SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 31, 2013

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FINANCIAL STATEMENT SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(In millions)

For the Year Ended December 31, 2013

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)			Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	6.9	$	2.2	$	(1.6	)	$	0.1		$	7.6
Valuation allowance for deferred tax assets(2)	40.8		4.4		(24.4		)	(2.5		)	18.3
Reserves:
Reserves for asbestos-related litigation	2,065.0		27.4		—			—			2,092.4
Reserves for environmental remediation	140.5		8.0		(14.0		)	—			134.5
Reserves for retained obligations of divested businesses	34.2		0.8		—			—			35.0

For the Year Ended December 31, 2012

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)		Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	9.8	$	1.9	$	(4.8	)	$	—	$	6.9
Valuation allowance for deferred tax assets	100.8		—		(60.0		)	—		40.8
Reserves:
Reserves for asbestos-related litigation	1,700.0		365.0		—			—		2,065.0
Reserves for environmental remediation	149.9		3.6		(13.0		)	—		140.5
Reserves for retained obligations of divested businesses	33.7		0.7		(0.2		)	—		34.2

For the Year Ended December 31, 2011

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)			Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	8.7	$	2.9	$	(2.0	)	$	0.2		$	9.8
Valuation allowance for deferred tax assets	104.6		—		(3.8		)	—			100.8
Reserves:
Reserves for asbestos-related litigation	1,700.0		—		—			—			1,700.0
Reserves for environmental remediation	144.0		17.8		(11.8		)	(0.1		)	149.9
Reserves for retained obligations of divested businesses	33.9		0.4		(0.6		)	—			33.7

_______________________________________________________________________________

(1) Various miscellaneous adjustments against reserves and effects of currency translation.

(2) The valuation allowance decreased $22.5 million from December 31, 2012, to December 31, 2013. In the 2013 fourth quarter, Grace determined that it is more likely than not that its deductions generated at emergence will be used before their expiration. Accordingly, Grace recorded a $24.4 million release of its valuation allowance on its state deferred tax assets. Further decreases in Grace’s deferred tax assets resulted from the utilization and expiration of state net operating losses ("NOLs") in the current year, and the reduction of NOLs resulting from prior-year adjustments to taxable income. These decreases were partially offset by the recording of valuation allowance on deferred tax assets associated with certain U.S. federal foreign tax credits. The reduction in the valuation allowance during 2012 related in part to a $44.0 million release of the valuation allowance as Grace determined that it is more likely than not that a substantial portion of its state net operating losses will be used before their expiration; the remainder of the release related to the utilization and expiration of state net operating losses in the current year, and the reduction of net operating losses resulting from prior-year adjustments made to income by the Internal Revenue Service. The reduction in 2011 primarily related to the utilization and expiration of state net operating losses.

For the Year Ended December 31, 2013

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)			Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	6.9	$	2.2	$	(1.6	)	$	0.1		$	7.6
Valuation allowance for deferred tax assets(2)	40.8		4.4		(24.4		)	(2.5		)	18.3
Reserves:
Reserves for asbestos-related litigation	2,065.0		27.4		—			—			2,092.4
Reserves for environmental remediation	140.5		8.0		(14.0		)	—			134.5
Reserves for retained obligations of divested businesses	34.2		0.8		—			—			35.0

For the Year Ended December 31, 2012

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)		Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	9.8	$	1.9	$	(4.8	)	$	—	$	6.9
Valuation allowance for deferred tax assets	100.8		—		(60.0		)	—		40.8
Reserves:
Reserves for asbestos-related litigation	1,700.0		365.0		—			—		2,065.0
Reserves for environmental remediation	149.9		3.6		(13.0		)	—		140.5
Reserves for retained obligations of divested businesses	33.7		0.7		(0.2		)	—		34.2

For the Year Ended December 31, 2011

Description	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other, net(1)			Balance at end of period
Valuation and qualifying accounts deducted from assets:
Allowances for notes and accounts receivable	$	8.7	$	2.9	$	(2.0	)	$	0.2		$	9.8
Valuation allowance for deferred tax assets	104.6		—		(3.8		)	—			100.8
Reserves:
Reserves for asbestos-related litigation	1,700.0		—		—			—			1,700.0
Reserves for environmental remediation	144.0		17.8		(11.8		)	(0.1		)	149.9
Reserves for retained obligations of divested businesses	33.9		0.4		(0.6		)	—			33.7

_______________________________________________________________________________

(1) Various miscellaneous adjustments against reserves and effects of currency translation.

(2) The valuation allowance decreased $22.5 million from December 31, 2012, to December 31, 2013. In the 2013 fourth quarter, Grace determined that it is more likely than not that its deductions generated at emergence will be used before their expiration. Accordingly, Grace recorded a $24.4 million release of its valuation allowance on its state deferred tax assets. Further decreases in Grace’s deferred tax assets resulted from the utilization and expiration of state net operating losses ("NOLs") in the current year, and the reduction of NOLs resulting from prior-year adjustments to taxable income. These decreases were partially offset by the recording of valuation allowance on deferred tax assets associated with certain U.S. federal foreign tax credits. The reduction in the valuation allowance during 2012 related in part to a $44.0 million release of the valuation allowance as Grace determined that it is more likely than not that a substantial portion of its state net operating losses will be used before their expiration; the remainder of the release related to the utilization and expiration of state net operating losses in the current year, and the reduction of net operating losses resulting from prior-year adjustments made to income by the Internal Revenue Service. The reduction in 2011 primarily related to the utilization and expiration of state net operating losses.