XML 128 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Pension Plans and Other Retirement Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Pension plans and other postretirement benefit plans  
Schedule of Changes in Benefit Obligation and Fair Value of Plan Assets Amounts Recognized in Balance Sheet and Assumptions Used [Table Text Block] The following table summarizes the changes in benefit obligations and fair values of retirement plan assets during 2019 and 2018:
 
Defined Benefit Pension Plans
 
U.S.
 
Non-U.S.
 
Total
(In millions)
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in Projected Benefit Obligation:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,027.1

 
$
1,325.6

 
$
305.6

 
$
323.1

 
$
1,332.7

 
$
1,648.7

Service cost
15.7

 
19.2

 
8.6

 
9.5

 
24.3

 
28.7

Interest cost
38.3

 
40.9

 
5.4

 
5.0

 
43.7

 
45.9

Settlements
—

 
(160.9
)
 
—

 
—

 
—

 
(160.9
)
Acquisitions
—

 
—

 
—

 
0.6

 
—

 
0.6

Actuarial (gain) loss—change in rates
144.1

 
(90.0
)
 
58.2

 
(23.2
)
 
202.3

 
(113.2
)
Actuarial (gain) loss—other changes
(10.7
)
 
(12.6
)
 
4.1

 
11.3

 
(6.6
)
 
(1.3
)
Benefits paid
(76.7
)
 
(95.1
)
 
(8.4
)
 
(8.4
)
 
(85.1
)
 
(103.5
)
Currency exchange translation adjustments
—

 
—

 
(4.3
)
 
(12.3
)
 
(4.3
)
 
(12.3
)
Benefit obligation at end of year
$
1,137.8

 
$
1,027.1

 
$
369.2

 
$
305.6

 
$
1,507.0

 
$
1,332.7

Change in Plan Assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
871.1

 
$
1,109.8

 
$
19.5

 
$
21.5

 
$
890.6

 
$
1,131.3

Actual return on plan assets
154.6

 
(41.9
)
 
4.1

 
(1.7
)
 
158.7

 
(43.6
)
Employer contributions
6.7

 
56.9

 
9.1

 
9.6

 
15.8

 
66.5

Settlements
—

 
(158.6
)
 
—

 
—

 
—

 
(158.6
)
Benefits paid
(76.7
)
 
(95.1
)
 
(8.4
)
 
(8.4
)
 
(85.1
)
 
(103.5
)
Currency exchange translation adjustments
—

 
—

 
0.9

 
(1.5
)
 
0.9

 
(1.5
)
Fair value of plan assets at end of year
$
955.7

 
$
871.1

 
$
25.2

 
$
19.5

 
$
980.9

 
$
890.6

Funded status at end of year (PBO basis)
$
(182.1
)
 
$
(156.0
)
 
$
(344.0
)
 
$
(286.1
)
 
$
(526.1
)
 
$
(442.1
)
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
 
 
Noncurrent assets
$
8.5

 
$
5.7

 
$
—

 
$
—

 
$
8.5

 
$
5.7

Current liabilities
(7.3
)
 
(7.0
)
 
(7.5
)
 
(7.7
)
 
(14.8
)
 
(14.7
)
Noncurrent liabilities
(183.3
)
 
(154.7
)
 
(336.5
)
 
(278.4
)
 
(519.8
)
 
(433.1
)
Net amount recognized
$
(182.1
)
 
$
(156.0
)
 
$
(344.0
)
 
$
(286.1
)
 
$
(526.1
)
 
$
(442.1
)
Amounts recognized in Accumulated Other Comprehensive (Income) Loss consist of:
 
 
 
 
 
 
 
 
 
 
 
Prior service credit
$
(2.6
)
 
$
(3.2
)
 
$
(0.1
)
 
$
(0.1
)
 
$
(2.7
)
 
$
(3.3
)
Net amount recognized
$
(2.6
)
 
$
(3.2
)
 
$
(0.1
)
 
$
(0.1
)
 
$
(2.7
)
 
$
(3.3
)

 
Defined Benefit Pension Plans
 
U.S.
 
Non-U.S.
2019
 
2018
 
2019
 
2018
Weighted Average Assumptions Used to Determine Benefit Obligations as of December 31:
 
 
 
 
 
 
 
Discount rate
3.13
%
 
4.22
%
 
1.41
%
 
2.17
%
Rate of compensation increase
4.50
%
 
4.10
%
 
2.59
%
 
2.59
%
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31:
 
 
 
 
 
 
 
Discount rate for determining service cost
4.46
%
 
3.77
%
 
2.42
%
 
1.99
%
Discount rate for determining interest cost
3.86
%
 
3.20
%
 
1.84
%
 
1.57
%
Expected return on plan assets
5.75
%
 
5.25
%
 
4.43
%
 
4.69
%
Rate of compensation increase
4.10
%
 
4.10
%
 
2.59
%
 
2.64
%
Schedule of Net Benefit Costs [Table Text Block]
The following table presents the components of net periodic benefit cost (income) and other amounts recognized in “other comprehensive (income) loss.”
(In millions)
2019
 
2018
 
2017
U.S.
 
Non-U.S.
 
U.S.
 
Non-U.S.
 
U.S.
 
Non-U.S.
Net Periodic Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
15.7

 
$
8.6

 
$
19.2

 
$
9.5

 
$
17.1

 
$
8.4

Interest cost
38.3

 
5.4

 
40.9

 
5.0

 
42.0

 
4.4

Expected return on plan assets
(48.2
)
 
(0.9
)
 
(57.2
)
 
(1.0
)
 
(57.5
)
 
(0.9
)
Amortization of prior service cost (credit)
(0.6
)
 
—

 
(0.6
)
 
—

 
(0.4
)
 
—

Annual mark-to-market adjustment (gain) loss
26.8

 
59.1

 
(3.4
)
 
(9.2
)
 
36.0

 
13.2

Net curtailment and settlement gain
—

 
—

 
(2.3
)
 
—

 
—

 
—

Net periodic benefit cost (income)
$
32.0

 
$
72.2

 
$
(3.4
)
 
$
4.3

 
$
37.2

 
$
25.1

Other Changes in Plan Assets and Benefit Obligations Recognized in OCI
 
 
 
 
 
 
 
 
 
 
 
Amortization of prior service cost (credit)
$
0.6

 
$
—

 
$
0.6

 
$
—

 
$
0.4

 
$
—

Total recognized in OCI
0.6

 
—

 
0.6

 
—

 
0.4

 
—

Total recognized in net periodic benefit cost (income) and OCI
$
32.6

 
$
72.2

 
$
(2.8
)
 
$
4.3

 
$
37.6

 
$
25.1
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block]
The following table presents the funded status of defined benefit pension plans that are underfunded or unfunded on an accumulated benefit obligation basis.

(In millions)
U.S.
 
Non-U.S.
 
Total
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Projected benefit obligation
$
1,102.1

 
$
994.8

 
$
342.1

 
$
284.5

 
$
1,444.2

 
$
1,279.3

Accumulated benefit obligation
1,058.6

 
960.1

 
306.7

 
253.2

 
1,365.3

 
1,213.3

Fair value of plan assets
911.6

 
833.0

 
0.8

 
0.7

 
912.4

 
833.7
Schedule of Expected Benefit Payments [Table Text Block]
Estimated Expected Future Benefit Payments Including Future Service for the Fiscal Years Ending
(In millions)
Pension Plans
 
Total
Payments
U.S.
 
Non-U.S.(1)
 
Benefit
Payments
 
Benefit
Payments
 
2020
$
82.4

 
$
8.3

 
$
90.7

2021
77.5

 
8.4

 
85.9

2022
76.5

 
8.7

 
85.2

2023
75.6

 
9.0

 
84.6

2024
74.8

 
9.3

 
84.1

2025 - 2029
352.0

 
53.4

 
405.4


___________________________________________________________________________________________________________________
(1)
Non-U.S. estimated benefit payments for 2020 and future periods have been translated at the applicable December 31, 2019, exchange rates.
Pension Plans  
Pension plans and other postretirement benefit plans  
Schedule of Net Funded Status The following table presents the funded status of Grace’s pension plans:
 
December 31,
(In millions)
2019
 
2018
Overfunded defined benefit pension plans
$
8.5

 
$
5.7

Underfunded defined benefit pension plans
(85.2
)
 
(67.1
)
Unfunded defined benefit pension plans
(434.6
)
 
(366.0
)
Total underfunded and unfunded defined benefit pension plans
(519.8
)
 
(433.1
)
Pension liabilities included in other current liabilities
(14.8
)
 
(14.7
)
Net funded status
$
(526.1
)
 
$
(442.1
)

The tables below present the funded status of U.S. and non-U.S. pension plans.
Funded Status of U.S. Pension Plans
Fully-Funded U.S. Qualified
Pension Plans(1)
 
Underfunded U.S.
Qualified Pension Plans(1)
 
Unfunded Pay-As-You-Go
U.S. Nonqualified Plans(2)
(In millions)
2019

2018

2019

2018

2019

2018
Projected benefit obligation
$
35.6

 
$
32.4

 
$
993.8

 
$
897.6

 
$
108.3

 
$
97.1

Fair value of plan assets
44.1

 
38.1

 
911.5

 
833.0

 
—

 
—

Funded status (PBO basis)
$
8.5

 
$
5.7

 
$
(82.3
)
 
$
(64.6
)
 
$
(108.3
)
 
$
(97.1
)

Funded Status of Non-U.S. Pension Plans
Underfunded Non-U.S.
Pension Plans(1)
 
Unfunded Pay-As-You-Go
Non-U.S. Pension Plans(2)
(In millions)
2019
 
2018
 
2019
 
2018
Projected benefit obligation
$
29.0

 
$
22.7

 
$
340.2

 
$
282.9

Fair value of plan assets
25.2

 
19.5

 
—

 
—

Funded status (PBO basis)
$
(3.8
)
 
$
(3.2
)
 
$
(340.2
)
 
$
(282.9
)
___________________________________________________________________________________________________________________
(1)
Plans intended to be advance-funded.
(2)
Plans intended to be pay-as-you-go. The U.S. unfunded plan is a Supplemental Executive Retirement Plan, and the non-U.S. plans primarily relate to an unfunded German pension plan.
Canada | Pension Plans  
Pension plans and other postretirement benefit plans  
Schedule of Allocation of Plan Assets [Table Text Block]
The target allocation of investment assets at December 31, 2019, and the actual allocation at December 31, 2019 and 2018, for the Canadian pension plan are as follows:
 
Target
Allocation
 
Percentage of Plan Assets
December 31,
Canadian Pension Plan Asset Category
2019
 
2019
 
2018
Equity securities
23
%
 
25
%
 
28
%
Bonds
65
%
 
62
%
 
58
%
Other investments
12
%
 
13
%
 
14
%
Total
100
%
 
100
%
 
100
%
Foreign Plan [Member] | Pension Plans  
Pension plans and other postretirement benefit plans  
Schedule of Allocation of Plan Assets [Table Text Block]
The following tables present the fair value hierarchy for the non-U.S. pension plan assets measured at fair value as of December 31, 2019 and 2018.
 
Fair Value Measurements at December 31, 2019, Using
(In millions)
Total
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Corporate bonds
$
0.4

 
$
—

 
$
0.4

 
$
—

Insurance contracts and other investments
0.5

 
—

 
0.5

 
—

Cash
0.1

 
0.1

 
—

 
—

 
$
1.0

 
$
0.1


$
0.9

 
$
—

Investments measured at net asset value(1)
24.2

 
 
 
 
 
 
Total Assets at Fair Value
$
25.2

 
 
 
 
 
 

___________________________________________________________________________________________________________________
(1)
In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
 
Fair Value Measurements at December 31, 2018, Using
(In millions)
Total
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Corporate bonds
$
0.4

 
$
—

 
$
0.4

 
$
—

Insurance contracts and other investments
0.4

 
—

 
0.4

 
—

Cash
0.1

 
0.1

 
—

 
—

 
$
0.9

 
$
0.1

 
$
0.8

 
$
—

Investments measured at net asset value(1)
18.6

 
 
 
 
 
 
Total Assets at Fair Value
$
19.5

 
 
 
 
 
 
___________________________________________________________________________________________________________________
(1)
In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
Qualified Plan [Member] | UNITED STATES | Pension Plans  
Pension plans and other postretirement benefit plans  
Schedule of Allocation of Plan Assets [Table Text Block]
The target allocation of investment assets at December 31, 2019, and the actual allocation at December 31, 2019 and 2018, for Grace’s U.S. qualified pension plans are as follows:
 
Target
Allocation
 
Percentage of Plan Assets
December 31,
U.S. Qualified Pension Plans Asset Category
2019
 
2019
 
2018(1)
Global equities
22
%
 
22
%
 
14
%
Multi-asset credit
3
%
 
3
%
 
2
%
Liability-hedging assets
75
%
 
75
%
 
84
%
Total
100
%
 
100
%
 
100
%
___________________________________________________________________________________________________________________
(1)
In light of the two settlement transactions that occurred in 2018, the risk management strategy of the U.S. qualified pension plans was updated in 2019 to increase the return-seeking allocation, add diversification through rebalancing to global equity weights, increase the duration of the liability-hedging portfolio, and reduce interest rate sensitivity through adding long duration credit.

The following tables present the fair value hierarchy for the U.S. qualified pension plan assets measured at fair value as of December 31, 2019 and 2018.
 
Fair Value Measurements at December 31, 2019, Using

(In millions)
Total
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Common/collective trust funds
$
8.0

 
$
—

 
$
8.0

 
$
—

Annuity and immediate participation contracts
20.5

 
—

 
20.5

 
—

 
$
28.5

 
$
—

 
$
28.5

 
$
—

Investments measured at net asset value(1)
927.2

 
 
 
 
 
 
Total Assets at Fair Value
$
955.7

 
 
 
 
 
 
___________________________________________________________________________________________________________________
(1)
In accordance with ASC 820-10, certain investments that are measured at net asset value (“NAV”) per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
 
Fair Value Measurements at December 31, 2018, Using

(In millions)
Total
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Common/collective trust funds
$
10.5

 
$
—

 
$
10.5

 
$
—

Annuity and immediate participation contracts
19.8

 
—

 
19.8

 
—

 
$
30.3

 
$
—

 
$
30.3

 
$
—

Investments measured at net asset value(1)
840.8

 
 
 
 
 
 
Total Assets at Fair Value
$
871.1

 
 
 
 
 
 

___________________________________________________________________________________________________________________
(1)
In accordance with ASC 820-10, certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. NAV is provided by the investment account manager as a practical expedient to estimate fair value. Fair values presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.