FINANCIAL STATEMENT SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(In millions)

For the Year Ended December 31, 2015



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	$	5.7	$	4.0	$	(3.4	)	$	0.7	$	7.0
Valuation allowance for deferred tax assets(2)	12.5		0.4		(2.6		)	—		10.3
Reserves:
Reserves for environmental remediation	61.7		6.5		(12.6		)	—		55.6
Reserves for retained obligations of divested businesses	13.5		—		—			—		13.5

For the Year Ended December 31, 2014



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	$	7.6	$	2.5	$	(4.9	)	$	0.5	$	5.7
Valuation allowance for deferred tax assets(3)	18.3		1.2		(7.0		)	—		12.5
Reserves:
Reserves for asbestos-related litigation	2,092.4		—		(2,092.4		)	—		—
Reserves for environmental remediation	134.5		14.7		(87.5		)	—		61.7
Reserves for retained obligations of divested businesses	35.0		—		(21.5		)	—		13.5

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(4)	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

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


(2)	The valuation allowance decreased $2.2 million from December 31, 2014, to December 31, 2015. The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards.


(3)	The valuation allowance decreased $5.8 million from December 31, 2013, to December 31, 2014. The decrease was primarily due to a reduction in the valuation allowance on state NOL carryforwards, partially offset by an increase in the valuation allowance on NOLs in certain foreign jurisdictions.

(4)

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. Grace recorded a $24.4 million release of its valuation allowance on its state deferred tax assets. Further decreases resulted from the utilization and expiration of state NOLs and the reduction of NOLs resulting from prior-year adjustments to taxable income. These decreases were partially offset by the recording of valuation allowances on deferred tax assets associated with certain U.S. federal foreign tax credits.