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Pension Plans and Other Postretirement Benefit Plans
 6 Months Ended
Jun. 30, 2015
Pension and Other Postretirement Benefit Expense [Abstract]  
Pension Plans and Other Postretirement Benefit Plans
Pension Plans    The following table presents the funded status of Grace's fully-funded, underfunded, and unfunded pension plans:
(In millions)
June 30,
2015
 
December 31,
2014
Overfunded defined benefit pension plans
$
45.6

 
$
44.1

Underfunded defined benefit pension plans
(81.3
)
 
(79.5
)
Unfunded defined benefit pension plans
(357.3
)
 
(378.0
)
Total underfunded and unfunded defined benefit pension plans
(438.6
)
 
(457.5
)
Pension liabilities included in other current liabilities
(15.1
)
 
(15.6
)
Net funded status
$
(408.1
)
 
$
(429.0
)

Fully-funded plans include several advance-funded plans where the fair value of the plan assets exceeds the projected benefit obligation ("PBO"). This group of plans was overfunded by $45.6 million as of June 30, 2015, and the overfunded status is reflected as "overfunded defined benefit pension plans" in the Consolidated Balance Sheets. Underfunded plans include a group of advance-funded plans that are underfunded on a PBO basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis, and therefore, the entire PBO is unfunded. The combined balance of the underfunded and unfunded plans was $453.7 million as of June 30, 2015.
Postretirement Benefits Other Than Pensions    Grace has provided postretirement health care and life insurance benefits for retired employees of certain U.S. business units and certain divested business units. The postretirement medical plan provided various levels of benefits to employees hired before 1993 who retired from Grace after age 55 with at least 10 years of service. These plans are unfunded and Grace pays a portion of the costs of benefits under these plans as they are incurred. Grace applies ASC 715 to these plans, which requires that the future costs of postretirement health care and life insurance benefits be accrued over the employees' years of service. Actuarial gains and losses are recognized in the Consolidated Balance Sheets as a component of Shareholders' Equity, with amortization of the net actuarial gains and losses that exceed 10 percent of the accumulated postretirement benefit obligation recognized each quarter in the Consolidated Statements of Operations over the average future service period of active employees.
In June 2014, Grace announced that it would discontinue its postretirement medical plan for all U.S. employees effective October 31, 2014, and eliminate certain postretirement life insurance benefits. As a result of these actions, Grace recognized a gain of $41.9 million in other comprehensive income in the 2014 second quarter. Grace amortized $39.5 million from accumulated other comprehensive income into the Consolidated Statement of Operations during the five-month period from June to October 2014.
Components of Net Periodic Benefit Cost (Income)
 
Three Months Ended June 30,
 
2015
 
2014
 
Pension
 
Other Post
Retirement
 
Pension
 
Other Post
Retirement
(In millions)
U.S.
 
Non-U.S.
 
 
U.S.
 
Non-U.S.
 
Service cost
$
6.5

 
$
2.9

 
$
—

 
$
5.9

 
$
2.8

 
$
0.1

Interest cost
13.8

 
4.0

 
—

 
14.9

 
5.6

 
0.3

Expected return on plan assets
(17.6
)
 
(3.3
)
 
—

 
(17.5
)
 
(3.9
)
 
—

Amortization of prior service (credit) cost
—

 
—

 
(0.9
)
 
0.2

 
—

 
(0.4
)
Amortization of net deferred actuarial loss (gain)
—

 
—

 
0.1

 
—

 
—

 
(0.1
)
Gain on termination of postretirement plans
—

 
—

 
—

 
—

 
—

 
(7.9
)
Net periodic benefit cost (income)
$
2.7

 
$
3.6

 
$
(0.8
)
 
$
3.5

 
$
4.5

 
$
(8.0
)
 
Six Months Ended June 30,
 
2015
 
2014
 
Pension
 
Other Post
Retirement
 
Pension
 
Other Post
Retirement
(In millions)
U.S.
 
Non-U.S.
 
 
U.S.
 
Non-U.S.
 
Service cost
$
12.9

 
$
5.9

 
$
—

 
$
11.8

 
$
5.5

 
$
0.1

Interest cost
27.6

 
8.2

 
0.1

 
30.1

 
11.3

 
0.9

Expected return on plan assets
(35.2
)
 
(6.7
)
 
—

 
(35.0
)
 
(7.8
)
 
—

Amortization of prior service cost (credit)
0.1

 
—

 
(1.9
)
 
0.4

 
—

 
(0.5
)
Amortization of net deferred actuarial loss (gain)
—

 
—

 
0.3

 
—

 
—

 
(0.3
)
Mark-to-market adjustment
—

 
—

 
—

 
(3.1
)
 
—

 
—

Gain on termination of postretirement plans
—

 
—

 
—

 
—

 
—

 
(7.9
)
Net periodic benefit cost (income)
$
5.4

 
$
7.4

 
$
(1.5
)
 
$
4.2

 
$
9.0

 
$
(7.7
)
At emergence, benefit payments of approximately $27 million were paid from a U.S. nonqualified pension plan in connection with Grace's emergence from bankruptcy. As a result, that plan was remeasured as of March 1, 2014, using a discount rate of 4.43%. The remeasurement resulted in a mark-to-market gain of $3.1 million.
Plan Contributions and Funding    Grace intends to satisfy its funding obligations under the U.S. qualified pension plans and to comply with all of the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). For ERISA purposes, funded status is calculated on a different basis than under U.S. GAAP.
Grace intends to fund non-U.S. pension plans based on applicable legal requirements and actuarial and trustee recommendations.
Defined Contribution Retirement Plan    Grace sponsors a defined contribution retirement plan for its employees in the United States. This plan is qualified under section 401(k) of the U.S. tax code. Currently, Grace contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee's salary or wages. Grace's costs related to this benefit plan for the three and six months ended June 30, 2015, were $3.8 million and $7.9 million compared with $3.3 million and $6.6 million for the corresponding prior-year periods.