Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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 continuing operations before income taxes and the related provision for income taxes for 2019, 2018, and 2017 are as follows:

(In millions)	2019			2018			2017
Income from continuing operations before income taxes:
Domestic	$	79.2		$	82.2		$	28.3
Foreign	104.3			162.7			182.6
Total	$	183.5		$	244.9		$	210.9
Benefit from (provision for) income taxes:
Federal—current	$	(6.3	)	$	(4.9	)	$	—
Federal—deferred	(19.8		)	(29.3		)	(144.6		)
State and local—current	(0.5		)	1.6			0.2
State and local—deferred	(5.8		)	(3.5		)	(1.7		)
Foreign—current	(42.4		)	(49.9		)	(50.8		)
Foreign—deferred	18.0			7.9			(3.6		)
Total	$	(56.8	)	$	(78.1	)	$	(200.5	)

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 benefit from (provision for) income taxes on continuing operations at the U.S. federal income tax rate of 21% and Grace’s overall income tax provision is summarized as follows:

(In millions)	2019			2018			2017
Tax provision at U.S. federal income tax rate	$	(38.5	)	$	(51.4	)	$	(73.8	)
Change in benefit (provision) resulting from:
U.S. taxes on foreign earnings	(16.7		)	(30.9		)	(1.2		)
Decrease (increase) in valuation allowance	(4.2		)	(6.3		)	(0.3		)
Research and development credit	3.4			9.4			5.1
State and local income taxes, net	(3.4		)	(1.9		)	(1.8		)
Provision to return adjustments	3.0			(0.7		)	6.4
Effect of tax rate differential in foreign jurisdictions	(2.9		)	(11.3		)	13.3
Nontaxable income/non-deductible expenses	(2.5		)	(1.6		)	(2.6		)
Unrecognized tax benefit (accruals) releases	2.3			5.7			—
Compensation-related adjustments	(1.7		)	(3.4		)	2.7
Benefits (charges) related to U.S. tax reform	—			17.1			(143.0		)
Other	4.4			(2.8		)	(5.3		)
Benefit from (provision for) income taxes	$	(56.8	)	$	(78.1	)	$	(200.5	)

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

Deferred Tax Assets and Liabilities    As of December 31, 2019 and 2018, the tax attributes giving rise to deferred tax assets and liabilities consisted of the following items.

	December 31,
(In millions)	2019			2018
Deferred tax assets:
Tax credit carryforwards	$	294.7		$	291.0
Pension liabilities	107.7			82.7
Net operating loss carryforwards	60.3			102.9
Environmental remediation liabilities	47.0			29.3
Research and development	26.6			24.6
Reserves and allowances	14.8			22.8
Unrealized currency gains and losses	12.1			12.8
Operating lease liabilities	8.1			—
Prepaid royalties	6.3			3.0
Compensation-related	5.4			6.5
Other	6.9			6.5
Total deferred tax assets	$	589.9		$	582.1
Deferred tax liabilities:
Intangible assets	$	(27.7	)	$	(24.9	)
Properties and equipment	(18.6		)	(13.2		)
Operating lease assets	(8.0		)	—
Other	(1.4		)	(5.6		)
Total deferred tax liabilities	$	(55.7	)	$	(43.7	)
Valuation allowances	(24.1		)	(19.9		)
Net deferred tax assets	$	510.1		$	518.5

Summary of Operating Loss Carryforwards [Table Text Block]

The following table presents Grace’s net operating loss carryforwards and the related valuation allowances.

	December 31,
(In millions)	2019			2018
Net operating loss carryforwards
U.S. state net operating losses	$	49.5		$	52.9
U.S. federal net operating losses	1.2			44.3
Foreign net operating losses	9.6			5.7
Net operating loss carryforwards	$	60.3		$	102.9
Net operating loss—valuation allowances
U.S. state—NOL valuation allowances	$	(10.1	)	$	(6.6	)
Foreign—NOL valuation allowances	(8.0		)	(4.2		)
Net operating loss—valuation allowances	$	(18.1	)	$	(10.8	)

Summary of information about uncertain tax positions

A rollforward of the unrecognized tax benefits for the three years ended December 31, 2019, follows.

	December 31,
(In millions)	2019			2018			2017
Balance at beginning of year	$	14.1		$	17.7		$	18.7
Increase (decrease) in positions taken in prior periods	2.6			1.2			(1.8		)
Positions taken in the current period	2.9			0.9			0.8
Decrease due to settlements with tax authorities	(4.2		)	(5.7		)	—
Balance at end of year	$	15.4		$	14.1		$	17.7

Schedule of open tax years by major jurisdiction

Grace is subject to taxation in the U.S. and various states and foreign jurisdictions and is under continual audit by various tax authorities. As of December 31, 2019, tax years 2017 and 2018 are subject to examination by the U.S. tax authorities. In the significant non-U.S. jurisdiction, tax years 2014 and forward are subject to examination by the German tax authorities. Grace has tax attributes generated in prior years that are otherwise closed by statute and were carried forward into years that are open to examination. Those attributes may still be subject to adjustment to the extent utilized in open years.