Pension Plans and Other Postretirement Benefit Plans |
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Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefit Plans | Pension Plans and Other Postretirement Benefit Plans Pension Plans GCP sponsors certain defined benefit pension plans, primarily in the U.S. and the U.K., in which GCP employees participate. GCP records an asset or a liability to recognize the funded status of these pension plans in its accompanying unaudited Consolidated Balance Sheets. The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans related to continuing operations:
Overfunded plans include several advance-funded plans for which the fair value of the plan assets exceeds the projected benefit obligation (the "PBO"). The overfunded status is reflected as assets in "Overfunded defined benefit pension plans" in the accompanying unaudited Consolidated Balance Sheets. Underfunded plans include a group of advance-funded plans that are underfunded on a PBO basis. Unfunded plans include several plans that are funded on a pay-as-you-go basis, and therefore, the entire PBO is unfunded. As of June 30, 2018 and December 31, 2017, the underfunded and unfunded plans are included as liabilities in the accompanying unaudited Consolidated Balance Sheets. During the three months ended June 30, 2018, the Company amended a defined benefit pension plan at one non-U.S. location resulting in a curtailment gain of $0.1 million and a mark-to-market remeasurement gain of $0.3 million. During the three months ended June 30, 2017, certain pension plans were curtailed and/or terminated resulting in a curtailment gain of $5.1 million and a mark-to-market gain of $0.1 million. These amounts are presented in "Other income, net" in the accompanying unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017, respectively. Components of Net Periodic Benefit Cost The components of GCP's net periodic benefit cost for the three and six months ended June 30, 2018 and 2017 are as follows:
Other Postretirement Benefit (OPEB) Plans GCP provides postretirement health care benefits for certain qualifying retired employees. Such plans are unfunded and GCP has historically recorded the cost of premiums under these plans as they are incurred. As of June 30, 2018, GCP accounted for these plans in accordance with provisions of ASC Topic 715, Compensation- Retirement Benefits, which requires accruing the future benefit costs over the employees' years of service. As a result, GCP recognized a long-term liability of $2.0 million; accumulated other comprehensive income of $0.6 million, net of related tax impact of $0.2 million; as well as expense of $1.2 million during the three and six months ended June 30, 2018 within the accompanying unaudited Consolidated Balance Sheets and the accompanying unaudited Consolidated Statements of Operations. Plan Contributions and Funding GCP intends to satisfy its funding obligations under the U.S. qualified pension plans and to comply with all of the requirements of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). For ERISA purposes, funded status is calculated on a different basis than under GAAP. GCP intends to fund non-U.S. pension plans based on applicable legal requirements, as well as actuarial and trustee recommendations. During the three and six months ended June 30, 2018, GCP contributed $0.5 million and $3.9 million, respectively, to these non-U.S. plans, including a discretionary contribution of $2.9 million to a pension plan in Brazil. During the three and six months ended June 30, 2017, such contributions amounted to $1.0 million and $1.7 million, respectively. Defined Contribution Retirement Plan GCP sponsors a defined contribution retirement plan for its employees in the U.S. which is a qualified plan under section 401(k) of the U.S. tax code. Under this plan, GCP contributes an amount equal to 100% of employee contributions, up to 6% of an individual employee's salary or wages. Effective January 1, 2018, GCP established an additional defined contribution plan whereby GCP contributes up to an additional 2% of 100% of applicable employee contributions. Applicable employees include those beginning employment with GCP on or after January 1, 2018 who are not eligible to participate the GCP Applied Technologies Inc. Retirement Plan for Salaried Employees, which closed to new hires effective January 1, 2018. GCP's costs related to these benefit plans are included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations and amounted to $1.5 million and $2.5 million, respectively, during the three and six months ended June 30, 2018 and $1.1 million and $2.5 million, respectively, during the three and six months ended June 30, 2017. |