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Operating Segment Information
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Operating Segment Information
Operating Segment Information
Grace is a global producer of specialty chemicals and specialty materials. Grace manages its business through three operating segments: Grace Catalysts Technologies, Grace Materials Technologies, and Grace Construction Products. Grace Catalysts Technologies includes catalysts and related products used in refining, petrochemical and other chemical manufacturing applications. Grace's Advanced Refining Technologies (ART) joint venture is managed in this segment. ART is an unconsolidated affiliate, and Grace accounts for ART using the equity method as discussed in Note 16. Grace Materials Technologies includes packaging technologies and engineered materials, coatings and sealants used in consumer, industrial, and pharmaceutical applications. Grace Construction Products includes specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction. Intersegment sales are eliminated in consolidation. The table below presents information related to Grace's operating segments. Only those corporate expenses directly related to the operating segments are allocated for reporting purposes. All remaining corporate items are reported separately and labeled as such.
Grace also 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 operating segment performance as defined benefit pension expense is not managed at an operating segment level.
Grace defines Adjusted EBIT (a non-GAAP financial measure) to be net income adjusted for interest income and expense, income taxes, costs related to Chapter 11, asbestos-related costs, restructuring expenses and related asset impairments, certain costs related to divested businesses, product lines, and certain other investments and gains and losses on sales of businesses, product lines, and certain other investments. In the 2013 first quarter, Grace also adjusted for the currency transaction loss incurred on our Venezuelan cash balances of $6.9 million before taxes.
Operating Segment Data
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2013
 
2012
 
2013
 
2012
Net Sales
 
 
 
 
 
 
 
Catalysts Technologies
$
273.7

 
$
298.9

 
$
831.1

 
$
939.7

Materials Technologies
220.1

 
214.4

 
663.7

 
652.6

Construction Products
277.5

 
263.3

 
789.2

 
765.4

Total
$
771.3

 
$
776.6

 
$
2,284.0

 
$
2,357.7

Adjusted EBIT
 
 
 
 
 
 
 
Catalysts Technologies segment operating income
$
77.4

 
$
92.0

 
$
248.4

 
$
291.2

Materials Technologies segment operating income
46.8

 
39.8

 
135.9

 
122.3

Construction Products segment operating income
45.6

 
36.7

 
113.7

 
92.7

Corporate costs
(20.9
)
 
(21.8
)
 
(65.4
)
 
(69.0
)
Defined benefit pension expense
(18.2
)
 
(17.6
)
 
(54.9
)
 
(53.2
)
Total
$
130.7

 
$
129.1

 
$
377.7

 
$
384.0

Corporate costs include corporate support function costs and other corporate costs such as non-asbestos environmental remediation, insurance premiums and professional fees.
Grace Adjusted EBIT for the three and nine months ended September 30, 2013 and 2012, is reconciled below to income before income taxes presented in the accompanying Consolidated Statements of Operations.
Reconciliation of Operating Segment Data to Financial Statements
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2013
 
2012
 
2013
 
2012
Grace Adjusted EBIT
$
130.7

 
$
129.1

 
$
377.7

 
$
384.0

Costs related to Chapter 11
(3.9
)
 
(3.7
)
 
(11.0
)
 
(11.1
)
Asbestos-related costs
(2.5
)
 
(2.0
)
 
(6.7
)
 
(25.0
)
Restructuring expenses and related asset impairments
(3.6
)
 
(1.1
)
 
(8.7
)
 
(6.4
)
Certain costs related to divested businesses
(1.0
)
 
(0.2
)
 
(1.0
)
 
(0.4
)
Interest expense and related financing costs
(10.7
)
 
(11.5
)
 
(32.1
)
 
(34.1
)
Currency transaction loss on cash in Venezuela
—

 
—

 
(6.9
)
 
—

Interest income of non-Debtor subsidiaries
0.2

 
0.3

 
0.5

 
0.7

Net income attributable to noncontrolling interests
0.3

 
0.5

 
1.1

 
1.3

Income before income taxes
$
109.5

 
$
111.4

 
$
312.9

 
$
309.0


The table below presents information related to the geographic areas in which Grace operates. Sales are attributed to geographic areas based on customer location.
Geographic Area Data
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2013
 
2012
 
2013
 
2012
Net Sales
 
 
 
 
 
 
 
United States
$
227.6

 
$
222.6

 
$
668.7

 
$
663.7

Canada and Puerto Rico
20.5

 
23.2

 
54.0

 
68.0

Total North America
248.1

 
245.8

 
722.7

 
731.7

Europe Middle East Africa
273.7

 
276.9

 
816.2

 
879.8

Asia Pacific
155.0

 
160.4

 
478.7

 
490.1

Latin America
94.5

 
93.5

 
266.4

 
256.1

Total
$
771.3

 
$
776.6

 
$
2,284.0

 
$
2,357.7