Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Grace’s effective tax rates for the six months ended June 30, 2019 and 2018, were 22.7% and 37.8%, respectively. Grace’s effective tax rate for the six months ended June 30, 2019, differed from the U.S. federal statutory rate primarily due to income taxed in jurisdictions with higher statutory tax rates than the U.S. and the net impact of the Global Intangible Low-Taxed Income (“GILTI”) tax in the U.S., partially offset by discrete benefits related to changes in tax law and to the favorable resolution of uncertain tax positions. Grace’s effective tax rate for the six months ended June 30, 2018, was higher than the U.S. federal statutory rate primarily due to the impact of not being able to benefit from certain favorable provisions of GILTI due to the use of net operating loss carryforwards. In 2019, Grace is forecasting sufficient U.S. federal taxable income to partially benefit from these favorable GILTI provisions.

As of June 30, 2019, Grace has $302.8 million in federal tax credit carryforwards before unrecognized tax benefits.