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Chapter 11 Information (Tables)
 9 Months Ended
Sep. 30, 2013
Reorganizations [Abstract]  
Components of liabilities subject to compromise
Components of liabilities subject to compromise are as follows:
(In millions)
September 30,
2013
 
December 31,
2012
Asbestos-related contingencies
$
2,065.0

 
$
2,065.0

Pre-petition bank debt plus accrued interest
960.1

 
937.2

Environmental contingencies
134.0

 
140.5

Unfunded special pension arrangements
127.4

 
134.3

Income tax contingencies
85.4

 
87.6

Postretirement benefits other than pension
58.4

 
63.9

Drawn letters of credit plus accrued interest
37.4

 
36.1

Accounts payable
31.3

 
31.3

Retained obligations of divested businesses
29.6

 
29.0

Other accrued liabilities
108.8

 
102.3

Reclassification to current liabilities(1)
(11.0
)
 
(10.1
)
Total Liabilities Subject to Compromise
$
3,626.4

 
$
3,617.1

_______________________________________________________________________________
(1)
As of September 30, 2013, and December 31, 2012, approximately $11.0 million and $10.1 million, respectively, of certain pension and postretirement benefit obligations subject to compromise have been presented in "other current liabilities" in the Consolidated Balance Sheets in accordance with ASC 715 "Compensation—Retirement Benefits".
Change in Liabilities Subject to Compromise
The following table is a reconciliation of the changes in pre-filing date liability balances for the period from the Filing Date through September 30, 2013.
(In millions) (Unaudited)
Cumulative
Since Filing
Balance, Filing Date April 2, 2001
$
2,366.0

Cash disbursements and/or reclassifications under Bankruptcy Court orders:
 
Payment of environmental settlement liability
(252.0
)
Freight and distribution order
(5.7
)
Trade accounts payable order
(9.1
)
Resolution of contingencies subject to Chapter 11
(130.0
)
Other court orders for payments of certain operating expenses
(395.4
)
Expense (income) items:
 
Interest on pre-petition liabilities
578.0

Employee-related accruals
125.2

Provision for asbestos-related contingencies
1,109.8

Provision for environmental contingencies
359.0

Release of income tax contingencies
(82.7
)
Balance sheet reclassifications
(36.7
)
Balance, end of period
$
3,626.4
Chapter 11 Expenses
Chapter 11 Expenses
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2013
 
2012
 
2013
 
2012
Legal and financial advisory fees
$
3.6

 
$
4.6

 
$
12.4

 
$
13.2

Interest income
(0.7
)
 
(0.2
)
 
(1.4
)
 
(0.6
)
Chapter 11 expenses, net of interest income
$
2.9

 
$
4.4

 
$
11.0

 
$
12.6
Debtor-in-Possession Statements of Operations
W. R. Grace & Co.—Chapter 11 Filing Entities
Debtor-in-Possession Statements of Operations
 
Nine Months Ended September 30,
(In millions) (Unaudited)
2013
 
2012
Net sales, including intercompany
$
1,077.1

 
$
1,153.8

Cost of goods sold, including intercompany, exclusive of depreciation and amortization shown separately below
659.0

 
685.2

Selling, general and administrative expenses
175.5

 
192.8

Defined benefit pension expense
35.9

 
38.0

Depreciation and amortization
51.4

 
50.4

Chapter 11 expenses, net of interest income
11.0

 
12.6

Libby medical program settlement
—

 
19.6

Research and development expenses
27.8

 
26.8

Interest expense and related financing costs
28.1

 
30.8

Restructuring expenses
4.8

 
2.5

Provision for environmental remediation
3.8

 
1.1

Other income, net
(52.2
)
 
(63.2
)
 
945.1

 
996.6

Income before income taxes and equity in net income of non-filing entities
132.0

 
157.2

Provision for income taxes
(52.9
)
 
(60.4
)
Income before equity in net income of non-filing entities
79.1

 
96.8

Equity in net income of non-filing entities
126.0

 
108.9

Net income attributable to W. R. Grace & Co. shareholders
$
205.1

 
$
205.7
Debtor-in-Possession Statements of Cash Flows
W. R. Grace & Co.—Chapter 11 Filing Entities
Debtor-in-Possession Statements of Cash Flows
 
Nine Months Ended September 30,
(In millions) (Unaudited)
2013
 
2012
Operating Activities
 
 
 
Net income attributable to W. R. Grace & Co. shareholders
$
205.1

 
$
205.7

Reconciliation to net cash provided by operating activities:
 
 
 
Depreciation and amortization
51.4

 
50.4

Equity in net income of non-filing entities
(126.0
)
 
(108.9
)
Provision for income taxes
52.9

 
60.4

Income taxes paid, net of refunds
(3.6
)
 
(2.9
)
Libby medical program settlement
—

 
19.6

Libby medical program settlement paid
—

 
(19.6
)
Excess tax benefits from stock-based compensation
33.7

 
(23.0
)
Interest accrued on pre-petition liabilities subject to compromise
28.1

 
30.0

Defined benefit pension expense
35.9

 
38.0

Payments under defined benefit pension arrangements
(54.2
)
 
(113.5
)
Changes in assets and liabilities, excluding the effect of foreign currency translation:
 
 
 
Trade accounts receivable
(7.5
)
 
(7.6
)
Inventories
(31.8
)
 
45.0

Accounts payable
7.5

 
(7.2
)
All other items, net
14.8

 
(22.3
)
Net cash provided by operating activities
206.3

 
144.1

Investing Activities
 
 
 
Capital expenditures
(68.6
)
 
(63.4
)
Transfer to short-term investments
(500.0
)
 
—

Transfer from (to) restricted cash and cash equivalents
(11.2
)
 
(13.2
)
Net cash used for investing activities
(579.8
)
 
(76.6
)
Financing Activities
 
 
 
Net repayments under credit arrangements
(0.3
)
 
(0.4
)
Proceeds from exercise of stock options
31.7

 
25.7

Excess tax benefits from stock-based compensation
(33.7
)
 
23.0

Net cash (used for) provided by financing activities
(2.3
)
 
48.3

Net (decrease) increase in cash and cash equivalents
(375.8
)
 
115.8

Cash and cash equivalents, beginning of period
1,064.2

 
788.6

Cash and cash equivalents, end of period
$
688.4

 
$
904.4
Debtor-in-Possession Balance Sheets
W. R. Grace & Co.—Chapter 11 Filing Entities
Debtor-in-Possession Balance Sheets
(In millions) (Unaudited)
September 30,
2013
 
December 31, 2012
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
688.4

 
$
1,064.2

Short-term investments
500.0

 
—

Restricted cash and cash equivalents
129.5

 
118.3

Trade accounts receivable, net
140.1

 
132.6

Accounts receivable—unconsolidated affiliate
14.9

 
14.1

Receivables from non-filing entities, net
154.1

 
160.5

Inventories
138.1

 
106.3

Other current assets
15.7

 
58.5

Total Current Assets
1,780.8

 
1,654.5

Properties and equipment, net
449.5

 
433.5

Deferred income taxes
788.0

 
935.5

Asbestos-related insurance
500.0

 
500.0

Loans receivable from non-filing entities, net
286.5

 
282.1

Investment in non-filing entities
556.3

 
449.5

Investment in unconsolidated affiliate
90.8

 
85.5

Other assets
58.1

 
47.2

Total Assets
$
4,510.0

 
$
4,387.8

LIABILITIES AND EQUITY
 
 
 
Liabilities Not Subject to Compromise
 
 
 
Current liabilities (including $15.0 due to unconsolidated affiliate) (2012—$6.0)
$
209.6

 
$
244.7

Underfunded defined benefit pension plans
13.4

 
161.0

Other liabilities (including $24.1 due to unconsolidated affiliate) (2012—$22.4)
58.7

 
56.5

Total Liabilities Not Subject to Compromise
281.7

 
462.2

Liabilities Subject to Compromise
3,626.4

 
3,617.1

Total Liabilities
3,908.1

 
4,079.3

Total W. R. Grace & Co. Shareholders' Equity
601.8

 
308.4

Noncontrolling interests in Chapter 11 filing entities
0.1

 
0.1

Total Equity
601.9

 
308.5

Total Liabilities and Equity
$
4,510.0

 
$
4,387.8