Operating Segment Information

12 Months Ended

Dec. 31, 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 and technologies 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 21. 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, pension costs other than service and interest costs, expected returns on plan assets and amortization of prior service costs/credits, certain income and expense items 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

(In millions)	2013			2012			2011
Net Sales
Catalysts Technologies	$	1,124.0		$	1,268.1		$	1,347.3
Materials Technologies	878.5			862.6			872.6
Construction Products	1,058.2			1,024.8			992.0
Total	$	3,060.7		$	3,155.5		$	3,211.9
Adjusted EBIT
Catalysts Technologies segment operating income	$	327.5		$	393.8		$	388.8
Materials Technologies segment operating income	181.8			162.0			158.7
Construction Products segment operating income	151.7			125.2			97.3
Corporate costs	(82.8		)	(92.4		)	(102.8		)
Certain pension costs	(27.4		)	(30.4		)	(28.7		)
Total	$	550.8		$	558.2		$	513.3
Depreciation and Amortization
Catalysts Technologies	$	54.2		$	54.0		$	52.5
Materials Technologies	31.4			29.5			30.9
Construction Products	31.8			32.9			34.0
Corporate	5.7			2.6			2.6
Total	$	123.1		$	119.0		$	120.0
Capital Expenditures
Catalysts Technologies	$	58.7		$	70.8		$	74.5
Materials Technologies	33.0			27.1			32.3
Construction Products	32.8			26.5			19.5
Corporate	31.7			14.1			17.7
Total	$	156.2		$	138.5		$	144.0
Total Assets
Catalysts Technologies	$	1,361.8		$	794.8		$	804.5
Materials Technologies	508.9			494.9			481.1
Construction Products	609.1			616.0			545.9
Corporate	2,916.3			3,184.7			2,664.1
Total	$	5,396.1		$	5,090.4		$	4,495.6

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 years ended December 31, 2013, 2012 and 2011 is reconciled below to income before income taxes presented in the accompanying Consolidated Statements of Operations.

Reconciliation of Operating Segment Data to Financial Statements

	Year Ended December 31,
(In millions)	2013			2012			2011
Grace Adjusted EBIT	$	550.8		$	558.2		$	513.3
Chapter 11-related costs, net	(16.4		)	(15.6		)	(23.9		)
Asbestos-related costs	(11.9		)	(7.6		)	(20.8		)
Asbestos and bankruptcy-related charges, net	(21.9		)	(384.6		)	—
Default interest settlement	(129.0		)	—			—
Pension MTM adjustment and other related costs, net	50.6			(119.2		)	(111.2		)
Restructuring expenses and related asset impairments	(12.5		)	(6.9		)	(6.9		)
Loss on sale of product line	(1.0		)	(0.2		)	(0.4		)
Income and expense related to divested businesses	—			(0.2		)	(0.4		)
Interest expense and related financing costs	(43.8		)	(46.5		)	(43.3		)
Currency transaction loss on cash in Venezuela	(6.9		)	—			—
Interest income of non-Debtor subsidiaries	1.0			1.0			1.2
Net income (loss) attributable to noncontrolling interests	1.6			1.0			(0.6		)
Income (loss) before income taxes	$	360.6		$	(20.6	)	$	307.0

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

(In millions)	2013		2012		2011
Net Sales
United States	$	886.0	$	878.9	$	945.0
Canada and Puerto Rico	73.7		88.7		96.8
Total North America	959.7		967.6		1,041.8
Europe Middle East Africa	1,087.9		1,175.6		1,260.4
Asia Pacific	654.1		660.3		599.3
Latin America	359.0		352.0		310.4
Total	$	3,060.7	$	3,155.5	$	3,211.9
Properties and Equipment, net
United States	$	497.8	$	438.4	$	421.1
Canada and Puerto Rico	19.1		19.8		19.5
Total North America	516.9		458.2		440.6
Europe Middle East Africa	212.4		210.3		202.1
Asia Pacific	70.9		72.1		53.8
Latin America	29.7		29.9		27.0
Total	$	829.9	$	770.5	$	723.5
Goodwill, Intangibles and Other Assets
United States	$	589.7	$	91.5	$	110.3
Canada and Puerto Rico	8.6		7.3		7.3
Total North America	598.3		98.8		117.6
Europe Middle East Africa	106.4		105.2		108.9
Asia Pacific	52.4		40.1		12.4
Latin America	55.9		59.8		17.9
Total	$	813.0	$	303.9	$	256.8