reportable segments. Only those corporate expenses directly related to the reportable segments are allocated for reporting purposes. All remaining corporate items are reported separately and labeled as such. Grace excludes defined benefit pension expense from the calculation of segment operating income. Grace believes that the exclusion of defined benefit pension expense provides a better indicator of its reportable segment performance as defined benefit pension expense is not managed at a reportable segment level. Grace defines Adjusted EBIT to be net income attributable to W. R. Grace & Co. shareholders adjusted for interest income and expense; income taxes; costs related to legacy matters; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; gains and losses on sales or exits of businesses, product lines, and certain other investments; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; gains and losses on modification or extinguishment of debt; the effects of these items on equity in earnings of unconsolidated affiliate; and certain other items that are not representative of underlying trends. Reportable Segment Data Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Net Sales Catalysts Technologies $ 305.7 $ 361.4 $ 922.7 $ 1,106.8 Materials Technologies 113.7 109.1 336.9 346.8 Total $ 419.4 $ 470.5 $ 1,259.6 $ 1,453.6 Adjusted EBIT Catalysts Technologies segment operating income $ 67.1 $ 105.1 $ 220.8 $ 332.6 Materials Technologies segment operating income 24.3 26.1 55.9 74.2 Corporate costs (18.2 ) (18.5 ) (50.5 ) (52.7 ) Certain pension costs (3.6 ) (4.5 ) (10.2 ) (13.9 ) Total $ 69.6 $ 108.2 $ 216.0 $ 340.2 Corporate costs include functional costs and other costs such as professional fees, incentive compensation, and insurance premiums. Certain pension costs include only ongoing costs recognized quarterly, which include service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits. Reconciliation of Reportable Segment Data to Financial Statements Grace Adjusted EBIT for the three and nine months ended September 30, 2020 and 2019 , is reconciled below to “income (loss) before income taxes” presented in the accompanying Consolidated Statements of Operations. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Grace Adjusted EBIT $ 69.6 $ 108.2 $ 216.0 $ 340.2 Loss on early extinguishment of debt (39.4 ) — (39.4 ) — Costs related to legacy matters (30.6 ) (3.7 ) (36.1 ) (52.1 ) Restructuring and repositioning expenses attributable to W. R. Grace & Co. shareholders(1) (2.4 ) (3.4 ) (26.5 ) (12.1 ) Inventory write-offs(2) (0.1 ) — (19.8 ) (3.6 ) Third-party acquisition-related costs (0.3 ) (1.4 ) (3.8 ) (2.7 ) Taxes and interest included in equity in earnings of unconsolidated affiliate (0.4 ) (0.4 ) (0.6 ) (1.3 ) Interest expense, net (19.6 ) (18.3 ) (56.2 ) (56.8 ) Net income (loss) attributable to noncontrolling interests (0.3 ) 0.1 (2.5 ) 0.2 Income (loss) before income taxes $ (23.5 ) $ 81.1 $ 31.1 $ 211.8 ___________________________________________________________________________________________________________________ (1) Net of restructuring and repositioning expenses attributable to Grace’s Middle East joint venture partner. (2) Inventory write-off in 2020 related to the changes in hydroprocessing catalysts manufacturing operations (see Note 2) . Inventory write-off in 2019 related to the idling of Grace’s methanol-to-olefins (“MTO”) manufacturing facility. Geographic Area Data The table below presents information related to the geographic areas in which Grace operates. Sales are attributed to geographic areas based on the location to which the product is transported. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Net Sales United States $ 108.7 $ 124.1 $ 329.9 $ 395.9 Canada 9.9 13.4 34.3 42.0 Total North America 118.6 137.5 364.2 437.9 Europe Middle East Africa 182.7 195.6 526.2 604.3 Asia Pacific 97.7 117.5 310.7 345.4 Latin America 20.4 19.9 58.5 66.0 Total $ 419.4 $ 470.5 $ 1,259.6 $ 1,453.6 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | Unconsolidated Affiliate Grace accounts for its 50% ownership interest in ART, its joint venture with Chevron, using the equity method of accounting. Grace’s investment in ART amounted to $167.4 million and $181.9 million as of September 30, 2020 , and December 31, 2019 , respectively. ART is a private, limited liability company, taxed as a partnership, and accordingly does not have a quoted market price available. During the three months ended September 30, 2020, Grace received a $10.0 million dividend from ART, and the Consolidated Balance Sheet as of September 30, 2020, includes an additional $10.0 million dividend receivable from ART to be paid in the 2020 fourth quarter. The table below presents the components of Grace’s “equity in earnings of unconsolidated affiliate” in the Consolidated Statements of Operations. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Operating income $ 2.8 $ 4.4 $ 8.4 $ 15.6 Depreciation and amortization (1.1 ) (0.2 ) (1.9 ) (0.4 ) Interest expense and income taxes (0.4 ) (0.4 ) (0.6 ) (1.3 ) Equity in earnings of unconsolidated affiliate $ 1.3 $ 3.8 $ 5.9 $ 13.9 The table below presents summary financial data related to ART’s balance sheet and results of operations. (In millions) September 30, December 31, Summary Balance Sheet information: Current assets $ 270.4 $ 300.7 Noncurrent assets 248.3 237.8 Total assets $ 518.7 $ 538.5 Current liabilities $ 185.8 $ 177.1 Noncurrent liabilities 0.3 0.3 Total liabilities $ 186.1 $ 177.4 Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Summary Statement of Operations information: Net sales $ 109.9 $ 125.7 $ 309.6 $ 357.2 Costs and expenses applicable to net sales 100.0 113.3 281.1 312.8 Income before income taxes 3.1 8.1 13.4 30.6 Net income 2.8 7.6 11.9 28.8 Grace and ART transact business on a regular basis and maintain several agreements in order to operate the joint venture. These agreements and the resulting transactions are treated as related party activities with an unconsolidated affiliate. Product manufactured by Grace for ART is accounted for on a net basis, with a mark-up, which reduces “cost of goods sold” in the Consolidated Statements of Operations. Grace also receives reimbursement from ART for fixed costs; research and development; selling, general and administrative services; and depreciation. Grace records reimbursements against the respective line items on Grace’s Consolidated Statements of Operations. The table below presents summary financial data related to transactions between Grace and ART. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Product manufactured for ART $ 63.4 $ 64.1 $ 194.7 $ 190.2 Mark-up on product manufactured for ART included as a reduction of Grace’s cost of goods sold 1.2 1.2 3.8 3.7 Charges for fixed costs; research and development; selling, general and administrative services; and depreciation to ART 13.1 12.4 40.5 38.0 The table below presents balances in Grace’s Consolidated Financial Statements related to ART. (in millions) September 30, December 31, Trade accounts receivable $ 23.9 $ 17.5 Other current assets 10.0 173.9 Accounts payable 23.5 37.7 Debt payable within one year 4.8 9.9 Debt payable after one year 30.7 37.5 Other current liabilities — 173.9 The other current asset as of September 30, 2020, in the table above represents the dividend receivable from ART to be paid in the 2020 fourth quarter. The current asset and current liability as of December 31, 2019, represented spending related to a residue hydroprocessing catalyst production plant that has been constructed in Lake Charles, Louisiana. Grace managed the design and construction of the plant, and the asset was included in “other current assets” in Grace’s Consolidated Balance Sheets until commissioning and start-up activities were completed. Grace had likewise recorded a liability for the transfer of the asset to ART upon completion, included in “other current liabilities” in the Consolidated Balance Sheets. Grace transferred the asset to ART in the 2020 third quarter. Grace and ART maintain an agreement whereby ART loans Grace funds for maintenance capital expenditures at manufacturing facilities used to produce catalysts for ART. Grace makes principal and interest payments on the loans on a monthly basis. These unsecured loans have repayment terms of up to eight years , unless earlier repayment is demanded by ART. The loans bear interest at the three-month LIBOR plus 1.25% . Grace and Chevron provide lines of credit in the amount of $15.0 million each at a commitment fee of 0.1% of the credit amount. These agreements have been approved by the ART Executive Committee for renewal until February 2021. No amounts were outstanding at September 30, 2020 , or December 31, 2019 . Joint Venture Arrangement In 2018, Grace formed a joint venture in a developing country in Asia. The purpose of the joint venture is to establish a logistics facility and catalyst testing laboratory and to be the exclusive FCC catalysts and additives supplier to certain customers in the country. Grace’s joint venture partner is the parent company of the customers. Grace has an 87.5% ownership interest in the joint venture and consolidates the activities of the entity. Grace’s Consolidated Balance Sheets as of September 30, 2020 , and December 31, 2019 , include trade accounts receivable of $0.9 million and $3.6 million , respectively, from these customers. Grace’s Consolidated Statements of Operations for the three and nine months ended September 30, 2020 , include $0.7 million and $6.6 million , respectively, of revenues from these customers, compared with $1.8 million and $5.8 million in the corresponding prior-year periods |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Rive Technology, Inc. On June 17, 2019, Grace completed the acquisition of the business and assets of Rive Technology, Inc. for $22.8 million , with an additional $2.0 million holdback payment remitted in the three months ended September 30, 2020. The business is included in the Refining Technologies operating segment of the Catalysts Technologies reportable segment. The acquisition included Rive’s MOLECULAR HIGHWAY ® zeolite technology for catalytic processes, which allows Grace to offer a broader spectrum of products for converting crude oil to petrochemical feedstocks. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim Consolidated Financial Statements presented herein are unaudited and should be read in conjunction with the Consolidated Financial Statements presented in the Company’s 2019 Annual Report on Form 10-K. Such interim Consolidated 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 as discussed below. All significant intercompany accounts and transactions have been eliminated. The results of operations for the nine-month interim period ended September 30, 2020 , are not necessarily indicative of the results of operations to be attained for the year ending December 31, 2020 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. Actual amounts could differ from those estimates, and the differences could be material. Changes in estimates are recorded in the period identified. Grace’s accounting measurements that are most affected by management’s estimates of future events are: • The effective tax rate and realization values of net deferred tax assets, which depend on projections of future taxable income; • Pension and postretirement liabilities, which depend on assumptions regarding participant life spans, future inflation, discount rates and total returns on invested funds (see Note 6); • Carrying values of goodwill and other intangible assets, which depend on assumptions of future earnings and cash flows; and • Contingent liabilities, which depend on an assessment of the probability of loss and an estimate of ultimate obligation, such as litigation and arbitration; and product, environmental, and other legacy liabilities (see Note 8). |
Reclassifications | Reclassifications |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This update clarifies and amends existing guidance, including removing certain exceptions to the general principles in Topic 740, and improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740. This update is effective for Grace on January 1, 2021, with early adoption permitted. Grace is currently evaluating the effect and timing of adoption. Recently Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This update is intended to ease the potential burden in accounting for and recognizing the effects of reference rate reform. It provides optional practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. This update became effective on March 12, 2020, and is available for use through December 31, 2022. Grace expects to utilize the practical expedients provided by this update in accounting for contract modifications and/or hedging transactions during the effective period. Grace expects the update to significantly reduce the effects of reference rate reform on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20).” This update revises disclosure requirements related to defined benefit pension and other postretirement plans. Grace adopted this update in the 2020 first quarter, and it did not have a material effect on the Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” This update requires companies to implement an impairment model based on expected credit losses, rather than probable incurred losses. Grace adopted this update in the 2020 first quarter, and it did not have a material effect on the Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following at September 30, 2020 , and December 31, 2019 : (In millions) September 30, December 31, Raw materials $ 58.6 $ 64.2 In process 43.0 55.7 Finished products 120.4 154.4 Other 33.7 35.6 Total inventory $ 255.7 $ 309.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt Outstanding | Components of Debt (In millions) September 30, December 31, 2018 U.S. dollar term loan, net of unamortized debt issuance costs of $6.3 (2019—$7.2) $ 924.7 $ 930.9 Senior notes due 2027, net of unamortized debt issuance costs of $10.5 739.5 — Senior notes due 2024, net of unamortized debt issuance costs of $2.0 (2019—$2.4) 298.0 297.6 Debt payable to unconsolidated affiliate 35.5 47.4 Senior notes due 2021, net of unamortized debt issuance costs (2019—$2.7) — 697.3 Other borrowings 6.7 7.2 Total debt 2,004.4 1,980.4 Less debt payable within one year 18.8 23.1 Debt payable after one year $ 1,985.6 $ 1,957.3 Weighted average interest rates on total debt 3.4 % 3.8 % |
Schedule of Maturities of Long-term Debt | The principal maturities of debt outstanding at September 30, 2020 , were as follows: (In millions) Remainder of 2020 $ 6.6 2021 17.4 2022 16.1 2023 15.7 2024 313.1 Thereafter 1,635.5 Total debt $ 2,004.4 |
Fair Value Measurements and R_2
Fair Value Measurements and Risk (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the amount of gains and losses on derivative instruments designated as net investment hedges, recorded to “currency translation adjustments” within “accumulated other comprehensive income (loss)” for the three and nine months ended September 30, 2020 and 2019 . There were no reclassifications of the effective portion of net investment hedges out of OCI and into earnings for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Derivatives in ASC 815 net investment hedging relationships: Cross-currency swap $ (8.1 ) $ 8.1 $ (5.7 ) $ 12.4 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | At September 30, 2020 , and December 31, 2019 , the carrying amounts, net of unamortized debt issuance costs and discounts (see Note 3), and fair values of Grace’s debt were as follows: September 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value 2018 U.S. dollar term loan $ 924.7 $ 906.6 $ 930.9 $ 938.1 Senior notes due 2027 739.5 764.7 — — Senior notes due 2024 298.0 317.4 297.6 329.2 Senior notes due 2021 — — 697.3 727.1 Other borrowings 42.2 42.2 54.6 54.6 Total debt $ 2,004.4 $ 2,030.9 $ 1,980.4 $ 2,049.0 |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 , and December 31, 2019 : Fair Value Measurements at September 30, 2020, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities Currency derivatives $ 7.0 $ — $ 7.0 $ — Interest rate derivatives 6.0 — 6.0 $ — Variable-to-fixed cross-currency derivatives 19.9 — 19.9 — Total Liabilities $ 32.9 $ — $ 32.9 $ — Fair Value Measurements at December 31, 2019, Using (In millions) Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Currency derivatives $ 6.1 $ — $ 6.1 $ — Variable-to-fixed cross-currency derivatives 3.4 — 3.4 — Total Assets $ 9.5 $ — $ 9.5 $ — Liabilities Currency derivatives $ 0.9 $ — $ 0.9 $ — Interest rate derivatives 3.4 — 3.4 — Total Liabilities $ 4.3 $ — $ 4.3 $ — |
Schedule of the Location and Fair Values of Derivative Instruments Included in the Consolidated Balance Sheets | The following tables present the location and fair values of derivative instruments included in the Consolidated Balance Sheets as of September 30, 2020 , and December 31, 2019 : September 30, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ — Other current assets $ (1.4 ) Currency contracts Other assets — Other liabilities 7.3 Interest rate contracts Other current assets — Other current liabilities 2.5 Interest rate contracts Other assets — Other liabilities 3.5 Variable-to-fixed cross-currency swaps Other current assets — Other current assets (0.8 ) Variable-to-fixed cross-currency swaps Other assets — Other liabilities 20.7 Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current liabilities 1.1 Total derivatives $ — $ 32.9 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under ASC 815: Currency contracts Other current assets $ 2.1 Other current assets $ (3.1 ) Currency contracts Other assets 4.0 Other liabilities 4.0 Interest rate contracts Other current assets — Other current liabilities 1.0 Interest rate contracts Other assets — Other liabilities 2.4 Variable-to-fixed cross-currency swaps Other current assets 10.2 Other current liabilities — Variable-to-fixed cross-currency swaps Other liabilities (6.8 ) Other liabilities — Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other current assets — Other current assets (0.2 ) Currency contracts Other current assets — Other current liabilities 0.2 Total derivatives $ 9.5 $ 4.3 |
Schedule of Gain (Loss) on Derivative Instruments | The following tables present the location and amount of gains and losses on derivative instruments included in the Consolidated Statements of Operations or, when applicable, gains and losses initially recognized in other comprehensive income (loss) (“OCI”) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (0.3 ) Interest expense $ (0.6 ) Variable-to-fixed cross-currency swaps 1.4 Interest expense (0.1 ) Variable-to-fixed cross-currency swaps (22.0 ) Other expense (22.0 ) Total derivatives $ (20.9 ) $ (22.7 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.4 ) Nine Months Ended September 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (3.8 ) Interest expense $ (1.2 ) Currency contracts(1) 2.7 Other expense 3.2 Variable-to-fixed cross-currency swaps 7.1 Interest expense 4.2 Variable-to-fixed cross-currency swaps (24.6 ) Other expense (24.6 ) Total derivatives $ (18.6 ) $ (18.4 ) Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (2.2 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $(0.6) million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Three Months Ended September 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (0.5 ) Interest expense $ (0.2 ) Currency contracts(1) 3.8 Other expense 3.8 Variable-to-fixed cross-currency swaps 2.5 Interest expense 3.2 Variable-to-fixed cross-currency swaps 22.3 Other expense 22.3 Total derivatives $ 28.1 $ 29.1 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.2 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $0.7 million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. Nine Months Ended September 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Derivatives in ASC 815 cash flow hedging relationships: Interest rate contracts $ (3.4 ) Interest expense $ (0.2 ) Currency contracts(1) 4.6 Other expense 3.8 Variable-to-fixed cross-currency swaps 0.4 Interest expense 10.4 Variable-to-fixed cross-currency swaps 25.3 Other expense 25.3 Total derivatives $ 26.9 $ 39.3 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments under ASC 815: Currency contracts Other expense $ (1.1 ) ___________________________________________________________________________________________________________________ (1) Amount of gain (loss) recognized in OCI includes $2.1 million excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI. The following tables present the total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are reported. Three Months Ended September 30, 2020 2019 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (19.8 ) $ (5.3 ) $ (18.6 ) $ 1.1 Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Gain (loss) reclassified from accumulated OCI into income $ (0.6 ) $ — $ (0.2 ) $ — Variable-to-fixed cross-currency swaps Gain (loss) reclassified from accumulated OCI into income (0.1 ) (22.0 ) 3.2 22.3 Currency contracts Gain (loss) reclassified from accumulated OCI into income — — — 3.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — — — 0.7 Nine Months Ended September 30, 2020 2019 (In millions) Interest expense Other income (expense) Interest expense Other income (expense) Total amounts of income and expense line items in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ (57.3 ) $ 12.1 $ (58.2 ) $ 3.2 Gain (loss) on cash flow hedging relationships in ASC 815 Interest rate contracts Gain (loss) reclassified from accumulated OCI into income $ (1.2 ) $ — $ (0.2 ) $ — Variable-to-fixed cross-currency swaps Gain (loss) reclassified from accumulated OCI into income 4.2 (24.6 ) 10.4 25.3 Currency contracts Gain (loss) reclassified from accumulated OCI into income — 3.2 — 3.8 Amount excluded from effectiveness testing recognized in earnings based on amortization approach (included in above) — 1.1 — 2.1 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of net funded status of fully funded, underfunded, and unfunded pension plans | The following table presents the funded status of Grace’s pension plans: (In millions) September 30, December 31, Overfunded defined benefit pension plans $ 9.5 $ 8.5 Underfunded defined benefit pension plans (83.1 ) (85.2 ) Unfunded defined benefit pension plans (449.4 ) (434.6 ) Total underfunded and unfunded defined benefit pension plans (532.5 ) (519.8 ) Pension liabilities included in other current liabilities (15.1 ) (14.8 ) Net funded status $ (538.1 ) $ (526.1 ) |
Components of net periodic benefit cost (income) | The following tables present the components of net periodic benefit cost (income). Three Months Ended September 30, 2020 2019 (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 4.8 $ 2.8 $ 3.9 $ 2.2 Interest cost 7.5 1.1 9.6 1.4 Expected return on plan assets (12.1 ) (0.3 ) (12.1 ) (0.3 ) Amortization of prior service credit (0.2 ) — (0.2 ) — Net periodic benefit cost (income) $ — $ 3.6 $ 1.2 $ 3.3 Nine Months Ended September 30, 2020 2019 (In millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 14.2 $ 8.2 $ 11.8 $ 6.5 Interest cost 22.6 3.1 28.7 4.1 Expected return on plan assets (36.2 ) (0.8 ) (36.2 ) (0.7 ) Amortization of prior service credit (0.5 ) — (0.5 ) — Net periodic benefit cost (income) $ 0.1 $ 10.5 $ 3.8 $ 9.9 |
Other Balance Sheet Accounts (T
Other Balance Sheet Accounts (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Balance Sheet Accounts [Abstract] | |
Schedule of Other Assets and Other Liabilities | (In millions) September 30, December 31, Other Current Assets Non-trade accounts receivable $ 29.9 $ 24.1 Income taxes receivable 5.8 4.2 Fair value of currency, interest rate, and commodity contracts (see Note 4) 2.9 15.6 Plant under construction—unconsolidated affiliate (see Note 15) — 173.9 Other current assets 30.6 17.3 $ 69.2 $ 235.1 (In millions) September 30, December 31, Other Current Liabilities Accrued compensation $ 56.3 $ 53.6 Deferred revenue (see Note 13) 35.9 35.0 Liability for dam spillway replacement (see Note 8) 20.0 4.7 Environmental contingencies (see Note 8) 21.4 17.8 Accrued interest (see Note 3) 18.2 13.3 Pension liabilities (see Note 6) 15.1 14.8 Operating lease liabilities 9.7 9.3 Income taxes payable (see Note 5) 8.4 8.6 Liability to unconsolidated affiliate for plant under construction (see Note 15) — 173.9 Other accrued liabilities 81.2 88.7 $ 266.2 $ 419.7 Accrued compensation includes salaries and wages as well as estimated current amounts due under the annual and long-term incentive programs. (In millions) September 30, December 31, Other Liabilities Environmental contingencies (see Note 8) $ 89.3 $ 97.5 Liability for dam spillway replacement (see Note 8) 69.9 61.7 Fair value of currency and interest rate contracts (see Note 4) 31.5 13.2 Operating lease liabilities 25.5 26.2 Legacy product liability (see Note 8) 24.0 24.0 Deferred revenue (see Note 13) 21.9 29.5 Retained obligations of divested businesses 12.4 12.7 Asset retirement obligations 9.5 9.4 Deferred income taxes 8.0 7.5 Unrecognized tax benefits 3.9 4.1 Other noncurrent liabilities 20.7 22.4 $ 316.6 $ 308.2 |
Restructuring Expenses and Re_2
Restructuring Expenses and Repositioning Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring expenses and asset impairments | The following table presents restructuring expenses by reportable segment for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Catalysts Technologies $ — $ 0.1 $ 2.8 $ 2.2 Materials Technologies (0.1 ) — 0.2 1.2 Corporate — 0.1 — (0.2 ) Total restructuring expenses $ (0.1 ) $ 0.2 $ 3.0 $ 3.2 |
Schedule of restructuring liability | The following table presents components of the change in the restructuring liability from December 31, 2019 , to September 30, 2020 . (In millions) Balance, December 31, 2019 $ 3.8 Accruals for severance and other costs 3.0 Payments (2.2 ) Balance, September 30, 2020 $ 4.6 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other (income) expense, net | Components of other (income) expense, net are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Business interruption insurance recoveries $ — $ — $ (16.3 ) $ — Defined benefit pension (income) expense other than service cost (4.0 ) (1.6 ) (11.8 ) (4.6 ) Hurricane-related costs 10.6 — 10.6 — Third-party acquisition-related costs 0.3 1.4 3.8 2.7 Net (gain) loss on sales of investments and disposals of assets 1.0 1.0 3.6 2.4 Currency transaction effects 1.6 0.1 (0.4 ) (0.7 ) Other miscellaneous (income) expense (4.2 ) (2.0 ) (1.6 ) (3.0 ) Total other (income) expense, net $ 5.3 $ (1.1 ) $ (12.1 ) $ (3.2 ) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Disclosure of pre-tax, tax, and after-tax components of other comprehensive income (loss) | The following tables present the pre-tax, tax, and after-tax components of Grace’s other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, 2020 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Currency translation adjustments $ (22.7 ) $ 1.8 $ (20.9 ) Gain (loss) from hedging activities 4.0 (1.0 ) 3.0 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (18.7 ) $ 0.8 $ (17.9 ) Nine Months Ended September 30, 2020 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.2 ) $ — $ (0.2 ) Currency translation adjustments (27.2 ) 1.3 (25.9 ) Gain (loss) from hedging activities 2.0 (0.8 ) 1.2 Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ (25.4 ) $ 0.5 $ (24.9 ) Three Months Ended September 30, 2019 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.1 ) $ — $ (0.1 ) Currency translation adjustments 24.2 (1.8 ) 22.4 Gain (loss) from hedging activities (0.7 ) 0.2 (0.5 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 23.4 $ (1.6 ) $ 21.8 Nine Months Ended September 30, 2019 Pre-Tax Amount Tax Benefit/ (Expense) After-Tax Amount Amortization of net prior service credit included in net periodic benefit cost and other costs (credits), net $ (0.4 ) $ 0.1 $ (0.3 ) Currency translation adjustments 30.2 (2.9 ) 27.3 Gain (loss) from hedging activities (13.7 ) 4.1 (9.6 ) Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders $ 16.1 $ 1.3 $ 17.4 |
Schedule of components of accumulated other comprehensive loss | The following tables present the changes in accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2020 and 2019 : Nine Months Ended September 30, 2020 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2019 $ (0.5 ) $ 92.7 $ (13.4 ) $ 78.8 Other comprehensive income (loss) before reclassifications — (25.9 ) (10.6 ) (36.5 ) Amounts reclassified from accumulated other comprehensive income (loss) (0.2 ) — 11.8 11.6 Net current-period other comprehensive income (loss) (0.2 ) (25.9 ) 1.2 (24.9 ) Balance, September 30, 2020 $ (0.7 ) $ 66.8 $ (12.2 ) $ 53.9 Nine Months Ended September 30, 2019 Defined Benefit Pension and Other Postretirement Plans Currency Translation Adjustments Gain (Loss) from Hedging Activities Total Balance, December 31, 2018 $ 0.2 $ 76.2 $ (8.5 ) $ 67.9 Other comprehensive income (loss) before reclassifications — 27.3 18.9 46.2 Amounts reclassified from accumulated other comprehensive income (loss) (0.3 ) — (28.5 ) (28.8 ) Net current-period other comprehensive income (loss) (0.3 ) 27.3 (9.6 ) 17.4 Balance, September 30, 2019 $ (0.1 ) $ 103.5 $ (18.1 ) $ 85.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerators Net income (loss) attributable to W. R. Grace & Co. shareholders $ 7.0 $ 53.7 $ 41.7 $ 154.6 Denominators Weighted average common shares—basic calculation 66.2 66.7 66.3 66.8 Dilutive effect of employee stock options — 0.1 — 0.1 Weighted average common shares—diluted calculation 66.2 66.8 66.3 66.9 Basic earnings per share $ 0.11 $ 0.81 $ 0.63 $ 2.31 Diluted earnings per share $ 0.11 $ 0.80 $ 0.63 $ 2.31 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Schedule of Disaggregated of Revenue | The following tables present Grace's revenues by geography and product group, within its respective reportable segments, for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 North America Europe Middle East Africa (EMEA) Asia Pacific Latin America Total Refining Catalysts $ 46.0 $ 74.9 $ 21.0 $ 6.6 $ 148.5 Polyolefin and Chemical Catalysts 42.1 58.3 52.3 4.5 157.2 Total Catalysts Technologies 88.1 133.2 73.3 11.1 305.7 Pharma/Consumer 15.8 12.3 5.1 5.4 38.6 Coatings 6.2 16.4 9.8 2.9 35.3 Chemical process 7.4 16.7 9.4 1.0 34.5 Other 1.1 4.1 0.1 — 5.3 Total Materials Technologies 30.5 49.5 24.4 9.3 113.7 Total Grace $ 118.6 $ 182.7 $ 97.7 $ 20.4 $ 419.4 Nine Months Ended September 30, 2020 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 150.8 $ 209.0 $ 85.7 $ 20.8 $ 466.3 Polyolefin and Chemical Catalysts 124.0 167.2 153.6 11.6 456.4 Total Catalysts Technologies 274.8 376.2 239.3 32.4 922.7 Pharma/Consumer 45.4 39.3 16.4 14.6 115.7 Coatings 19.1 48.9 27.1 6.6 101.7 Chemical process 21.9 50.9 27.6 4.9 105.3 Other 3.0 10.9 0.3 — 14.2 Total Materials Technologies 89.4 150.0 71.4 26.1 336.9 Total Grace $ 364.2 $ 526.2 $ 310.7 $ 58.5 $ 1,259.6 Three Months Ended September 30, 2019 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 69.9 $ 70.3 $ 48.1 $ 7.6 $ 195.9 Polyolefin and Chemical Catalysts 41.7 71.6 48.6 3.6 165.5 Total Catalysts Technologies 111.6 141.9 96.7 11.2 361.4 Pharma/Consumer 8.8 12.6 5.0 4.8 31.2 Coatings 6.0 16.5 8.4 2.8 33.7 Chemical process 10.1 21.1 7.2 1.1 39.5 Other 1.0 3.5 0.2 — 4.7 Total Materials Technologies 25.9 53.7 20.8 8.7 109.1 Total Grace $ 137.5 $ 195.6 $ 117.5 $ 19.9 $ 470.5 Nine Months Ended September 30, 2019 North America EMEA Asia Pacific Latin America Total Refining Catalysts $ 214.0 $ 210.6 $ 133.9 $ 27.5 $ 586.0 Polyolefin and Chemical Catalysts 140.3 222.7 145.6 12.2 520.8 Total Catalysts Technologies 354.3 433.3 279.5 39.7 1,106.8 Pharma/Consumer 30.7 45.4 15.4 14.5 106.0 Coatings 20.0 53.8 26.9 6.8 107.5 Chemical process 28.2 60.7 23.0 4.8 116.7 Other 4.7 11.1 0.6 0.2 16.6 Total Materials Technologies 83.6 171.0 65.9 26.3 346.8 Total Grace $ 437.9 $ 604.3 $ 345.4 $ 66.0 $ 1,453.6 |
Schedule of Deferred Revenues | The following table presents Grace’s deferred revenue balances as of September 30, 2020 , and December 31, 2019 : (In millions) September 30, December 31, Current $ 35.9 $ 35.0 Noncurrent 21.9 29.5 Total $ 57.8 $ 64.5 |
Schedule of Remaining Performance Obligations | Grace expects to recognize revenue related to remaining performance obligations over several years, as follows: Year Approximate percentage of revenue related to remaining performance obligations recognized Remainder of 2020 6 % 2021 26 % 2022 21 % 2023 15 % Thereafter through 2030 32 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of operating segment data | Reportable Segment Data Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Net Sales Catalysts Technologies $ 305.7 $ 361.4 $ 922.7 $ 1,106.8 Materials Technologies 113.7 109.1 336.9 346.8 Total $ 419.4 $ 470.5 $ 1,259.6 $ 1,453.6 Adjusted EBIT Catalysts Technologies segment operating income $ 67.1 $ 105.1 $ 220.8 $ 332.6 Materials Technologies segment operating income 24.3 26.1 55.9 74.2 Corporate costs (18.2 ) (18.5 ) (50.5 ) (52.7 ) Certain pension costs (3.6 ) (4.5 ) (10.2 ) (13.9 ) Total $ 69.6 $ 108.2 $ 216.0 $ 340.2 |
Schedule of reconciliation of operating segment data to financial statements | Grace Adjusted EBIT for the three and nine months ended September 30, 2020 and 2019 , is reconciled below to “income (loss) before income taxes” presented in the accompanying Consolidated Statements of Operations. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Grace Adjusted EBIT $ 69.6 $ 108.2 $ 216.0 $ 340.2 Loss on early extinguishment of debt (39.4 ) — (39.4 ) — Costs related to legacy matters (30.6 ) (3.7 ) (36.1 ) (52.1 ) Restructuring and repositioning expenses attributable to W. R. Grace & Co. shareholders(1) (2.4 ) (3.4 ) (26.5 ) (12.1 ) Inventory write-offs(2) (0.1 ) — (19.8 ) (3.6 ) Third-party acquisition-related costs (0.3 ) (1.4 ) (3.8 ) (2.7 ) Taxes and interest included in equity in earnings of unconsolidated affiliate (0.4 ) (0.4 ) (0.6 ) (1.3 ) Interest expense, net (19.6 ) (18.3 ) (56.2 ) (56.8 ) Net income (loss) attributable to noncontrolling interests (0.3 ) 0.1 (2.5 ) 0.2 Income (loss) before income taxes $ (23.5 ) $ 81.1 $ 31.1 $ 211.8 ___________________________________________________________________________________________________________________ (1) Net of restructuring and repositioning expenses attributable to Grace’s Middle East joint venture partner. (2) Inventory write-off in 2020 related to the changes in hydroprocessing catalysts manufacturing operations (see Note 2) . Inventory write-off in 2019 related to the idling of Grace’s methanol-to-olefins (“MTO”) manufacturing facility. |
Schedule of geographic area data | The table below presents information related to the geographic areas in which Grace operates. Sales are attributed to geographic areas based on the location to which the product is transported. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Net Sales United States $ 108.7 $ 124.1 $ 329.9 $ 395.9 Canada 9.9 13.4 34.3 42.0 Total North America 118.6 137.5 364.2 437.9 Europe Middle East Africa 182.7 195.6 526.2 604.3 Asia Pacific 97.7 117.5 310.7 345.4 Latin America 20.4 19.9 58.5 66.0 Total $ 419.4 $ 470.5 $ 1,259.6 $ 1,453.6 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information of equity method investee | The table below presents summary financial data related to ART’s balance sheet and results of operations. (In millions) September 30, December 31, Summary Balance Sheet information: Current assets $ 270.4 $ 300.7 Noncurrent assets 248.3 237.8 Total assets $ 518.7 $ 538.5 Current liabilities $ 185.8 $ 177.1 Noncurrent liabilities 0.3 0.3 Total liabilities $ 186.1 $ 177.4 Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Summary Statement of Operations information: Net sales $ 109.9 $ 125.7 $ 309.6 $ 357.2 Costs and expenses applicable to net sales 100.0 113.3 281.1 312.8 Income before income taxes 3.1 8.1 13.4 30.6 Net income 2.8 7.6 11.9 28.8 |
Schedule of financial data related to transactions between Grace and ART | The table below presents summary financial data related to transactions between Grace and ART. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2020 2019 2020 2019 Product manufactured for ART $ 63.4 $ 64.1 $ 194.7 $ 190.2 Mark-up on product manufactured for ART included as a reduction of Grace’s cost of goods sold 1.2 1.2 3.8 3.7 Charges for fixed costs; research and development; selling, general and administrative services; and depreciation to ART 13.1 12.4 40.5 38.0 The table below presents balances in Grace’s Consolidated Financial Statements related to ART. (in millions) September 30, December 31, Trade accounts receivable $ 23.9 $ 17.5 Other current assets 10.0 173.9 Accounts payable 23.5 37.7 Debt payable within one year 4.8 9.9 Debt payable after one year 30.7 37.5 Other current liabilities — 173.9 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of reportable segments | 2 |
Inventories (Details)
Inventories (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Inventory Disclosure [Abstract] | ||||||
Hydroprocessing Manufacturing Sites | 3 | |||||
Raw materials | $ 58.6 | $ 58.6 | $ 64.2 | |||
In process | 43 | 43 | 55.7 | |||
Finished products | 120.4 | 120.4 | 154.4 | |||
Other | 33.7 | 33.7 | 35.6 | |||
Total inventory | 255.7 | 255.7 | $ 309.9 | |||
Adjusted EBIT inventory write-off | $ 0.1 | $ 19.7 | $ 0 | $ 19.8 | $ 3.6 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 26, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Debt payable—unconsolidated affiliate | $ 35.5 | $ 47.4 | |
Total debt | 2,004.4 | 1,980.4 | |
Debt payable within one year | 18.8 | 23.1 | |
Debt payable after one year | $ 1,985.6 | $ 1,957.3 | |
Weighted average interest rates on total debt | 3.40% | 3.80% | |
2025 Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | $ 924.7 | $ 930.9 | |
Debt Issuance Costs, Net | 6.3 | 7.2 | |
Senior Notes, Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 739.5 | 0 | |
Interest rate (percent) | 4.875% | ||
Debt Issuance Costs, Net | 10.5 | 0 | |
5.125% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 697.3 | |
Debt Issuance Costs, Net | 0 | 2.7 | |
5.625% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Total debt | 298 | 297.6 | |
Debt Issuance Costs, Net | 2 | 2.4 | |
Other borrowings | |||
Debt Instrument [Line Items] | |||
Total debt | $ 6.7 | $ 7.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | Jul. 13, 2020 | Jun. 26, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 03, 2018 |
Debt Instrument [Line Items] | |||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 46.1 | $ 39.1 | |||||
Loss on early extinguishment of debt | $ 39.4 | $ 0 | 39.4 | $ 0 | |||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes issued | $ 400 | ||||||
Current borrowing capacity | $ 391.8 | $ 391.8 | |||||
Senior Notes, Due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 750 | ||||||
Interest rate (percent) | 4.875% | ||||||
Proceeds from Debt, Net of Issuance Costs | $ 741.6 | ||||||
Debt Instrument Price as Percent of Par Value | 100.00% | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Debt Instrument Required Redemption Price Percentage | 101.00% | ||||||
Debt Instrument, Covenant Description | The Senior Notes due 2027 were issued subject to covenants that limit the ability of the Company, the Issuer, and certain of the Company’s subsidiaries to: (i) incur liens on assets; (ii) enter into sale and leaseback transactions larger than the greater of $100 million or 2.5% of total assets; and (iii) merge or consolidate with another company; subject to certain exceptions and qualifications. | ||||||
Debt Instrument Default Terms | The Senior Notes due 2027 were issued subject to customary events of default, which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in the Indenture; failure to pay certain other indebtedness; failure to discharge a final judgment for payment of the greater of (i) $100 million and (ii) 2.5% of Total Assets (as defined in the Indenture) or more (excluding any amounts covered by insurance or indemnities) rendered against the Issuer or any of its significant subsidiaries; and certain events of bankruptcy or insolvency. Generally, if any event of default occurs, the Trustee or the holders of at least 30% in aggregate principal amount of the then outstanding series of Senior Notes due 2027 may declare all the Senior Notes due 2027 of such series to be due and payable immediately. | ||||||
Senior Notes, Due 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 700 | ||||||
Cash Paid Redemption of Debt Including Premium and Interest | 748 | ||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 10.1 | ||||||
Redemption Premium | $ 37.9 |
Debt - Debt Maturity Schedule (
Debt - Debt Maturity Schedule (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Maturities of Long-term Debt [Abstract] | ||
Remainder of Fiscal Year | $ 6.6 | |
Year Two | 16.1 | |
Long-Term Debt, Maturity, Year One | 17.4 | |
Year Three | 15.7 | |
Year Four | 313.1 | |
Long-Term Debt, Maturity, after Year Four | 1,635.5 | |
Total debt | $ 2,004.4 | $ 1,980.4 |
Fair Value Measurements and R_3
Fair Value Measurements and Risk - Carrying Amounts and Fair Values of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 26, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 2,004.4 | $ 1,980.4 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other borrowings | 42.2 | 54.6 | |
Total debt | 2,004.4 | 1,980.4 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other borrowings | 42.2 | 54.6 | |
Total debt | 2,030.9 | 2,049 | |
2025 Term Loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 924.7 | 930.9 | |
Debt Issuance Costs, Net | 6.3 | 7.2 | |
2025 Term Loan | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 924.7 | 930.9 | |
2025 Term Loan | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 906.6 | 938.1 | |
Senior Notes, Due 2027 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 739.5 | 0 | |
Interest rate (percent) | 4.875% | ||
Debt Issuance Costs, Net | 10.5 | 0 | |
Senior Notes, Due 2027 [Member] | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 739.5 | 0 | |
Senior Notes, Due 2027 [Member] | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 764.7 | 0 | |
5.125% Senior Notes, Due 2021 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 0 | 697.3 | |
Debt Issuance Costs, Net | 0 | 2.7 | |
5.125% Senior Notes, Due 2021 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 0 | 697.3 | |
5.125% Senior Notes, Due 2021 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 0 | 727.1 | |
5.625% Senior Notes, Due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 298 | 297.6 | |
Debt Issuance Costs, Net | 2 | 2.4 | |
5.625% Senior Notes, Due 2024 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | 298 | 297.6 | |
5.625% Senior Notes, Due 2024 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 317.4 | $ 329.2 |
Fair Value Measurements and R_4
Fair Value Measurements and Risk - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020EUR (€)Currencycountry | Sep. 30, 2020USD ($)Currencycountry | Nov. 05, 2018EUR (€) | Nov. 05, 2018USD ($) | Apr. 03, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of countries in which entity operates | country | 60 | 60 | |||||||
Number of currencies used | Currency | 30 | 30 | |||||||
Maturities in which forward contracts are designated as cash flow hedges or forecasted repayments of intercompany loans | 36 months | ||||||||
Currency contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, Notional Amount | $ 71.6 | ||||||||
Variable-to-fixed cross-currency swaps | 2018 Credit Agreement [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, Notional Amount | € | € 525.9 | ||||||||
Derivative, Amount of Hedged Item | $ 600 | ||||||||
Fixed interest rate | 1.785% | 1.785% | |||||||
Interest rate contracts | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, Notional Amount | $ 100 | ||||||||
Derivative, Amount of Hedged Item | $ 100 | ||||||||
Fixed interest rate | 2.775% | ||||||||
Net Investment Hedging | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | ||||||||
Net Investment Hedging | Currency Swap [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Gain (Loss) on Components Excluded from Assessment of Net Investment Hedge Effectiveness | $ 0.6 | $ 0.9 | $ 2.3 | $ 2.5 | |||||
Derivative, Notional Amount | € | € 170 |
Fair Value Measurements and R_5
Fair Value Measurements and Risk - Financial Asset and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 0 | $ 9.5 |
Total derivatives | 32.9 | 4.3 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9.5 | |
Total derivatives | 32.9 | 4.3 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9.5 | |
Total derivatives | 32.9 | 4.3 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | 0 |
Currency derivatives | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 6.1 | |
Total derivatives | 7 | 0.9 |
Currency derivatives | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | 0 |
Currency derivatives | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 6.1 | |
Total derivatives | 7 | 0.9 |
Currency derivatives | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | 0 |
Variable-to-fixed cross-currency swaps | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3.4 | |
Total derivatives | 19.9 | |
Variable-to-fixed cross-currency swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | |
Variable-to-fixed cross-currency swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3.4 | |
Total derivatives | 19.9 | |
Variable-to-fixed cross-currency swaps | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Total derivatives | 0 | |
Interest rate derivatives | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivatives | 6 | 3.4 |
Interest rate derivatives | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivatives | 0 | 0 |
Interest rate derivatives | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivatives | 6 | 3.4 |
Interest rate derivatives | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivatives | $ 0 | $ 0 |
Fair Value Measurements and R_6
Fair Value Measurements and Risk - Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Asset Derivatives | ||
Total derivatives | $ 0 | $ 9.5 |
Liability Derivatives | ||
Total derivatives | 32.9 | 4.3 |
Currency contracts | Derivatives designated as hedging instruments under ASC 815: | Other current assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 2.1 |
Liability Derivatives | ||
Total derivatives | (1.4) | (3.1) |
Currency contracts | Derivatives designated as hedging instruments under ASC 815: | Other assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 4 |
Currency contracts | Derivatives designated as hedging instruments under ASC 815: | Other liabilities | ||
Liability Derivatives | ||
Total derivatives | 7.3 | 4 |
Currency contracts | Derivatives not designated as hedging instruments under ASC 815: | Other current assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 0 |
Liability Derivatives | ||
Total derivatives | (0.2) | |
Currency contracts | Derivatives not designated as hedging instruments under ASC 815: | Other current liabilities | ||
Liability Derivatives | ||
Total derivatives | 1.1 | 0.2 |
Interest rate contracts | Derivatives designated as hedging instruments under ASC 815: | Other current assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 0 |
Interest rate contracts | Derivatives designated as hedging instruments under ASC 815: | Other assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 0 |
Interest rate contracts | Derivatives designated as hedging instruments under ASC 815: | Other current liabilities | ||
Liability Derivatives | ||
Total derivatives | 2.5 | 1 |
Interest rate contracts | Derivatives designated as hedging instruments under ASC 815: | Other liabilities | ||
Liability Derivatives | ||
Total derivatives | 3.5 | 2.4 |
Variable-to-fixed cross-currency swaps | Derivatives designated as hedging instruments under ASC 815: | Other current assets | ||
Asset Derivatives | ||
Total derivatives | 0 | 10.2 |
Liability Derivatives | ||
Total derivatives | (0.8) | |
Variable-to-fixed cross-currency swaps | Derivatives designated as hedging instruments under ASC 815: | Other assets | ||
Asset Derivatives | ||
Total derivatives | 0 | |
Variable-to-fixed cross-currency swaps | Derivatives designated as hedging instruments under ASC 815: | Other current liabilities | ||
Liability Derivatives | ||
Total derivatives | 0 | |
Variable-to-fixed cross-currency swaps | Derivatives designated as hedging instruments under ASC 815: | Other liabilities | ||
Asset Derivatives | ||
Total derivatives | (6.8) | |
Liability Derivatives | ||
Total derivatives | $ 20.7 | $ 0 |
Fair Value Measurements and R_7
Fair Value Measurements and Risk - Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flow Hedging [Member] | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ (20.9) | $ 28.1 | $ (18.6) | $ 26.9 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (22.7) | 29.1 | (18.4) | 39.3 |
Cash Flow Hedging [Member] | Interest rate derivatives | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (0.3) | (0.5) | (3.8) | (3.4) |
Cash Flow Hedging [Member] | Interest rate derivatives | Interest expense | ||||
Gains and losses on derivative instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.6) | (0.2) | (1.2) | (0.2) |
Cash Flow Hedging [Member] | Interest rate derivatives | Other expense | ||||
Gains and losses on derivative instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedging [Member] | Currency contracts | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 3.8 | 2.7 | 4.6 | |
Cash Flow Hedging [Member] | Currency contracts | Interest expense | ||||
Gains and losses on derivative instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedging [Member] | Currency contracts | Other expense | ||||
Gains and losses on derivative instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 3.8 | 3.2 | 3.8 |
Cash Flow Hedging [Member] | Variable-to-fixed cross-currency swaps | Interest expense | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 1.4 | 2.5 | 7.1 | 0.4 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.1) | 3.2 | 4.2 | 10.4 |
Cash Flow Hedging [Member] | Variable-to-fixed cross-currency swaps | Other expense | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (22) | 22.3 | (24.6) | 25.3 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (22) | 22.3 | (24.6) | 25.3 |
Derivatives not designated as hedging instruments under ASC 815: | Currency contracts | Other expense | ||||
Gains and losses on derivative instruments | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (1.4) | (1.2) | (2.2) | (1.1) |
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent [Member] | Cash Flow Hedging [Member] | Currency contracts | ||||
Gains and losses on derivative instruments | ||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments and Tax | $ 0.7 | $ (0.6) | $ 2.1 |
Fair Value Measurements and R_8
Fair Value Measurements and Risk- Cash Flow Hedges and Net Investment Hedges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest and Debt Expense | $ (19,800,000) | $ (18,600,000) | $ (57,300,000) | $ (58,200,000) |
Nonoperating Income (Expense) | (5,300,000) | 1,100,000 | 12,100,000 | 3,200,000 |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (22,700,000) | 29,100,000 | (18,400,000) | 39,300,000 |
Net Investment Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | |
Net Investment Hedging | Currency Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (8,100,000) | 8,100,000 | (5,700,000) | 12,400,000 |
Interest expense | Interest rate contracts | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (600,000) | (200,000) | (1,200,000) | (200,000) |
Interest expense | Variable-to-fixed cross-currency swaps | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (100,000) | 3,200,000 | 4,200,000 | 10,400,000 |
Interest expense | Currency contracts | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Other expense | Interest rate contracts | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | 0 | 0 |
Other expense | Variable-to-fixed cross-currency swaps | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (22,000,000) | 22,300,000 | (24,600,000) | 25,300,000 |
Other expense | Currency contracts | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 3,800,000 | 3,200,000 | 3,800,000 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 700,000 | $ 1,100,000 | $ 2,100,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Percent | (26.00%) | 26.90% | |||
Income Tax Reconciliation Prior Year GILTI HTE | $ 23 | $ 23 | |||
Provision for (benefit from) income taxes | 30.2 | $ (27.3) | 8.1 | $ (57) | |
Deferred Tax Assets, Tax Credit Carryforwards, Gross of UTB | $ 315.5 | $ 315.5 | $ 302.5 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plans - Pension Plans and Other Postretirement Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Funded status of fully funded, underfunded, and unfunded pension plans: | |||||
Overfunded defined benefit pension plans | $ 9.5 | $ 9.5 | $ 8.5 | ||
Unfunded defined benefit pension plans | 532.5 | 532.5 | 519.8 | ||
Pension liabilities included in other current liabilities | 15.1 | 15.1 | 14.8 | ||
Net funded status | (538.1) | (538.1) | (526.1) | ||
Underfunded Plan | |||||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||||
Unfunded defined benefit pension plans | 83.1 | 83.1 | 85.2 | ||
Defined Benefit Plan, Unfunded Plan [Member] | |||||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||||
Unfunded defined benefit pension plans | 449.4 | 449.4 | $ 434.6 | ||
Foreign Plan [Member] | |||||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||||
Defined Benefit Plan, Service Cost | 2.8 | $ 2.2 | 8.2 | $ 6.5 | |
Defined Benefit Plan, Interest Cost | 1.1 | 1.4 | 3.1 | 4.1 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (0.3) | (0.3) | (0.8) | (0.7) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 3.6 | 3.3 | 10.5 | 9.9 | |
United States | |||||
Funded status of fully funded, underfunded, and unfunded pension plans: | |||||
Defined Benefit Plan, Service Cost | 4.8 | 3.9 | 14.2 | 11.8 | |
Defined Benefit Plan, Interest Cost | 7.5 | 9.6 | 22.6 | 28.7 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (12.1) | (12.1) | (36.2) | (36.2) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.2) | (0.2) | (0.5) | (0.5) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 0 | $ 1.2 | $ 0.1 | $ 3.8 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
United States | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage that the employer contributes of employee contributions under 401(k) plan | 100.00% | |||
Maximum percentage of employee compensation match by employer to defined contribution plan | 6.00% | |||
Costs related to defined contribution retirement plan | $ 3.7 | $ 3.5 | $ 10.6 | $ 10.4 |
Enhanced Defined Contribution Plans [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Costs related to defined contribution retirement plan | $ 1 | $ 0.8 | $ 3.1 | $ 2.3 |
Enhanced Defined Contribution Plans [Member] | United States | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% |
Other Balance Sheet Accounts (D
Other Balance Sheet Accounts (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of other assets and other liabilities [Line Items] | ||
Current asset, related party | $ 0 | $ 173.9 |
Nontrade Receivables, Current | 29.9 | 24.1 |
Derivative Asset, Current | 2.9 | 15.6 |
Income Taxes Receivable | 5.8 | 4.2 |
Other Assets, Miscellaneous, Current | 30.6 | 17.3 |
Other current assets | 69.2 | 235.1 |
Other Current Liabilities | ||
Current liability, related party | 0 | 173.9 |
Employee-related Liabilities, Current | 56.3 | 53.6 |
Deferred revenue (see Note 13) | 35.9 | 35 |
Environmental contingencies (see Note 8) | 21.4 | 17.8 |
Pension liabilities (see Note 6) | 15.1 | 14.8 |
Accrued interest (see Note 3) | 18.2 | 13.3 |
Income taxes payable (see Note 5) | 8.4 | 8.6 |
Operating Lease, Liability, Current | 9.7 | 9.3 |
Liability for dam spillway replacement, current | 20 | 4.7 |
Other accrued liabilities | 81.2 | 88.7 |
Total Other Current Liabilities | 266.2 | 419.7 |
Other Liabilities, Noncurrent | ||
Environmental contingencies (see Note 8) | 89.3 | 97.5 |
Liability for dam spillway replacement | 69.9 | 61.7 |
Deferred revenue (see Note 13) | 21.9 | 29.5 |
Operating Lease, Liability, Noncurrent | 25.5 | 26.2 |
Legacy Product Liability | 24 | 24 |
Retained obligations of divested businesses | 12.4 | 12.7 |
Asset retirement obligations | 9.5 | 9.4 |
Deferred Income Tax Liabilities, Net | 8 | 7.5 |
Derivative Liability, Noncurrent | 31.5 | 13.2 |
Unrecognized Tax Benefits, Net of Deferred Taxes | 3.9 | 4.1 |
Other noncurrent liabilities | 20.7 | 22.4 |
Other Liabilities, Noncurrent | $ 316.6 | $ 308.2 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | 80 Months Ended | |
Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2020USD ($)paymentshares | Dec. 31, 2019USD ($) | Feb. 03, 2017USD ($) | Sep. 30, 2020USD ($)shares | |
Other Commitments [Abstract] | ||||||
ZAI PD account funding | $ 49,400,000 | |||||
ZAI P D account, maximum number of contingent deferred payments | payment | 10 | |||||
ZAI P D account, deferred payments, each year for twenty years | $ 8,000,000 | |||||
Period in which ZAI PD contingent deferred payments will be made | 20 years | |||||
Minimum ZAI P D account assets for condition in relation to contingent obligation payments | $ 10,000,000 | $ 10,000,000 | ||||
ZAI PD Claims and Expenses paid by the Trust | 36,000,000 | |||||
ZAI PD Attorney's fees paid by the Trust | $ 15,000,000 | |||||
ZAI PD Trust Balance | $ 19,000,000 | $ 19,000,000 | ||||
Frequency of PD trust payments | 6 months | |||||
Estimated annual expenses related to PD Trust | $ 200,000 | |||||
Number of shares issuable under warrant (in shares) | shares | 77,372,257 | 77,372,257 | ||||
Legacy Matters | ||||||
Accrual for Environmental Loss Contingencies | $ 115,300,000 | $ 110,700,000 | $ 115,300,000 | $ 110,700,000 | ||
Legacy Product Charge | 24,000,000 | |||||
Remaining Period in Which ZAI PD Contingent Deferred Payments May be Made | 19 years | |||||
Total Maximum Financial Obligation for ZAI PD Account Contingent Deferred Payments | $ 80,000,000 | |||||
Maximum Annual Obligation for ZAI PD Account Contingent Deferred Payments | 8,000,000 | |||||
Non-Vermiculite Related Matters | ||||||
Legacy Matters | ||||||
Accrual for Environmental Loss Contingencies | 39,300,000 | 38,300,000 | 39,300,000 | 38,300,000 | ||
Vermiculite Related Matters | ||||||
Legacy Matters | ||||||
Accrual for Environmental Loss Contingencies | $ 76,000,000 | 72,400,000 | 76,000,000 | 72,400,000 | ||
Operable Unit 3 [Member] | ||||||
Legacy Matters | ||||||
Environmental Remediation Expense | $ 70,000,000 | |||||
Spillway [Member] | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | 95,000,000 | 95,000,000 | ||||
Loss Contingency, Loss in Period | 27,000,000 | $ 68,000,000 | ||||
Minimum | Operable Unit 3 [Member] | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | 30,000,000 | 30,000,000 | ||||
Minimum | Spillway [Member] | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | $ 80,000,000 | 80,000,000 | ||||
Site Contingency, Time Frame of Disbursements | three years | |||||
Maximum | Operable Unit 3 [Member] | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | $ 170,000,000 | 170,000,000 | ||||
Maximum | Spillway [Member] | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | $ 120,000,000 | 120,000,000 | ||||
Site Contingency, Time Frame of Disbursements | P4Y | |||||
ZAI PD Trust [Member] | Minimum | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | $ 16,000,000 | 16,000,000 | ||||
ZAI PD Trust [Member] | Maximum | ||||||
Legacy Matters | ||||||
Loss Contingency, Estimate of Possible Loss | $ 24,000,000 | $ 24,000,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Financial Assurances (Details) $ in Millions | Sep. 30, 2020USD ($) |
Financial Guarantee | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 140.7 |
Surety Bonds | |
Financial assurances | |
Gross financial assurances issued and outstanding | 79.6 |
Standby Letters of Credit | |
Financial assurances | |
Gross financial assurances issued and outstanding | $ 61.1 |
Restructuring Expenses and Re_3
Restructuring Expenses and Repositioning Expenses - Expenses and Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ (0.1) | $ 0.2 | $ 3 | $ 3.2 |
Catalysts Technologies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 0 | 0.1 | 2.8 | 2.2 |
Materials Technologies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | (0.1) | 0 | 0.2 | 1.2 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 0 | $ 0.1 | $ 0 | $ (0.2) |
Restructuring Expenses and Re_4
Restructuring Expenses and Repositioning Expenses - Liability Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance, December 31, 2019 | $ 3.8 |
Accruals for severance and other costs | 3 |
Payments | (2.2) |
Balance, September 30, 2019 | $ 4.6 |
Restructuring Expenses and Re_5
Restructuring Expenses and Repositioning Expenses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | $ 2.5 | $ 3.2 | $ 26 | $ 8.9 |
Write off of engineering and site costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | 19.7 | |||
Noncontrolling Interests | Write off of engineering and site costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Repositioning expenses | $ 2.5 |
Other (Income) Expense, net (De
Other (Income) Expense, net (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Other Income and Expenses [Abstract] | |||||||
Hurricane-related Costs Included in Income (Loss) From Equity Method Investments | $ 1.1 | ||||||
Business interruption insurance recovery | 0 | $ (8) | $ 0 | $ (16.3) | $ (16.3) | $ (24.3) | $ 0 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (4) | (1.6) | (11.8) | (4.6) | |||
Hurricane-related costs | 10.6 | 0 | 10.6 | 0 | |||
Third-party acquisition-related costs | 0.3 | 1.4 | 3.8 | 2.7 | |||
Gain (Loss) on Disposition of Assets included in Other (Income) Expense, net | (1) | (1) | (3.6) | (2.4) | |||
Currency transaction effects | 1.6 | 0.1 | (0.4) | (0.7) | |||
Net (gain) loss on sales of investments and disposals of assets | 21.8 | 2.2 | |||||
Other miscellaneous (income) expense | (4.2) | (2) | (1.6) | (3) | |||
Loss on early extinguishment of debt | 39.4 | 0 | 39.4 | 0 | |||
Total other (income) expense, net | $ 5.3 | $ (1.1) | $ (12.1) | $ (3.2) | |||
Quarters Covered Business Interruption Recoveries | 8 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - OCI Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | $ (0.1) | $ (0.2) | $ (0.4) | |
Tax Benefit/ (Expense) | 0 | 0 | 0.1 | |
After-Tax Amount | (0.1) | (0.2) | (0.3) | |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | $ (22.7) | 24.2 | (27.2) | 30.2 |
Tax Benefit/ (Expense) | 1.8 | (1.8) | 1.3 | (2.9) |
After-Tax Amount | (20.9) | 22.4 | (25.9) | 27.3 |
Gain (Loss) from Hedging Activities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | 4 | (0.7) | 2 | (13.7) |
Tax Benefit/ (Expense) | (1) | 0.2 | (0.8) | 4.1 |
After-Tax Amount | 3 | (0.5) | 1.2 | (9.6) |
Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-Tax Amount | (18.7) | 23.4 | (25.4) | 16.1 |
Tax Benefit/ (Expense) | 0.8 | (1.6) | 0.5 | 1.3 |
After-Tax Amount | $ (17.9) | $ 21.8 | $ (24.9) | $ 17.4 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Net of Tax | $ (17.9) | $ (8.4) | $ 1.4 | $ 21.8 | $ (13) | $ 8.6 | $ (24.9) | $ 17.4 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance, December 31, 2019 | 349.6 | 383.9 | 402.2 | 387.3 | 353.8 | 337 | 402.2 | 337 |
Balance, September 30, 2020 | 320.5 | 349.6 | 383.9 | 451.7 | 387.3 | 353.8 | 320.5 | 451.7 |
Defined Benefit Pension and Other Postretirement Plans | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 0.3 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (0.2) | (0.3) | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance, December 31, 2019 | (0.5) | 0.2 | (0.5) | 0.2 | ||||
Balance, September 30, 2020 | (0.7) | (0.1) | (0.7) | (0.1) | ||||
Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (25.9) | 27.3 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (25.9) | 27.3 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance, December 31, 2019 | 92.7 | 76.2 | 92.7 | 76.2 | ||||
Balance, September 30, 2020 | 66.8 | 103.5 | 66.8 | 103.5 | ||||
Gain (Loss) from Hedging Activities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (10.6) | 18.9 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11.8) | 28.5 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 1.2 | (9.6) | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance, December 31, 2019 | (13.4) | (8.5) | (13.4) | (8.5) | ||||
Balance, September 30, 2020 | (12.2) | (18.1) | (12.2) | (18.1) | ||||
Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (36.5) | 46.2 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11.6) | 28.8 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (17.9) | (8.4) | 1.4 | 21.8 | (13) | 8.6 | (24.9) | 17.4 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance, December 31, 2019 | 71.8 | 80.2 | 78.8 | 63.5 | 76.5 | 67.9 | 78.8 | 67.9 |
Balance, September 30, 2020 | $ 53.9 | $ 71.8 | $ 80.2 | $ 85.3 | $ 63.5 | $ 76.5 | $ 53.9 | $ 85.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Feb. 28, 2020 | Feb. 08, 2017 | |
Numerators | ||||||
Net Income (Loss) Attributable to Parent | $ 7,000,000 | $ 53,700,000 | $ 41,700,000 | $ 154,600,000 | ||
Denominators | ||||||
Weighted average number of basic shares (in shares) | 66,200,000 | 66,700,000 | 66,300,000 | 66,800,000 | ||
Dilutive effect of employee stock options (in shares) | 0 | 100,000 | 0 | 100,000 | ||
Weighted average common shares—diluted calculation (in shares) | 66,200,000 | 66,800,000 | 66,300,000 | 66,900,000 | ||
Basic earnings per share attributable to W. R. Grace & Co. shareholders | ||||||
Net income (loss) (in dollars per share) | $ 0.11 | $ 0.81 | $ 0.63 | $ 2.31 | ||
Diluted earnings per share attributable to W. R. Grace & Co. shareholders | ||||||
Net income (loss) (in dollars per shares) | $ 0.11 | $ 0.80 | $ 0.63 | $ 2.31 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Anti-dilutive options outstanding (in shares) | 1,500,000 | 1,100,000 | 1,700,000 | 800,000 | ||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 250,000,000 | ||||
Stock repurchased during period (in shares) | 673,807 | 409,769 | ||||
Cash paid for repurchases of common stock | $ 40,400,000 | $ 29,800,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 235,000,000 | $ 235,000,000 | ||||
2/8/2017 Share Repurchase Program [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 83,000,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)segment | |
Deferred Revenue Arrangement [Line Items] | ||
Number of reportable segments | segment | 2 | |
Contract with customer, liability, revenue recognized in the period | $ 6.8 | $ 22.9 |
Contract With Customer Liability, Noncurrent, Recognition Period | 4 years | |
Remaining performance obligation | $ 150 | $ 150 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 419.4 | $ 470.5 | $ 1,259.6 | $ 1,453.6 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 118.6 | 137.5 | 364.2 | 437.9 |
Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 182.7 | 195.6 | 526.2 | 604.3 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 97.7 | 117.5 | 310.7 | 345.4 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20.4 | 19.9 | 58.5 | 66 |
Catalysts Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 305.7 | 361.4 | 922.7 | 1,106.8 |
Catalysts Technologies | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 88.1 | 111.6 | 274.8 | 354.3 |
Catalysts Technologies | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 133.2 | 141.9 | 376.2 | 433.3 |
Catalysts Technologies | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73.3 | 96.7 | 239.3 | 279.5 |
Catalysts Technologies | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11.1 | 11.2 | 32.4 | 39.7 |
Catalysts Technologies | Refining Catalysts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 148.5 | 195.9 | 466.3 | 586 |
Catalysts Technologies | Refining Catalysts | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46 | 69.9 | 150.8 | 214 |
Catalysts Technologies | Refining Catalysts | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 74.9 | 70.3 | 209 | 210.6 |
Catalysts Technologies | Refining Catalysts | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21 | 48.1 | 85.7 | 133.9 |
Catalysts Technologies | Refining Catalysts | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6.6 | 7.6 | 20.8 | 27.5 |
Catalysts Technologies | Polyolefin and Chemical Catalysts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 157.2 | 165.5 | 456.4 | 520.8 |
Catalysts Technologies | Polyolefin and Chemical Catalysts | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42.1 | 41.7 | 124 | 140.3 |
Catalysts Technologies | Polyolefin and Chemical Catalysts | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58.3 | 71.6 | 167.2 | 222.7 |
Catalysts Technologies | Polyolefin and Chemical Catalysts | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 52.3 | 48.6 | 153.6 | 145.6 |
Catalysts Technologies | Polyolefin and Chemical Catalysts | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4.5 | 3.6 | 11.6 | 12.2 |
Materials Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113.7 | 109.1 | 336.9 | 346.8 |
Materials Technologies | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30.5 | 25.9 | 89.4 | 83.6 |
Materials Technologies | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49.5 | 53.7 | 150 | 171 |
Materials Technologies | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24.4 | 20.8 | 71.4 | 65.9 |
Materials Technologies | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.3 | 8.7 | 26.1 | 26.3 |
Materials Technologies | Consumer/Pharma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 38.6 | 31.2 | 115.7 | 106 |
Materials Technologies | Consumer/Pharma | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15.8 | 8.8 | 45.4 | 30.7 |
Materials Technologies | Consumer/Pharma | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12.3 | 12.6 | 39.3 | 45.4 |
Materials Technologies | Consumer/Pharma | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5.1 | 5 | 16.4 | 15.4 |
Materials Technologies | Consumer/Pharma | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5.4 | 4.8 | 14.6 | 14.5 |
Materials Technologies | Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35.3 | 33.7 | 101.7 | 107.5 |
Materials Technologies | Coatings | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6.2 | 6 | 19.1 | 20 |
Materials Technologies | Coatings | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16.4 | 16.5 | 48.9 | 53.8 |
Materials Technologies | Coatings | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.8 | 8.4 | 27.1 | 26.9 |
Materials Technologies | Coatings | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2.9 | 2.8 | 6.6 | 6.8 |
Materials Technologies | Chemical process | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34.5 | 39.5 | 105.3 | 116.7 |
Materials Technologies | Chemical process | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7.4 | 10.1 | 21.9 | 28.2 |
Materials Technologies | Chemical process | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16.7 | 21.1 | 50.9 | 60.7 |
Materials Technologies | Chemical process | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.4 | 7.2 | 27.6 | 23 |
Materials Technologies | Chemical process | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 1.1 | 4.9 | 4.8 |
Materials Technologies | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5.3 | 4.7 | 14.2 | 16.6 |
Materials Technologies | Other | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1.1 | 1 | 3 | 4.7 |
Materials Technologies | Other | Europe Middle East Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4.1 | 3.5 | 10.9 | 11.1 |
Materials Technologies | Other | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.1 | 0.2 | 0.3 | 0.6 |
Materials Technologies | Other | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0.2 |
Revenues - Contract with Custom
Revenues - Contract with Customers (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues [Abstract] | ||
Current | $ 35.9 | $ 35 |
Noncurrent | 21.9 | 29.5 |
Total | $ 57.8 | $ 64.5 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations (Details) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Approximate percentage of revenue related to remaining performance obligations recognized | 6.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Approximate percentage of revenue related to remaining performance obligations recognized | 26.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Approximate percentage of revenue related to remaining performance obligations recognized | 21.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Approximate percentage of revenue related to remaining performance obligations recognized | 15.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 7 years |
Approximate percentage of revenue related to remaining performance obligations recognized | 32.00% |
Revenues Remaining Performance
Revenues Remaining Performance Obligation Total (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue , Remaining Performance Obligation Total [Abstract] | |
Contract With Customer Liability, Noncurrent, Recognition Period | 4 years |
Segment Information - Reportabl
Segment Information - Reportable Segment Data (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Operating segment information | |||||
Number of reportable segments | segment | 2 | ||||
Net Sales | |||||
Revenues | $ 419.4 | $ 470.5 | $ 1,259.6 | $ 1,453.6 | |
Adjusted EBIT | |||||
Total | 69.6 | 108.2 | 216 | 340.2 | |
Reconciliation of operating segment data to financial statements | |||||
Restructuring and Repositioning expenses attributable to W. R. Grace & Co. shareholders | 2.4 | 3.4 | 26.5 | 12.1 | |
Adjusted EBIT inventory write-off | (0.1) | $ (19.7) | 0 | (19.8) | (3.6) |
Costs related to legacy matters | (30.6) | (3.7) | (36.1) | (52.1) | |
Third-party acquisition-related costs | (0.3) | (1.4) | (3.8) | (2.7) | |
Taxes and interest included in equity in earnings of unconsolidated affiliate | (0.4) | (0.4) | (0.6) | (1.3) | |
Interest expense, net | (19.6) | (18.3) | (56.2) | (56.8) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (0.3) | 0.1 | (2.5) | 0.2 | |
Loss on early extinguishment of debt | (39.4) | 0 | (39.4) | 0 | |
Income (loss) before income taxes | (23.5) | 81.1 | $ 31.1 | 211.8 | |
Catalysts Technologies | |||||
Operating segment information | |||||
Number of reportable segments | segment | 1 | ||||
Number of operating segments | segment | 2 | ||||
Net Sales | |||||
Revenues | 305.7 | 361.4 | $ 922.7 | 1,106.8 | |
Materials Technologies | |||||
Net Sales | |||||
Revenues | 113.7 | 109.1 | 336.9 | 346.8 | |
Corporate | |||||
Adjusted EBIT | |||||
Operating income | (18.2) | (18.5) | (50.5) | (52.7) | |
Certain pension costs | (3.6) | (4.5) | (10.2) | (13.9) | |
Operating Segments | Catalysts Technologies | |||||
Net Sales | |||||
Revenues | 305.7 | 361.4 | 922.7 | 1,106.8 | |
Adjusted EBIT | |||||
Operating income | 67.1 | 105.1 | 220.8 | 332.6 | |
Operating Segments | Materials Technologies | |||||
Net Sales | |||||
Revenues | 113.7 | 109.1 | 336.9 | 346.8 | |
Adjusted EBIT | |||||
Operating income | $ 24.3 | $ 26.1 | $ 55.9 | $ 74.2 |
Segment Information - Geographi
Segment Information - Geographic Area Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Geographic Area Data | ||||
Revenues | $ 419.4 | $ 470.5 | $ 1,259.6 | $ 1,453.6 |
United States | ||||
Geographic Area Data | ||||
Revenues | 108.7 | 124.1 | 329.9 | 395.9 |
Canada | ||||
Geographic Area Data | ||||
Revenues | 9.9 | 13.4 | 34.3 | 42 |
Total North America | ||||
Geographic Area Data | ||||
Revenues | 118.6 | 137.5 | 364.2 | 437.9 |
Europe Middle East Africa | ||||
Geographic Area Data | ||||
Revenues | 182.7 | 195.6 | 526.2 | 604.3 |
Asia Pacific | ||||
Geographic Area Data | ||||
Revenues | 97.7 | 117.5 | 310.7 | 345.4 |
Latin America | ||||
Geographic Area Data | ||||
Revenues | $ 20.4 | $ 19.9 | $ 58.5 | $ 66 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |||||
Equity method investment ownership interest (percent) | 50.00% | 50.00% | |||
Investment in unconsolidated affiliate | $ 167,400,000 | $ 167,400,000 | $ 181,900,000 | ||
Equity in earnings of unconsolidated affiliate | 1,300,000 | $ 3,800,000 | 5,900,000 | $ 13,900,000 | |
Related Party Transactions [Abstract] | |||||
Product manufactured for ART | 63,400,000 | 64,100,000 | 194,700,000 | 190,200,000 | |
Mark-up on product manufactured for ART included as a reduction of Grace’s cost of goods sold | 1,200,000 | 1,200,000 | 3,800,000 | 3,700,000 | |
Charges for fixed costs; research and development; selling, general and administrative services; and depreciation to ART | 13,100,000 | 12,400,000 | 40,500,000 | 38,000,000 | |
Investment in unconsolidated affiliates | |||||
Assets, Current | 833,600,000 | 833,600,000 | 1,134,900,000 | ||
Total Assets | 3,650,400,000 | 3,650,400,000 | 3,932,600,000 | ||
Liabilities, Current | 495,200,000 | 495,200,000 | 745,100,000 | ||
Total Liabilities | 3,329,900,000 | 3,329,900,000 | 3,530,400,000 | ||
Revenues | 419,400,000 | 470,500,000 | 1,259,600,000 | 1,453,600,000 | |
Cost of goods sold | 263,000,000 | 279,500,000 | 824,300,000 | 864,600,000 | |
Income (loss) before income taxes | (23,500,000) | 81,100,000 | 31,100,000 | 211,800,000 | |
Net Income (Loss) Attributable to Parent | 7,000,000 | 53,700,000 | 41,700,000 | 154,600,000 | |
Operating Income Included in Income (Loss) from Equity Method Investments | 2,800,000 | 4,400,000 | 8,400,000 | 15,600,000 | |
Depreciation and Amortization Included in Income (Loss) From Equity Method Investments | (1,100,000) | (200,000) | (1,900,000) | (400,000) | |
Interest Expense and Income Taxes Included in Income (Loss) From Equity Method Investments | (400,000) | (400,000) | $ (600,000) | (1,300,000) | |
Debt Instrument, Frequency of Periodic Payment | monthly | ||||
Loan Repayment Period, Max | P8Y | ||||
Current asset, related party | 0 | $ 0 | 173,900,000 | ||
Current liability, related party | 0 | 0 | 173,900,000 | ||
Dividends received from unconsolidated affiliate | 10,000,000 | 10,000,000 | 0 | ||
Affiliated Entity [Member] | |||||
Investment in unconsolidated affiliates | |||||
Accounts receivable | 900,000 | 900,000 | 3,600,000 | ||
Revenue from Related Parties | 700,000 | 1,800,000 | $ 6,600,000 | 5,800,000 | |
ART [Member] | |||||
Investment in unconsolidated affiliates | |||||
Basis spread on variable rate | 1.25% | ||||
Accounts receivable | 23,900,000 | $ 23,900,000 | 17,500,000 | ||
Current asset, related party | 10,000,000 | 10,000,000 | 173,900,000 | ||
Accounts payable | 23,500,000 | 23,500,000 | 37,700,000 | ||
Debt payable within one year | 4,800,000 | 4,800,000 | 9,900,000 | ||
Debt payable after one year | 30,700,000 | 30,700,000 | 37,500,000 | ||
Current liability, related party | 0 | 0 | 173,900,000 | ||
Dividends Receivable | 10,000,000 | 10,000,000 | |||
Grace LOC to ART [Member] | |||||
Investment in unconsolidated affiliates | |||||
Line of credit facility, maximum provided by Grace and Chevron each | 15,000,000 | $ 15,000,000 | |||
Commitment fee on credit facility (as a percent) | 0.10% | ||||
Chevron | |||||
Investment in unconsolidated affiliates | |||||
Line of credit facility, maximum provided by Grace and Chevron each | 15,000,000 | $ 15,000,000 | |||
Commitment fee on credit facility (as a percent) | 0.10% | ||||
Credit facility amount outstanding | $ 0 | $ 0 | 0 | ||
Joint Venture [Member] | |||||
Investment in unconsolidated affiliates | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 87.50% | 87.50% | |||
ART [Member] | |||||
Investment in unconsolidated affiliates | |||||
Assets, Current | $ 270,400,000 | $ 270,400,000 | 300,700,000 | ||
Assets, Noncurrent | 248,300,000 | 248,300,000 | 237,800,000 | ||
Total Assets | 518,700,000 | 518,700,000 | 538,500,000 | ||
Liabilities, Current | 185,800,000 | 185,800,000 | 177,100,000 | ||
Liabilities, Noncurrent | 300,000 | 300,000 | 300,000 | ||
Total Liabilities | 186,100,000 | 186,100,000 | $ 177,400,000 | ||
Revenues | 109,900,000 | 125,700,000 | 309,600,000 | 357,200,000 | |
Cost of goods sold | 100,000,000 | 113,300,000 | 281,100,000 | 312,800,000 | |
Income (loss) before income taxes | 3,100,000 | 8,100,000 | 13,400,000 | 30,600,000 | |
Net Income (Loss) Attributable to Parent | $ 2,800,000 | $ 7,600,000 | $ 11,900,000 | $ 28,800,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | |||
Payments to acquire business, net of cash acquired | $ 2 | $ 2 | $ 22.8 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 13, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Subsequent Event [Line Items] | |||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 46.1 | $ 39.1 | |||
Gain (Loss) on Extinguishment of Debt | $ (39.4) | $ 0 | $ (39.4) | $ 0 | |
Senior Notes, Due 2021 [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash Paid Redemption of Debt Including Premium and Interest | $ 748 | ||||
Extinguishment of Debt, Amount | 700 | ||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 10.1 | ||||
Redemption Premium | $ 37.9 |