XML 34 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plans and Other Postretirement Benefit Plans
 3 Months Ended
Mar. 31, 2017
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 underfunded and unfunded pension plans:
(In millions)
March 31,
2017
 
December 31,
2016
Underfunded defined benefit pension plans
$
(82.3
)
 
$
(83.1
)
Unfunded defined benefit pension plans
(348.2
)
 
(341.2
)
Total underfunded and unfunded defined benefit pension plans
(430.5
)
 
(424.3
)
Pension liabilities included in other current liabilities
(14.5
)
 
(14.4
)
Net funded status
$
(445.0
)
 
$
(438.7
)

Underfunded plans include a group of advance-funded plans that are underfunded on a projected benefit obligation ("PBO") basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis, and therefore, the entire PBO is unfunded.
Components of Net Periodic Benefit Cost (Income)
 
Three Months Ended March 31,
 
2017
 
2016
 
Pension
 
Other Post
Retirement
 
Pension
 
Other Post
Retirement
(In millions)
U.S.
 
Non-U.S.
 
 
U.S.
 
Non-U.S.
 
Service cost
$
4.3

 
$
2.0

 
$
—

 
$
5.0

 
$
2.0

 
$
—

Interest cost
10.5

 
1.0

 
—

 
10.5

 
2.0

 
—

Expected return on plan assets
(14.4
)
 
(0.2
)
 
—

 
(14.6
)
 
(1.0
)
 
—

Amortization of prior service credit
(0.1
)
 
—

 
(0.5
)
 
(0.1
)
 
—

 
(0.6
)
Amortization of net deferred actuarial loss
—

 
—

 
0.1

 
—

 
—

 
0.2

Net periodic benefit cost (income)
0.3

 
2.8

 
(0.4
)
 
0.8

 
3.0

 
(0.4
)
Less: discontinued operations
—

 
—

 
—

 
(0.5
)
 
(0.2
)
 
—

Net periodic benefit cost (income) from continuing operations
$
0.3

 
$
2.8

 
$
(0.4
)
 
$
0.3

 
$
2.8

 
$
(0.4
)

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 months ended March 31, 2017 and 2016, were $2.7 million. U.S. salaried employees and certain U.S. hourly employees that are hired on or after January 1, 2017, and employees in Germany that are hired on or after January 1, 2016, will participate in defined contribution plans instead of defined benefit pension plans.