XML 100 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Other Comprehensive Income
 9 Months Ended
Sep. 30, 2013
Equity [Abstract]  
Other Comprehensive Income
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, 2013 and 2012:
Three Months Ended September 30, 2013
(In millions)
Pre-Tax
Amount
 
Tax Benefit/
(Expense)
 
After-Tax
Amount
Defined benefit pension and other postretirement plans:
 
 
 
 
 
Amortization of net prior service cost included in net periodic benefit cost
$
0.2

 
$
(0.2
)
 
$
—

Amortization of net deferred actuarial loss included in net periodic benefit cost
11.5

 
(3.8
)
 
7.7

Other changes in funded status
33.5

 
(12.4
)
 
21.1

Benefit plans, net
45.2

 
(16.4
)
 
28.8

Currency translation adjustments
5.0

 
—

 
5.0

Gain from hedging activities
0.1

 
(0.1
)
 
—

Other comprehensive income attributable to W. R. Grace & Co. shareholders
$
50.3

 
$
(16.5
)
 
$
33.8


Nine Months Ended September 30, 2013
(In millions)
Pre-Tax
Amount
 
Tax Benefit/
(Expense)
 
After-Tax
Amount
Defined benefit pension and other postretirement plans:
 
 
 
 
 
Amortization of net prior service cost included in net periodic benefit cost
$
0.6

 
$
(0.3
)
 
$
0.3

Amortization of net deferred actuarial loss included in net periodic benefit cost
34.8

 
(11.7
)
 
23.1

Other changes in funded status
116.6

 
(41.7
)
 
74.9

Benefit plans, net
152.0

 
(53.7
)
 
98.3

Currency translation adjustments
(18.3
)
 
—

 
(18.3
)
Loss from hedging activities
(0.6
)
 
0.2

 
(0.4
)
Other comprehensive income attributable to W. R. Grace & Co. shareholders
$
133.1

 
$
(53.5
)
 
$
79.6


Three Months Ended September 30, 2012
(In millions)
Pre-Tax
Amount
 
Tax Benefit/
(Expense)
 
After-Tax
Amount
Defined benefit pension and other postretirement plans:
 
 
 
 
 
Amortization of net prior service cost included in net periodic benefit cost
$
0.2

 
$
(0.1
)
 
$
0.1

Amortization of net deferred actuarial loss included in net periodic benefit cost
10.2

 
(3.5
)
 
6.7

Other changes in funded status
(28.4
)
 
8.6

 
(19.8
)
Benefit plans, net
(18.0
)
 
5.0

 
(13.0
)
Currency translation adjustments
14.5

 
—

 
14.5

Gain from hedging activities
2.3

 
(0.8
)
 
1.5

Other comprehensive income (loss) attributable to W. R. Grace & Co. shareholders
$
(1.2
)
 
$
4.2

 
$
3.0


Nine Months Ended September 30, 2012
(In millions)
Pre-Tax
Amount
 
Tax Benefit/
(Expense)
 
After-Tax
Amount
Defined benefit pension and other postretirement plans:
 
 
 
 
 
Amortization of net prior service cost included in net periodic benefit cost
$
0.6

 
$
(0.2
)
 
$
0.4

Amortization of net deferred actuarial loss included in net periodic benefit cost
30.7

 
(10.5
)
 
20.2

Other changes in funded status
(88.8
)
 
27.9

 
(60.9
)
Benefit plans, net
(57.5
)
 
17.2

 
(40.3
)
Currency translation adjustments
5.1

 
—

 
5.1

Gain from hedging activities
4.6

 
(1.6
)
 
3.0

Other comprehensive loss attributable to W. R. Grace & Co. shareholders
$
(47.8
)
 
$
15.6

 
$
(32.2
)


The following tables present the changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2013 and 2012:
Nine Months Ended September 30, 2013
(In millions)
Defined Benefit Pension and Other Postretirement Plans
 
Currency Translation Adjustments
 
Gains and Losses from Hedging Activities
 
Unrealized Loss on Investment
 
Total
Beginning balance
$
(641.8
)
 
$
35.6

 
$
(0.3
)
 
$
(0.8
)
 
$
(607.3
)
Other comprehensive income (loss) before reclassifications
74.9

 
(18.3
)
 
0.4

 
—

 
57.0

Amounts reclassified from accumulated other comprehensive loss
23.4

 
—

 
(0.8
)
 
—

 
22.6

Net current-period other comprehensive income (loss)
98.3

 
(18.3
)
 
(0.4
)
 
—

 
79.6

Ending balance
$
(543.5
)
 
$
17.3

 
$
(0.7
)
 
$
(0.8
)
 
$
(527.7
)

Nine Months Ended September 30, 2012
(In millions)
Defined Benefit Pension and Other Postretirement Plans
 
Currency Translation Adjustments
 
Gains and Losses from Hedging Activities
 
Unrealized Loss on Investment
 
Total
Beginning balance
$
(605.2
)
 
$
30.2

 
$
(2.7
)
 
$
(0.8
)
 
$
(578.5
)
Other comprehensive income (loss) before reclassifications
(60.9
)
 
5.1

 
(0.4
)
 
—

 
(56.2
)
Amounts reclassified from accumulated other comprehensive loss
20.6

 
—

 
3.4

 
—

 
24.0

Net current-period other comprehensive income (loss)
(40.3
)
 
5.1

 
3.0

 
—

 
(32.2
)
Ending balance
$
(645.5
)
 
$
35.3

 
$
0.3

 
$
(0.8
)
 
$
(610.7
)


The following tables present the amounts reclassified out of accumulated other comprehensive loss for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, 2013
(In millions)
 
Amount of Gain or (Loss) Reclassified From Accumulated OCI
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Defined benefit pension and other postretirement plans:
 
 
 
 
Amortization of net prior service cost
 
$
(0.2
)
 
Defined benefit pension expense
Amortization of net deferred actuarial loss
 
(11.5
)
 
Defined benefit pension expense
Total before tax
 
(11.7
)
 
 
Tax (expense) benefit
 
4.0

 
 
Net of tax
 
$
(7.7
)
 
 
 
 
 
 
 
Gain (loss) from hedging activities
 
 
 
 
Currency contracts
 
$
0.5

 
Other income (expense)
Currency contracts
 
(0.1
)
 
Cost of goods sold
Commodity contracts
 
(0.3
)
 
Cost of goods sold
Total before tax
 
0.1

 
 
Tax (expense) benefit
 
—

 
 
Net of tax
 
0.1

 
 
Total reclassifications for the period, net of tax
 
$
(7.6
)
 
 

Nine Months Ended September 30, 2013
(In millions)
 
Amount of Gain or (Loss) Reclassified From Accumulated OCI
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Defined benefit pension and other postretirement plans:
 
 
 
 
Amortization of net prior service cost
 
$
(0.6
)
 
Defined benefit pension expense
Amortization of net deferred actuarial loss
 
(34.8
)
 
Defined benefit pension expense
Total before tax
 
(35.4
)
 
 
Tax (expense) benefit
 
12.0

 
 
Net of tax
 
$
(23.4
)
 
 
 
 
 
 
 
Gain (loss) from hedging activities
 
 
 
 
Currency contracts
 
$
1.3

 
Other income (expense)
Currency contracts
 
(0.2
)
 
Cost of goods sold
Commodity contracts
 
(0.1
)
 
Cost of goods sold
Total before tax
 
1.0

 
 
Tax (expense) benefit
 
(0.2
)
 
 
Net of tax
 
0.8

 
 
Total reclassifications for the period, net of tax
 
$
(22.6
)
 
 

Three Months Ended September 30, 2012
(In millions)
 
Amount of Gain or (Loss) Reclassified From Accumulated OCI
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Defined benefit pension and other postretirement plans:
 
 
 
 
Amortization of net prior service cost
 
$
(0.2
)
 
Defined benefit pension expense
Amortization of net deferred actuarial loss
 
(10.2
)
 
Defined benefit pension expense
Total before tax
 
(10.4
)
 
 
Tax (expense) benefit
 
3.6

 
 
Net of tax
 
$
(6.8
)
 
 
 
 
 
 
 
Gain (loss) from hedging activities
 
 
 
 
Currency contracts
 
$
0.6

 
Cost of goods sold
Commodity contracts
 
(1.3
)
 
Cost of goods sold
Total before tax
 
(0.7
)
 
 
Tax (expense) benefit
 
0.3

 
 
Net of tax
 
(0.4
)
 
 
Total reclassifications for the period, net of tax
 
$
(7.2
)
 
 

Nine Months Ended September 30, 2012
(In millions)
 
Amount of Gain or (Loss) Reclassified From Accumulated OCI
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Defined benefit pension and other postretirement plans:
 
 
 
 
Amortization of net prior service cost
 
$
(0.6
)
 
Defined benefit pension expense
Amortization of net deferred actuarial loss
 
(30.7
)
 
Defined benefit pension expense
Total before tax
 
(31.3
)
 
 
Tax (expense) benefit
 
10.7

 
 
Net of tax
 
$
(20.6
)
 
 
 
 
 
 
 
Gain (loss) from hedging activities
 
 
 
 
Currency contracts
 
$
0.4

 
Cost of goods sold
Commodity contracts
 
(5.7
)
 
Cost of goods sold
Total before tax
 
(5.3
)
 
 
Tax (expense) benefit
 
1.9

 
 
Net of tax
 
(3.4
)
 
 
Total reclassifications for the period, net of tax
 
$
(24.0
)
 
 


Accumulated other comprehensive loss related to the defined benefit pension and other postretirement plans at September 30, 2013, and December 31, 2012, respectively, represents the accumulation of net deferred actuarial losses of $542.5 million and $640.5 million as well as net prior service costs of $1.0 million and $1.3 million. These amounts are net of tax and are amortized as a component of net periodic benefit cost.
Grace is a global enterprise operating in over 40 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.
See Note 6 for a discussion of hedging activities.