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Debt

3 Months Ended

Mar. 31, 2012

5. Debt

Components of Debt

(In millions)	March 31, 2012			December 31, 2011

Debt payable within one year	$	59.1		$	57.9

Debt payable after one year	$	3.0		$	3.3

Debt Subject to Compromise
Bank borrowings	$	500.0		$	500.0
Accrued interest on bank borrowings		414.6			407.3
Drawn letters of credit		26.3			26.3
Accrued interest on drawn letters of credit		8.6			8.2

	$	949.5		$	941.8

Weighted average interest rates on total debt		3.5	%		3.5	%

At March 31, 2012, the fair value of Grace's debt payable within one year not subject to compromise approximated the recorded value of $59.1 million. Fair value is determined based on expected future cash flows (discounted at market interest rates), quotes from financial institutions and other appropriate valuation methodologies. At March 31, 2012, the carrying value of Grace's bank debt subject to compromise plus interest was $949.5 million. The estimated fair value of the bank debt approximates the carrying value; however, because such debt is subject to compromise in Grace's Chapter 11 proceeding, neither carrying values nor market values may reflect ultimate liquidation value.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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