Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of income from consolidated operations before income taxes and the related provision for income taxes

The components of income from consolidated operations before income taxes and the related provision for income taxes for 2013, 2012, and 2011 are as follows:

Income Taxes—Consolidated Operations

(In millions)	2013			2012			2011
Income (loss) before income taxes:
Domestic	$	141.4		$	(170.3	)	$	107.7
Foreign	219.2			149.7			199.3
Total	$	360.6		$	(20.6	)	$	307.0
Benefit from (provision for) income taxes:
Federal—current	$	1.4		$	(51.2	)	$	16.7
Federal—deferred	(73.1		)	82.0			(49.3		)
State and local—current	(0.7		)	(4.4		)	(2.3		)
State and local—deferred	38.2			70.2			—
Foreign—current	(83.5		)	(43.1		)	(52.5		)
Foreign—deferred	14.8			8.1			(0.5		)
Total	$	(102.9	)	$	61.6		$	(87.9	)

Summary of difference between the provision for income taxes at the U.S. federal income tax rate and overall income tax provision

The difference between the provision for income taxes at the U.S. federal income tax rate of 35% and Grace's overall income tax provision is summarized as follows:

Income Tax Provision Analysis

(In millions)	2013			2012			2011
Tax benefit (provision) at U.S. federal income tax rate	$	(126.2	)	$	7.2		$	(107.4	)
Change in benefit (provision) resulting from:
Release of state valuation allowance	24.4			44.0			—
Effect of tax rates in foreign jurisdictions	16.6			14.9			17.6
Benefits from domestic production activities	—			14.0			0.9
Nontaxable income/non-deductible expenses	(9.7		)	(8.1		)	(7.3		)
U.S. taxes on repatriated foreign earnings	3.7			(2.2		)	(1.1		)
State and local income taxes, net of federal income tax	(0.7		)	0.1			(1.5		)
Adjustments to uncertain tax positions and other items	(11.0		)	(8.3		)	10.9
Benefit from (provision for) income taxes	$	(102.9	)	$	61.6		$	(87.9	)

Summary of tax attributes giving rise to deferred tax assets and liabilities

At December 31, 2013 and 2012, the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items:

Deferred Tax Analysis

(In millions)	2013			2012
Deferred tax assets:
Liability for asbestos-related litigation	$	657.1		$	717.5
Federal tax credit carryforwards	16.9			2.4
Foreign net operating loss carryforwards	18.0			22.7
Deferred state taxes	90.3			88.4
Liability for environmental remediation	47.1			49.2
Other postretirement benefits	18.2			22.9
Pension liabilities	96.7			133.1
Reserves and allowances	60.4			51.6
Research and development	32.6			34.0
Accrued interest on pre-petition debt	66.7			121.9
Other	16.3			20.8
Total deferred tax assets	$	1,120.3		$	1,264.5
Deferred tax liabilities:
Asbestos-related insurance receivable	$	(175.0	)	$	(175.0	)
Pension assets	(3.7		)	(14.9		)
Properties and equipment	(30.3		)	(35.3		)
Other	(7.3		)	(14.7		)
Total deferred tax liabilities	$	(216.3	)	$	(239.9	)
Valuation allowance:
Deferred state taxes	$	(13.6	)	$	(40.3	)
Federal credits	(4.4		)	—
Foreign net operating loss carryforwards	(0.3		)	(0.5		)
Total valuation allowance	(18.3		)	(40.8		)
Net deferred tax assets	$	885.7		$	983.8

Summary of information about uncertain tax positions

Rollforward of Uncertain Tax Positions

(In millions)	Unrecognized Tax Benefits
Balance as of January 1, 2011	$	79.2
Additions for current year tax positions	0.6
Additions for prior year tax positions	0.5
Reductions for prior year tax positions and reclassifications(1)(2)	(17.8		)
Reductions for expirations of statute of limitations	(0.1		)
Balance as of December 31, 2011	62.4
Additions for current year tax positions	3.4
Additions for prior year tax positions	22.0
Reductions for prior year tax positions and reclassifications	(0.8		)
Reductions for expirations of statute of limitations	(2.9		)
Settlements(3)	(1.0		)
Balance as of December 31, 2012	83.1
Additions for current year tax positions	6.3
Additions for prior year tax positions	6.4
Reductions for prior year tax positions and reclassifications(4)	(9.6		)
Reductions for expirations of statute of limitations	(5.9		)
Balance as of December 31, 2013	$	80.3

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(1) On November 3, 2011, Grace received notice from the Canadian Revenue Agency that they had completed a review of Grace's Canadian transfer pricing for the years 2002, 2003, and 2004. As a result, Grace reversed $10.6 million of uncertain tax positions because they were effectively settled pursuant to ASC 740-10-25. A tax matter is effectively settled through examination when the taxing authority has completed an examination; the entity does not intend to appeal or litigate any aspect of a particular tax position for the completed examination; and based on a tax authority's widely understood policy, the entity considers it remote that the taxing authority would subsequently examine or reexamine any of the positions once the examination process is completed.

(2) In 2011, $6.7 million of uncertain tax positions representing pre-petition federal and state settlements were reclassified to income taxes payable.

(3) In 2012, $1.0 million of uncertain tax positions representing withholding taxes due were paid as a result of the completion of Grace's Canadian audit for the years 2002, 2003, and 2004.

(4) In 2013, $9.6 million of uncertain tax positions representing agreed adjustments resulting from the 2007-2009 IRS examination were reclassified to income taxes payable.

Schedule of open tax years by major jurisdiction

The following table summarizes these open tax years by major jurisdiction:

Tax Jurisdiction(1)	Examination in Progress	Examination Not Yet Initiated
United States—Federal	2007-2009	2010-2012
United States—State	2007-2012	2010-2012
Germany	None	2009-2012
Italy	None	2008-2012
France	2010-2011	2012
Canada	None	2006-2012

_______________________________________________________________________________

(1) Includes federal, state, provincial or local jurisdictions, as applicable.