Unconsolidated Affiliate

3 Months Ended

Mar. 31, 2012

Unconsolidated Affiliate

Unconsolidated Affiliate

16. Unconsolidated Affiliate

        Grace accounts for certain of its investments in unconsolidated affiliates using the equity method of accounting. Grace has a 50% ownership interest in ART, and it is the largest such investment accounted for using the equity method.

        Grace and ART transact business on a regular basis and maintain several agreements in order to effect such business. These agreements are treated as related party activities with an unconsolidated affiliate. For the quarters ended March 31, 2012 and 2011, Grace sales of catalysts to ART were $50.5 million and $59.4 million, respectively. For the quarters ended March 31, 2012 and 2011, charges for fixed costs, research and development and selling, general and administrative services to ART were $7.4 million and $6.5 million, respectively. Grace and Chevron provide lines of credit in the amount of $15.0 million each at a commitment fee of 0.1% of the credit amount. These agreements expire on February 28, 2013. No amounts were outstanding at March 31, 2012.