10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended		March 31, 2021
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number		1-37533

GCP Applied Technologies Inc.

Delaware	47-3936076
(State of Incorporation)	(I.R.S. Employer Identification No.)

62 Whittemore Avenue, Cambridge, Massachusetts 02140-1623

(617) 876-1400

(Address and phone number of principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Yes ý    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý  Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

Securities registered pursuant to Section 12(b) of the Act:

Class	Trading Symbol	Exchange on which registered
Common Stock, $0.01 par value per share	GCP	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at April 29, 2021
Common Stock, $0.01 par value per share	73,327,077

1

TABLE OF CONTENTS
Part I.	Financial Information
	Item 1.	Financial Statements (unaudited)		3
		Consolidated Statements of Operations		3
		Consolidated Statements of Comprehensive Loss		4
		Consolidated Balance Sheets		5
		Consolidated Statements of Stockholders' Equity		6
		Consolidated Statements of Cash Flows		7
		Notes to Consolidated Financial Statements
		1.	Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies	8
		2.	Revenue from Lessor Arrangements and Contracts with Customers	10
		3.	Inventories, net	11
		4.	Derivative Instruments	11
		5.	Debt and Other Borrowings	13
		6.	Lessee Arrangements	15
		7.	Income Taxes	15
		8.	Pension Plans and Other Postretirement Benefit Plans	16
		9.	Other Balance Sheet Information	18
		10.	Commitments and Contingencies	18
		11.	Stockholders' Equity	20
		12.	Restructuring and Repositioning Expenses, Asset Write Offs	20
		13.	Other Comprehensive Loss	24
		14.	Stock Incentive Plans	25
		15.	Earnings Per Share	27
		16.	Related Party Transactions and Transactions with Grace	27
		17.	Operating Segment and Geographic Information	28
		18.	Revisions of Previously Issued Consolidated Financial Statements	30
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		34
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		56
	Item 4.	Controls and Procedures		56
Part II.	Other Information
	Item 1.	Legal Proceedings		58
	Item 1A.	Risk Factors		58
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		58
	Item 6.	Exhibits		59
		Signatures		60

2

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

GCP Applied Technologies Inc.

Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31,
(In millions, except per share amounts)	2021		2020
Net sales	$	222.8	$	216.7
Cost of goods sold	136.3		133.9
Gross profit	86.5		82.8
Selling, general and administrative expenses	66.6		68.1
Research and development expenses	4.5		4.9
Interest expense and related financing costs	5.6		5.7
Repositioning expenses	1.3		2.7
Restructuring expenses and asset write offs	7.6		3.1
Other income, net	(1.7)		(2.2)
Total costs and expenses	83.9		82.3
Income from continuing operations before income taxes	2.6		0.5
(Provision for) benefit from income taxes	(1.0)		1.6
Income from continuing operations	1.6		2.1
Loss from discontinued operations, net of income taxes	—		(0.3)
Net income	1.6		1.8
Less: Net income attributable to noncontrolling interests	(0.1)		(0.1)
Net income attributable to GCP shareholders	$	1.5	$	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders	1.5		2.0
Loss from discontinued operations, net of income taxes	—		(0.3)
Net income attributable to GCP shareholders	$	1.5	$	1.7
Earnings (Loss) Per Share Attributable to GCP Shareholders
Basic earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02
Weighted average number of basic shares	73.2		72.9
Diluted earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02
Weighted average number of diluted shares	73.4		73.0

______________________________

(1)Amounts may not sum due to rounding.

(2)Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

The Notes to Consolidated Financial Statements are an integral part of these statements.

3

GCP Applied Technologies Inc.

Consolidated Statements of Comprehensive Loss (unaudited)

	Three Months Ended March 31,
(In millions)	2021		2020
Net income	$	1.6	$	1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	—		0.1
Currency translation adjustments, net of income taxes	(8.0)		(33.8)
Gain from hedging activities, net of income taxes	—		0.2
Total other comprehensive loss	(8.0)		(33.5)
Comprehensive loss	(6.4)		(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)		(0.1)
Comprehensive loss attributable to GCP shareholders	$	(6.5)	$	(31.8)

The Notes to Consolidated Financial Statements are an integral part of these statements.

4

GCP Applied Technologies Inc.

Consolidated Balance Sheets (unaudited)

(In millions, except par value and shares)	March 31, 2021		December 31, 2020
ASSETS
Current Assets
Cash and cash equivalents	$	472.9	$	482.7
Trade accounts receivable, net of allowance for credit losses of $6.7 million and $7.0 million, respectively	161.9		169.4
Inventories, net	117.1		98.4
Other current assets	43.9		41.2
Total Current Assets	795.8		791.7
Properties and equipment, net	216.6		225.6
Operating lease right-of-use assets	37.7		40.0
Goodwill	212.8		215.0
Technology and other intangible assets, net	68.1		70.9
Deferred income taxes	9.6		9.6
Overfunded defined benefit pension plans	30.0		29.7
Other assets	35.2		35.1
Total Assets	$	1,405.8	$	1,417.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year	$	2.4	$	2.8
Operating lease obligations payable within one year	7.6		8.0
Accounts payable	94.0		87.8
Other current liabilities	113.4		125.8
Total Current Liabilities	217.4		224.4
Debt payable after one year	349.0		348.9
Income taxes payable	28.4		28.4
Deferred income taxes	14.8		14.9
Operating lease obligations	25.4		26.2
Unrecognized tax benefits	41.2		41.0
Underfunded and unfunded defined benefit pension plans	63.0		62.9
Other liabilities	16.0		16.8
Total Liabilities	755.2		763.5
Commitments and Contingencies - Note 10
Stockholders' Equity
Preferred stock, par value $0.01; 50,000,000 shares authorized, no shares issued or outstanding	—		—
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 73,251,641 and 73,082,066, respectively	0.7		0.7
Paid-in capital	65.5		61.9
Accumulated earnings	711.8		710.3
Accumulated other comprehensive loss	(118.5)		(110.5)
Treasury stock	(11.4)		(10.7)
Total GCP's Shareholders' Equity	648.1		651.7
Noncontrolling interests	2.5		2.4
Total Stockholders' Equity	650.6		654.1
Total Liabilities and Stockholders' Equity	$	1,405.8	$	1,417.6

The Notes to Consolidated Financial Statements are an integral part of these statements.

5

GCP Applied Technologies Inc.

Consolidated Statements of Stockholders' Equity (unaudited)

	Common Stock			Treasury Stock
(In millions)	Number of Shares(1)	Par Value		Number of Shares(1)	Cost		Additional Paid-in Capital		Accumulated Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Stockholders' Equity
Balance, December 31, 2019	73.2	$	0.7	0.3	$	(8.6)	$	53.4	$	610.1	$	(117.0)	$	2.4	$	541.0
Net income	—	—		—	—		—		1.7		—		0.1		1.8
Issuance of common stock in connection with stock plans(1)	0.1	—		—	—		—		—		—		—		—
Share-based compensation	—	—		—	—		0.5		—		—		—		0.5
Exercise of stock options (1)	—	—		—	—		0.4		—		—		—		0.4
Share repurchases(3)	—	—		0.1	(0.3)		—		—		—		—		(0.3)
Other comprehensive loss	—	—		—	—		—		—		(33.5)		—		(33.5)
Balance, March 31, 2020	73.3	$	0.7	0.4	$	(8.9)	$	54.3	$	611.8	$	(150.5)	$	2.5	$	509.9
Balance, December 31, 2020	73.5	$	0.7	0.4	$	(10.7)	$	61.9	$	710.3	$	(110.5)	$	2.4	$	654.1
Net income	—	—		—	—		—		1.5		—		0.1		1.6
Issuance of common stock in connection with stock plans(1)	0.1	—		—	—		—		—		—		—		—
Share-based compensation(2)	—	—		—	—		1.4		—		—		—		1.4
Exercise of stock options (1)	0.1	—		—	—		2.2		—		—		—		2.2
Share repurchases(3)	—	—		0.1	(0.7)		—		—		—		—		(0.7)
Other comprehensive loss	—	—		—	—		—		—		(8.0)		—		(8.0)
Balance, March 31, 2021	73.7	$	0.7	0.5	$	(11.4)	$	65.5	$	711.8	$	(118.5)	$	2.5	$	650.6

________________________________

(1)The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding.

(2)During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options, RSUs and PBUs.

(3)Refer to Note 14, “Stock Incentive Plans”, for further information.

The Notes to Consolidated Financial Statements are an integral part of these statements.

6

GCP Applied Technologies Inc.

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31,
(In millions)	2021		2020
OPERATING ACTIVITIES
Net income	$	1.6	$	1.8
Less: Loss from discontinued operations	—		(0.3)
Income from continuing operations	1.6		2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.3		11.0
Amortization of debt discount and financing costs	0.4		0.4
Stock-based compensation expense	1.0		0.8
Unrealized (gain) loss on foreign currency	(2.3)		0.5
Deferred income taxes	(0.2)		(4.9)
Loss (gain) on disposal of property and equipment	1.1		(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	5.0		17.4
Inventories	(19.9)		(11.4)
Accounts payable	9.9		6.6
Pension assets and liabilities, net	1.1		1.0
Other assets and liabilities, net	(8.3)		(9.1)
Net cash provided by operating activities from continuing operations	0.7		14.3
Net cash used in operating activities from discontinued operations	—		(0.9)
Net cash provided by operating activities	0.7		13.4
INVESTING ACTIVITIES
Capital expenditures	(8.1)		(9.2)
Other investing activities	—		0.4
Net cash used in investing activities from continuing operations	(8.1)		(8.8)
FINANCING ACTIVITIES
Repayments under credit arrangements	(0.3)		—
Payments on finance lease obligations	(0.2)		(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.7)		(0.3)
Proceeds from exercise of stock options	1.8		0.4
Net cash provided by (used in) financing activities from continuing operations	0.6		(0.1)
Effect of currency exchange rate changes on cash and cash equivalents	(3.0)		(9.3)
Decrease in cash and cash equivalents	(9.8)		(4.8)
Cash and cash equivalents, beginning of period	482.7		325.0
Cash and cash equivalents, end of period	$	472.9	$	320.2
Supplemental disclosures of cash flow information:
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable	$	3.0	$	5.5

The Notes to Consolidated Financial Statements are an integral part of these statements.

7

GCP Applied Technologies Inc.

Notes to Consolidated Financial Statements (unaudited)

1. Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies

GCP Applied Technologies Inc. ("GCP", or the "Company") is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. Specialty Construction Chemicals ("SCC") manufactures and markets concrete admixtures and cement additives and supplies in-transit monitoring systems for concrete producers. Specialty Building Materials ("SBM") manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, fireproofing and other products designed to protect the building envelope.

On July 3, 2017 (the "Closing Date"), GCP completed the sale of its Darex Packaging Technologies ("Darex") business to Henkel AG & Co. KGaA (“Henkel”) for $1.06 billion in cash. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provided for a series of delayed closings in certain non-U.S. jurisdictions. Darex results of operations and cash flows have been reclassified and reflected as "discontinued operations" in the accompanying unaudited Consolidated Statements of Operations and unaudited Consolidated Statements of Cash Flows for all periods presented. Unless otherwise noted, the information throughout the Notes to the accompanying unaudited Consolidated Financial Statements pertains only to the continuing operations of GCP.

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements are presented on a consolidated basis and include all of the accounts and operations of GCP and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The financial statements reflect the financial position, results of operations and cash flows of GCP in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information.

The interim financial statements presented herein are unaudited and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in GCP's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2020 was derived from the audited annual consolidated financial statements as of the period then ended. Certain information and footnote disclosures typically included in GCP's annual consolidated financial statements have been condensed or omitted. The unaudited financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations for the year ending December 31, 2021.

Revisions of Previously Issued Consolidated Financial Statements

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified freight expense accrual and other errors in its previously filed unaudited quarterly consolidated financial statements for the first three quarterly periods of 2020.

The Company considered the guidance in ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, (“ASC 250-10-S99-2”) in evaluating whether the Company’s previously issued unaudited consolidated financial statements were materially misstated. The Company concluded the errors were not material individually or in the aggregate to the previously issued consolidated financial statements. In accordance with ASC 250-10-S99-2, the Company has corrected these errors by revising previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020 in connection with the filing of this Form 10-Q.

8

Notes to Consolidated Financial Statements (unaudited) - Continued

The accompanying footnotes have been corrected to reflect the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020. Please refer to Note 18, “Revisions of Previously Issued Consolidated Financial Statements” for reconciliations between as previously reported and as revised quarterly amounts, respectively.

Use of Estimates    

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. GCP's accounting measurements that are most affected by management's estimates of future events are disclosed in its 2020 Annual Report on Form 10-K. Actual results could differ from those estimates.

On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus ("COVID-19") a global pandemic and recommended a number of restrictive measures to contain the spread. Many governments in the regions where GCP generates the majority of its revenue have adopted such policies. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. Despite progress in vaccination efforts, it is difficult to estimate with reasonable certainty at this time the duration and extent of the impact of the pandemic on the global economy, the Company's business, financial position and results of operations. GCP has made certain estimates within its financial statements related to the impact of COVID-19, including allowances for credit losses related to the estimated amount of receivables not expected to be collected and excess, obsolete or damaged inventories, future expected cash flows related to impairment assessments of goodwill and long-lived assets, incentive compensation accruals, contingent liabilities, and sales allowances related to volume rebates recognized based on anticipated sales volume. There may be changes to the Company's estimates in future periods due to uncertainty associated with the impact of COVID-19, the extent of which will depend largely on future developments, including new information which may emerge concerning the resurgence of the pandemic, as well as additional and unanticipated actions by government authorities to further contain the spread of COVID-19, which may result in extended ongoing business disruptions.

Income Tax    

As a global enterprise, GCP is subject to a complex array of tax regulations and needs to make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. Income tax expense and income tax balances represent GCP’s federal, state and foreign income taxes as an independent company. GCP files a U.S. consolidated income tax return, along with foreign and state corporate income tax filings, as required. Please refer to Note 7, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits.

Reclassifications    

Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts.

9

Notes to Consolidated Financial Statements (unaudited) - Continued

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. GCP adopted the guidance effective January 1, 2021. The adoption did not have a material impact on its results of operations, financial position and cash flows.

Other

During the three months ended March 31, 2021, except as discussed above, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the Annual Report on Form 10-K for the year ended December 31, 2020. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K.

2. Revenue from Lessor Arrangements and Contracts with Customers

The majority of the Company’s revenue is generated from short-term arrangements associated with the production and sale of concrete admixtures and cement additives within its SCC operating segment, as well as sheet and liquid membrane systems and other specialty products designed to protect the building envelope within its SBM operating segment. For such arrangements, the transfer of control takes place at a point in time when products are shipped to the customer. Short-term arrangements within its SCC operating segment involve selling concrete admixtures and providing dispensers to customers. Such arrangements contain a lease element due to the customer's right to control the use of dispensers over a period of time in exchange for consideration.

The Company generates revenue from long-term arrangements within its SCC operating segment, which generally consist of VERIFI® and Ductilcrete sales arrangements.

VERIFI® sales arrangements involve installing equipment on the customers’ trucks and at their plants, as well as performing slump management and truck location tracking services. The Company recognizes lease and service revenue for these arrangements. Revenue generated from VERIFI® sales arrangements represented less than 10% of the Company's consolidated revenue during the three and three months ended March 31, 2021 and 2020.

During the three months ended March 31, 2021 and 2020, the Company recognized lease revenue of $9.4 million and $8.8 million, respectively, and service revenue of $2.0 million and $1.4 million, respectively. Lease revenue consists of dispenser lease revenue of $6.1 million, as well as an allocated portion of VERIFI® fixed fees and variable slump management fees. Service revenue consists of an allocated portion of VERIFI® fixed fees and variable slump management fees. Lease and service revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations.

Revenue generated from Ductilcrete sales arrangements represented less than 10% of the Company's consolidated revenue during the three months ended March 31, 2021 and 2020.

The Company’s revenue is principally recognized as goods and services are delivered and performance obligations are satisfied upon delivery. The Company has certain long-term arrangements resulting in remaining obligations for which the work has not been performed or has been partially performed. As of March 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $9.4 million, including the estimated transaction price to be earned as revenue over the remaining term of these contracts, which is generally one to five years. The Company’s contract assets and liabilities resulting from its contracts in the SCC or SBM operating segments were not material as of March 31, 2021 and December 31, 2020. Additionally, the amounts recorded in the accompanying unaudited Consolidated Statements of Operations during the three months ended March 31, 2021 and 2020 related to changes in the contract assets and liabilities were not material.

10

Notes to Consolidated Financial Statements (unaudited) - Continued

For further information on revenue recognition related to product sale arrangements, please refer to Note 2, "Revenue from Lessor Arrangements and Contracts with Customers", to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K.

3. Inventories, net

The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Raw materials	$	50.6	$	41.3
In process	4.4		4.2
Finished products and other	62.1		52.9
Total inventories, net	$	117.1	$	98.4

The "Finished products and other" category presented in the table above includes "other" inventories, which consist of finished products purchased rather than produced by GCP of $10.0 million and $9.1 million, respectively, as of March 31, 2021 and December 31, 2020.

11

Notes to Consolidated Financial Statements (unaudited) - Continued

4. Derivative Instruments

The Company uses derivative instruments to partially offset its business exposure to foreign currency risk on net investments in certain foreign subsidiaries. The Company enters into foreign currency forward contracts to offset a portion of the changes in the carrying amounts of its net investments in foreign operations due to fluctuations in foreign currency exchange rates. As of March 31, 2021, the Company was a party to four forward contracts with an aggregate notional amount of €40.0 million to hedge foreign currency exposure on net investments in certain of its European subsidiaries whose functional currency is the Euro. These forward contracts are designated as hedging instruments and recognized at fair value as assets or liabilities in the accompanying unaudited Consolidated Balance Sheets. Each contract has a notional amount of €10.0 million and matures annually starting on June 14, 2021 through June 17, 2024. The forward contracts are designated and qualify as net investment hedges for which effectiveness is assessed based on the spot rate method. Please refer to Note 4, "Derivative Instruments", to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K for further information on net investment hedges.

The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Derivative assets(1):
Foreign exchange forward contracts	$	0.8	$	—
Derivative liability(1):
Foreign exchange forward contracts	$	(0.6)	$	(1.8)

__________________________

(1)The fair value of derivative instruments is measured based on expected future cash flows discounted at market interest rates using observable market inputs and classified as Level 2 within the fair value hierarchy. As of March 31, 2021, fair value of derivative assets of $0.2 million and $0.6 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets, and fair value of derivative liability of $0.6 million is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. As of December 31, 2020, fair value of derivative liabilities of $0.4 million and $1.4 million, respectively, is recorded within "Other Current Liabilities" and "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets.

The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss related to forward contracts designated as net investment hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
(In millions)	Other Income, net		Cumulative Translation Adjustments(1)		Other Income, net		Cumulative Translation Adjustments(1)
Gain on foreign exchange forward contracts	$	0.2	$	1.4	$	0.3	$	1.3

_______________________

(1)The amounts are presented net of tax expense of $0.4 million during each of the three months ended March 31, 2021 and 2020.

12

Notes to Consolidated Financial Statements (unaudited) - Continued

5. Debt and Other Borrowings

Components of Debt and Other Borrowings

The following is a summary of obligations under senior notes and other borrowings at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021			December 31, 2020
5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.2 million and $3.3 million, respectively, at March 31, 2021 and December 31, 2020	$	346.8		$	346.6
Revolving credit facility due 2023(1)	—			—
Other borrowings(2)	4.6			5.1
Total debt	351.4			351.7
Less: debt payable within one year	2.4			2.8
Debt payable after one year	$	349.0		$	348.9
Weighted average interest rates on total debt obligations	5.5		%	5.5		%

__________________________

(1)Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of March 31, 2021 and December 31, 2020.

(2)Represents borrowings of $1.7 million and $2.1 million, respectively, at March 31, 2021 and December 31, 2020, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $2.9 million and $3.0 million, respectively, of finance lease obligations.

The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at March 31, 2021:

(In millions)	Amount
Remainder of 2021	$	2.3
2022	0.8
2023	0.7
2024	0.7
2025	0.1
Thereafter	346.8
Total debt	$	351.4

5.5% Senior Notes

GCP's outstanding 5.5% Senior Notes have an aggregate principal amount of $350.0 million maturing on April 15, 2026. Interest on the 5.5% Senior Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company made an interest payment of $9.6 million on April 15, 2021.

The Indenture contains certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenants and conditions under the Indenture as of March 31, 2021. There are no events of default under the Indenture as of March 31, 2021.

Credit Agreement

As of March 31, 2021 and December 31, 2020, there were no outstanding borrowings on the Revolving Credit Facility. There were $2.6 million in outstanding letters of credit which resulted in available credit of $347.4 million as of March 31, 2021 and December 31, 2020. There were no interest payments on the Revolving Credit Facility during the three months ended March 31, 2021 and 2020.

13

Notes to Consolidated Financial Statements (unaudited) - Continued

The Credit Agreement contains conditions that would require mandatory principal payments in advance of the maturity date of the Revolving Credit Facility, as well as certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenant terms as of March 31, 2021. There are no events of default as of March 31, 2021.

Debt Issuance Costs

GCP recognizes expenses directly associated with obtaining the Revolving Credit Facility as debt issuance costs which are presented within "Other assets" in the accompanying unaudited Consolidated Balance Sheets. Such costs are amortized over the term of the Revolving Credit Facility and included in “Interest expense and related financing costs” in the accompanying unaudited Consolidated Statements of Operations. As of March 31, 2021 and December 31, 2020, the remaining unamortized debt issuance costs related to the Revolving Credit Facility were $1.9 million and $2.2 million, respectively.

Debt Fair Value

The carrying amount and fair value of GCP's debt and other borrowings were as follows:

	March 31, 2021				December 31, 2020
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
5.5% Senior Notes due in 2026	$	346.8	$	360.1	$	346.6	$	362.0
Other borrowings	4.6		4.6		5.1		5.1
Total debt	$	351.4	$	364.7	$	351.7	$	367.1

Fair value is determined based on Level 2 inputs, including expected future cash flows (discounted at market interest rates), estimated current market prices, and quotes from financial institutions. As of March 31, 2021, the fair value was higher than the carrying amount due to higher bond market prices. The carrying amount represents the aggregate principal amount at maturity reduced by the unamortized debt issuance costs.

14

Notes to Consolidated Financial Statements (unaudited) - Continued

6. Lessee Arrangements

The Company leases manufacturing and office facilities, as well as certain vehicles and equipment under operating leases.

The following table summarizes components of lease expense for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Operating lease expense	$	4.3	$	3.2
Variable lease expense	1.0		1.1
Short-term lease expense	0.6		0.6
Total lease expense	$	5.9	$	4.9

The following table summarizes supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.6	$	3.2
Operating lease right of use assets obtained in exchange for new lease obligations	1.4		7.7

On July 31, 2020, GCP sold its corporate headquarters located at 62 Whittemore Avenue, Cambridge, Massachusetts to IQHQ, L.P and entered into a leaseback transaction with the buyer in conjunction with the sale. The lease of GCP's corporate headquarters is classified as an operating lease and has an initial rent-free term of eighteen months. Fair value of free rent of $8.6 million was recognized as an Operating Lease Right-of-Use Asset as a result of a non-cash transaction.

7. Income Taxes

Income taxes attributable to continuing operations during the three months ended March 31, 2021 and 2020 was an income tax expense (benefit) of $1.0 million and $(1.6) million, respectively, representing effective tax rates of 38.5% and (320.0)%, respectively.

The difference between the U.S. federal income tax rate of 21.0% and GCP’s overall income tax rate for the three months ended March 31, 2021, was primarily due to income tax expense on unrecognized tax benefits of $0.3 million.

The difference between the U.S. federal income tax rate of 21.0% and GCP's overall income tax rate for the three months ended March 31, 2020 was primarily due to benefits recognized as a result of the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The CARES Act allowed for accelerated interest and depreciation deductions which caused GCP to estimate net operating losses in 2019 and 2020. Under the CARES Act, those losses can be carried back to offset prior taxable income that was taxed at the U.S. federal income tax rate of 35%. This resulted in an income tax benefit of $2.8 million, offset by increases in unrecognized tax benefits of $0.4 million and valuation allowance expense of $0.6 million.

Repatriation

In general, it is GCP's practice and intention to permanently reinvest the earnings of its foreign subsidiaries and repatriate earnings only when the tax impact is efficient.

15

Notes to Consolidated Financial Statements (unaudited) - Continued

Valuation Allowance

In evaluating GCP's ability to realize its deferred tax assets, GCP considers all reasonably available positive and negative evidence, including recent earnings experience, expectations of future taxable income and the tax character of that income, the period of time over which temporary differences become deductible and the carryforward and/or carryback periods available to GCP for tax reporting purposes in the related jurisdiction. In estimating future taxable income, GCP relies upon assumptions and estimates about future activities, including the amount of future federal, state and foreign pretax operating income that GCP will generate; the reversal of temporary differences; and the implementation of feasible and prudent tax planning strategies. GCP records a valuation allowance to reduce deferred tax assets to the amount that it believes is more likely than not to be realized.

During the three months ended March 31, 2021 GCP incurred no income tax expense for valuation allowances. During the three months ended March 31, 2020, GCP incurred income tax expense for valuation allowances of $0.6 million recorded against deferred tax assets for net operating losses primarily in Argentina and Australia

Tax Sharing Agreement

In connection with the legal separation and transfer of W.R. Grace & Co.'s ("Grace") construction products and packaging technologies businesses to the Company through a dividend distribution of all of the then-outstanding common stock of GCP to Grace shareholders on February 3, 2016 (the "Separation"), GCP and Grace entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement (the "Tax Sharing Agreement"). Under the Tax Sharing Agreement, GCP and Grace will indemnify and hold each other harmless in accordance with the principles outlined therein. Please refer to Note 16, "Related Party Transactions and Transactions with Grace" for further information on the Tax Sharing Agreement.

8. Pension Plans and Other Postretirement Benefit Plans

Pension Plans    

GCP sponsors defined benefit pension plans, primarily in the U.S. and the U.K., in which GCP employees and former 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:

(In millions)	March 31, 2021		December 31, 2020
Overfunded defined benefit pension plans	$	30.0	$	29.7
Underfunded defined benefit pension plans	(34.2)		(33.3)
Unfunded defined benefit pension plans	(28.8)		(29.6)
Total underfunded and unfunded defined benefit pension plans	(63.0)		(62.9)
Pension liabilities included in other current liabilities	(1.4)		(1.4)
Net funded status	$	(34.4)	$	(34.6)

Components of Net Periodic Benefit Cost

The components of GCP's net periodic benefit cost for the three months ended March 31, 2021 and 2020 are as follows:

16

Notes to Consolidated Financial Statements (unaudited) - Continued

	Three Months Ended March 31,
	2021						2020
	Pension						Pension
(In millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
Service cost	$	1.5	$	0.3	$	1.8	$	1.5	$	0.2	$	1.7
Interest cost	1.2		0.7		1.9		1.3		1.1		2.4
Expected return on plan assets	(1.5)		(0.8)		(2.3)		(1.6)		(1.2)		(2.8)
Net periodic benefit cost (1)	$	1.2	$	0.2	$	1.4	$	1.2	$	0.1	$	1.3

________________________________

(1)Service cost component of net periodic benefit cost is included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations. All other components of net periodic benefit costs are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations.

Pension 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 U.S. GAAP. GCP made contributions of $0.2 million and $0.1 million, respectively, to the U.S. pension plans during the three months ended March 31, 2021 and 2020.

GCP intends to fund non-U.S. pension plans based on applicable legal requirements, as well as actuarial and trustee recommendations. During the three months ended March 31, 2021 and 2020, GCP contributed $0.2 million and $0.5 million, respectively, to these non-U.S. plans.

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. Additionally, GCP contributes up to 2% of a full amount of applicable employee compensation subject to a three year vesting requirement. Applicable employees include those beginning employment with GCP on or after January 1, 2018 who are not eligible to participate in the GCP Applied Technologies Inc. Retirement Plan for Salaried Employees, which was closed to new hires effective January 1, 2018. GCP's costs related to this benefit plan amounted to $1.0 million and $1.3 million, respectively, during the three months ended March 31, 2021 and 2020. These costs are included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations.

17

Notes to Consolidated Financial Statements (unaudited) - Continued

9. Other Balance Sheet Information

The following is a summary of other current assets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Assets:
Non-trade receivables	$	19.2	$	20.4
Prepaid expenses and other current assets	15.6		11.1
Income taxes receivable	9.1		9.7
Total other current assets	$	43.9	$	41.2

The following is a summary of other current liabilities at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Liabilities:
Accrued customer volume rebates	$	15.2	$	24.4
Accrued compensation(1)	18.3		25.0
Income taxes payable	6.7		7.1
Accrued interest	8.8		4.0
Pension liabilities	1.4		1.4
Restructuring liability	16.7		18.0
Other accrued liabilities	46.3		45.9
Total other current liabilities	$	113.4	$	125.8

________________________________

(1)Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs.

10. Commitments and Contingencies

GCP enters into certain purchase commitments and is a party to many contracts containing guarantees and indemnification obligations, as described in Note 12, "Commitments and Contingencies" to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. There have been no material changes to these commitments and obligations during the three months ended March 31, 2021, except as described below. Although the outcome of each of the matters related to loss contingencies and obligations cannot be predicted with certainty, GCP has assessed the risk and has made accounting estimates and disclosures as required under U.S. GAAP.

Environmental Matters

GCP is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to the generation, storage, handling, discharge, disposition and stewardship of hazardous wastes and other materials. GCP recognizes accrued liabilities for anticipated costs associated with response efforts if, based on the results of the assessment, it concluded that a probable liability has been incurred and the cost can be reasonably estimated. As of March 31, 2021 and December 31, 2020, GCP did not have any material environmental liabilities.

GCP's environmental liabilities are reassessed whenever circumstances become better defined or response efforts and their costs can be better estimated. These liabilities are evaluated based on currently available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the method and extent of remediation at each site, existing technology, prior experience in contaminated site remediation and the apportionment of costs among potentially responsible parties.

18

Notes to Consolidated Financial Statements (unaudited) - Continued

Financial Assurances

Financial assurances have been established for a variety of purposes, including insurance, environmental matters and other matters. At March 31, 2021 and December 31, 2020, GCP had gross financial assurances issued and outstanding of $6.1 million and $6.8 million, respectively, which were composed of standby letters of credit. The letters of credit are related primarily to customer advances and other performance obligations as of March 31, 2021 and December 31, 2020. These arrangements guarantee the refund of advance payments received from customers in the event that the product is not delivered or warranty obligations are not fulfilled in accordance with the contract terms. These obligations could be called by the beneficiaries at any time before the expiration date of the particular letter of credit if the Company fails to meet certain contractual requirements.

Lawsuits and Investigations

Henkel AG & Co. KGaA Matters

In July 2017, GCP completed the sale of its Darex business to Henkel AG & Co. KGaA (the "Henkel"). The Purchase and Sale Agreement with Henkel regarding the sale of the Darex Business dated July 3, 2017, (the “SAPA”) contains obligations for the Company as sellers to indemnify Henkel as buyer for certain matters, such as breaches of representations and warranties, taxes, as well as certain covenants and liabilities.

On March 30, 2021, Henkel filed suit in the United States District Court for the District of Delaware against the Company, seeking indemnification for alleged breaches of representations and warranties under the SAPA. Henkel is seeking damages of approximately $11 million, which consist of a claim amount of approximately $16 million, net of a contractual deductible of $5 million. The Company believes that it has meritorious defenses against the plaintiff’s claims and intends to defend this action vigorously. Although the Company does not believe that resolution of this matter will have a material adverse effect on its business or financial condition, at this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or a range of estimates, of potential losses, if any, that might result from an adverse resolution of this matter.

Other Matters

From time to time, GCP and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations and proceedings which are managed and defended in the ordinary course of business. While GCP is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of such pending matters, except as disclosed above, will have a material adverse effect on its overall financial condition, results of operations or cash flows for the three months ended March 31, 2021. However, the results of such pending legal matters and claims cannot be predicted with sufficient certainty since unfavorable resolutions are possible and could materially affect GCP's financial position, results of operations, or cash flows. In the event of unexpected subsequent developments and due to the inherent unpredictability of these matters, there can be no assurance that the Company’s assessment of any claim will reflect the ultimate outcome. An adverse outcome in certain matters could, from time to time, have a material adverse effect on GCP's consolidated financial position, results of operations and cash flows in particular quarterly or annual periods.

19

Notes to Consolidated Financial Statements (unaudited) - Continued

11. Stockholders' Equity

Share Repurchase Program

On July 30, 2020, the Board of Directors (the “Board”) of GCP authorized a program to repurchase up to $100 million of the Company’s common stock which is effective through July 30, 2022. Share repurchases under the program may be made from time to time at the Board's discretion through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act. The share repurchase program is subject to a periodic review by the Board and may be suspended periodically or discontinued at any time. The Company plans to fund repurchases from its existing cash balance. No shares were repurchased by the Company during the three months ended March 31, 2021.

12. Restructuring and Repositioning Expenses, Asset Write Offs

GCP's Board of Directors (the "Board") approves all major restructuring and repositioning programs. Major restructuring programs may involve reorganizations, the discontinuation of significant product lines, the shutdown of significant facilities, or other major strategic initiatives. From time to time, GCP takes additional restructuring actions, including involuntary employee terminations that are not a part of a major program. Repositioning activities generally represent major strategic or transformational actions to enhance the value and performance of the Company, improve business efficiency or optimize the Company’s footprint.

Repositioning expenses associated with the Plans discussed below, as well as a review of strategic, financial and operational alternatives, are primarily related to consulting, professional services, and other employee-related costs associated with the Company’s organizational realignment and advancing its technology strategy. Due to the scope and complexity of the Company’s repositioning activities, the range of estimated repositioning expenses and capital expenditures could increase or decrease and the timing of incurrence could change.

2021 Restructuring and Repositioning Plan (the “2021 Plan”)

On March 30, 2021, the Board approved a business restructuring and repositioning plan (the “2021 Plan”) related to the relocation of the Company’s corporate headquarters to the Atlanta, Georgia area, the closure of its Cambridge, Massachusetts campus, the build-out of a new global research and development center near the Boston /Cambridge area, as well as the consolidation of other regional facilities and offices, including an organizational redesign, which is expected to lower costs. The program is expected to be completed by June 30, 2022.

2019 Phase 2 Restructuring and Repositioning Plan (the “2019 Phase 2 Plan")

On July 31, 2019, the Board approved a business restructuring and repositioning plan to further optimize the design and footprint of the Company's global organization, primarily with respect to its general administration and business support functions, and streamline cross-functional activities (the “2019 Phase 2 Plan”). The 2019 Phase 2 Plan is expected to result in the net reduction of approximately 8%-10% of the Company's workforce. The program was substantially completed as of March 31, 2021.

2019 Restructuring and Repositioning Plan (the “2019 Plan”) 

On February 22, 2019, the Board approved a business restructuring and repositioning plan (the “2019 Plan”). The 2019 Plan is focused on GCP’s global supply chain strategy, processes and execution, including its manufacturing, purchasing, logistics, and warehousing operations. The plan also addresses GCP’s service delivery model, primarily in North America, to streamline the Company’s pursuit of combined admixture and VERIFI® opportunities. The program was substantially completed as of December 31, 2020.

The following table illustrates a summary of the charges incurred and planned in connection with restructuring and repositioning plans discussed above:

20

Notes to Consolidated Financial Statements (unaudited) - Continued

(In millions)	Severance/employee costs	Asset Write Offs	Other Associated Costs	Total Restructuring	Repositioning	Total Costs	Capital Expenditures
2019 Plan: (1)
Cumulative Costs incurred to Date	$0.9	$0.9	$0.3	$2.1	$10.5	$12.6	$2.2
2019 Phase 2 Plan: (2)
Cumulative Costs incurred to Date	$26.0	$0.5	$—	$26.5	$7.3	$33.8	$0.4
2021 Plan: (3)
Estimated Total Costs	$11-13	$8-9	$5	$24-27	$2	$26-29	$6
Cumulative Costs incurred to Date	$4.3	$2.1	$0.2	$6.6	$—	$6.6	$—

(1)As of March 31, 2021, the cumulative restructuring costs incurred under the 2019 Plan since its inception were $2.1 million, of which $1.7 million was related to the SCC segment and $0.4 million was related to the SBM segment.

(2)As of March 31, 2021, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $26.5 million, of which $7.1 million was attributable to the SCC segment, $7.0 million was attributable to the SBM segment, and $12.4 million was attributable to the Corporate function.

(3)As of March 31, 2021, the cumulative restructuring costs incurred under the 2021 Plan since its inception were $6.6 million, of which $2.6 million was related to the SCC segment, $1.7 million was related to the SBM segment, and $2.3 million was attributable to the Corporate function.

The following tables represent the repositioning expenses incurred and cash payments made under the plans discussed above and other plans during each period:

	Three Months Ended March 31, 2021
(In millions)		2019 Plan		2019 Plan Phase 2		Total
Repositioning Expenses		$	—	$	1.3	$	1.3
Cash Paid for Repositioning Expenses		—		1.4		1.4
Capital Expenditures		0.1		—		0.1
Cash Paid for Capital Expenditures		0.1		—		0.1

	Three Months Ended March 31, 2020
(In millions)	2019 Plan		2019 Plan Phase 2		Strategic Alternatives Plan		2018 Plan		2017 Plan		Total
Repositioning Expenses	$	1.4	$	1.2	$	—	$	—	$	0.1	$	2.7
Cash Paid for Repositioning Expenses	3.3		1.5		0.2		—		—		5.0
Capital Expenditures	0.4		0.1		—		0.3		0.2		1.0
Cash Paid for Capital Expenditures	0.3		0.1		—		0.1		0.6		1.1

21

Notes to Consolidated Financial Statements (unaudited) - Continued

	As of March 31, 2021
(In millions)	2019 Plan		2019 Plan Phase 2
Cumulative Repositioning Expenses	$	10.5	$	7.3
Cumulative Cash Paid for Repositioning Expenses	10.5		6.5
Cumulative Capital Expenditure	2.2		0.4
Cumulative Cash Paid for Capital Expenditures	2.1		0.4

Restructuring Expenses and Asset Write Offs

The following restructuring expenses and asset write offs were incurred under the plans discussed above and other plans during each period:

	Three Months Ended March 31,
(In millions)	2021		2020
Severance and other employee costs	$	5.2	$	1.9
Asset write offs	2.2		1.0
Other associated costs	0.2		0.2
Total restructuring expenses and asset write offs	$	7.6	$	3.1

GCP incurred restructuring expenses and asset write offs related to its two operating segments and Corporate function as follows:

	Three Months Ended March 31,
(In millions)	2021		2020
SCC	$	2.9	$	2.3
SBM	1.8		0.8
Corporate	2.9		—
Total restructuring expenses and asset write offs	$	7.6	$	3.1

Restructuring liabilities were $16.7 million and $18.0 million, respectively, as of March 31, 2021 and December 31, 2020. These liabilities are included within “Other current liabilities” in the accompanying unaudited Consolidated Balance Sheets.

22

Notes to Consolidated Financial Statements (unaudited) - Continued

The following table summarizes the Company’s restructuring liability activity:

	2021 Plan		2019 Plan				2019 Phase 2 Plan		2018 Plan
(In millions)	Severance and other employee costs		Severance and other employee costs		Other Costs		Severance and other employee costs		Severance and other employee costs		Total
Balance, December 31, 2020	$	—	$	0.1	$	0.1	$	17.3	$	0.5	$	18.0
Expense(1)(2)	4.5		—		—		0.2		—		$	4.7
Payments	(0.2)		—		—		(5.7)		—		$	(5.9)
Impact of foreign currency and other	—		—		—		(0.1)		—		$	(0.1)
Balance, March 31, 2021	$	4.3	$	0.1	$	0.1	$	11.7	$	0.5	$	16.7

________________________________

(1)Asset write offs of $2.1 million attributable to the Corporate function during the three months ended March 31, 2021 are related to the 2021 Plan. Additionally, GCP incurred $0.1 million of asset write offs attributable to the SCC segment as a part of the 2019 Plan and 2019 Phase 2 Plan during the three months ended March 31, 2021. These asset write offs are recorded with a corresponding reduction to "Properties and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. These expenses are not recorded with a corresponding adjustment to the restructuring liability and therefore, are not included in the table above.

(2)Stock-based compensation expense of $0.7 million related to accelerated vesting of stock options RSUs and PBUs during the three months ended March 31, 2021 is attributable to Corporate function under the 2019 Phase 2 Plan. Such expense is not recognized as a corresponding adjustment to the restructuring liability and therefore, is not included in the table above.

23

Notes to Consolidated Financial Statements (unaudited) - Continued

13. Other Comprehensive Loss

The following tables present the pre-tax, tax benefit (expense), and after-tax components of GCP's other comprehensive loss for the three months ended March 31, 2021 and 2020:

	Three Months Ended  March 31, 2021
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Currency translation adjustments (1)	$	(7.6)	$	(0.4)	$	(8.0)
Other comprehensive loss attributable to GCP shareholders	$	(7.6)	$	(0.4)	$	(8.0)

	Three Months Ended March 31, 2020
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Defined benefit pension and other postretirement plans	$	0.1	$	—	$	0.1
Currency translation adjustments(1)	(33.4)		(0.4)		(33.8)
Gain from hedging activities	0.2		—		0.2
Other comprehensive loss attributable to GCP shareholders	$	(33.1)	$	(0.4)	$	(33.5)

_____________________

(1)Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 4, "Derivative Instruments."

The following tables present the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020:

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Total
Balance, December 31, 2020	$	(3.1)	$	(107.4)	$	(110.5)
Current-period other comprehensive loss	—		(8.0)		(8.0)
Balance, March 31, 2021	$	(3.1)	$	(115.4)	$	(118.5)

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Hedging Activities		Total
Balance, December 31, 2019	$	(2.7)	$	(114.2)	$	(0.1)	$	(117.0)
Current period other comprehensive loss	0.1		(33.8)		0.2		(33.5)
Balance, March 31, 2020	$	(2.6)	$	(148.0)	$	0.1	$	(150.5)

Please refer to Note 8, "Pension Plans and Other Postretirement Benefit Plans," for a discussion of pension plans and other postretirement benefit plans.

24

Notes to Consolidated Financial Statements (unaudited) - Continued

14. Stock Incentive Plans

Stock-Based Compensation Accounting

GCP grants restricted stock units ("RSUs"), as well as stock options and performance-based units ("PBUs") with or without market conditions which vest upon the satisfaction of a performance condition and/or a service condition. Please refer to Note 17, "Stock Incentive Plans" to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K for further information on these awards. Total stock-based compensation expense included in "Income from continuing operations before income taxes" in the accompanying unaudited Consolidated Statements of Operations was $1.7 million and $0.8 million, respectively, during the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options and RSUs and PBUs, as described in Note 12, "Restructuring and Repositioning Expenses, Asset Write Offs".

The Company issues new shares of common stock upon exercise of stock options and vesting of RSUs and PBUs. GCP withholds and retains shares issued to certain holders of GCP awards in order to fulfill statutory tax withholding requirements for the employees. During the three months ended March 31, 2021 and 2020, GCP withheld and retained approximately 29,800 shares and 15,800 shares, respectively, in a non-cash transaction with a cost of $0.7 million and $0.3 million, respectively, which were reflected as "Share Repurchases" in the accompanying unaudited Consolidated Statements of Stockholders' Equity. During the three months ended March 31, 2021 and 2020, cash payments for such tax withholding obligations were $0.7 million and $0.3 million, respectively.

As of March 31, 2021, total unrecognized compensation expense of $1.7 million was related to stock options with market conditions and $8.1 million to the RSU and PBU awards. Such expense is expected to be recognized over the remaining weighted-average service period of approximately 2.5 years for stock options with market conditions and 2.0 years for RSU and PBU awards.

Stock Options

Approximately 122,000 options were exercised during the three months ended March 31, 2021 with a weighted average exercise price of $17.25. Total intrinsic value of these options was approximately $1.0 million.

Restricted Stock Units

The following table sets forth the RSU activity for the three months ended March 31, 2021:

RSU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	305	$	22.14
RSUs settled	88	23.97
RSUs forfeited	2	24.37
RSUs granted	90	26.10
RSUs outstanding, March 31, 2021	305	$	22.79
Expected to vest as of March 31, 2021	301	$	22.78

The weighted average grant date fair value of RSUs granted during the three months ended March 31, 2021 and 2020 was $26.10 and $21.11 per share, respectively. During the three months ended March 31, 2021 and 2020, GCP distributed 88,000 shares and 43,000 shares, respectively, to settle RSUs upon vesting. The fair value of RSUs vested during the three months ended March 31, 2021 and 2020 was $2.2 million and $0.9 million, respectively.

25

Notes to Consolidated Financial Statements (unaudited) - Continued

PBUs

PBUs are performance-based units which are granted by the Company either with or without market conditions and recorded at fair value on the grant date. The performance criteria for PBUs granted in 2021 includes the following metrics: (i) a 2-year cumulative free cash flow target metric for approximately 33.3% of awards; (ii) a 2-year cumulative adjusted earnings before interest, tax, depreciation and amortization metric for approximately 33.3% of awards; (iii) the Company’s 2-year total shareholder return (“TSR”) relative to the performance of the Russell 3000 Specialty Building Materials Index and the peer group approved by the Board’s Compensation Committee. The number of shares that ultimately vest, if any, is based on Company performance against these metrics, and can range from 0% to 200% of the target number of shares granted to employees. The awards will become vested, if at all, two years from the grant date once actual performance is certified by the Board's Compensation Committee. Vesting is also subject to the employees' continued employment through the vesting date.

The grant date fair value of PBUs without market conditions is determined based on the closing market price of the Company’s common stock on the date of grant. The grant date fair value of PBUs with market conditions based on relative TSR is determined using a Monte Carlo simulation.

The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
Assumptions used to calculate expense for PBUs:	2021	2020
Expected Term (Remaining Performance Period)	1.81	2.85
Expected volatility	51.48%	29.85%
Risk-free interest rate	0.14%	1.21%
Expected dividends	—	—
Median correlation coefficient of constituents	54.00%	54.01%

The following table sets forth the PBU activity for the three months ended March 31, 2021:

PBU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	343	$	28.10
PBU's forfeited	136	32.08
PBU's granted	80	27.29
Outstanding, March 31, 2021	287	$	25.96

The weighted average grant date fair value of PBUs granted during the three months ended March 31, 2021 and 2020 was $27.29 and $22.41 per share, respectively. GCP expects to settle in stock all future PBU vestings.

26

Notes to Consolidated Financial Statements (unaudited) - Continued

15. Earnings Per Share

The following table sets forth a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share:

	Three Months Ended March 31,
(In millions, except per share amounts)	2021		2020
Numerators
Income from continuing operations attributable to GCP shareholders	$	1.5	$	2.0
Loss from discontinued operations, net of income taxes	—		(0.3)
Net income attributable to GCP shareholders	$	1.5	$	1.7
Denominators
Weighted average common shares—basic calculation	73.2		72.9
Dilutive effect of employee stock awards(2)	0.2		0.1
Weighted average common shares—diluted calculation	73.4		73.0
Basic earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02
Diluted earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02

________________________________

(1)Amounts may not sum due to rounding.

(2)Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

GCP uses the treasury stock method to compute diluted earnings (loss) per share. During each of the three months ended March 31, 2021 and 2020, 0.6 million of anti-dilutive stock awards were excluded from the computation of diluted earnings per share based on the treasury stock method as a result of income from continuing operations generated during the periods then ended.

16. Related Party Transactions and Transactions with Grace

All contracts with related parties are at rates and terms that GCP believes are comparable with those that could be entered into with independent third parties. Subsequent to the Separation, transactions with Grace represent third-party transactions.    

Tax Sharing Agreement

In connection with the Separation, the Company and Grace entered into a Tax Sharing Agreement which governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, as well as other matters regarding taxes. In general, and subject to the terms of the Tax Sharing Agreement, GCP is responsible for all U.S. federal, state and foreign taxes including any related interest, penalties or audit adjustments reportable on a GCP separate return (a return that does not include Grace or any of its subsidiaries). Grace is responsible for all U.S. federal, state and foreign income taxes including any related interest, penalties or audit adjustments reportable on a consolidated, combined or unitary return that includes Grace or any of its subsidiaries and GCP or any of its subsidiaries up to the Separation date. As of March 31, 2021 and December 31, 2020, GCP has recorded $1.8 million of indemnified receivables in "Other assets" and $1.0 million of indemnified payables in "Other current liabilities" in the accompanying unaudited Consolidated Balance Sheets.

27

Notes to Consolidated Financial Statements (unaudited) - Continued

17. Operating Segment and Geographic Information

GCP is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. Specialty Construction Chemicals ("SCC") operating segment provides products, services and technologies to the concrete and cement industries, including concrete add-mixtures and cement, as well as in-transit monitoring and management systems, which reduce the cost and improve the performance and quality of cement, concrete, mortar, masonry, and other cementitious-based construction materials. Specialty Building Materials ("SBM") operating segment manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, as well as fireproofing and other products designed to protect the building envelope.

Operating Segment Data

The following table presents information related to GCP's operating segments:

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
Specialty Construction Chemicals	$	123.9	$	125.4
Specialty Building Materials	98.9		91.3
Total net sales	$	222.8	$	216.7
Segment Operating Income
Specialty Construction Chemicals segment operating income	$	6.1	$	8.5
Specialty Building Materials segment operating income	19.4		14.1
Total segment operating income	$	25.5	$	22.6

Reconciliation of Operating Segment Data to Financial Statements

Corporate expenses directly related to the operating segments are allocated to the segment's operating income. GCP excludes from the segments' operating income certain functional costs, certain impacts of foreign currency exchange, as well as certain corporate costs and other costs included in the table below. GCP also excludes from the segment's operating income certain ongoing defined benefit pension costs recognized during each reporting period, which include service and interest costs, the effect of expected returns on plan assets and amortization of prior service costs/credits. GCP believes that the exclusion of certain corporate costs and pension costs provides a better indicator of its operating segment performance since such costs are not managed at an operating segment level.

28

Notes to Consolidated Financial Statements (unaudited) - Continued

Total segment operating income for the three months ended March 31, 2021 and 2020 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations:

	Three Months Ended March 31,
(In millions)	2021		2020
Total segment operating income(1)	$	25.5	$	22.6
Corporate costs	(7.2)		(5.9)
Certain pension costs	(1.4)		(1.3)
Shareholder activism and other related costs(2)	—		(3.6)
Repositioning expenses	(1.3)		(2.7)
Restructuring expenses and asset write offs	(7.6)		(3.1)
Third-party and other acquisition-related costs	(0.1)		(0.5)
Net income attributable to noncontrolling interests	0.1		0.1
Interest expense, net	(5.4)		(5.1)
Income from continuing operations before income taxes	$	2.6	$	0.5

__________________________

(1)Certain amounts related to COVID-19 costs have been reclassified between segments' operating income and corporate expenses that do not get allocated directly to the segments. Such reclassifications have not materially affected previously reported amounts.

(2)Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of GCP shareholders seeking changes in the composition of the Company's Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, as well as other related matters.

Disaggregation of Total Net Sales

The Company disaggregates its revenue from contracts with customers by operating segments, which it believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Geographic Area Data

The table below presents information related to the geographic areas in which GCP operates.

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
United States	$	112.1	$	113.0
Canada and Other	6.0		6.2
Total North America	118.1		119.2
Europe Middle East Africa	44.6		44.3
Asia Pacific	46.7		40.3
Latin America	13.4		12.9
Total	$	222.8	$	216.7

Sales are attributed to geographic areas based on customer location. With the exception of the U.S. presented in the table above, there were no individually significant countries with sales exceeding 10% of total sales during the three months ended March 31, 2021 and 2020. There were no customers that individually accounted for 10% or more of the Company's accounts receivable balance as of March 31, 2021 and December 31, 2020.

29

Notes to Consolidated Financial Statements (unaudited) - Continued

18. Revisions of Previously Issued Consolidated Financial Statements

As described in Note 1, “Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies,” the following tables set forth the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020.

GCP Applied Technologies Inc.

Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31, 2020
(In millions, except per share amounts)	As Previously Reported		Adjustments		As Revised
Net sales	$	216.7	$	—	$	216.7
Cost of goods sold	134.8		(0.9)		133.9
Gross profit	81.9		0.9		82.8
Selling, general and administrative expenses	68.1		—		68.1
Research and development expenses	4.9		—		4.9
Interest expense and related financing costs	5.7		—		5.7
Repositioning expenses	2.7		—		2.7
Restructuring expenses and asset write offs	3.1		—		3.1
Other income, net	(2.2)		—		(2.2)
Total costs and expenses	82.3		—		82.3
Loss (income) from continuing operations before income taxes	(0.4)		0.9		0.5
Benefit from income taxes	1.9		(0.3)		1.6
Income from continuing operations	1.5		0.6		2.1
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income	1.2		0.6		1.8
Less: Net income attributable to noncontrolling interests	(0.1)		—		(0.1)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders	1.4		$	0.6	$	2.0
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Earnings (Loss) Per Share Attributable to GCP Shareholders
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of basic shares	72.9		—		72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of diluted shares	73.0		—		73.0

30

Notes to Consolidated Financial Statements (unaudited) - Continued

GCP Applied Technologies Inc.

Consolidated Statements of Comprehensive Loss (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
Net income	$	1.2	$	0.6	$	1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	0.1		—		0.1
Currency translation adjustments, net of income taxes	(33.8)		—		(33.8)
Gain from hedging activities, net of income taxes	0.2		—		0.2
Total other comprehensive loss	(33.5)		—		(33.5)
Comprehensive loss	(32.3)		0.6		(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)		—		(0.1)
Comprehensive loss attributable to GCP shareholders	$	(32.4)	$	0.6	$	(31.8)

31

Notes to Consolidated Financial Statements (unaudited) - Continued

GCP Applied Technologies Inc.

Consolidated Statements of Stockholders' Equity (unaudited)

(In millions)	As Previously Reported		Adjustments		As Revised
Total Stockholders' Equity:
Balance, December 31, 2019	$	541.1	$	(0.1)	$	541.0
Net income	1.2		0.6		1.8
Share-based compensation	0.5		—		0.5
Exercise of stock options	0.4		—		0.4
Share repurchases	(0.3)		—		(0.3)
Other comprehensive loss	(33.5)		—		(33.5)
Balance, March 31, 2020	$	509.4	$	0.5	$	509.9

32

Notes to Consolidated Financial Statements (unaudited) - Continued

GCP Applied Technologies Inc.

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
OPERATING ACTIVITIES
Net income	$	1.2	$	0.6	$	1.8
Less: Loss from discontinued operations	(0.3)		—		(0.3)
Income from continuing operations	1.5		0.6		2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.0		—		11.0
Amortization of debt discount and financing costs	0.4		—		0.4
Stock-based compensation expense	0.8		—		0.8
Unrealized loss on foreign currency	0.5		—		0.5
Deferred income taxes	(5.2)		0.3		(4.9)
Loss on disposal of property and equipment	(0.1)		—		(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	17.4		—		17.4
Inventories	(11.4)		—		(11.4)
Accounts payable	6.6		—		6.6
Pension assets and liabilities, net	1.0		—		1.0
Other assets and liabilities, net	(8.5)		(0.6)		(9.1)
Net cash provided by operating activities from continuing operations	14.0		0.3		14.3
Net cash used in operating activities from discontinued operations	(0.9)		—		(0.9)
Net cash provided by operating activities	13.1		0.3		13.4
INVESTING ACTIVITIES
Capital expenditures	(8.9)		(0.3)		(9.2)
Other investing activities	0.4		—		0.4
Net cash used in investing activities	(8.5)		(0.3)		(8.8)
FINANCING ACTIVITIES
Payments on finance lease obligations	(0.2)		—		(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.3)		—		(0.3)
Proceeds from exercise of stock options	0.4		—		0.4
Net cash used in financing activities from continuing operations	(0.1)		—		(0.1)
Effect of currency exchange rate changes on cash and cash equivalents	(9.3)		—		(9.3)
Decrease in cash and cash equivalents	(4.8)		—		(4.8)
Cash and cash equivalents, beginning of period	325.0		—		325.0
Cash and cash equivalents, end of period	$	320.2	$	—	$	320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable	$	5.5	$	—	$	5.5

33

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We generally refer to the quarter ended March 31, 2021 as the "first quarter", the quarter ending December 31, 2021 as the “fourth quarter” and the quarter ended March 31, 2020 as the "prior-year quarter". See Analysis of Operations for a discussion of our non-GAAP performance measures.

The unaudited Consolidated Financial Statements for the three months ended March 31, 2020 have been revised to correct prior period errors as discussed in Note 1, “Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies” and Note 18, “Revisions of Previously Issued Unaudited Consolidated Financial Statements” in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" on this Quarterly Report on Form 10-Q. Accordingly, the tables presented in the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) reflect the impact of those revisions.

Information Related to Forward-Looking Statements

This document contains, and our other public communications may contain, forward-looking statements, that is, information related to future, not historical events. Such statements generally include the words "believes," "plans," "intends," "targets," "will," "expects," "suggests," "anticipates," "outlook," "continues" or similar expressions. Forward-looking statements include, without limitation, statements about expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; strategic alternatives; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. Like other businesses, we are subject to risks and uncertainties that could cause our actual results to differ materially from our projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements, or that could cause other forward-looking statements to prove incorrect, include, without limitation, risks related to: the cyclical and seasonal nature of the industries that GCP serves; foreign operations, especially in emerging regions; changes in currency exchange rates; business disruptions due to public health or safety emergencies, such as the novel strain of coronavirus ("COVID-19") pandemic; the cost and availability of raw materials and energy; the effectiveness of GCP’s research and development, new product introductions and growth investments; acquisitions and divestitures of assets and gains and losses from dispositions; developments affecting GCP’s outstanding liquidity and indebtedness, including debt covenants and interest rate exposure; developments affecting GCP’s funded and unfunded pension obligations; warranty and product liability claims; legal proceedings; the inability to establish or maintain certain business relationships and relationships with customers and suppliers or the inability to retain key personnel; the handling of hazardous materials and the costs of compliance with environmental regulation, and those factors set forth in our most recent Annual Report on Form 10-K, this Quarterly Report on Form 10-Q and Current Reports on Form 8-K, which have been filed with the Securities and Exchange Commission ("SEC") and are available on the Internet at www.sec.gov. Our reported results should not be considered as an indication of our future performance. Readers are cautioned not to place undue reliance on our projections and forward-looking statements, which speak only as of the date thereof. We undertake no obligation to publicly release any revisions to the projections and forward-looking statements contained in this document, or to update them to reflect events or circumstances occurring after the date of this document.

34

RESULTS OF OPERATIONS

Business Description Summary

We are engaged in the production and sale of specialty construction chemicals and specialty building materials through two global operating segments:

•Specialty Construction Chemicals. Our Specialty Construction Chemicals ("SCC") operating segment provides products, services and technologies to the concrete and cement industries, including concrete add-mixtures and cement, as well as in-transit monitoring and management systems, which reduce the cost and improve the performance and quality of cement, concrete, mortar, masonry, and other cementitious-based construction materials.

•Specialty Building Materials. Our Specialty Building Materials ("SBM") operating segment produces and sells sheet and liquid membrane systems and other products that protect both new and existing structures from water, air, and vapor penetration, as well as from fire damage. We also manufacture and sell specialized cementitious and chemical grouts used for soil consolidation and leak-sealing applications in addition to a moisture barrier system and installation tools for the flooring industry.

We operate our business on a global scale. During the first quarter, approximately 50% of our sales were generated outside of the U.S. We operate and have locations in over 30 countries and transact business in over 30 currencies. We manage our operating segments on a global basis to serve global markets. Currency fluctuations affect our reported results of operations, cash flows, and financial position.

Impact of COVID-19 Pandemic

The global health crisis caused by the novel coronavirus (“COVID-19”) outbreak and its resurgences has and will continue to negatively impact global economic activity, which, despite progress in vaccination efforts, remains uncertain and cannot be predicted with confidence. We have been closely monitoring the impact of COVID-19 and managing its effects on our business globally as the situation continues to evolve. During the first quarter, we saw an improvement in business conditions and construction market activity as global economies began to reopen. The impact of COVID-19 on our business varied across different geographies and product lines during the first quarter and the prior-year quarter. We have taken actions to preserve our liquidity by reducing discretionary spending.

It is difficult for us to predict at this time the duration and extent of the impact of COVID-19 on the global construction industry and our business, financial position, results of operations, and liquidity although we expect that managing the impacts of the pandemic will be a part of our ongoing operations for the foreseeable future. We are focused on protecting the health, safety and well-being of our employees in accordance with guidelines issued by national and other health and safety authorities, while seeking to meet the needs of our global customers and suppliers. Responsive measures we adopted include working remotely when possible, establishing procedures for deep cleaning of facilities, restricting business travel, providing personal protective equipment, using appropriate social distancing practices, and restricting visitor access to our facilities.

We are monitoring a number of factors to assess the potential duration and extent of the impact of COVID-19 on our operations, including the health of the global economy and construction industry, specifically on demand drivers for our construction products, as well as operational disruptions including those resulting from government actions, such as mandatory halts of construction activity, travel restrictions, as well as facility and work site closures. We will continue to prioritize the health and safety of our employees and serving our customers while minimizing disruption to the extent possible. We will also continue to monitor the health of the construction industry in the geographic markets in which we operate and respond accordingly.

The following is an overview of our financial performance for the first quarter compared with the prior-year quarter.

35

(In millions, except per share amounts)	Three Months Ended March 31,
	2021			2020			% Change
Net sales	$	222.8		$	216.7		2.8	%
Cost of goods sold	136.3			133.9			1.8	%
Gross profit	86.5			82.8			4.5	%
Gross margin	38.8		%	38.2		%	0.6 pts
Selling, general and administrative expenses	66.6			68.1			(2.2)	%
Research and development expenses	4.5			4.9			(8.2)	%
Interest expense and related financing costs	5.6			5.7			(1.8)	%
Repositioning expenses	1.3			2.7			(51.9)	%
Restructuring expenses and asset write offs	7.6			3.1			NM
Other income, net	(1.7)			(2.2)			(22.7)	%
Total costs and expenses	83.9			82.3			1.9	%
Income from continuing operations before income taxes	2.6			0.5			NM
(Provision for) benefit from income taxes	(1.0)			1.6			NM
Income from continuing operations	1.6			2.1			(23.8)	%
Loss from discontinued operations, net of income taxes	—			(0.3)			100.0	%
Net income	1.6			1.8			(11.1)	%
Less: Net income attributable to noncontrolling interests	(0.1)			(0.1)			—	%
Net income attributable to GCP shareholders	$	1.5		$	1.7		(11.8)	%
Income from continuing operations attributable to GCP shareholders	$	1.5		$	2.0		(25.0)	%
Diluted EPS from continuing operations attributable to GCP shareholders	$	0.02		$	0.03		(33.3)	%
Net sales:
Specialty Construction Chemicals	$	123.9		$	125.4		(1.2)	%
Specialty Building Materials	98.9			91.3			8.3	%
Total GCP net sales	$	222.8		$	216.7		2.8	%
Net sales by region:
North America	$	118.1		$	119.2		(0.9)	%
Europe Middle East Africa (EMEA)	44.6			44.3			0.7	%
Asia Pacific	46.7			40.3			15.9	%
Latin America	13.4			12.9			3.9	%
Total net sales by region	$	222.8		$	216.7		2.8	%

First Quarter Performance Summary

Following is a summary of our financial performance for the first quarter compared with the prior-year quarter.

•Net sales increased 2.8% to $222.8 million.

•Gross profit increased 4.5% to $86.5 million; gross margin increased approximately 60 basis points to 38.8%.

•Selling, general, and administrative expenses decreased 2.2% to $66.6 million.

•Income from continuing operations attributable to GCP shareholders was $1.5 million, or $0.02 per diluted share, compared to $2.0 million, or $0.03 per diluted share, for the prior-year quarter.

36

GCP Overview

Net Sales and Gross Margin

The following table identifies the period-over-period increase or decrease in sales attributable to changes in volume and/or mix, product price, and the impact of currency translation for the period.

	Three Months Ended March 31, 2021 as a Percentage Increase (Decrease) from March 31, 2020
Net Sales Variance Analysis	Volume		Price		Currency Translation		Total Change
Specialty Construction Chemicals	(1.7)	%	(0.3)	%	0.8	%	(1.2)	%
Specialty Building Materials	6.2	%	(0.2)	%	2.3	%	8.3	%
Net sales	1.6	%	(0.3)	%	1.5	%	2.8	%
By Region:
North America	(0.3)	%	(0.7)	%	0.1	%	(0.9)	%
Europe Middle East Africa	(6.0)	%	(0.1)	%	6.8	%	0.7	%
Asia Pacific	12.0	%	(0.9)	%	4.8	%	15.9	%
Latin America	13.3	%	5.4	%	(14.8)	%	3.9	%

Net sales of $222.8 million for the first quarter increased $6.1 million, or 2.8%, from the prior-year quarter primarily due to higher sales volumes and favorable impact of foreign currency translation. Sales volumes in SBM were higher in the first quarter in North America and Asia Pacific, partially offset by lower volumes in EMEA due to the impact of COVID-19. Sales volumes in SCC were lower in the first quarter in North America and EMEA, partially offset by higher volumes in Latin America and Asia Pacific.

Gross profit of $86.5 million for the first quarter increased $3.7 million, or 4.5%, from the prior-year quarter primarily due to higher sales volumes, partially offset by unfavorable impact of product and geographic mix. Gross margin increased 60 basis points to 38.8% primarily due to improved operational productivity, partially offset by unfavorable impact of product and geographic mix.

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Selling, General, and Administration Expenses

Selling, general and administrative costs of $66.6 million decreased $1.5 million, or 2.2%, for the first quarter compared to the prior-year quarter primarily due to shareholder activism and other related costs incurred during the prior-year quarter and lower employee-related costs resulting from restructuring programs. These favorable impacts were partially offset by higher employee incentive compensation costs and higher facility costs related to corporate headquarters.

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Restructuring and Repositioning Expenses

2021 Restructuring Plan

On March 30, 2021, our Board of Directors (the "Board") approved a business restructuring and repositioning plan (the “2021 Plan”) related to the relocation of our corporate headquarters to the Atlanta, Georgia area, the closure of the Cambridge, Massachusetts campus, the build-out of a new global research and development center near the Boston /Cambridge area, as well as the consolidation of other regional facilities and offices, including an organizational redesign, which is expected to lower costs.

Cumulative costs incurred under the 2021 Plan since its inception were $6.6 million with expected total costs of $26 million- $29 million. We expect to realize total pre-tax cost structure savings associated with the 2021 Plan of approximately $13 million to $15 million mostly in general, administrative and overhead costs, with most of the savings occurring in 2022. These savings are expected to benefit both the Specialty Construction Chemicals and Specialty Building Materials operating segments and result in overall general administrative and overhead cost reductions. Substantially all of the restructuring actions under the 2021 Plan are expected to be completed by June 30, 2022. With the exception of asset write offs, substantially all of the restructuring and repositioning activities are expected to be settled in cash.

2019 Phase 2 Restructuring and Repositioning Plan (the “2019 Phase 2 Plan")

On July 31, 2019, the Board approved a business restructuring and repositioning plan to further optimize the design and footprint of the Company's global organization, primarily with respect to its general administration and business support functions, and streamline cross-functional activities.

Cumulative costs incurred under the 2019 Phase 2 Plan since its inception were $33.8 million. We achieved total annualized pre-tax cost savings through a reduction in general and administrative expenses under the 2019 Phase 2 Plan of approximately $13.3 million as of March 31, 2021, which benefited both the SCC and the SBM operating segments and Corporate function. We expect to achieve total estimated cost savings of approximately $20 million. With the exception of asset write offs, substantially all of the restructuring and repositioning activities are expected to be settled in cash, and the program was substantially completed as of March 31, 2021.

2019 Restructuring and Repositioning Plan (the “2019 Plan”)

On February 22, 2019, the Board approved a business restructuring and repositioning plan (the “2019 Plan”). The 2019 Plan is focused on our global supply chain strategy, processes and execution, including our manufacturing, purchasing, logistics, and warehousing operations. The plan also addresses our service delivery model, primarily in North America, to streamline the Company’s pursuit of combined admixture and VERIFI® opportunities. 

Cumulative costs incurred under the 2019 Plan since its inception were $12.6 million. We achieved annualized pre-tax cost savings of $17 million through a reduction in cost of goods sold as a result of supply chain, warehouse operations, and logistical enhancements that benefited both the SCC and SBM operating segments under the 2019 Plan. We expect to achieve total estimated cost savings of approximately $19 million. Substantially all of the activities under the 2019 Plan were completed as of December 31, 2020.

For further information on our restructuring expenses, please refer to Note 12, "Restructuring and Repositioning Expenses, Asset Write Offs" in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" on this Quarterly Report on Form 10-Q, and Note 14, "Restructuring and Repositioning Expenses, Asset Write Offs" to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K.

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Pension Expense

Defined benefit expense includes costs relating to U.S. and non-U.S. defined benefit pension and other postretirement benefit (the "OPEB") plans that provide benefits for retirees and former employees of divested businesses where we retained these obligations.

"Certain pension costs" represent ongoing costs recognized quarterly, including service and interest costs, expected return on plan assets and amortization of prior service costs/credits. Certain pension costs were $1.4 million and $1.3 million, respectively, during the first quarter and the prior-year quarter. We did not incur any "pension market-to-market adjustment and other related costs" in the first quarter or the prior-year quarter.

Other Income, Net

Other income, net consists primarily of interest income, foreign currency exchange gains (losses), defined benefit pension expenses exclusive of service costs, income from our Transition Services Agreement related to the sale of Darex, and other items.

Other income, net was $1.7 million and $2.2 million, respectively, during the first quarter and the prior-year quarter. The decrease of $0.5 million was primarily due to lower interest income.

Income Taxes

Income taxes attributable to continuing operations during the first quarter and the prior-year quarter was income tax expense (benefit) of $1.0 million and $(1.6) million, respectively, representing effective tax rates of 38.5% and (320.0)%, respectively.

The difference between the U.S. federal income tax rate of 21.0% and our overall income tax rate for the for the first quarter was primarily due to tax expense on unrecognized tax benefits of $0.3 million. The difference between the U.S. federal income tax rate of 21.0% and our overall income tax rate during the prior-year quarter was primarily due to benefits recognized as a result of the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The CARES Act allowed for accelerated interest and depreciation deductions which caused estimated net operating losses in 2019 and 2020. Under the CARES Act, those losses can be carried back to offset prior taxable income previously taxed at the U.S. federal income tax rate of 35% resulting in an income tax benefit of $2.8 million, offset by increases in unrecognized tax benefits of $0.4 million and valuation allowance expense of $0.6 million.

In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when tax efficient.

Income from Continuing Operations Attributable to GCP Shareholders

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Income from continuing operations attributable to GCP shareholders was $1.5 million for the first quarter compared to $2.0 million for the prior-year quarter. The decrease was primarily attributable to higher restructuring and repositioning costs and higher income tax expense, partially offset by higher gross profit and lower selling, general and administrative expenses.

On July 3, 2017, we completed the sale of our Darex business to Henkel AG & Co. KGaA ("Henkel"). The results of operations of the Darex segment are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. Unless otherwise noted, the discussion and analysis pertains only to our continuing operations.

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Operating Segment Overview

The following is an overview of the financial performance of the SCC and SBM operating segments for the first quarter compared with the prior-year quarter. For further information on our accounting policies related to allocating certain functional and corporate costs and measuring segment operating income, please refer to Note 17, “Operating Segment and Geographic Information” in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" on this Quarterly Report on Form 10-Q. Refer to the table in the “Analysis of Operations” section below for the related segment financial performance information.

Segment operating margin is defined as segment operating income divided by segment net sales. It represents an operating performance measure related to ongoing earnings and trends in our operating segments that are engaged in revenue generation and other core business activities. We use this metric to allocate resources between the segments and assess our strategic and operating decisions related to core operations of our business.

Specialty Construction Chemicals (SCC)

Net Sales and Gross Margin

Net sales were $123.9 million for the first quarter, a decrease of $1.5 million, or 1.2%, compared with the prior-year quarter. The decrease was primarily due to lower sales volumes, partially offset by the favorable impact of foreign currency translation. Sales volumes were lower in North America and EMEA, partially offset by higher volumes in Latin America and Asia Pacific.

Sales volumes decreased 1.7% in the first quarter compared with the prior-year quarter resulting primarily from self-manufacturing from certain customers. Concrete and Cement volumes decreased 2.0% and 0.8%, respectively.

Gross profit was $45.4 million for the first quarter, a decrease of $2.2 million, or 4.6%, compared with the prior-year quarter, primarily due to lower sales volumes. Gross margin decreased 140 basis points to 36.6% compared with the prior-year quarter primarily due to unfavorable impact of product mix, partially offset by lower costs resulting from improved operational and logistics productivity.

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Segment Operating Income and Operating Margin

Segment operating income of $6.1 million for the first quarter decreased $2.4 million, or 28.2%, compared with the prior-year quarter primarily due to lower gross profit, as well as higher depreciation and amortization costs related to our growth initiatives. Segment operating margin of 4.9% decreased 190 basis points compared with the prior-year quarter primarily due to lower gross margin.

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Specialty Building Materials (SBM)

Net Sales and Gross Margin

Net sales were $98.9 million for the first quarter, an increase of $7.6 million, or 8.3%, compared with the prior-year quarter primarily due to higher sales volumes in North America and Asia Pacific, partially offset by lower volumes in EMEA, as well as the favorable impact of foreign currency translation.

Residential volumes increased 69.2% driven by the strong demand in North America for roofing materials and the timing of our promotional activity. Building Envelope and Specialty Construction Products volumes declined 7.1% and 1.5%, respectively, in the first quarter compared with the prior-year quarter primarily due to lower construction activity.

Gross profit was $41.4 million for the first quarter, an increase of $5.8 million, or 16.3%, from the prior-year quarter, while gross margin increased 290 basis points to 41.9% primarily due to improved productivity related to raw material utilization and higher sales volumes resulting in improved operating leverage.

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Segment Operating Income and Operating Margin

Segment operating income of $19.4 million for the first quarter increased by $5.3 million, or 37.6%, compared with the prior-year quarter primarily due to higher gross profit. Segment operating margin increased 420 basis points to 19.6% primarily due to higher gross margin.

Analysis of Operations

We have set forth in the table below our key operating statistics with percentage changes for the first quarter compared to the corresponding prior-year quarter. In the Analysis of Operations (the "table"), we present financial information in accordance with U.S. GAAP, as well as certain non-GAAP financial measures, which we describe below in further detail.

We believe that the non-GAAP financial information supplements our discussions about the performance of our businesses, improves quarter-to-quarter and year-over-year comparability, and provides insight into the information that our management uses to evaluate the performance of our businesses. Our management uses GAAP and non-GAAP measures in financial and operational decision-making processes, for internal reporting, and as part of forecasting and budgeting processes since non-GAAP measures provide additional transparency into our core operations.

In the table, we have provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with U.S. GAAP, and the financial results that we calculate and present in the table in accordance with U.S. GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated as part of this Quarterly Report on Form 10-Q.

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The following are the non-GAAP financial measures presented in the table:

•Adjusted EBIT (a non-GAAP financial measure)- is defined as net income (loss) from continuing operations attributable to GCP shareholders adjusted for: (i) gains and losses on sales of businesses, product lines and certain other investments; (ii) currency and other financial losses in Venezuela; (iii) costs related to legacy product, environmental and other claims; (iv) restructuring and repositioning expenses, and asset write offs; (v) defined benefit plan costs other than service and interest costs, expected returns on plan assets and amortization of prior service costs/credits; (vi) third-party and other acquisition-related costs; (vii) other financing costs associated with the modification or extinguishment of debt; (viii) amortization of acquired inventory fair value adjustments; (ix) tax indemnification adjustments; (x) interest income, interest expense and related financing costs; (xi) income taxes; (xii) shareholder activism and other related costs; (xiii) gain on sale of corporate headquarters, net of related costs; and (xiv) certain other items that are not representative of underlying trends. Adjusted EBIT Margin is defined as Adjusted EBIT divided by net sales. We use Adjusted EBIT to assess and measure our operating performance and determine performance-based employee compensation. We use Adjusted EBIT as a performance measure because it provides improved quarter-to-quarter and year-over-year comparability for decision-making and compensation purposes and allows management to measure the ongoing earnings results of our strategic and operating decisions.

•Adjusted EBITDA (a non-GAAP financial measure)- is defined as Adjusted EBIT adjusted for depreciation and amortization. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. We use Adjusted EBITDA as a performance measure in making significant business decisions.

•Adjusted Earnings Per Share (a non-GAAP financial measure)- is defined as earnings per share ("EPS") from continuing operations on a diluted basis adjusted for: (i) gains and losses on sales of businesses, product lines and certain other investments; (ii) currency and other financial losses in Venezuela; (iii) costs related to legacy product, environmental and other claims; (iv) restructuring and repositioning expenses and asset write offs; (v) defined benefit plan costs other than service and interest costs, expected returns on plan assets and amortization of prior service costs/credits; (vi) third-party and other acquisition-related costs; (vii) other financing costs associated with the modification or extinguishment of debt; (viii) amortization of acquired inventory fair value adjustments; (ix) tax indemnification adjustments; (x) shareholder activism and other related costs; (xi) certain discrete tax items; (xii) gain on sale of corporate headquarters, net of related costs; and (xiii) certain other items that are not representative of underlying trends. We use Adjusted EPS as a performance measure to review our diluted earnings per share results on a consistent basis and in determining certain performance-based employee compensation.

•Adjusted Gross Profit (a non-GAAP financial measure)- is defined as gross profit adjusted for: (i) corporate and pension-related costs included in cost of goods sold; (ii) loss in Venezuela included in cost of goods sold; (iii) amortization of acquired inventory fair value adjustment; and (iv) certain other items that are not representative of underlying trends. Adjusted Gross Margin means Adjusted Gross Profit divided by net sales. We use this performance measure to understand trends and changes and to make business decisions regarding core operations.

Adjusted EBIT, Adjusted EBIT Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Gross Profit and Adjusted Gross Margin do not purport to represent income measures as defined in accordance with U.S. GAAP. These measures are provided to investors and others to improve the quarter-to-quarter, year-to-year, and peer-to-peer comparability of our financial results and to ensure that investors understand the information we use to evaluate the performance of our businesses.

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Adjusted EBIT has material limitations as an operating performance measure because it excludes costs related to income and expenses from restructuring and repositioning activities which historically has been a material component of our net income (loss) from continuing operations attributable to GCP shareholders. Adjusted EBITDA also has material limitations as an operating performance measure because it excludes the impact of depreciation and amortization expense. Our business is substantially dependent on the successful deployment of capital, and depreciation and amortization expense is a necessary element of our costs. We compensate for the limitations of these measurements by using these indicators together with net income (loss) measured in accordance with U.S. GAAP to present a complete analysis of our results of operations. Adjusted EBIT and Adjusted EBITDA should be evaluated together with net income (loss) from continuing operations attributable to GCP shareholders measured in accordance with U.S. GAAP for a complete understanding of our results of operations.

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We have provided in the following tables a reconciliation of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Analysis of Operations (In millions, except per share amounts)	Three Months Ended March 31,
	2021			2020			% Change
Profitability performance measures:
Adjusted EBIT (A):
Specialty Construction Chemicals segment operating income	$	6.1		$	8.5		(28.2)	%
Specialty Building Materials segment operating income	19.4			14.1			37.6	%
Corporate costs (B)	(7.2)			(5.9)			22.0	%
Certain pension costs (C)	(1.4)			(1.3)			7.7	%
Adjusted EBIT (non-GAAP)	$	16.9		$	15.4		9.7	%
Repositioning expenses	(1.3)			(2.7)			(51.9)	%
Restructuring expenses and asset write offs	(7.6)			(3.1)			NM
Shareholder activism and other related costs (D)	—			(3.6)			100.0	%
Third-party and other acquisition-related costs	(0.1)			(0.5)			(80.0)	%
Interest expense, net	(5.4)			(5.1)			5.9	%
Income tax (provision) benefit	(1.0)			1.6			NM
Income from continuing operations attributable to GCP shareholders	$	1.5		$	2.0		(25.0)	%
Income from continuing operations attributable to GCP shareholders as a percentage of net sales	0.7		%	0.9		%	(0.2) pts
Diluted EPS from continuing operations (U.S. GAAP)	$	0.02		$	0.03		(33.3)	%
Adjusted EPS (non-GAAP)	$	0.12		$	0.10		20.0	%

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Analysis of Operations (In millions)	Three Months Ended March 31,
	2021			2020			% Change
Gross Profit:
Specialty Construction Chemicals	$	45.4		$	47.6		(4.6)	%
Specialty Building Materials	41.4			35.6			16.3	%
Adjusted Gross Profit (non-GAAP)	86.8			83.2			4.3	%
Corporate costs and pension costs in cost of goods sold (C)	(0.3)			(0.4)			(25.0)	%
Total GCP Gross Profit (U.S. GAAP)	$	86.5		$	82.8		4.5	%
Gross Margin:
Specialty Construction Chemicals	36.6		%	38.0		%	(1.4) pts
Specialty Building Materials	41.9		%	39.0		%	2.9 pts
Adjusted Gross Margin (non-GAAP)	39.0		%	38.4		%	0.6 pts
Corporate costs and pension costs in cost of goods sold	(0.1)		%	(0.2)		%	0.1 pts
Total GCP Gross Margin (U.S. GAAP)	38.8		%	38.2		%	0.6 pts
Adjusted EBIT (A)(B)(C):
Specialty Construction Chemicals segment operating income	$	6.1		$	8.5		(28.2)	%
Specialty Building Materials segment operating income	19.4			14.1			37.6	%
Corporate and certain pension costs	(8.6)			(7.2)			19.4	%
Total GCP Adjusted EBIT (non-GAAP)	$	16.9		$	15.4		9.7	%
Depreciation and amortization:
Specialty Construction Chemicals	$	6.9		$	6.4		7.8	%
Specialty Building Materials	3.8			3.6			5.6	%
Corporate	0.6			1.0			(40.0)	%
Total GCP depreciation and amortization	$	11.3		$	11.0		2.7	%
Adjusted EBITDA:
Specialty Construction Chemicals	$	13.0		$	14.9		(12.8)	%
Specialty Building Materials	23.2			17.7			31.1	%
Corporate and certain pension costs	(8.0)			(6.2)			29.0	%
Total GCP Adjusted EBITDA (non-GAAP)	$	28.2		$	26.4		6.8	%
Adjusted EBIT Margin:
Specialty Construction Chemicals	4.9		%	6.8		%	(1.9) pts
Specialty Building Materials	19.6		%	15.4		%	4.2 pts
Total GCP Adjusted EBIT Margin (non-GAAP)	7.6		%	7.1		%	0.5 pts
Adjusted EBITDA Margin:
Specialty Construction Chemicals	10.5		%	11.9		%	(1.4) pts
Specialty Building Materials	23.5		%	19.4		%	4.1 pts
Total GCP Adjusted EBITDA Margin (non-GAAP)	12.7		%	12.2		%	0.5 pts

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(A)Our segment operating income includes only our share of income of consolidated joint ventures.

(B)Management allocates certain corporate costs to each operating segment to the extent such costs are directly attributable to the segments.

(C)Certain pension costs include only ongoing costs, recognized quarterly, which include service and interest costs, expected returns on plan assets and amortization of prior service costs/credits. “Corporate costs and pension costs in cost of goods sold" represent service costs related to our manufacturing employees. Corporate costs do not include any amounts for pension expense. Other pension-related costs, including annual mark-to-market adjustments, gains or losses from curtailments and terminations, as well as other related costs, are excluded from Adjusted EBIT. These amounts are not used by management to evaluate the performance of our businesses and significantly affect the peer-to-peer and period-to-period comparability of our financial results. Mark-to-market adjustments and other related costs are primarily attributable to changes in financial market values and actuarial assumptions and are not directly related to the operation of our businesses.

(D)Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of our shareholders seeking changes in the composition of our Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, as well as other related matters.

NM•Not meaningful.

Corporate Costs

Corporate costs include certain functional support costs, the impacts of foreign exchange, certain performance-based employee incentive compensation, public company costs, and other costs that are not allocated or directly attributable to our operating segments.

Corporate costs were $7.2 million for the first quarter, an increase of $1.3 million, or 22.0%, compared with the prior-year quarter. The increase was primarily related to higher employee incentive compensation and increased facility and public company costs, partially offset by cost savings attributable to our restructuring programs.

Adjusted EBIT

Adjusted EBIT was $16.9 million for the first quarter, an increase of 9.7% compared with the prior-year quarter primarily due to higher SBM operating income, partially offset by lower SCC operating income and higher corporate costs.

Adjusted EBIT margin was 7.6% for the first quarter, an increase of 50 basis points, primarily due to higher gross margin.

Adjusted EBITDA

Adjusted EBITDA was $28.2 million for the first quarter, an increase of 6.8% compared with the prior-year quarter, primarily due to higher Adjusted EBIT.

Adjusted EBITDA Margin was 12.7% for the first quarter, an increase of 50 basis points compared to the prior-year quarter, primarily due to higher Adjusted EBIT margin.

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Adjusted EPS

Adjusted EPS was $0.12 per diluted share in the first quarter compared to $0.10 in the prior-year quarter.

The following table reconciles Diluted EPS (U.S. GAAP) to Adjusted EPS (non-GAAP):

	Three Months Ended March 31,
	2021								2020
(In millions, except per share amounts)	Pre- Tax		Tax Effect		After- Tax		Per Share		Pre- Tax		Tax Effect		After- Tax		Per Share
Diluted EPS from continuing operations (U.S. GAAP)							$	0.02							$	0.03
Repositioning expenses	$	1.3	$	0.3	$	1.0	0.01		$	2.7	$	0.7	$	2.0	0.03
Restructuring expenses and asset write offs	7.6		1.9		5.7		0.08		3.1		0.8		2.3		0.03
Shareholder activism and other related costs	—		—		—		—		3.6		0.9		2.7		0.04
Third-party and other acquisition-related costs	0.1		—		0.1		—		0.5		0.1		0.4		0.01
Discrete tax and other items, including adjustments to uncertain tax positions	—		(0.4)		0.4		0.01		—		2.6		(2.6)		(0.04)
Adjusted EPS (non-GAAP)							$	0.12							$	0.10

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

The following is an analysis of our financial condition, liquidity and capital resources at March 31, 2021.

At March 31, 2021 and December 31, 2020, we had $472.9 million and $482.7 million, respectively, in cash and cash equivalents. Cash inflows (outflows) from operating, investing and financing activities related to continuing operations were $0.7 million, $(8.1) million and $0.6 million, respectively, during the first quarter. Cash inflows (outflows) from operating, investing and financing activities related to continuing operations were $14.3 million, $(8.8) million and $(0.1) million, respectively, during the prior-year quarter. Our principal uses of cash generally consist of capital investments, acquisitions and working capital investments. It is difficult for us to predict at this time the duration and extent of the impact of COVID-19 on our business, financial position, results of operations, or liquidity. Due to this uncertainty, we believe our results of operations and cash flows may be significantly impacted in future periods. We have significant liquidity and capital resources, and we are actively managing our cash flow by reducing planned capital expenditures and managing operating expenses and discretionary spending. We believe our liquidity and capital resources, including cash on hand and cash we expect to generate during 2021 and thereafter, future borrowings, if any, as well as other available liquidity and capital resources discussed further below, are sufficient to finance our operations and growth strategy and to meet our debt obligations.

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Sale and Relocation of Corporate Headquarters

On July 31, 2020, we sold our corporate headquarters located at 62 Whittemore Avenue, Cambridge, Massachusetts 02140 to IQHQ, L.P, entered into a leaseback transaction with the buyer, and received from the buyer cash proceeds of $122.5 million, net of the related transaction costs and commissions of $2.5 million, pursuant to the sale of the property. During 2020, we made cash tax payments of approximately $15 million related to the gain on sale of $110.2 million and expect to make additional cash tax payments of approximately $13 million in future years. The lease commenced on July 31, 2020 and has an initial rent-free term of eighteen months which can be extended for an additional six months at our option, subject to monthly rental payments of $0.6 million. The exercise of the extension option was not reasonably certain as of March 31, 2021. Pursuant to the terms of the lease, we are required to make certain payments for real estate taxes and other operating expenses related to the property.

On March 30, 2021, the Board approved a business restructuring and repositioning plan which is focused on relocation of our corporate headquarters to the Atlanta, Georgia metro area with a planned opening by the fourth quarter of 2021, the closure of the Cambridge, Massachusetts facility and the build-out of a new global research and development center near the Boston /Cambridge area, amongst other things. We expect to incur approximately $6 million of capital expenditures mostly related to the build-out of the global R&D facility, corporate headquarters and information technology infrastructure associated with the relocation.

Share Repurchase Program

On July 30, 2020, our Board of Directors authorized a program to repurchase up to $100 million of our common stock which is effective through July 30, 2022. Share repurchases under the program may be made from time to time at Board's discretion through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act. The share repurchase program is subject to a periodic review by the Board and may be suspended periodically or discontinued at any time. We plan to fund repurchases from our existing cash balance. We did not repurchase any shares during the first quarter.

Cash Resources and Available Credit Facilities

At March 31, 2021, we had available liquidity of $862.0 million, consisting of $472.9 million in cash and cash equivalents, of which $317.7 million was held in the U.S., $347.4 million available under our revolving credit facility, and $41.7 million available under various non-U.S. credit facilities.

Our non-U.S. credit facilities are extended to various subsidiaries that use them primarily to issue bank guarantees supporting trade activity and provide working capital during occasional cash shortfalls in certain foreign entities. We generally renew these credit facilities as they expire.

We expect to meet our U.S. cash and liquidity requirements with cash on hand, cash we expect to generate during 2021 and thereafter, future borrowings, if any, and other available liquidity, including royalties and service fees from our foreign subsidiaries. We may also repatriate future earnings from foreign subsidiaries if that results in minimal or no U.S. tax consequences. We expect to have sufficient cash and liquidity to finance our U.S. operations and growth strategy and meet our debt obligations in the U.S. Please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K for a discussion of our cash and cash equivalents.

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The following table summarizes our non-U.S. credit facilities as of March 31, 2021:

(In millions)	Maximum Borrowing Amount		Available Liquidity		Maturity Date
Singapore	$	6.0	$	6.0	4/15/2023
China	6.0		5.5		4/15/2023
Australia	5.5		4.9		4/15/2023
Canada	6.0		6.0		4/15/2023
India	5.0		3.3		4/15/2023
Korea	4.0		4.0		4/15/2023
Hong Kong	3.0		3.0		4/15/2023
Other countries	9.6		9.0		Open ended
Total	$	45.1	$	41.7

53

Analysis of Cash Flows

The following table summarizes our cash flows for the first quarter and prior-year quarter:

	Three Months Ended March 31,
(In millions)	2021		2020
Net cash provided by operating activities from continuing operations	$	0.7	$	14.3
Net cash used in investing activities from continuing operations	(8.1)		(8.8)
Net cash provided by (used in) financing activities from continuing operations	0.6		(0.1)

Net cash provided by operating activities from continuing operations during the first quarter was $0.7 million compared to $14.3 million for the prior-year quarter. The period-over-period change was primarily due to the change in accounts receivable and inventory, partially offset by the change in accounts payable and lower tax payments.

Net cash used by investing activities from continuing operations during the first quarter was $8.1 million compared to $8.8 million during the prior-year quarter. The period-over-period change was primarily due to lower capital expenditures in the current period.

Net cash provided by financing activities from continuing operations during the first quarter was $0.6 million compared to $0.1 million of cash used during the prior-year quarter. The period-over-period change was primarily due to higher proceeds received from the exercise of stock options in the current period.

Defined Benefit Pension Plans

Based on the U.S. advance-funded plans' status during the first quarter and the prior-year quarter, there were no minimum required payments under ERISA. We made contributions of $0.2 million and $0.1 million, respectively, to the U.S. pension plans during the first quarter and prior-year quarter. We intend to fund non-U.S. pension plans based upon applicable legal requirements, as well as actuarial and trustee recommendations. We contributed $0.2 million and $0.5 million, respectively, to the non-U.S. plans during the first quarter and the prior-year quarter. Please refer to Note 8, "Pension Plans and Other Postretirement Benefit Plans," in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q for further discussion on our pension and other postretirement benefit plans.

Debt and Other Contractual Obligations

Debt

Total debt outstanding at March 31, 2021 and December 31, 2020 was $351.4 million and $351.7 million, respectively. Our debt service requirements are expected to be funded through our existing sources of liquidity and operating cash flows. Subject to certain conditions stated in the Indenture, we may, at our option and at any time and from time to time, redeem the 5.5% Senior Notes prior to their maturity date in whole or in part at certain redemption prices, as discussed in Note 8, "Debt and Other Borrowings", in the Notes to the Consolidated Financial Statements included in Item 8, "Financial Statements and Supplementary Data" of the 2020 Annual Report on Form 10-K.

For further information on our 5.5% Senior Notes and Credit Agreement, please refer to Note 5, "Debt and Other Borrowings" in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" on this Quarterly Report on Form 10-Q.

Other Contractual Obligations and Contingencies

We have various future contractual obligations, including those for debt and related interest payments, pension funding requirements, operating leases and other operating commitments. During the first quarter, there were no material changes to our contractual obligations as previously reported in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources” in the Annual Report on Form 10-K for the year ended December 31, 2020.

Please refer to Note 11, "Commitments and Contingencies", in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q for a discussion of financial assurances and other contingencies.

54

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For information on our significant accounting policies and estimates, please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies" in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Consolidated Financial Statements" of this Quarterly Report on Form 10-Q and in the Notes to our audited Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of our 2020 Annual Report on Form 10-K for the year ended December 31, 2020.

We grant equity awards to certain key employees which include restricted share units (“RSUs”), as well as stock options and performance-based units (“PBUs”) with and without market conditions in accordance with provisions of the GCP Applied Technologies Inc. Equity and Incentive Plan (the "Plan"), as amended and restated on February 28, 2017, and the GCP Applied Technologies Inc. 2020 Inducement Plan (the “Inducement Plan”) adopted on October 1, 2020. We make estimates related to the likelihood of achieving performance goals for PBUs that vest upon the satisfaction of these goals. The number of shares ultimately provided to employees who received a PBU grant will be based on the level of achievement of these Company targets. PBUs are remeasured during each reporting period based on the expected payout of the award, which may range from 0% to 200% of the targets for such awards, as described in Note 14, “Stock Incentive Plans”, in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Consolidated Financial Statements" of this Quarterly Report on Form 10-Q. As a result, these awards are subject to volatility until the payout is determined at the end of the performance period. A hypothetical change in the expected payout target of PBUs granted in 2021 and 2020 from 100% to 0% would result in a stock-based compensation expense reductions of $1.2 million during the first quarter.

55

Item 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

With respect to information disclosed in the "Quantitative and Qualitative Disclosures About Market Risk" section of our Annual Report on Form 10-K for the year ended December 31, 2020 ("2020 Annual Report"), more recent numerical measures and other information are available in the "Financial Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of this Quarterly Report. These more recent measures and the information disclosed in the "Quantitative and Qualitative Disclosures About Market Risk" section of our 2020 Annual Report are incorporated herein by reference.

Item 4.    CONTROLS AND PROCEDURES

Management’s Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act"). Disclosure controls and procedures are designed to provide reasonable assurance that we are able to record, process, summarize and report the information required to be disclosed in our reports under the Exchange Act within the time periods specified in SEC rules and forms. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Based on their evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting that was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.

Management's Plan to Remediate the Material Weaknesses

In connection with the financial close process and preparation of the consolidated financial statements for the year ended December 31, 2020, we identified material weaknesses in our internal control over financial reporting. Specifically, we did not consistently maintain a sufficient complement of professionals with an appropriate degree of internal controls and accounting knowledge, training and experience to appropriately analyze, record and disclose accounting matters timely and accurately. The material weaknesses resulted in the correction of immaterial errors and the revisions of our consolidated financial statements as of and for the years ended December 31, 2019 and 2018 and our quarterly consolidated financial statements for the first three quarterly periods of the year ended December 31, 2020 and for each of the quarterly periods of the year ended December 31, 2019. The identified errors did not result in material misstatements to our quarterly or annual financial statements.

In order to address the material weaknesses in internal control over revenue recognition and the close process, management, with direction from the Audit Committee, has begun the process of remediation to address the control deficiencies that led to these material weaknesses. Specifically, management has:

•Initiated personnel changes at GCP within the Accounting organization.

•Engaged third party experts to assist management in assessing current processes and designing improved processes and controls at GCP specifically over the revenue recognition and close processes.

•Reviewed business processes surrounding revenue recognition as well as the close process along with the performance of the risk assessment to identify and begin the implementation of enhanced procedures and related internal controls at GCP.

•Outlined the redesign of controls over the completeness and accuracy of price and quantity information used for revenue recognition including the appropriate IT access, interface and change controls over our online order entry system, segregation of duties and enhanced sales order review processes.

•Outlined the redesign of the close process to achieve accurate and timely financial accounting, reporting and disclosures, including controls over the preparation and review of account reconciliations and journal entries

56

In addition, management’s planned actions to remediate the material weaknesses include:

•Complete the documentation and implementation of enhanced policies, procedures and related internal controls to ensure business processes achieve the intended control objectives.

•Enhance and update business process, policies and procedure documentation for greater clarity, scalability and sustainability.

Management is committed to the remediation of the material weaknesses described above, as well as the continued improvement of the Company’s internal control over financial reporting. Management will continue to review and make necessary change to the overall design of the Company’s internal control environment as well as policies and procedures to improve the overall effectiveness of internal controls over revenue recognition and the close process. Management believes the measures described above and others that will be implemented will remediate the material weaknesses identified and will strengthen the Company’s internal controls over financial reporting. The weaknesses will not be considered remediated, however, until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. Management expects these remedial actions as well as other remedial actions related to the material weaknesses will be effectively implemented in 2021 and 2022.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

Information with respect to this Item may be found in Note 10, "Commitments and Contingencies" in the Notes to the unaudited Consolidated Financial Statements included in Item 1, "Consolidated Financial Statements" of this Quarterly Report on Form 10-Q which information is incorporated herein by reference.

Additional information on our commitments and contingencies can be found in our Annual Report on Form 10-K for our fiscal year ended December 31, 2020.

Item 1A.    RISK FACTORS

There are no material changes from the risk factors as previously disclosed in Part I, Item 1A, "Risk Factors" contained in our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On July 30, 2020, our Board of Directors authorized a program to repurchase up to $100 million of our common stock which is effective through July 30, 2022. We did not repurchase any shares during the first quarter.

58

Item 6.    EXHIBITS

Exhibit No.	Description of Exhibit
3.1	Amended and Restated Certificate of Incorporation of GCP Applied Technologies Inc., dated February 3, 2016 (incorporated herein by reference to Exhibit 3.1 to GCP’s Current Report on Form 8-K filed on February 4, 2016).
3.2	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of GCP Applied Technologies Inc., dated May 3, 2018 (incorporated herein by reference to Exhibit 3.1 to GCP’s Current Report on Form 8-K filed on May 3, 2018).
3.3	Certificate of Designations of Series A Junior Participating Preferred Stock of GCP Applied Technologies Inc. (incorporated herein by reference to Exhibit 3.1 to GCP’s Current Report on Form 8-K filed on March 15, 2019).
3.4	Amended and Restated Bylaws of GCP Applied Technologies Inc., effective as of May 3, 2018 (incorporated herein by reference to Exhibit 3.2 to GCP’s Current Report on Form 8-K filed on May 3, 2018).
4.1	Rights Agreement, dated as of March 15, 2019, between GCP Applied Technologies Inc. and Equiniti Trust Company, which includes the form of Right Certificate as Exhibit B and the Summary of Rights to Purchase Preferred Shares as Exhibit C (incorporated herein by reference to Exhibit 4.1 to GCP’s Current Report on Form 8-K filed on March 15, 2019).
4.2	First Amendment to Rights Agreement, dated as of March 13, 2020, between GCP Applied Technologies Inc. and Equiniti Trust Company (incorporated herein by reference to Exhibit 4.1 to GCP’s Current Report on Form 8-K filed on March 13, 2020).
10.1#	Offer Letter between GCP Applied Technologies Inc. and Michael Valente, dated as of January 13, 2021. (incorporated herein by reference to Exhibit 10.1 to GCP’s Current Report on Form 8-K filed on January 19, 2021).
31.1*	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32**	Certification of the Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase
104*	The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

** Furnished herewith.

# Indicates a management contract or any compensatory plan, contract or arrangement.

59

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GCP Applied Technologies Inc. (Registrant)
Date: May 6, 2021	By:	/s/ SIMON M. BATES
		Simon M. Bates President and Chief Executive Officer (Principal Executive Officer)
Date: May 6, 2021	By:	/s/ CRAIG A. MERRILL
		Craig A. Merrill Vice President and Chief Financial Officer (Principal Financial Officer)
Date: May 6, 2021	By:	/s/ JAMES M. WADDELL
		James M. Waddell Vice President and Chief Accounting Officer (Principal Accounting Officer)

60

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Simon M. Bates, certify that:

1.I have reviewed this quarterly report on Form 10-Q of GCP Applied Technologies Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 6, 2021

/s/ SIMON M. BATES

Simon M. Bates
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Craig A. Merrill, certify that:

1.I have reviewed this quarterly report on Form 10-Q of GCP Applied Technologies Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 6, 2021

/s/ CRAIG A. MERRILL

Craig A. Merrill
Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), the undersigned certifies that (1) this Quarterly Report of GCP Applied Technologies Inc. (the "Company") on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (this "Report"), fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and (2) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ SIMON M. BATES

Simon M. Bates
President and Chief Executive Officer
(Principal Executive Officer)

/s/ CRAIG A. MERRILL

Craig A. Merrill
Vice President and Chief Financial Officer
(Principal Financial Officer)

Date: May 6, 2021

        A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2021	Apr. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-37533
Entity Registrant Name	GCP Applied Technologies Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3936076
Entity Address, Address Line One	62 Whittemore Avenue
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02140-1623
City Area Code	617
Local Phone Number	876-1400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	GCP
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		73,327,077
Entity Central Index Key	0001644440
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net sales		$ 222.8	$ 216.7
Cost of goods sold		136.3	133.9
Gross profit		86.5	82.8
Selling, general and administrative expenses		66.6	68.1
Research and development expenses		4.5	4.9
Interest expense and related financing costs		5.6	5.7
Repositioning expenses		1.3	2.7
Restructuring expenses and asset write offs		7.6	3.1
Other income, net		(1.7)	(2.2)
Total costs and expenses		83.9	82.3
Income from continuing operations before income taxes		2.6	0.5
(Provision for) benefit from income taxes		(1.0)	1.6
Income from continuing operations		1.6	2.1
Loss from discontinued operations, net of income taxes		0.0	(0.3)
Net income		1.6	1.8
Less: Net income attributable to noncontrolling interests		(0.1)	(0.1)
Net income attributable to GCP shareholders		1.5	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders		1.5	2.0
Loss from discontinued operations, net of income taxes		0.0	(0.3)
Net income attributable to GCP shareholders		$ 1.5	$ 1.7
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in usd per share)	[1]	$ 0.02	$ 0.03
Loss from discontinued operations, net of income taxes (in usd per share)	[1]	0	0
Net income attributable to GCP shareholders (in usd per share)	[1],[2]	$ 0.02	$ 0.02
Weighted average number of basic shares (in shares)	[1]	73.2	72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in dollars per share)	[1]	$ 0.02	$ 0.03
Loss from discontinued operations, net of income taxes (in dollars per share)	[1]	0	0
Net income attributable to GCP shareholders (in dollars per share)	[1],[2]	$ 0.02	$ 0.02
Weighted average number of diluted shares (in shares)	[1]	73.4	73.0

[1] Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

[2] Amounts may not sum due to rounding.

XML

Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 1.6	$ 1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	0.0	0.1
Currency translation adjustments, net of income taxes	(8.0)	(33.8)
Gain from hedging activities, net of income taxes	0.0	0.2
Total other comprehensive loss	(8.0)	(33.5)
Comprehensive loss	(6.4)	(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)	(0.1)
Comprehensive loss attributable to GCP shareholders	$ (6.5)	$ (31.8)

XML

Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 472.9	$ 482.7
Trade accounts receivable, net of allowance for credit losses of $6.7 million and $7.0 million, respectively	161.9	169.4
Inventories, net	117.1	98.4
Other current assets	43.9	41.2
Total Current Assets	795.8	791.7
Properties and equipment, net	216.6	225.6
Operating lease right-of-use assets	37.7	40.0
Goodwill	212.8	215.0
Technology and other intangible assets, net	68.1	70.9
Deferred income taxes	9.6	9.6
Overfunded defined benefit pension plans	30.0	29.7
Other assets	35.2	35.1
Total Assets	1,405.8	1,417.6
Current Liabilities
Debt payable within one year	2.4	2.8
Operating lease obligations payable within one year	7.6	8.0
Accounts payable	94.0	87.8
Other current liabilities	113.4	125.8
Total Current Liabilities	217.4	224.4
Debt payable after one year	349.0	348.9
Income taxes payable	28.4	28.4
Deferred income taxes	14.8	14.9
Operating lease obligations	25.4	26.2
Unrecognized tax benefits	41.2	41.0
Underfunded and unfunded defined benefit pension plans	63.0	62.9
Other liabilities	16.0	16.8
Total Liabilities	755.2	763.5
Commitments and Contingencies
Stockholders' Equity
Preferred stock, par value $0.01; 50,000,000 shares authorized, no shares issued or outstanding	0.0	0.0
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 73,251,641 and 73,082,066, respectively	0.7	0.7
Paid-in capital	65.5	61.9
Accumulated earnings	711.8	710.3
Accumulated other comprehensive loss	(118.5)	(110.5)
Treasury stock	(11.4)	(10.7)
Total GCP's Shareholders' Equity	648.1	651.7
Noncontrolling interests	2.5	2.4
Total Stockholders' Equity	650.6	654.1
Total Liabilities and Stockholders' Equity	$ 1,405.8	$ 1,417.6

XML

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 6.7	$ 7.0
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, outstanding (in shares)	73,251,641	73,082,066

XML

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Millions		Total	Common Stock	Treasury Stock		Additional Paid-in Capital	Accumulated Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2019			73,200,000	300,000
Beginning balance at Dec. 31, 2019		$ 541.0	$ 0.7	$ (8.6)		$ 53.4	$ 610.1	$ (117.0)	$ 2.4
Increase (Decrease) in Stockholders' Equity
Net income		1.8					1.7		0.1
Issuance of common stock in connection with stock plans (in shares)	[1]		100,000
Share-based compensation		0.5				0.5
Exercise of stock options	[1]	$ 0.4				0.4
Share repurchases (in shares)		15,800		100,000	[2]
Share repurchases	[2]	$ (0.3)		$ (0.3)
Current period other comprehensive loss		(33.5)						(33.5)
Ending balance (in shares) at Mar. 31, 2020			73,300,000	400,000
Ending balance at Mar. 31, 2020		509.9	$ 0.7	$ (8.9)		54.3	611.8	(150.5)	2.5
Beginning balance (in shares) at Dec. 31, 2020			73,500,000	400,000
Beginning balance at Dec. 31, 2020		654.1	$ 0.7	$ (10.7)		61.9	710.3	(110.5)	2.4
Increase (Decrease) in Stockholders' Equity
Net income		1.6					1.5		0.1
Issuance of common stock in connection with stock plans (in shares)	[1]		100,000
Share-based compensation	[3]	1.4				1.4
Exercise of stock options (in shares)	[1]		100,000
Exercise of stock options	[1]	$ 2.2				2.2
Share repurchases (in shares)		29,800		100,000	[2]
Share repurchases	[2]	$ (0.7)		$ (0.7)
Current period other comprehensive loss		(8.0)						(8.0)
Ending balance (in shares) at Mar. 31, 2021			73,700,000	500,000
Ending balance at Mar. 31, 2021		$ 650.6	$ 0.7	$ (11.4)		$ 65.5	$ 711.8	$ (118.5)	$ 2.5

[1] The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding.

[2] Refer to Note 14, “Stock Incentive Plans”, for further information.

[3] During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options, RSUs and PBUs.

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Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total stock compensation (benefit) expense	$ 1.7	$ 0.8
2019 Phase 2 Plan
Total stock compensation (benefit) expense	$ 0.7

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATING ACTIVITIES
Net income	$ 1.6	$ 1.8
Less: Loss from discontinued operations	0.0	(0.3)
Income from continuing operations	1.6	2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.3	11.0
Amortization of debt discount and financing costs	0.4	0.4
Stock-based compensation expense	1.0	0.8
Unrealized (gain) loss on foreign currency	(2.3)	0.5
Deferred income taxes	(0.2)	(4.9)
Loss (gain) on disposal of property and equipment	1.1	(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	5.0	17.4
Inventories	(19.9)	(11.4)
Accounts payable	9.9	6.6
Pension assets and liabilities, net	1.1	1.0
Other assets and liabilities, net	(8.3)	(9.1)
Net cash provided by operating activities from continuing operations	0.7	14.3
Net cash used in operating activities from discontinued operations	0.0	(0.9)
Net cash provided by operating activities	0.7	13.4
INVESTING ACTIVITIES
Capital expenditures	(8.1)	(9.2)
Other investing activities	0.0	0.4
Net cash used in investing activities	(8.1)	(8.8)
FINANCING ACTIVITIES
Repayments under credit arrangements	(0.3)	0.0
Payments on finance lease obligations	(0.2)	(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.7)	(0.3)
Proceeds from exercise of stock options	1.8	0.4
Net cash provided by (used in) financing activities from continuing operations	0.6	(0.1)
Effect of currency exchange rate changes on cash and cash equivalents	(3.0)	(9.3)
Decrease in cash and cash equivalents	(9.8)	(4.8)
Cash and cash equivalents, beginning of period	482.7	325.0
Cash and cash equivalents, end of period	472.9	320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable	$ 3.0	$ 5.5

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Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies

Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies

GCP Applied Technologies Inc. ("GCP", or the "Company") is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. Specialty Construction Chemicals ("SCC") manufactures and markets concrete admixtures and cement additives and supplies in-transit monitoring systems for concrete producers. Specialty Building Materials ("SBM") manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, fireproofing and other products designed to protect the building envelope.

On July 3, 2017 (the "Closing Date"), GCP completed the sale of its Darex Packaging Technologies ("Darex") business to Henkel AG & Co. KGaA (“Henkel”) for $1.06 billion in cash. The agreement with Henkel governing the Disposition (the “Amended Purchase Agreement”) provided for a series of delayed closings in certain non-U.S. jurisdictions. Darex results of operations and cash flows have been reclassified and reflected as "discontinued operations" in the accompanying unaudited Consolidated Statements of Operations and unaudited Consolidated Statements of Cash Flows for all periods presented. Unless otherwise noted, the information throughout the Notes to the accompanying unaudited Consolidated Financial Statements pertains only to the continuing operations of GCP.

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements are presented on a consolidated basis and include all of the accounts and operations of GCP and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The financial statements reflect the financial position, results of operations and cash flows of GCP in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information.

The interim financial statements presented herein are unaudited and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in GCP's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2020 was derived from the audited annual consolidated financial statements as of the period then ended. Certain information and footnote disclosures typically included in GCP's annual consolidated financial statements have been condensed or omitted. The unaudited financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations for the year ending December 31, 2021.

Revisions of Previously Issued Consolidated Financial Statements

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified freight expense accrual and other errors in its previously filed unaudited quarterly consolidated financial statements for the first three quarterly periods of 2020.

The Company considered the guidance in ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, (“ASC 250-10-S99-2”) in evaluating whether the Company’s previously issued unaudited consolidated financial statements were materially misstated. The Company concluded the errors were not material individually or in the aggregate to the previously issued consolidated financial statements. In accordance with ASC 250-10-S99-2, the Company has corrected these errors by revising previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020 in connection with the filing of this Form 10-Q.

The accompanying footnotes have been corrected to reflect the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020. Please refer to Note 18, “Revisions of Previously Issued Consolidated Financial Statements” for reconciliations between as previously reported and as revised quarterly amounts, respectively.

Use of Estimates    

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. GCP's accounting measurements that are most affected by management's estimates of future events are disclosed in its 2020 Annual Report on Form 10-K. Actual results could differ from those estimates.

On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus ("COVID-19") a global pandemic and recommended a number of restrictive measures to contain the spread. Many governments in the regions where GCP generates the majority of its revenue have adopted such policies. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. Despite progress in vaccination efforts, it is difficult to estimate with reasonable certainty at this time the duration and extent of the impact of the pandemic on the global economy, the Company's business, financial position and results of operations. GCP has made certain estimates within its financial statements related to the impact of COVID-19, including allowances for credit losses related to the estimated amount of receivables not expected to be collected and excess, obsolete or damaged inventories, future expected cash flows related to impairment assessments of goodwill and long-lived assets, incentive compensation accruals, contingent liabilities, and sales allowances related to volume rebates recognized based on anticipated sales volume. There may be changes to the Company's estimates in future periods due to uncertainty associated with the impact of COVID-19, the extent of which will depend largely on future developments, including new information which may emerge concerning the resurgence of the pandemic, as well as additional and unanticipated actions by government authorities to further contain the spread of COVID-19, which may result in extended ongoing business disruptions.

Income Tax    

As a global enterprise, GCP is subject to a complex array of tax regulations and needs to make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. Income tax expense and income tax balances represent GCP’s federal, state and foreign income taxes as an independent company. GCP files a U.S. consolidated income tax return, along with foreign and state corporate income tax filings, as required. Please refer to Note 7, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits.

Reclassifications    

Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts.

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. GCP adopted the guidance effective January 1, 2021. The adoption did not have a material impact on its results of operations, financial position and cash flows.

Other

During the three months ended March 31, 2021, except as discussed above, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the Annual Report on Form 10-K for the year ended December 31, 2020. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 1, "Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies," to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K.

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Revenue from Lessor Arrangements and Contracts with Customers

3 Months Ended

Mar. 31, 2021

Revenues [Abstract]

Revenue from Lessor Arrangements and Contracts with Customers

Revenue from Lessor Arrangements and Contracts with Customers

The majority of the Company’s revenue is generated from short-term arrangements associated with the production and sale of concrete admixtures and cement additives within its SCC operating segment, as well as sheet and liquid membrane systems and other specialty products designed to protect the building envelope within its SBM operating segment. For such arrangements, the transfer of control takes place at a point in time when products are shipped to the customer. Short-term arrangements within its SCC operating segment involve selling concrete admixtures and providing dispensers to customers. Such arrangements contain a lease element due to the customer's right to control the use of dispensers over a period of time in exchange for consideration.

The Company generates revenue from long-term arrangements within its SCC operating segment, which generally consist of VERIFI® and Ductilcrete sales arrangements.

VERIFI® sales arrangements involve installing equipment on the customers’ trucks and at their plants, as well as performing slump management and truck location tracking services. The Company recognizes lease and service revenue for these arrangements. Revenue generated from VERIFI® sales arrangements represented less than 10% of the Company's consolidated revenue during the three and three months ended March 31, 2021 and 2020.

During the three months ended March 31, 2021 and 2020, the Company recognized lease revenue of $9.4 million and $8.8 million, respectively, and service revenue of $2.0 million and $1.4 million, respectively. Lease revenue consists of dispenser lease revenue of $6.1 million, as well as an allocated portion of VERIFI® fixed fees and variable slump management fees. Service revenue consists of an allocated portion of VERIFI® fixed fees and variable slump management fees. Lease and service revenue is included within "Net Sales" in the accompanying unaudited Consolidated Statements of Operations.

Revenue generated from Ductilcrete sales arrangements represented less than 10% of the Company's consolidated revenue during the three months ended March 31, 2021 and 2020.

The Company’s revenue is principally recognized as goods and services are delivered and performance obligations are satisfied upon delivery. The Company has certain long-term arrangements resulting in remaining obligations for which the work has not been performed or has been partially performed. As of March 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $9.4 million, including the estimated transaction price to be earned as revenue over the remaining term of these contracts, which is generally one to five years. The Company’s contract assets and liabilities resulting from its contracts in the SCC or SBM operating segments were not material as of March 31, 2021 and December 31, 2020. Additionally, the amounts recorded in the accompanying unaudited Consolidated Statements of Operations during the three months ended March 31, 2021 and 2020 related to changes in the contract assets and liabilities were not material.

For further information on revenue recognition related to product sale arrangements, please refer to Note 2, "Revenue from Lessor Arrangements and Contracts with Customers", to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K.

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Inventories, net

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net

The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Raw materials	$	50.6	$	41.3
In process	4.4		4.2
Finished products and other	62.1		52.9
Total inventories, net	$	117.1	$	98.4

The "Finished products and other" category presented in the table above includes "other" inventories, which consist of finished products purchased rather than produced by GCP of $10.0 million and $9.1 million, respectively, as of March 31, 2021 and December 31, 2020.

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Derivative Instruments

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company uses derivative instruments to partially offset its business exposure to foreign currency risk on net investments in certain foreign subsidiaries. The Company enters into foreign currency forward contracts to offset a portion of the changes in the carrying amounts of its net investments in foreign operations due to fluctuations in foreign currency exchange rates. As of March 31, 2021, the Company was a party to four forward contracts with an aggregate notional amount of €40.0 million to hedge foreign currency exposure on net investments in certain of its European subsidiaries whose functional currency is the Euro. These forward contracts are designated as hedging instruments and recognized at fair value as assets or liabilities in the accompanying unaudited Consolidated Balance Sheets. Each contract has a notional amount of €10.0 million and matures annually starting on June 14, 2021 through June 17, 2024. The forward contracts are designated and qualify as net investment hedges for which effectiveness is assessed based on the spot rate method. Please refer to Note 4, "Derivative Instruments", to the Company’s Consolidated Financial Statements included in the 2020 Annual Report on Form 10-K for further information on net investment hedges.

The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Derivative assets(1):
Foreign exchange forward contracts	$	0.8	$	—
Derivative liability(1):
Foreign exchange forward contracts	$	(0.6)	$	(1.8)

__________________________

(1)The fair value of derivative instruments is measured based on expected future cash flows discounted at market interest rates using observable market inputs and classified as Level 2 within the fair value hierarchy. As of March 31, 2021, fair value of derivative assets of $0.2 million and $0.6 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets, and fair value of derivative liability of $0.6 million is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. As of December 31, 2020, fair value of derivative liabilities of $0.4 million and $1.4 million, respectively, is recorded within "Other Current Liabilities" and "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets.

The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss related to forward contracts designated as net investment hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
(In millions)	Other Income, net		Cumulative Translation Adjustments(1)		Other Income, net		Cumulative Translation Adjustments(1)
Gain on foreign exchange forward contracts	$	0.2	$	1.4	$	0.3	$	1.3

_______________________

(1)The amounts are presented net of tax expense of $0.4 million during each of the three months ended March 31, 2021 and 2020.

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Debt and Other Borrowings

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt and Other Borrowings

Debt and Other Borrowings

Components of Debt and Other Borrowings

The following is a summary of obligations under senior notes and other borrowings at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021			December 31, 2020
5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.2 million and $3.3 million, respectively, at March 31, 2021 and December 31, 2020	$	346.8		$	346.6
Revolving credit facility due 2023(1)	—			—
Other borrowings(2)	4.6			5.1
Total debt	351.4			351.7
Less: debt payable within one year	2.4			2.8
Debt payable after one year	$	349.0		$	348.9
Weighted average interest rates on total debt obligations	5.5		%	5.5		%

__________________________

(1)Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of March 31, 2021 and December 31, 2020.

(2)Represents borrowings of $1.7 million and $2.1 million, respectively, at March 31, 2021 and December 31, 2020, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $2.9 million and $3.0 million, respectively, of finance lease obligations.

The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at March 31, 2021:

(In millions)	Amount
Remainder of 2021	$	2.3
2022	0.8
2023	0.7
2024	0.7
2025	0.1
Thereafter	346.8
Total debt	$	351.4

5.5% Senior Notes

GCP's outstanding 5.5% Senior Notes have an aggregate principal amount of $350.0 million maturing on April 15, 2026. Interest on the 5.5% Senior Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company made an interest payment of $9.6 million on April 15, 2021.

The Indenture contains certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenants and conditions under the Indenture as of March 31, 2021. There are no events of default under the Indenture as of March 31, 2021.

Credit Agreement

As of March 31, 2021 and December 31, 2020, there were no outstanding borrowings on the Revolving Credit Facility. There were $2.6 million in outstanding letters of credit which resulted in available credit of $347.4 million as of March 31, 2021 and December 31, 2020. There were no interest payments on the Revolving Credit Facility during the three months ended March 31, 2021 and 2020.

The Credit Agreement contains conditions that would require mandatory principal payments in advance of the maturity date of the Revolving Credit Facility, as well as certain customary affirmative and negative covenants and events of default, as described in Note 8, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. The Company was in compliance with all covenant terms as of March 31, 2021. There are no events of default as of March 31, 2021.

Debt Issuance Costs

GCP recognizes expenses directly associated with obtaining the Revolving Credit Facility as debt issuance costs which are presented within "Other assets" in the accompanying unaudited Consolidated Balance Sheets. Such costs are amortized over the term of the Revolving Credit Facility and included in “Interest expense and related financing costs” in the accompanying unaudited Consolidated Statements of Operations. As of March 31, 2021 and December 31, 2020, the remaining unamortized debt issuance costs related to the Revolving Credit Facility were $1.9 million and $2.2 million, respectively.

Debt Fair Value

The carrying amount and fair value of GCP's debt and other borrowings were as follows:

	March 31, 2021				December 31, 2020
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
5.5% Senior Notes due in 2026	$	346.8	$	360.1	$	346.6	$	362.0
Other borrowings	4.6		4.6		5.1		5.1
Total debt	$	351.4	$	364.7	$	351.7	$	367.1

Fair value is determined based on Level 2 inputs, including expected future cash flows (discounted at market interest rates), estimated current market prices, and quotes from financial institutions. As of March 31, 2021, the fair value was higher than the carrying amount due to higher bond market prices. The carrying amount represents the aggregate principal amount at maturity reduced by the unamortized debt issuance costs.

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Lessee Arrangements

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessee Arrangements

Lessee Arrangements

The Company leases manufacturing and office facilities, as well as certain vehicles and equipment under operating leases.

The following table summarizes components of lease expense for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Operating lease expense	$	4.3	$	3.2
Variable lease expense	1.0		1.1
Short-term lease expense	0.6		0.6
Total lease expense	$	5.9	$	4.9

The following table summarizes supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.6	$	3.2
Operating lease right of use assets obtained in exchange for new lease obligations	1.4		7.7

On July 31, 2020, GCP sold its corporate headquarters located at 62 Whittemore Avenue, Cambridge, Massachusetts to IQHQ, L.P and entered into a leaseback transaction with the buyer in conjunction with the sale. The lease of GCP's corporate headquarters is classified as an operating lease and has an initial rent-free term of eighteen months. Fair value of free rent of $8.6 million was recognized as an Operating Lease Right-of-Use Asset as a result of a non-cash transaction.

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Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income taxes attributable to continuing operations during the three months ended March 31, 2021 and 2020 was an income tax expense (benefit) of $1.0 million and $(1.6) million, respectively, representing effective tax rates of 38.5% and (320.0)%, respectively.

The difference between the U.S. federal income tax rate of 21.0% and GCP’s overall income tax rate for the three months ended March 31, 2021, was primarily due to income tax expense on unrecognized tax benefits of $0.3 million.

The difference between the U.S. federal income tax rate of 21.0% and GCP's overall income tax rate for the three months ended March 31, 2020 was primarily due to benefits recognized as a result of the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The CARES Act allowed for accelerated interest and depreciation deductions which caused GCP to estimate net operating losses in 2019 and 2020. Under the CARES Act, those losses can be carried back to offset prior taxable income that was taxed at the U.S. federal income tax rate of 35%. This resulted in an income tax benefit of $2.8 million, offset by increases in unrecognized tax benefits of $0.4 million and valuation allowance expense of $0.6 million.

Repatriation

In general, it is GCP's practice and intention to permanently reinvest the earnings of its foreign subsidiaries and repatriate earnings only when the tax impact is efficient.

Valuation Allowance

In evaluating GCP's ability to realize its deferred tax assets, GCP considers all reasonably available positive and negative evidence, including recent earnings experience, expectations of future taxable income and the tax character of that income, the period of time over which temporary differences become deductible and the carryforward and/or carryback periods available to GCP for tax reporting purposes in the related jurisdiction. In estimating future taxable income, GCP relies upon assumptions and estimates about future activities, including the amount of future federal, state and foreign pretax operating income that GCP will generate; the reversal of temporary differences; and the implementation of feasible and prudent tax planning strategies. GCP records a valuation allowance to reduce deferred tax assets to the amount that it believes is more likely than not to be realized.

During the three months ended March 31, 2021 GCP incurred no income tax expense for valuation allowances. During the three months ended March 31, 2020, GCP incurred income tax expense for valuation allowances of $0.6 million recorded against deferred tax assets for net operating losses primarily in Argentina and Australia

Tax Sharing Agreement

In connection with the legal separation and transfer of W.R. Grace & Co.'s ("Grace") construction products and packaging technologies businesses to the Company through a dividend distribution of all of the then-outstanding common stock of GCP to Grace shareholders on February 3, 2016 (the "Separation"), GCP and Grace entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement (the "Tax Sharing Agreement"). Under the Tax Sharing Agreement, GCP and Grace will indemnify and hold each other harmless in accordance with the principles outlined therein. Please refer to Note 16, "Related Party Transactions and Transactions with Grace" for further information on the Tax Sharing Agreement.

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Pension Plans and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2021

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 defined benefit pension plans, primarily in the U.S. and the U.K., in which GCP employees and former 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:

(In millions)	March 31, 2021		December 31, 2020
Overfunded defined benefit pension plans	$	30.0	$	29.7
Underfunded defined benefit pension plans	(34.2)		(33.3)
Unfunded defined benefit pension plans	(28.8)		(29.6)
Total underfunded and unfunded defined benefit pension plans	(63.0)		(62.9)
Pension liabilities included in other current liabilities	(1.4)		(1.4)
Net funded status	$	(34.4)	$	(34.6)

Components of Net Periodic Benefit Cost

The components of GCP's net periodic benefit cost for the three months ended March 31, 2021 and 2020 are as follows:

	Three Months Ended March 31,
	2021						2020
	Pension						Pension
(In millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
Service cost	$	1.5	$	0.3	$	1.8	$	1.5	$	0.2	$	1.7
Interest cost	1.2		0.7		1.9		1.3		1.1		2.4
Expected return on plan assets	(1.5)		(0.8)		(2.3)		(1.6)		(1.2)		(2.8)
Net periodic benefit cost (1)	$	1.2	$	0.2	$	1.4	$	1.2	$	0.1	$	1.3

________________________________

(1)Service cost component of net periodic benefit cost is included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations. All other components of net periodic benefit costs are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations.

Pension 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 U.S. GAAP. GCP made contributions of $0.2 million and $0.1 million, respectively, to the U.S. pension plans during the three months ended March 31, 2021 and 2020.

GCP intends to fund non-U.S. pension plans based on applicable legal requirements, as well as actuarial and trustee recommendations. During the three months ended March 31, 2021 and 2020, GCP contributed $0.2 million and $0.5 million, respectively, to these non-U.S. plans.

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. Additionally, GCP contributes up to 2% of a full amount of applicable employee compensation subject to a three year vesting requirement. Applicable employees include those beginning employment with GCP on or after January 1, 2018 who are not eligible to participate in the GCP Applied Technologies Inc. Retirement Plan for Salaried Employees, which was closed to new hires effective January 1, 2018. GCP's costs related to this benefit plan amounted to $1.0 million and $1.3 million, respectively, during the three months ended March 31, 2021 and 2020. These costs are included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations.

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Other Balance Sheet Information

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Balance Sheet Information

Other Balance Sheet Information

The following is a summary of other current assets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Assets:
Non-trade receivables	$	19.2	$	20.4
Prepaid expenses and other current assets	15.6		11.1
Income taxes receivable	9.1		9.7
Total other current assets	$	43.9	$	41.2

The following is a summary of other current liabilities at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Liabilities:
Accrued customer volume rebates	$	15.2	$	24.4
Accrued compensation(1)	18.3		25.0
Income taxes payable	6.7		7.1
Accrued interest	8.8		4.0
Pension liabilities	1.4		1.4
Restructuring liability	16.7		18.0
Other accrued liabilities	46.3		45.9
Total other current liabilities	$	113.4	$	125.8

________________________________

(1)Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

GCP enters into certain purchase commitments and is a party to many contracts containing guarantees and indemnification obligations, as described in Note 12, "Commitments and Contingencies" to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K. There have been no material changes to these commitments and obligations during the three months ended March 31, 2021, except as described below. Although the outcome of each of the matters related to loss contingencies and obligations cannot be predicted with certainty, GCP has assessed the risk and has made accounting estimates and disclosures as required under U.S. GAAP.

Environmental Matters

GCP is subject to loss contingencies resulting from extensive and evolving federal, state, local and foreign environmental laws and regulations relating to the generation, storage, handling, discharge, disposition and stewardship of hazardous wastes and other materials. GCP recognizes accrued liabilities for anticipated costs associated with response efforts if, based on the results of the assessment, it concluded that a probable liability has been incurred and the cost can be reasonably estimated. As of March 31, 2021 and December 31, 2020, GCP did not have any material environmental liabilities.

GCP's environmental liabilities are reassessed whenever circumstances become better defined or response efforts and their costs can be better estimated. These liabilities are evaluated based on currently available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the method and extent of remediation at each site, existing technology, prior experience in contaminated site remediation and the apportionment of costs among potentially responsible parties.

Financial Assurances

Financial assurances have been established for a variety of purposes, including insurance, environmental matters and other matters. At March 31, 2021 and December 31, 2020, GCP had gross financial assurances issued and outstanding of $6.1 million and $6.8 million, respectively, which were composed of standby letters of credit. The letters of credit are related primarily to customer advances and other performance obligations as of March 31, 2021 and December 31, 2020. These arrangements guarantee the refund of advance payments received from customers in the event that the product is not delivered or warranty obligations are not fulfilled in accordance with the contract terms. These obligations could be called by the beneficiaries at any time before the expiration date of the particular letter of credit if the Company fails to meet certain contractual requirements.

Lawsuits and Investigations

Henkel AG & Co. KGaA Matters

In July 2017, GCP completed the sale of its Darex business to Henkel AG & Co. KGaA (the "Henkel"). The Purchase and Sale Agreement with Henkel regarding the sale of the Darex Business dated July 3, 2017, (the “SAPA”) contains obligations for the Company as sellers to indemnify Henkel as buyer for certain matters, such as breaches of representations and warranties, taxes, as well as certain covenants and liabilities.

On March 30, 2021, Henkel filed suit in the United States District Court for the District of Delaware against the Company, seeking indemnification for alleged breaches of representations and warranties under the SAPA. Henkel is seeking damages of approximately $11 million, which consist of a claim amount of approximately $16 million, net of a contractual deductible of $5 million. The Company believes that it has meritorious defenses against the plaintiff’s claims and intends to defend this action vigorously. Although the Company does not believe that resolution of this matter will have a material adverse effect on its business or financial condition, at this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or a range of estimates, of potential losses, if any, that might result from an adverse resolution of this matter.

Other Matters

From time to time, GCP and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations and proceedings which are managed and defended in the ordinary course of business. While GCP is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of such pending matters, except as disclosed above, will have a material adverse effect on its overall financial condition, results of operations or cash flows for the three months ended March 31, 2021. However, the results of such pending legal matters and claims cannot be predicted with sufficient certainty since unfavorable resolutions are possible and could materially affect GCP's financial position, results of operations, or cash flows. In the event of unexpected subsequent developments and due to the inherent unpredictability of these matters, there can be no assurance that the Company’s assessment of any claim will reflect the ultimate outcome. An adverse outcome in certain matters could, from time to time, have a material adverse effect on GCP's consolidated financial position, results of operations and cash flows in particular quarterly or annual periods.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Share Repurchase Program

On July 30, 2020, the Board of Directors (the “Board”) of GCP authorized a program to repurchase up to $100 million of the Company’s common stock which is effective through July 30, 2022. Share repurchases under the program may be made from time to time at the Board's discretion through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act. The share repurchase program is subject to a periodic review by the Board and may be suspended periodically or discontinued at any time. The Company plans to fund repurchases from its existing cash balance. No shares were repurchased by the Company during the three months ended March 31, 2021.

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Restructuring and Repositioning Expenses, Asset Write Offs

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Repositioning Expenses, Asset Write Offs

Restructuring and Repositioning Expenses, Asset Write Offs

GCP's Board of Directors (the "Board") approves all major restructuring and repositioning programs. Major restructuring programs may involve reorganizations, the discontinuation of significant product lines, the shutdown of significant facilities, or other major strategic initiatives. From time to time, GCP takes additional restructuring actions, including involuntary employee terminations that are not a part of a major program. Repositioning activities generally represent major strategic or transformational actions to enhance the value and performance of the Company, improve business efficiency or optimize the Company’s footprint.

Repositioning expenses associated with the Plans discussed below, as well as a review of strategic, financial and operational alternatives, are primarily related to consulting, professional services, and other employee-related costs associated with the Company’s organizational realignment and advancing its technology strategy. Due to the scope and complexity of the Company’s repositioning activities, the range of estimated repositioning expenses and capital expenditures could increase or decrease and the timing of incurrence could change.

2021 Restructuring and Repositioning Plan (the “2021 Plan”)

On March 30, 2021, the Board approved a business restructuring and repositioning plan (the “2021 Plan”) related to the relocation of the Company’s corporate headquarters to the Atlanta, Georgia area, the closure of its Cambridge, Massachusetts campus, the build-out of a new global research and development center near the Boston /Cambridge area, as well as the consolidation of other regional facilities and offices, including an organizational redesign, which is expected to lower costs. The program is expected to be completed by June 30, 2022.

2019 Phase 2 Restructuring and Repositioning Plan (the “2019 Phase 2 Plan")

On July 31, 2019, the Board approved a business restructuring and repositioning plan to further optimize the design and footprint of the Company's global organization, primarily with respect to its general administration and business support functions, and streamline cross-functional activities (the “2019 Phase 2 Plan”). The 2019 Phase 2 Plan is expected to result in the net reduction of approximately 8%-10% of the Company's workforce. The program was substantially completed as of March 31, 2021.

2019 Restructuring and Repositioning Plan (the “2019 Plan”) 

On February 22, 2019, the Board approved a business restructuring and repositioning plan (the “2019 Plan”). The 2019 Plan is focused on GCP’s global supply chain strategy, processes and execution, including its manufacturing, purchasing, logistics, and warehousing operations. The plan also addresses GCP’s service delivery model, primarily in North America, to streamline the Company’s pursuit of combined admixture and VERIFI® opportunities. The program was substantially completed as of December 31, 2020.

The following table illustrates a summary of the charges incurred and planned in connection with restructuring and repositioning plans discussed above:

(In millions)	Severance/employee costs	Asset Write Offs	Other Associated Costs	Total Restructuring	Repositioning	Total Costs	Capital Expenditures
2019 Plan: (1)
Cumulative Costs incurred to Date	$0.9	$0.9	$0.3	$2.1	$10.5	$12.6	$2.2
2019 Phase 2 Plan: (2)
Cumulative Costs incurred to Date	$26.0	$0.5	$—	$26.5	$7.3	$33.8	$0.4
2021 Plan: (3)
Estimated Total Costs	$11-13	$8-9	$5	$24-27	$2	$26-29	$6
Cumulative Costs incurred to Date	$4.3	$2.1	$0.2	$6.6	$—	$6.6	$—

(1)As of March 31, 2021, the cumulative restructuring costs incurred under the 2019 Plan since its inception were $2.1 million, of which $1.7 million was related to the SCC segment and $0.4 million was related to the SBM segment.

(2)As of March 31, 2021, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $26.5 million, of which $7.1 million was attributable to the SCC segment, $7.0 million was attributable to the SBM segment, and $12.4 million was attributable to the Corporate function.

(3)As of March 31, 2021, the cumulative restructuring costs incurred under the 2021 Plan since its inception were $6.6 million, of which $2.6 million was related to the SCC segment, $1.7 million was related to the SBM segment, and $2.3 million was attributable to the Corporate function.

The following tables represent the repositioning expenses incurred and cash payments made under the plans discussed above and other plans during each period:

	Three Months Ended March 31, 2021
(In millions)		2019 Plan		2019 Plan Phase 2		Total
Repositioning Expenses		$	—	$	1.3	$	1.3
Cash Paid for Repositioning Expenses		—		1.4		1.4
Capital Expenditures		0.1		—		0.1
Cash Paid for Capital Expenditures		0.1		—		0.1

	Three Months Ended March 31, 2020
(In millions)	2019 Plan		2019 Plan Phase 2		Strategic Alternatives Plan		2018 Plan		2017 Plan		Total
Repositioning Expenses	$	1.4	$	1.2	$	—	$	—	$	0.1	$	2.7
Cash Paid for Repositioning Expenses	3.3		1.5		0.2		—		—		5.0
Capital Expenditures	0.4		0.1		—		0.3		0.2		1.0
Cash Paid for Capital Expenditures	0.3		0.1		—		0.1		0.6		1.1

	As of March 31, 2021
(In millions)	2019 Plan		2019 Plan Phase 2
Cumulative Repositioning Expenses	$	10.5	$	7.3
Cumulative Cash Paid for Repositioning Expenses	10.5		6.5
Cumulative Capital Expenditure	2.2		0.4
Cumulative Cash Paid for Capital Expenditures	2.1		0.4

Restructuring Expenses and Asset Write Offs

The following restructuring expenses and asset write offs were incurred under the plans discussed above and other plans during each period:

	Three Months Ended March 31,
(In millions)	2021		2020
Severance and other employee costs	$	5.2	$	1.9
Asset write offs	2.2		1.0
Other associated costs	0.2		0.2
Total restructuring expenses and asset write offs	$	7.6	$	3.1

GCP incurred restructuring expenses and asset write offs related to its two operating segments and Corporate function as follows:

	Three Months Ended March 31,
(In millions)	2021		2020
SCC	$	2.9	$	2.3
SBM	1.8		0.8
Corporate	2.9		—
Total restructuring expenses and asset write offs	$	7.6	$	3.1

Restructuring liabilities were $16.7 million and $18.0 million, respectively, as of March 31, 2021 and December 31, 2020. These liabilities are included within “Other current liabilities” in the accompanying unaudited Consolidated Balance Sheets.

The following table summarizes the Company’s restructuring liability activity:

	2021 Plan		2019 Plan				2019 Phase 2 Plan		2018 Plan
(In millions)	Severance and other employee costs		Severance and other employee costs		Other Costs		Severance and other employee costs		Severance and other employee costs		Total
Balance, December 31, 2020	$	—	$	0.1	$	0.1	$	17.3	$	0.5	$	18.0
Expense(1)(2)	4.5		—		—		0.2		—		$	4.7
Payments	(0.2)		—		—		(5.7)		—		$	(5.9)
Impact of foreign currency and other	—		—		—		(0.1)		—		$	(0.1)
Balance, March 31, 2021	$	4.3	$	0.1	$	0.1	$	11.7	$	0.5	$	16.7

________________________________

(1)Asset write offs of $2.1 million attributable to the Corporate function during the three months ended March 31, 2021 are related to the 2021 Plan. Additionally, GCP incurred $0.1 million of asset write offs attributable to the SCC segment as a part of the 2019 Plan and 2019 Phase 2 Plan during the three months ended March 31, 2021. These asset write offs are recorded with a corresponding reduction to "Properties and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. These expenses are not recorded with a corresponding adjustment to the restructuring liability and therefore, are not included in the table above.

(2)Stock-based compensation expense of $0.7 million related to accelerated vesting of stock options RSUs and PBUs during the three months ended March 31, 2021 is attributable to Corporate function under the 2019 Phase 2 Plan. Such expense is not recognized as a corresponding adjustment to the restructuring liability and therefore, is not included in the table above.

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Other Comprehensive Loss

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Other Comprehensive Loss

Other Comprehensive Loss

The following tables present the pre-tax, tax benefit (expense), and after-tax components of GCP's other comprehensive loss for the three months ended March 31, 2021 and 2020:

	Three Months Ended  March 31, 2021
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Currency translation adjustments (1)	$	(7.6)	$	(0.4)	$	(8.0)
Other comprehensive loss attributable to GCP shareholders	$	(7.6)	$	(0.4)	$	(8.0)

	Three Months Ended March 31, 2020
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Defined benefit pension and other postretirement plans	$	0.1	$	—	$	0.1
Currency translation adjustments(1)	(33.4)		(0.4)		(33.8)
Gain from hedging activities	0.2		—		0.2
Other comprehensive loss attributable to GCP shareholders	$	(33.1)	$	(0.4)	$	(33.5)

_____________________

(1)Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 4, "Derivative Instruments."

The following tables present the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020:

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Total
Balance, December 31, 2020	$	(3.1)	$	(107.4)	$	(110.5)
Current-period other comprehensive loss	—		(8.0)		(8.0)
Balance, March 31, 2021	$	(3.1)	$	(115.4)	$	(118.5)

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Hedging Activities		Total
Balance, December 31, 2019	$	(2.7)	$	(114.2)	$	(0.1)	$	(117.0)
Current period other comprehensive loss	0.1		(33.8)		0.2		(33.5)
Balance, March 31, 2020	$	(2.6)	$	(148.0)	$	0.1	$	(150.5)

Please refer to Note 8, "Pension Plans and Other Postretirement Benefit Plans," for a discussion of pension plans and other postretirement benefit plans.

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Stock Incentive Plans

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock Incentive Plans

Stock Incentive Plans

Stock-Based Compensation Accounting

GCP grants restricted stock units ("RSUs"), as well as stock options and performance-based units ("PBUs") with or without market conditions which vest upon the satisfaction of a performance condition and/or a service condition. Please refer to Note 17, "Stock Incentive Plans" to the Company's Consolidated Financial Statements included in the 2020 Annual Report in the Form 10-K for further information on these awards. Total stock-based compensation expense included in "Income from continuing operations before income taxes" in the accompanying unaudited Consolidated Statements of Operations was $1.7 million and $0.8 million, respectively, during the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options and RSUs and PBUs, as described in Note 12, "Restructuring and Repositioning Expenses, Asset Write Offs".

The Company issues new shares of common stock upon exercise of stock options and vesting of RSUs and PBUs. GCP withholds and retains shares issued to certain holders of GCP awards in order to fulfill statutory tax withholding requirements for the employees. During the three months ended March 31, 2021 and 2020, GCP withheld and retained approximately 29,800 shares and 15,800 shares, respectively, in a non-cash transaction with a cost of $0.7 million and $0.3 million, respectively, which were reflected as "Share Repurchases" in the accompanying unaudited Consolidated Statements of Stockholders' Equity. During the three months ended March 31, 2021 and 2020, cash payments for such tax withholding obligations were $0.7 million and $0.3 million, respectively.

As of March 31, 2021, total unrecognized compensation expense of $1.7 million was related to stock options with market conditions and $8.1 million to the RSU and PBU awards. Such expense is expected to be recognized over the remaining weighted-average service period of approximately 2.5 years for stock options with market conditions and 2.0 years for RSU and PBU awards.

Stock Options

Approximately 122,000 options were exercised during the three months ended March 31, 2021 with a weighted average exercise price of $17.25. Total intrinsic value of these options was approximately $1.0 million.

Restricted Stock Units

The following table sets forth the RSU activity for the three months ended March 31, 2021:

RSU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	305	$	22.14
RSUs settled	88	23.97
RSUs forfeited	2	24.37
RSUs granted	90	26.10
RSUs outstanding, March 31, 2021	305	$	22.79
Expected to vest as of March 31, 2021	301	$	22.78

The weighted average grant date fair value of RSUs granted during the three months ended March 31, 2021 and 2020 was $26.10 and $21.11 per share, respectively. During the three months ended March 31, 2021 and 2020, GCP distributed 88,000 shares and 43,000 shares, respectively, to settle RSUs upon vesting. The fair value of RSUs vested during the three months ended March 31, 2021 and 2020 was $2.2 million and $0.9 million, respectively.

PBUs

PBUs are performance-based units which are granted by the Company either with or without market conditions and recorded at fair value on the grant date. The performance criteria for PBUs granted in 2021 includes the following metrics: (i) a 2-year cumulative free cash flow target metric for approximately 33.3% of awards; (ii) a 2-year cumulative adjusted earnings before interest, tax, depreciation and amortization metric for approximately 33.3% of awards; (iii) the Company’s 2-year total shareholder return (“TSR”) relative to the performance of the Russell 3000 Specialty Building Materials Index and the peer group approved by the Board’s Compensation Committee. The number of shares that ultimately vest, if any, is based on Company performance against these metrics, and can range from 0% to 200% of the target number of shares granted to employees. The awards will become vested, if at all, two years from the grant date once actual performance is certified by the Board's Compensation Committee. Vesting is also subject to the employees' continued employment through the vesting date.

The grant date fair value of PBUs without market conditions is determined based on the closing market price of the Company’s common stock on the date of grant. The grant date fair value of PBUs with market conditions based on relative TSR is determined using a Monte Carlo simulation.

The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
Assumptions used to calculate expense for PBUs:	2021	2020
Expected Term (Remaining Performance Period)	1.81	2.85
Expected volatility	51.48%	29.85%
Risk-free interest rate	0.14%	1.21%
Expected dividends	—	—
Median correlation coefficient of constituents	54.00%	54.01%

The following table sets forth the PBU activity for the three months ended March 31, 2021:

PBU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	343	$	28.10
PBU's forfeited	136	32.08
PBU's granted	80	27.29
Outstanding, March 31, 2021	287	$	25.96

The weighted average grant date fair value of PBUs granted during the three months ended March 31, 2021 and 2020 was $27.29 and $22.41 per share, respectively. GCP expects to settle in stock all future PBU vestings.

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Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share:

	Three Months Ended March 31,
(In millions, except per share amounts)	2021		2020
Numerators
Income from continuing operations attributable to GCP shareholders	$	1.5	$	2.0
Loss from discontinued operations, net of income taxes	—		(0.3)
Net income attributable to GCP shareholders	$	1.5	$	1.7
Denominators
Weighted average common shares—basic calculation	73.2		72.9
Dilutive effect of employee stock awards(2)	0.2		0.1
Weighted average common shares—diluted calculation	73.4		73.0
Basic earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02
Diluted earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02

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(1)Amounts may not sum due to rounding.

(2)Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

GCP uses the treasury stock method to compute diluted earnings (loss) per share. During each of the three months ended March 31, 2021 and 2020, 0.6 million of anti-dilutive stock awards were excluded from the computation of diluted earnings per share based on the treasury stock method as a result of income from continuing operations generated during the periods then ended.

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Related Party Transactions and Transactions with Grace

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions and Transactions with Grace

Related Party Transactions and Transactions with Grace

All contracts with related parties are at rates and terms that GCP believes are comparable with those that could be entered into with independent third parties. Subsequent to the Separation, transactions with Grace represent third-party transactions.    

Tax Sharing Agreement

In connection with the Separation, the Company and Grace entered into a Tax Sharing Agreement which governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, as well as other matters regarding taxes. In general, and subject to the terms of the Tax Sharing Agreement, GCP is responsible for all U.S. federal, state and foreign taxes including any related interest, penalties or audit adjustments reportable on a GCP separate return (a return that does not include Grace or any of its subsidiaries). Grace is responsible for all U.S. federal, state and foreign income taxes including any related interest, penalties or audit adjustments reportable on a consolidated, combined or unitary return that includes Grace or any of its subsidiaries and GCP or any of its subsidiaries up to the Separation date. As of March 31, 2021 and December 31, 2020, GCP has recorded $1.8 million of indemnified receivables in "Other assets" and $1.0 million of indemnified payables in "Other current liabilities" in the accompanying unaudited Consolidated Balance Sheets.

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Operating Segment and Geographic Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Operating Segment and Geographic Information

Operating Segment and Geographic Information

GCP is engaged in the production and sale of specialty construction chemicals and specialty building materials through two operating segments. Specialty Construction Chemicals ("SCC") operating segment provides products, services and technologies to the concrete and cement industries, including concrete add-mixtures and cement, as well as in-transit monitoring and management systems, which reduce the cost and improve the performance and quality of cement, concrete, mortar, masonry, and other cementitious-based construction materials. Specialty Building Materials ("SBM") operating segment manufactures and markets sheet and liquid membrane systems that protect structures from water, air and vapor penetration, as well as fireproofing and other products designed to protect the building envelope.

Operating Segment Data

The following table presents information related to GCP's operating segments:

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
Specialty Construction Chemicals	$	123.9	$	125.4
Specialty Building Materials	98.9		91.3
Total net sales	$	222.8	$	216.7
Segment Operating Income
Specialty Construction Chemicals segment operating income	$	6.1	$	8.5
Specialty Building Materials segment operating income	19.4		14.1
Total segment operating income	$	25.5	$	22.6

Reconciliation of Operating Segment Data to Financial Statements

Corporate expenses directly related to the operating segments are allocated to the segment's operating income. GCP excludes from the segments' operating income certain functional costs, certain impacts of foreign currency exchange, as well as certain corporate costs and other costs included in the table below. GCP also excludes from the segment's operating income certain ongoing defined benefit pension costs recognized during each reporting period, which include service and interest costs, the effect of expected returns on plan assets and amortization of prior service costs/credits. GCP believes that the exclusion of certain corporate costs and pension costs provides a better indicator of its operating segment performance since such costs are not managed at an operating segment level.

Total segment operating income for the three months ended March 31, 2021 and 2020 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations:

	Three Months Ended March 31,
(In millions)	2021		2020
Total segment operating income(1)	$	25.5	$	22.6
Corporate costs	(7.2)		(5.9)
Certain pension costs	(1.4)		(1.3)
Shareholder activism and other related costs(2)	—		(3.6)
Repositioning expenses	(1.3)		(2.7)
Restructuring expenses and asset write offs	(7.6)		(3.1)
Third-party and other acquisition-related costs	(0.1)		(0.5)
Net income attributable to noncontrolling interests	0.1		0.1
Interest expense, net	(5.4)		(5.1)
Income from continuing operations before income taxes	$	2.6	$	0.5

__________________________

(1)Certain amounts related to COVID-19 costs have been reclassified between segments' operating income and corporate expenses that do not get allocated directly to the segments. Such reclassifications have not materially affected previously reported amounts.

(2)Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of GCP shareholders seeking changes in the composition of the Company's Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, as well as other related matters.

Disaggregation of Total Net Sales

The Company disaggregates its revenue from contracts with customers by operating segments, which it believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Geographic Area Data

The table below presents information related to the geographic areas in which GCP operates.

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
United States	$	112.1	$	113.0
Canada and Other	6.0		6.2
Total North America	118.1		119.2
Europe Middle East Africa	44.6		44.3
Asia Pacific	46.7		40.3
Latin America	13.4		12.9
Total	$	222.8	$	216.7

Sales are attributed to geographic areas based on customer location. With the exception of the U.S. presented in the table above, there were no individually significant countries with sales exceeding 10% of total sales during the three months ended March 31, 2021 and 2020. There were no customers that individually accounted for 10% or more of the Company's accounts receivable balance as of March 31, 2021 and December 31, 2020.

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Revisions of Previously Issued Consolidated Financial Statements

3 Months Ended

Mar. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Revisions of Previously Issued Consolidated Financial Statements

Revisions of Previously Issued Consolidated Financial Statements

As described in Note 1, “Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies,” the following tables set forth the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020.

GCP Applied Technologies Inc.

Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31, 2020
(In millions, except per share amounts)	As Previously Reported		Adjustments		As Revised
Net sales	$	216.7	$	—	$	216.7
Cost of goods sold	134.8		(0.9)		133.9
Gross profit	81.9		0.9		82.8
Selling, general and administrative expenses	68.1		—		68.1
Research and development expenses	4.9		—		4.9
Interest expense and related financing costs	5.7		—		5.7
Repositioning expenses	2.7		—		2.7
Restructuring expenses and asset write offs	3.1		—		3.1
Other income, net	(2.2)		—		(2.2)
Total costs and expenses	82.3		—		82.3
Loss (income) from continuing operations before income taxes	(0.4)		0.9		0.5
Benefit from income taxes	1.9		(0.3)		1.6
Income from continuing operations	1.5		0.6		2.1
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income	1.2		0.6		1.8
Less: Net income attributable to noncontrolling interests	(0.1)		—		(0.1)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders	1.4		$	0.6	$	2.0
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Earnings (Loss) Per Share Attributable to GCP Shareholders
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of basic shares	72.9		—		72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of diluted shares	73.0		—		73.0

GCP Applied Technologies Inc.

Consolidated Statements of Comprehensive Loss (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
Net income	$	1.2	$	0.6	$	1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	0.1		—		0.1
Currency translation adjustments, net of income taxes	(33.8)		—		(33.8)
Gain from hedging activities, net of income taxes	0.2		—		0.2
Total other comprehensive loss	(33.5)		—		(33.5)
Comprehensive loss	(32.3)		0.6		(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)		—		(0.1)
Comprehensive loss attributable to GCP shareholders	$	(32.4)	$	0.6	$	(31.8)

GCP Applied Technologies Inc.

Consolidated Statements of Stockholders' Equity (unaudited)

(In millions)	As Previously Reported		Adjustments		As Revised
Total Stockholders' Equity:
Balance, December 31, 2019	$	541.1	$	(0.1)	$	541.0
Net income	1.2		0.6		1.8
Share-based compensation	0.5		—		0.5
Exercise of stock options	0.4		—		0.4
Share repurchases	(0.3)		—		(0.3)
Other comprehensive loss	(33.5)		—		(33.5)
Balance, March 31, 2020	$	509.4	$	0.5	$	509.9

GCP Applied Technologies Inc.

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
OPERATING ACTIVITIES
Net income	$	1.2	$	0.6	$	1.8
Less: Loss from discontinued operations	(0.3)		—		(0.3)
Income from continuing operations	1.5		0.6		2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.0		—		11.0
Amortization of debt discount and financing costs	0.4		—		0.4
Stock-based compensation expense	0.8		—		0.8
Unrealized loss on foreign currency	0.5		—		0.5
Deferred income taxes	(5.2)		0.3		(4.9)
Loss on disposal of property and equipment	(0.1)		—		(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	17.4		—		17.4
Inventories	(11.4)		—		(11.4)
Accounts payable	6.6		—		6.6
Pension assets and liabilities, net	1.0		—		1.0
Other assets and liabilities, net	(8.5)		(0.6)		(9.1)
Net cash provided by operating activities from continuing operations	14.0		0.3		14.3
Net cash used in operating activities from discontinued operations	(0.9)		—		(0.9)
Net cash provided by operating activities	13.1		0.3		13.4
INVESTING ACTIVITIES
Capital expenditures	(8.9)		(0.3)		(9.2)
Other investing activities	0.4		—		0.4
Net cash used in investing activities	(8.5)		(0.3)		(8.8)
FINANCING ACTIVITIES
Payments on finance lease obligations	(0.2)		—		(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.3)		—		(0.3)
Proceeds from exercise of stock options	0.4		—		0.4
Net cash used in financing activities from continuing operations	(0.1)		—		(0.1)
Effect of currency exchange rate changes on cash and cash equivalents	(9.3)		—		(9.3)
Decrease in cash and cash equivalents	(4.8)		—		(4.8)
Cash and cash equivalents, beginning of period	325.0		—		325.0
Cash and cash equivalents, end of period	$	320.2	$	—	$	320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable	$	5.5	$	—	$	5.5

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Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements are presented on a consolidated basis and include all of the accounts and operations of GCP and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The financial statements reflect the financial position, results of operations and cash flows of GCP in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information.

The interim financial statements presented herein are unaudited and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in GCP's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K"). The Consolidated Balance Sheet as of December 31, 2020 was derived from the audited annual consolidated financial statements as of the period then ended. Certain information and footnote disclosures typically included in GCP's annual consolidated financial statements have been condensed or omitted. The unaudited financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations for the year ending December 31, 2021.

Revisions of Previously Issued Consolidated Financial Statements

Revisions of Previously Issued Consolidated Financial Statements

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified freight expense accrual and other errors in its previously filed unaudited quarterly consolidated financial statements for the first three quarterly periods of 2020.

The Company considered the guidance in ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, (“ASC 250-10-S99-2”) in evaluating whether the Company’s previously issued unaudited consolidated financial statements were materially misstated. The Company concluded the errors were not material individually or in the aggregate to the previously issued consolidated financial statements. In accordance with ASC 250-10-S99-2, the Company has corrected these errors by revising previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020 in connection with the filing of this Form 10-Q.

The accompanying footnotes have been corrected to reflect the impact of the revisions of the previously filed unaudited quarterly consolidated financial statements as of and for the three months ended March 31, 2020. Please refer to Note 18, “Revisions of Previously Issued Consolidated Financial Statements” for reconciliations between as previously reported and as revised quarterly amounts, respectively.

Use of Estimates

Use of Estimates    

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. GCP's accounting measurements that are most affected by management's estimates of future events are disclosed in its 2020 Annual Report on Form 10-K. Actual results could differ from those estimates.

On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus ("COVID-19") a global pandemic and recommended a number of restrictive measures to contain the spread. Many governments in the regions where GCP generates the majority of its revenue have adopted such policies. GCP has been closely monitoring the impact of COVID-19 and working to manage the effects on its business globally. Despite progress in vaccination efforts, it is difficult to estimate with reasonable certainty at this time the duration and extent of the impact of the pandemic on the global economy, the Company's business, financial position and results of operations. GCP has made certain estimates within its financial statements related to the impact of COVID-19, including allowances for credit losses related to the estimated amount of receivables not expected to be collected and excess, obsolete or damaged inventories, future expected cash flows related to impairment assessments of goodwill and long-lived assets, incentive compensation accruals, contingent liabilities, and sales allowances related to volume rebates recognized based on anticipated sales volume. There may be changes to the Company's estimates in future periods due to uncertainty associated with the impact of COVID-19, the extent of which will depend largely on future developments, including new information which may emerge concerning the resurgence of the pandemic, as well as additional and unanticipated actions by government authorities to further contain the spread of COVID-19, which may result in extended ongoing business disruptions.

Income Tax

Income Tax    As a global enterprise, GCP is subject to a complex array of tax regulations and needs to make assessments of applicable tax law and judgments in estimating its ultimate income tax liability. Income tax expense and income tax balances represent GCP’s federal, state and foreign income taxes as an independent company. GCP files a U.S. consolidated income tax return, along with foreign and state corporate income tax filings, as required. Please refer to Note 7, "Income Taxes," for details regarding estimates used in accounting for income tax matters, including unrecognized tax benefits.

Reclassifications

Reclassifications    Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications have not materially affected previously reported amounts.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. GCP adopted the guidance effective January 1, 2021. The adoption did not have a material impact on its results of operations, financial position and cash flows.

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Inventories, net (Tables)

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

The following is a summary of inventories presented in the accompanying unaudited Consolidated Balance Sheets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Raw materials	$	50.6	$	41.3
In process	4.4		4.2
Finished products and other	62.1		52.9
Total inventories, net	$	117.1	$	98.4

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Net Investment Hedges in Balance Sheets

The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Derivative assets(1):
Foreign exchange forward contracts	$	0.8	$	—
Derivative liability(1):
Foreign exchange forward contracts	$	(0.6)	$	(1.8)

__________________________

(1)The fair value of derivative instruments is measured based on expected future cash flows discounted at market interest rates using observable market inputs and classified as Level 2 within the fair value hierarchy. As of March 31, 2021, fair value of derivative assets of $0.2 million and $0.6 million, respectively, is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets, and fair value of derivative liability of $0.6 million is recorded within "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets. As of December 31, 2020, fair value of derivative liabilities of $0.4 million and $1.4 million, respectively, is recorded within "Other Current Liabilities" and "Other Liabilities" in the accompanying unaudited Consolidated Balance Sheets.

Net Investment Hedges in Consolidated Statements of Operations and Comprehensive Loss

The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss related to forward contracts designated as net investment hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
(In millions)	Other Income, net		Cumulative Translation Adjustments(1)		Other Income, net		Cumulative Translation Adjustments(1)
Gain on foreign exchange forward contracts	$	0.2	$	1.4	$	0.3	$	1.3

_______________________

(1)The amounts are presented net of tax expense of $0.4 million during each of the three months ended March 31, 2021 and 2020.

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Debt and Other Borrowings (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Components of Debt and Other Borrowings

The following is a summary of obligations under senior notes and other borrowings at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021			December 31, 2020
5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $3.2 million and $3.3 million, respectively, at March 31, 2021 and December 31, 2020	$	346.8		$	346.6
Revolving credit facility due 2023(1)	—			—
Other borrowings(2)	4.6			5.1
Total debt	351.4			351.7
Less: debt payable within one year	2.4			2.8
Debt payable after one year	$	349.0		$	348.9
Weighted average interest rates on total debt obligations	5.5		%	5.5		%

__________________________

(1)Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of March 31, 2021 and December 31, 2020.

(2)Represents borrowings of $1.7 million and $2.1 million, respectively, at March 31, 2021 and December 31, 2020, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $2.9 million and $3.0 million, respectively, of finance lease obligations.

Principal Maturities of Debt and Finance Lease Obligations Outstanding

The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at March 31, 2021:

(In millions)	Amount
Remainder of 2021	$	2.3
2022	0.8
2023	0.7
2024	0.7
2025	0.1
Thereafter	346.8
Total debt	$	351.4

Carrying Amounts and Fair Values of Debt Instruments

The carrying amount and fair value of GCP's debt and other borrowings were as follows:

	March 31, 2021				December 31, 2020
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
5.5% Senior Notes due in 2026	$	346.8	$	360.1	$	346.6	$	362.0
Other borrowings	4.6		4.6		5.1		5.1
Total debt	$	351.4	$	364.7	$	351.7	$	367.1

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Lessee Arrangements (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease Expense

The following table summarizes components of lease expense for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Operating lease expense	$	4.3	$	3.2
Variable lease expense	1.0		1.1
Short-term lease expense	0.6		0.6
Total lease expense	$	5.9	$	4.9

The following table summarizes supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.6	$	3.2
Operating lease right of use assets obtained in exchange for new lease obligations	1.4		7.7

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Pension Plans and Other Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2021

Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]

Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans

The following table presents the funded status of GCP's overfunded, underfunded and unfunded defined pension plans:

(In millions)	March 31, 2021		December 31, 2020
Overfunded defined benefit pension plans	$	30.0	$	29.7
Underfunded defined benefit pension plans	(34.2)		(33.3)
Unfunded defined benefit pension plans	(28.8)		(29.6)
Total underfunded and unfunded defined benefit pension plans	(63.0)		(62.9)
Pension liabilities included in other current liabilities	(1.4)		(1.4)
Net funded status	$	(34.4)	$	(34.6)

Components of Net Periodic Benefit Cost (Income)

Components of Net Periodic Benefit Cost

The components of GCP's net periodic benefit cost for the three months ended March 31, 2021 and 2020 are as follows:

	Three Months Ended March 31,
	2021						2020
	Pension						Pension
(In millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
Service cost	$	1.5	$	0.3	$	1.8	$	1.5	$	0.2	$	1.7
Interest cost	1.2		0.7		1.9		1.3		1.1		2.4
Expected return on plan assets	(1.5)		(0.8)		(2.3)		(1.6)		(1.2)		(2.8)
Net periodic benefit cost (1)	$	1.2	$	0.2	$	1.4	$	1.2	$	0.1	$	1.3

________________________________

(1)Service cost component of net periodic benefit cost is included in "Selling, general and administrative expenses" and "Cost of goods sold" in the accompanying unaudited Consolidated Statements of Operations. All other components of net periodic benefit costs are presented in "Other income, net," within the accompanying unaudited Consolidated Statements of Operations.

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Other Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Current Assets

The following is a summary of other current assets at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Assets:
Non-trade receivables	$	19.2	$	20.4
Prepaid expenses and other current assets	15.6		11.1
Income taxes receivable	9.1		9.7
Total other current assets	$	43.9	$	41.2

Schedule of Other Current Liabilities

The following is a summary of other current liabilities at March 31, 2021 and December 31, 2020:

(In millions)	March 31, 2021		December 31, 2020
Other Current Liabilities:
Accrued customer volume rebates	$	15.2	$	24.4
Accrued compensation(1)	18.3		25.0
Income taxes payable	6.7		7.1
Accrued interest	8.8		4.0
Pension liabilities	1.4		1.4
Restructuring liability	16.7		18.0
Other accrued liabilities	46.3		45.9
Total other current liabilities	$	113.4	$	125.8

________________________________

(1)Accrued compensation presented in the table above includes salaries and wages, as well as estimated amounts due under the annual employee incentive programs.

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Restructuring and Repositioning Expenses, Asset Write Offs (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Expenses

The following table illustrates a summary of the charges incurred and planned in connection with restructuring and repositioning plans discussed above:

(In millions)	Severance/employee costs	Asset Write Offs	Other Associated Costs	Total Restructuring	Repositioning	Total Costs	Capital Expenditures
2019 Plan: (1)
Cumulative Costs incurred to Date	$0.9	$0.9	$0.3	$2.1	$10.5	$12.6	$2.2
2019 Phase 2 Plan: (2)
Cumulative Costs incurred to Date	$26.0	$0.5	$—	$26.5	$7.3	$33.8	$0.4
2021 Plan: (3)
Estimated Total Costs	$11-13	$8-9	$5	$24-27	$2	$26-29	$6
Cumulative Costs incurred to Date	$4.3	$2.1	$0.2	$6.6	$—	$6.6	$—

(1)As of March 31, 2021, the cumulative restructuring costs incurred under the 2019 Plan since its inception were $2.1 million, of which $1.7 million was related to the SCC segment and $0.4 million was related to the SBM segment.

(2)As of March 31, 2021, the cumulative restructuring costs recognized under the 2019 Phase 2 Plan since its inception were $26.5 million, of which $7.1 million was attributable to the SCC segment, $7.0 million was attributable to the SBM segment, and $12.4 million was attributable to the Corporate function.

(3)As of March 31, 2021, the cumulative restructuring costs incurred under the 2021 Plan since its inception were $6.6 million, of which $2.6 million was related to the SCC segment, $1.7 million was related to the SBM segment, and $2.3 million was attributable to the Corporate function.

The following tables represent the repositioning expenses incurred and cash payments made under the plans discussed above and other plans during each period:

	Three Months Ended March 31, 2021
(In millions)		2019 Plan		2019 Plan Phase 2		Total
Repositioning Expenses		$	—	$	1.3	$	1.3
Cash Paid for Repositioning Expenses		—		1.4		1.4
Capital Expenditures		0.1		—		0.1
Cash Paid for Capital Expenditures		0.1		—		0.1

	Three Months Ended March 31, 2020
(In millions)	2019 Plan		2019 Plan Phase 2		Strategic Alternatives Plan		2018 Plan		2017 Plan		Total
Repositioning Expenses	$	1.4	$	1.2	$	—	$	—	$	0.1	$	2.7
Cash Paid for Repositioning Expenses	3.3		1.5		0.2		—		—		5.0
Capital Expenditures	0.4		0.1		—		0.3		0.2		1.0
Cash Paid for Capital Expenditures	0.3		0.1		—		0.1		0.6		1.1

	As of March 31, 2021
(In millions)	2019 Plan		2019 Plan Phase 2
Cumulative Repositioning Expenses	$	10.5	$	7.3
Cumulative Cash Paid for Repositioning Expenses	10.5		6.5
Cumulative Capital Expenditure	2.2		0.4
Cumulative Cash Paid for Capital Expenditures	2.1		0.4

The following restructuring expenses and asset write offs were incurred under the plans discussed above and other plans during each period:

	Three Months Ended March 31,
(In millions)	2021		2020
Severance and other employee costs	$	5.2	$	1.9
Asset write offs	2.2		1.0
Other associated costs	0.2		0.2
Total restructuring expenses and asset write offs	$	7.6	$	3.1

GCP incurred restructuring expenses and asset write offs related to its two operating segments and Corporate function as follows:

	Three Months Ended March 31,
(In millions)	2021		2020
SCC	$	2.9	$	2.3
SBM	1.8		0.8
Corporate	2.9		—
Total restructuring expenses and asset write offs	$	7.6	$	3.1

Schedule of Restructuring Liability

The following table summarizes the Company’s restructuring liability activity:

	2021 Plan		2019 Plan				2019 Phase 2 Plan		2018 Plan
(In millions)	Severance and other employee costs		Severance and other employee costs		Other Costs		Severance and other employee costs		Severance and other employee costs		Total
Balance, December 31, 2020	$	—	$	0.1	$	0.1	$	17.3	$	0.5	$	18.0
Expense(1)(2)	4.5		—		—		0.2		—		$	4.7
Payments	(0.2)		—		—		(5.7)		—		$	(5.9)
Impact of foreign currency and other	—		—		—		(0.1)		—		$	(0.1)
Balance, March 31, 2021	$	4.3	$	0.1	$	0.1	$	11.7	$	0.5	$	16.7

________________________________

(1)Asset write offs of $2.1 million attributable to the Corporate function during the three months ended March 31, 2021 are related to the 2021 Plan. Additionally, GCP incurred $0.1 million of asset write offs attributable to the SCC segment as a part of the 2019 Plan and 2019 Phase 2 Plan during the three months ended March 31, 2021. These asset write offs are recorded with a corresponding reduction to "Properties and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. These expenses are not recorded with a corresponding adjustment to the restructuring liability and therefore, are not included in the table above.

(2)Stock-based compensation expense of $0.7 million related to accelerated vesting of stock options RSUs and PBUs during the three months ended March 31, 2021 is attributable to Corporate function under the 2019 Phase 2 Plan. Such expense is not recognized as a corresponding adjustment to the restructuring liability and therefore, is not included in the table above.

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Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of Pre-tax, Tax, and After-tax Components of Other Comprehensive Loss

The following tables present the pre-tax, tax benefit (expense), and after-tax components of GCP's other comprehensive loss for the three months ended March 31, 2021 and 2020:

	Three Months Ended  March 31, 2021
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Currency translation adjustments (1)	$	(7.6)	$	(0.4)	$	(8.0)
Other comprehensive loss attributable to GCP shareholders	$	(7.6)	$	(0.4)	$	(8.0)

	Three Months Ended March 31, 2020
(In millions)	Pre-Tax Amount		Tax Expense		After-Tax Amount
Defined benefit pension and other postretirement plans	$	0.1	$	—	$	0.1
Currency translation adjustments(1)	(33.4)		(0.4)		(33.8)
Gain from hedging activities	0.2		—		0.2
Other comprehensive loss attributable to GCP shareholders	$	(33.1)	$	(0.4)	$	(33.5)

_____________________

(1)Currency translation adjustments related to the net investment hedge are presented net of income taxes, as discussed in Note 4, "Derivative Instruments."

Schedule of Changes of Accumulated Other Comprehensive Loss, Net of Tax

The following tables present the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020:

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Total
Balance, December 31, 2020	$	(3.1)	$	(107.4)	$	(110.5)
Current-period other comprehensive loss	—		(8.0)		(8.0)
Balance, March 31, 2021	$	(3.1)	$	(115.4)	$	(118.5)

(In millions)	Defined Benefit Pension and Other Postretirement Plans		Currency Translation Adjustments		Hedging Activities		Total
Balance, December 31, 2019	$	(2.7)	$	(114.2)	$	(0.1)	$	(117.0)
Current period other comprehensive loss	0.1		(33.8)		0.2		(33.5)
Balance, March 31, 2020	$	(2.6)	$	(148.0)	$	0.1	$	(150.5)

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Stock Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of Restricted Stock Units Award Activity

The following table sets forth the RSU activity for the three months ended March 31, 2021:

RSU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	305	$	22.14
RSUs settled	88	23.97
RSUs forfeited	2	24.37
RSUs granted	90	26.10
RSUs outstanding, March 31, 2021	305	$	22.79
Expected to vest as of March 31, 2021	301	$	22.78

Schedule of Assumptions for Estimating the Fair Value of PBUs

The following table summarizes the assumptions used in the Monte Carlo simulations for estimating the grant date fair values of PBUs granted during the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
Assumptions used to calculate expense for PBUs:	2021	2020
Expected Term (Remaining Performance Period)	1.81	2.85
Expected volatility	51.48%	29.85%
Risk-free interest rate	0.14%	1.21%
Expected dividends	—	—
Median correlation coefficient of constituents	54.00%	54.01%

Summary of Performance-Based Units Activity

The following table sets forth the PBU activity for the three months ended March 31, 2021:

PBU Activity	Number Of Shares (in thousands)	Weighted Average Grant Date Fair Value
Outstanding, December 31, 2020	343	$	28.10
PBU's forfeited	136	32.08
PBU's granted	80	27.29
Outstanding, March 31, 2021	287	$	25.96

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of the Numerators and Denominators Used in Calculating Basic and Diluted Earnings Per Share

The following table sets forth a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share:

	Three Months Ended March 31,
(In millions, except per share amounts)	2021		2020
Numerators
Income from continuing operations attributable to GCP shareholders	$	1.5	$	2.0
Loss from discontinued operations, net of income taxes	—		(0.3)
Net income attributable to GCP shareholders	$	1.5	$	1.7
Denominators
Weighted average common shares—basic calculation	73.2		72.9
Dilutive effect of employee stock awards(2)	0.2		0.1
Weighted average common shares—diluted calculation	73.4		73.0
Basic earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02
Diluted earnings (loss) per share:(2)
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—
Net income attributable to GCP shareholders(1)	$	0.02	$	0.02

________________________________

(1)Amounts may not sum due to rounding.

(2)Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

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Operating Segment and Geographic Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Operating Segment Data

The following table presents information related to GCP's operating segments:

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
Specialty Construction Chemicals	$	123.9	$	125.4
Specialty Building Materials	98.9		91.3
Total net sales	$	222.8	$	216.7
Segment Operating Income
Specialty Construction Chemicals segment operating income	$	6.1	$	8.5
Specialty Building Materials segment operating income	19.4		14.1
Total segment operating income	$	25.5	$	22.6

Reconciliation of Operating Segment Data to Financial Statements

Total segment operating income for the three months ended March 31, 2021 and 2020 is reconciled below to "Income from continuing operations before income taxes" presented in the accompanying unaudited Consolidated Statements of Operations:

	Three Months Ended March 31,
(In millions)	2021		2020
Total segment operating income(1)	$	25.5	$	22.6
Corporate costs	(7.2)		(5.9)
Certain pension costs	(1.4)		(1.3)
Shareholder activism and other related costs(2)	—		(3.6)
Repositioning expenses	(1.3)		(2.7)
Restructuring expenses and asset write offs	(7.6)		(3.1)
Third-party and other acquisition-related costs	(0.1)		(0.5)
Net income attributable to noncontrolling interests	0.1		0.1
Interest expense, net	(5.4)		(5.1)
Income from continuing operations before income taxes	$	2.6	$	0.5

__________________________

(1)Certain amounts related to COVID-19 costs have been reclassified between segments' operating income and corporate expenses that do not get allocated directly to the segments. Such reclassifications have not materially affected previously reported amounts.

(2)Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of GCP shareholders seeking changes in the composition of the Company's Board of Directors and nomination of candidates to stand for election at the 2020 Annual Shareholders' Meeting, as well as other related matters.

Net Sales by Geographic Area

The table below presents information related to the geographic areas in which GCP operates.

	Three Months Ended March 31,
(In millions)	2021		2020
Net Sales
United States	$	112.1	$	113.0
Canada and Other	6.0		6.2
Total North America	118.1		119.2
Europe Middle East Africa	44.6		44.3
Asia Pacific	46.7		40.3
Latin America	13.4		12.9
Total	$	222.8	$	216.7

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Revisions of Previously Issued Consolidated Financial Statements (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

GCP Applied Technologies Inc.

Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31, 2020
(In millions, except per share amounts)	As Previously Reported		Adjustments		As Revised
Net sales	$	216.7	$	—	$	216.7
Cost of goods sold	134.8		(0.9)		133.9
Gross profit	81.9		0.9		82.8
Selling, general and administrative expenses	68.1		—		68.1
Research and development expenses	4.9		—		4.9
Interest expense and related financing costs	5.7		—		5.7
Repositioning expenses	2.7		—		2.7
Restructuring expenses and asset write offs	3.1		—		3.1
Other income, net	(2.2)		—		(2.2)
Total costs and expenses	82.3		—		82.3
Loss (income) from continuing operations before income taxes	(0.4)		0.9		0.5
Benefit from income taxes	1.9		(0.3)		1.6
Income from continuing operations	1.5		0.6		2.1
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income	1.2		0.6		1.8
Less: Net income attributable to noncontrolling interests	(0.1)		—		(0.1)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders	1.4		$	0.6	$	2.0
Loss from discontinued operations, net of income taxes	(0.3)		—		(0.3)
Net income attributable to GCP shareholders	$	1.1	$	0.6	$	1.7
Earnings (Loss) Per Share Attributable to GCP Shareholders
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of basic shares	72.9		—		72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders	$	0.02	$	0.01	$	0.03
Loss from discontinued operations, net of income taxes	$	—	$	—	$	—
Net income attributable to GCP shareholders	$	0.02	$	—	$	0.02
Weighted average number of diluted shares	73.0		—		73.0

GCP Applied Technologies Inc.

Consolidated Statements of Comprehensive Loss (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
Net income	$	1.2	$	0.6	$	1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	0.1		—		0.1
Currency translation adjustments, net of income taxes	(33.8)		—		(33.8)
Gain from hedging activities, net of income taxes	0.2		—		0.2
Total other comprehensive loss	(33.5)		—		(33.5)
Comprehensive loss	(32.3)		0.6		(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)		—		(0.1)
Comprehensive loss attributable to GCP shareholders	$	(32.4)	$	0.6	$	(31.8)

GCP Applied Technologies Inc.

Consolidated Statements of Stockholders' Equity (unaudited)

(In millions)	As Previously Reported		Adjustments		As Revised
Total Stockholders' Equity:
Balance, December 31, 2019	$	541.1	$	(0.1)	$	541.0
Net income	1.2		0.6		1.8
Share-based compensation	0.5		—		0.5
Exercise of stock options	0.4		—		0.4
Share repurchases	(0.3)		—		(0.3)
Other comprehensive loss	(33.5)		—		(33.5)
Balance, March 31, 2020	$	509.4	$	0.5	$	509.9

GCP Applied Technologies Inc.

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31, 2020
(In millions)	As Previously Reported		Adjustments		As Revised
OPERATING ACTIVITIES
Net income	$	1.2	$	0.6	$	1.8
Less: Loss from discontinued operations	(0.3)		—		(0.3)
Income from continuing operations	1.5		0.6		2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.0		—		11.0
Amortization of debt discount and financing costs	0.4		—		0.4
Stock-based compensation expense	0.8		—		0.8
Unrealized loss on foreign currency	0.5		—		0.5
Deferred income taxes	(5.2)		0.3		(4.9)
Loss on disposal of property and equipment	(0.1)		—		(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	17.4		—		17.4
Inventories	(11.4)		—		(11.4)
Accounts payable	6.6		—		6.6
Pension assets and liabilities, net	1.0		—		1.0
Other assets and liabilities, net	(8.5)		(0.6)		(9.1)
Net cash provided by operating activities from continuing operations	14.0		0.3		14.3
Net cash used in operating activities from discontinued operations	(0.9)		—		(0.9)
Net cash provided by operating activities	13.1		0.3		13.4
INVESTING ACTIVITIES
Capital expenditures	(8.9)		(0.3)		(9.2)
Other investing activities	0.4		—		0.4
Net cash used in investing activities	(8.5)		(0.3)		(8.8)
FINANCING ACTIVITIES
Payments on finance lease obligations	(0.2)		—		(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.3)		—		(0.3)
Proceeds from exercise of stock options	0.4		—		0.4
Net cash used in financing activities from continuing operations	(0.1)		—		(0.1)
Effect of currency exchange rate changes on cash and cash equivalents	(9.3)		—		(9.3)
Decrease in cash and cash equivalents	(4.8)		—		(4.8)
Cash and cash equivalents, beginning of period	325.0		—		325.0
Cash and cash equivalents, end of period	$	320.2	$	—	$	320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable	$	5.5	$	—	$	5.5

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Basis of Presentation and Summary of Significant Accounting and Financial Reporting Policies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 segment	Jul. 03, 2017 USD ($)
Class of Stock [Line Items]
Number of operating segments | segment	2
Disposed of by Sale | Darex
Class of Stock [Line Items]
Consideration received | $		$ 1,060

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Revenue from Lessor Arrangements and Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net sales	$ 222.8	$ 216.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue, remaining performance obligation	$ 9.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction	5 years
VERIFI Sales Arrangements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Operating lease income	$ 9.4	8.8
Service revenue	2.0	$ 1.4
Net sales	$ 6.1

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Inventories, net (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventory [Line Items]
Raw materials	$ 50.6	$ 41.3
In process	4.4	4.2
Finished products and other	62.1	52.9
Total inventories, net	117.1	98.4
Finished Products Purchased
Inventory [Line Items]
Finished products and other	$ 10.0	$ 9.1

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Derivative Instruments - Narrative (Details) € in Millions	Mar. 31, 2021 EUR (€) derivative_instrument
Foreign exchange forward contracts
Derivative [Line Items]
Number of derivative instruments | derivative_instrument	4
Aggregate notional amount	€ 40.0
Forward contract maturing 2021
Derivative [Line Items]
Aggregate notional amount	10.0
Forward contract maturing 2022
Derivative [Line Items]
Aggregate notional amount	10.0
Forward contract maturing 2023
Derivative [Line Items]
Aggregate notional amount	10.0
Forward contract maturing 2024
Derivative [Line Items]
Aggregate notional amount	€ 10.0

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Derivative Instruments - Net Investment Hedges in Balance Sheets (Details) - Foreign exchange forward contracts - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Derivative asset	$ 0.8	$ 0.0
Derivative liability	(0.6)	(1.8)
Derivative assets, current	0.2
Derivative assets, noncurrent	$ 0.6
Derivative liability, current		0.4
Derivative liability, noncurrent		$ 1.4

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Derivative Instruments - Net Investment Hedges in Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative [Line Items]
Gain on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit	$ (8.0)	$ (33.8)
Foreign exchange forward contracts
Derivative [Line Items]
Gain on foreign exchange forward contracts - other income, net	0.2	0.3
Gain on foreign exchange forward contracts - cumulative translation adjustments, net of tax benefit	1.4	1.3
Gain on foreign exchange forward contracts - cumulative translation adjustments, tax (benefit) expense	$ 0.4	$ 0.4

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Debt and Other Borrowings - Components of Debt (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total debt	$ 351,400,000	$ 351,700,000
Less: debt payable within one year	2,400,000	2,800,000
Debt payable after one year	$ 349,000,000.0	$ 348,900,000
Weighted average interest rates on total debt obligations	5.50%	5.50%
Finance lease obligations	$ 2,900,000	$ 3,000,000.0
Senior notes | 5.5% Senior notes due in 2026
Debt Instrument [Line Items]
Total debt	346,800,000	346,600,000
Revolving credit facility due 2023 | Revolving credit facility
Debt Instrument [Line Items]
Total debt	0	0
Aggregate available principal amount	350,000,000.0	350,000,000.0
Other borrowings
Debt Instrument [Line Items]
Total debt	4,600,000	5,100,000
Lines of credit and other borrowings
Debt Instrument [Line Items]
Total debt	$ 1,700,000	$ 2,100,000

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Debt and Other Borrowings - Principal Maturities of Debt Outstanding (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Remainder of 2021	$ 2.3
2022	0.8
2023	0.7
2024	0.7
2025	0.1
Thereafter	346.8
Total debt	$ 351.4	$ 351.7

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Debt and Other Borrowings - Narrative (Details) - USD ($)		3 Months Ended
	Apr. 15, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Senior Notes | 5.5% Senior Notes due in 2026
Debt Instrument [Line Items]
Stated interest rate		5.50%
Aggregate principal amount		$ 350,000,000.0
Unamortized debt issuance cost		3,200,000		$ 3,300,000
Senior Notes | 5.5% Senior Notes due in 2026 | Subsequent Event
Debt Instrument [Line Items]
Interest payment	$ 9,600,000
Line of Credit
Debt Instrument [Line Items]
Available credit		347,400,000		347,400,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings		0		0
Interest payments		0	$ 0
Unamortized debt issuance cost		1,900,000		2,200,000
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Outstanding borrowings		$ 2,600,000		$ 2,600,000

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Debt and Other Borrowings - Carrying Amounts and Fair Values of Debt Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
5.5% Senior Notes due in 2026 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate	5.50%
Carrying Amount
Debt Instrument [Line Items]
Long-term debt, fair value	$ 351.4	$ 351.7
Carrying Amount | Other borrowings
Debt Instrument [Line Items]
Long-term debt, fair value	4.6	5.1
Carrying Amount | 5.5% Senior Notes due in 2026 | Senior Notes
Debt Instrument [Line Items]
Long-term debt, fair value	346.8	346.6
Fair Value
Debt Instrument [Line Items]
Long-term debt, fair value	364.7	367.1
Fair Value | Other borrowings
Debt Instrument [Line Items]
Long-term debt, fair value	4.6	5.1
Fair Value | 5.5% Senior Notes due in 2026 | Senior Notes
Debt Instrument [Line Items]
Long-term debt, fair value	$ 360.1	$ 362.0

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Lessee Arrangements - Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease expense	$ 4.3	$ 3.2
Variable lease expense	1.0	1.1
Short-term lease expense	0.6	0.6
Total lease expense	$ 5.9	$ 4.9

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Lessee Arrangements - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jul. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2.6	$ 3.2
Operating lease right of use assets obtained in exchange for new lease obligations	1.4	$ 7.7
Operating lease right-of-use assets	$ 37.7		$ 40.0
IQHQ, L.P
Cash paid for amounts included in the measurement of lease liabilities:
Lease term				18 months
Operating lease right-of-use assets				$ 8.6

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Benefit from income taxes	$ 1.0	$ (1.6)
Effective tax rate	38.50%	(320.00%)
Transition Tax, tax benefit from the release of an uncertain tax position	$ 0.3
Income tax benefit, before CARES Act impacts		$ 2.8
Tax expense on unrecognized tax benefits		0.4
Valuation allowance expense (benefit)		$ 0.6

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Pension Plans and Other Postretirement Benefit Plans - Net Funded Status of Over-Funded, Underfunded, and Unfunded Pension Plans (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Pension plans and other postretirement benefit plans
Overfunded defined benefit pension plans	$ 30.0	$ 29.7
Underfunded and unfunded defined benefit pension plans	(63.0)	(62.9)
Pension Plans
Pension plans and other postretirement benefit plans
Overfunded defined benefit pension plans	30.0	29.7
Underfunded and unfunded defined benefit pension plans	(63.0)	(62.9)
Pension liabilities included in other current liabilities	(1.4)	(1.4)
Net funded status	(34.4)	(34.6)
Underfunded defined benefit pension plans | Pension Plans
Pension plans and other postretirement benefit plans
Underfunded and unfunded defined benefit pension plans	(34.2)	(33.3)
Unfunded defined benefit pension plans | Pension Plans
Pension plans and other postretirement benefit plans
Underfunded and unfunded defined benefit pension plans	$ (28.8)	$ (29.6)

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Pension Plans and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 1.8	$ 1.7
Interest cost	1.9	2.4
Expected return on plan assets	(2.3)	(2.8)
Net periodic benefit cost	1.4	1.3
U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	1.5	1.5
Interest cost	1.2	1.3
Expected return on plan assets	(1.5)	(1.6)
Net periodic benefit cost	1.2	1.2
Non-U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	0.3	0.2
Interest cost	0.7	1.1
Expected return on plan assets	(0.8)	(1.2)
Net periodic benefit cost	$ 0.2	$ 0.1

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Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 01, 2018	Mar. 31, 2021	Mar. 31, 2020
Pension plans and other postretirement benefit plans
Defined contribution plan, percentage that the employer contributes of employee contributions under 401(k) plan		100.00%
Defined contribution plan, maximum percentage of employee compensation match by employer to defined contribution plan		6.00%
Defined contribution plan, additional maximum percentage of employee compensation match by employer to defined contribution plan	2.00%
Defined contribution plan, vesting requirement	3 years
Defined contribution plan, costs		$ 1.0	$ 1.3
Pension Plans | United States
Pension plans and other postretirement benefit plans
Employer contributions		0.2	0.1
Pension Plans | Non-U.S.
Pension plans and other postretirement benefit plans
Employer contributions		$ 0.2	$ 0.5

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Other Balance Sheet Information - Other Current Assets (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Other Current Assets:
Non-trade receivables	$ 19.2	$ 20.4
Prepaid expenses and other current assets	15.6	11.1
Income taxes receivable	9.1	9.7
Total other current assets	$ 43.9	$ 41.2

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Other Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Other Current Liabilities:
Accrued customer volume rebates	$ 15.2	$ 24.4
Accrued compensation	18.3	25.0
Income taxes payable	6.7	7.1
Accrued interest	8.8	4.0
Pension liabilities	1.4	1.4
Restructuring liability	16.7	18.0
Other accrued liabilities	46.3	45.9
Total other current liabilities	$ 113.4	$ 125.8

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Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Damages of approximately	$ 11.0
Claim amount of approximately	16.0
Net of contractual deductible	$ 5.0
Amended Credit Agreement | Standby Letter of Credit
Loss Contingencies [Line Items]
Gross financial assurances issued and outstanding		$ 6.1	$ 6.8

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Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Jul. 30, 2020
Equity [Abstract]
Share repurchase program, authorized amount		$ 100
Stock repurchased (in shares)	0

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Restructuring and Repositioning Expenses, Asset Write Offs - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Jul. 31, 2019
Restructuring Cost and Reserve [Line Items]
Number of operating segments | segment	2
Restructuring liability | $	$ 16.7	$ 18.0
Minimum
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, percent			8.00%
Maximum
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, percent			10.00%

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Restructuring and Repositioning Expenses, Asset Write Offs - Estimated and Actual Costs (Details) $ in Millions	Mar. 31, 2021 USD ($)
2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	$ 12.6
Capital expenditures to date	2.2
2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	33.8
Capital expenditures to date	0.4
2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	6.6
Capital expenditures to date	0.0
Estimated capital expenditures	6.0
2021 Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated costs	26.0
2021 Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated costs	29.0
Severance/employee costs | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.9
Severance/employee costs | 2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	26.0
Severance/employee costs | 2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	4.3
Severance/employee costs | 2021 Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated costs	11.0
Severance/employee costs | 2021 Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated costs	13.0
Asset Write Offs | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.9
Asset Write Offs | 2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.5
Asset Write Offs | 2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	2.1
Asset Write Offs | 2021 Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated costs	8.0
Asset Write Offs | 2021 Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated costs	9.0
Other Associated Costs | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.3
Other Associated Costs | 2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.0
Other Associated Costs | 2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.2
Estimated costs	5.0
Total Restructuring | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	2.1
Total Restructuring | 2019 Plan | Specialty Construction Chemicals
Restructuring Cost and Reserve [Line Items]
Cost to date	1.7
Total Restructuring | 2019 Plan | Specialty Building Materials
Restructuring Cost and Reserve [Line Items]
Cost to date	0.4
Total Restructuring | 2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	26.5
Total Restructuring | 2019 Phase 2 Plan | Specialty Construction Chemicals
Restructuring Cost and Reserve [Line Items]
Cost to date	7.1
Total Restructuring | 2019 Phase 2 Plan | Specialty Building Materials
Restructuring Cost and Reserve [Line Items]
Cost to date	7.0
Total Restructuring | 2019 Phase 2 Plan | Corporate Function
Restructuring Cost and Reserve [Line Items]
Cost to date	12.4
Total Restructuring | 2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	6.6
Total Restructuring | 2021 Plan | Specialty Construction Chemicals
Restructuring Cost and Reserve [Line Items]
Cost to date	2.6
Total Restructuring | 2021 Plan | Specialty Building Materials
Restructuring Cost and Reserve [Line Items]
Cost to date	1.7
Total Restructuring | 2021 Plan | Corporate Function
Restructuring Cost and Reserve [Line Items]
Cost to date	2.3
Total Restructuring | 2021 Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated costs	24.0
Total Restructuring | 2021 Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated costs	27.0
Repositioning | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	10.5
Capital expenditures to date	10.5
Repositioning | 2019 Phase 2 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	7.3
Capital expenditures to date	6.5
Repositioning | 2021 Plan
Restructuring Cost and Reserve [Line Items]
Cost to date	0.0
Estimated costs	$ 2.0

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Restructuring and Repositioning Expenses, Asset Write Offs - Repositioning and Restructuring (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 4.7
Cash paid	5.9
2019 Plan, Repositioning
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	0.0	$ 1.4
Cash paid	0.0	3.3
2019 Plan, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	0.1	0.4
Cash paid	0.1	0.3
2019 Plan Phase 2, Repositioning
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	1.3	1.2
Cash paid	1.4	1.5
2019 Plan Phase 2, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	0.0	0.1
Cash paid	0.0	0.1
Strategic Alternatives Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.0
Cash paid		0.2
Strategic Alternatives, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.0
Cash paid		0.0
2018 Plan, Repositioning
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.0
Cash paid		0.0
2018 Plan, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.3
Cash paid		0.1
2017 Plan, Repositioning
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.1
Cash paid		0.0
2017 Plan, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		0.2
Cash paid		0.6
Repositioning
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	1.3	2.7
Cash paid	1.4	5.0
Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	0.1	1.0
Cash paid	$ 0.1	$ 1.1

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Restructuring and Repositioning Expenses, Asset Write Offs - Cumulative (Details) $ in Millions	Mar. 31, 2021 USD ($)
2019 Plan, Repositioning
Restructuring Cost and Reserve [Line Items]
Cost to date	$ 12.6
Capital expenditures to date	2.2
2019 Plan, Repositioning | Repositioning
Restructuring Cost and Reserve [Line Items]
Cost to date	10.5
Capital expenditures to date	10.5
2019 Plan, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Cost to date	2.2
Capital expenditures to date	2.1
2019 Phase 2 Plan, Repositioning
Restructuring Cost and Reserve [Line Items]
Cost to date	33.8
Capital expenditures to date	0.4
2019 Phase 2 Plan, Repositioning | Repositioning
Restructuring Cost and Reserve [Line Items]
Cost to date	7.3
Capital expenditures to date	6.5
2019 Plan Phase 2, Capital Expenditures
Restructuring Cost and Reserve [Line Items]
Cost to date	0.4
Capital expenditures to date	$ 0.4

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Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Expenses and Asset Write Offs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring and Related Activities [Abstract]
Severance and other employee costs	$ 5.2	$ 1.9
Asset write offs	2.2	1.0
Other associated costs	0.2	0.2
Total restructuring expenses and asset write offs	$ 7.6	$ 3.1

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Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Costs by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Cost and Reserve [Line Items]
Total restructuring expenses and asset write offs from continuing operations	$ 7.6	$ 3.1
Total restructuring expenses and asset write offs	7.6	3.1
Operating Segments | SCC
Restructuring Cost and Reserve [Line Items]
Total restructuring expenses and asset write offs from continuing operations	2.9	2.3
Operating Segments | SBM
Restructuring Cost and Reserve [Line Items]
Total restructuring expenses and asset write offs from continuing operations	1.8	0.8
Corporate
Restructuring Cost and Reserve [Line Items]
Total restructuring expenses and asset write offs from continuing operations	$ 2.9	$ 0.0

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Restructuring and Repositioning Expenses, Asset Write Offs - Restructuring Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Reserve [Roll Forward]
Beginning balance	$ 18.0
Expense	4.7
Payments	(5.9)
Impact of foreign currency and other	(0.1)
Ending balance	16.7
Total stock compensation (benefit) expense	1.7	$ 0.8
2021 Plan | Severance and other employee costs
Restructuring Reserve [Roll Forward]
Beginning balance	0.0
Expense	4.5
Payments	(0.2)
Impact of foreign currency and other	0.0
Ending balance	4.3
2021 Plan | Asset Write Offs
Restructuring Reserve [Roll Forward]
Expense	2.1
2019 Plan | Severance and other employee costs
Restructuring Reserve [Roll Forward]
Beginning balance	0.1
Expense	0.0
Payments	0.0
Impact of foreign currency and other	0.0
Ending balance	0.1
2019 Plan | Other Costs
Restructuring Reserve [Roll Forward]
Beginning balance	0.1
Expense	0.0
Payments	0.0
Impact of foreign currency and other	0.0
Ending balance	0.1
2019 Plan | Asset Write Offs | Specialty Construction Chemicals
Restructuring Reserve [Roll Forward]
Expense	0.1
2019 Phase 2 Plan
Restructuring Reserve [Roll Forward]
Total stock compensation (benefit) expense	0.7
2019 Phase 2 Plan | Severance and other employee costs
Restructuring Reserve [Roll Forward]
Beginning balance	17.3
Expense	0.2
Payments	(5.7)
Impact of foreign currency and other	(0.1)
Ending balance	11.7
2018 Plan
Restructuring Reserve [Roll Forward]
Expense		0.0
Payments		$ 0.0
2018 Plan | Severance and other employee costs
Restructuring Reserve [Roll Forward]
Beginning balance	0.5
Expense	0.0
Payments	0.0
Impact of foreign currency and other	0.0
Ending balance	$ 0.5

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Other Comprehensive Loss - Components of Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pre-Tax Amount	$ (7.6)	$ (33.1)
Tax Expense	(0.4)	(0.4)
Total other comprehensive loss	(8.0)	(33.5)
Defined benefit pension and other postretirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pre-Tax Amount		0.1
Tax Expense		0.0
Total other comprehensive loss	0.0	0.1
Currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pre-Tax Amount	(7.6)	(33.4)
Tax Expense	(0.4)	(0.4)
Total other comprehensive loss	$ (8.0)	(33.8)
Gain from hedging activities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pre-Tax Amount		0.2
Tax Expense		0.0
Total other comprehensive loss		$ 0.2

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Other Comprehensive Income (Loss) - Changes in AOCI, Net of Tax (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Changes in accumulated other comprehensive income (loss), net of tax
Beginning balance	$ 654.1	$ 541.0
Current period other comprehensive loss	(8.0)	(33.5)
Ending balance	650.6	509.9
Defined Benefit Pension and Other Postretirement Plans
Changes in accumulated other comprehensive income (loss), net of tax
Beginning balance	(3.1)	(2.7)
Current period other comprehensive loss	0.0	0.1
Ending balance	(3.1)	(2.6)
Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss), net of tax
Beginning balance	(107.4)	(114.2)
Current period other comprehensive loss	(8.0)	(33.8)
Ending balance	(115.4)	(148.0)
Hedging Activities
Changes in accumulated other comprehensive income (loss), net of tax
Beginning balance		(0.1)
Current period other comprehensive loss		0.2
Ending balance		0.1
Total
Changes in accumulated other comprehensive income (loss), net of tax
Beginning balance	(110.5)	(117.0)
Current period other comprehensive loss	(8.0)	(33.5)
Ending balance	$ (118.5)	$ (150.5)

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Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock compensation (benefit) expense		$ 1.7	$ 0.8
Share repurchases (in shares)		29,800	15,800
Share repurchases	[1]	$ 0.7	$ 0.3
Cash payments for tax withholding obligations		0.7	0.3
Fair value of awards vested		2.2	$ 0.9
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to the RSU and PBU awards		$ 1.7
Unrecognized stock-based compensation expense for stock options, period of recognition		2 years 6 months
Exercise of stock options (in shares)		122,000
Weighted average exercise price (in usd per share)		$ 17.25
Intrinsic value of all options exercised		$ 1.0
Restricted Stock Units (RSUs) and Performance Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to the RSU and PBU awards		$ 8.1
Unrecognized stock-based compensation expense for stock options, period of recognition		2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share)		$ 26.10	$ 21.11
Amount settled in period (in shares)		88,000	43,000
Performance Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share)		$ 27.29	$ 22.41
Share-based compensation granted period		2 years
Performance period		2 years
Cumulative on cash flow target metric		33.30%
Share-based compensation Approved by board during the period		2 years
Award vesting period		2 years
Performance Based Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected payout, percent of target		0.00%
Performance Based Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected payout, percent of target		200.00%
2019 Phase 2 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock compensation (benefit) expense		$ 0.7

[1] Refer to Note 14, “Stock Incentive Plans”, for further information.

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Stock Incentive Plans - Restricted Stock Units Award Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Number Of Shares (in thousands)
Outstanding, beginning balance (in shares)	305
Settled (in shares)	88
Forfeited (in shares)	2
Granted (in shares)	90
Outstanding, ending balance (in shares)	305
RSUs expected to vest (in shares)	301
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share)	$ 22.14
Settled (in usd per share)	23.97
Forfeited (in used per share)	24.37
Granted (in usd per share)	26.10	$ 21.11
Outstanding, ending balance (in usd per share)	22.79
RSUs expected to vest (in usd per share)	$ 22.78

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Stock Incentive Plans - PBUs, Valuation Assumptions (Details) - Performance Based Units	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Term (Remaining Performance Period)	1 year 9 months 21 days	2 years 10 months 6 days
Expected volatility	51.48%	29.85%
Risk-free interest rate	0.14%	1.21%
Expected dividends	0.00%	0.00%
Median correlation coefficient of constituents	54.00%	54.01%

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Stock Incentive Plans - Performance Based Units Award Activity (Details) - Performance Based Units - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Number Of Shares (in thousands)
Outstanding, beginning balance (in shares)	343
Forfeited (in shares)	136
Granted (in shares)	80
Outstanding, ending balance (in shares)	287
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share)	$ 28.10
Forfeited (in used per share)	32.08
Granted (in usd per share)	27.29	$ 22.41
Outstanding, ending balance (in usd per share)	$ 25.96

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Numerators
Income from continuing operations attributable to GCP shareholders		$ 1.5	$ 2.0
Loss from discontinued operations, net of income taxes		0.0	(0.3)
Net income attributable to GCP shareholders		$ 1.5	$ 1.7
Denominators
Weighted average common shares—basic calculation (in shares)	[1]	73.2	72.9
Dilutive effect of employee stock awards (in shares)		0.2	0.1
Weighted average common shares—diluted calculation (in shares)	[1]	73.4	73.0
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in usd per share)	[1]	$ 0.02	$ 0.03
Loss from discontinued operations, net of income taxes (in usd per share)	[1]	0	0
Net income attributable to GCP shareholders (in usd per share)	[1],[2]	0.02	0.02
Diluted earnings (loss) per share
Income from continuing operations attributable to GCP shareholders (in dollars per share)	[1]	0.02	0.03
Loss from discontinued operations, net of income taxes (in dollars per share)	[1]	0	0
Net income attributable to GCP shareholders (in dollars per share)	[1],[2]	$ 0.02	$ 0.02
Antidilutive securities excluded from computation of earnings per share, treasury stock method (in shares)		0.6	0.6

[1] Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

[2] Amounts may not sum due to rounding.

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Related Party Transactions and Transactions with Grace (Details) - W.R. Grace & Co. - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Other Assets
Related Party Transaction [Line Items]
Indemnified receivables, tax	$ 1.8
Other Current Liabilities
Related Party Transaction [Line Items]
Indemnified payables, tax		$ 1.0

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Operating Segment and Geographic Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	2

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Operating Segment and Geographic Information - Schedule of Operating Segment Data (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Sales
Net sales	$ 222.8	$ 216.7
Segment Operating Income
Operating income		22.6
Specialty Construction Chemicals
Net Sales
Net sales	123.9	125.4
Segment Operating Income
Operating income	6.1	8.5
Specialty Building Materials
Net Sales
Net sales	98.9	91.3
Segment Operating Income
Operating income	$ 19.4	$ 14.1

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Operating Segment and Geographic Information - Reconciliation of Segment Data to Financial Statements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Total segment operating income		$ 22.6
Corporate costs	$ (66.6)	(68.1)
Repositioning expenses	(1.3)	(2.7)
Restructuring expenses and asset write offs	(7.6)	(3.1)
Net income attributable to noncontrolling interests	0.1	0.1
Income from continuing operations before income taxes	2.6	0.5
Operating Segments
Segment Reporting Information [Line Items]
Total segment operating income	25.5	22.6
Corporate
Segment Reporting Information [Line Items]
Corporate costs	(7.2)	(5.9)
Restructuring expenses and asset write offs	(2.9)	0.0
Segment Reconciling Items
Segment Reporting Information [Line Items]
Certain pension costs	(1.4)	(1.3)
Shareholder activism and other related costs	0.0	(3.6)
Repositioning expenses	(1.3)	(2.7)
Restructuring expenses and asset write offs	(7.6)	(3.1)
Third-party and other acquisition-related costs	(0.1)	(0.5)
Net income attributable to noncontrolling interests	0.1	0.1
Interest expense, net	$ (5.4)	$ (5.1)

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Operating Segment and Geographic Information - Geographic Area Data (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Net sales	$ 222.8	$ 216.7
Total North America
Segment Reporting Information [Line Items]
Net sales	118.1	119.2
United States
Segment Reporting Information [Line Items]
Net sales	112.1	113.0
Canada and Other
Segment Reporting Information [Line Items]
Net sales	6.0	6.2
Europe Middle East Africa
Segment Reporting Information [Line Items]
Net sales	44.6	44.3
Asia Pacific
Segment Reporting Information [Line Items]
Net sales	46.7	40.3
Latin America
Segment Reporting Information [Line Items]
Net sales	$ 13.4	$ 12.9

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Revisions of Previously Issued Consolidated Financial Statements - Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales		$ 222.8	$ 216.7
Cost of goods sold		136.3	133.9
Gross profit		86.5	82.8
Selling, general and administrative expenses		66.6	68.1
Research and development expenses		4.5	4.9
Interest expense and related financing costs		5.6	5.7
Repositioning expenses		1.3	2.7
Restructuring expenses and asset write offs		7.6	3.1
Other income, net		(1.7)	(2.2)
Total costs and expenses		83.9	82.3
Loss (income) from continuing operations before income taxes		2.6	0.5
Benefit from income taxes		(1.0)	1.6
Income from continuing operations		1.6	2.1
Loss from discontinued operations, net of income taxes		0.0	(0.3)
Net income		1.6	1.8
Less: Net income attributable to noncontrolling interests		(0.1)	(0.1)
Net income attributable to GCP shareholders		1.5	1.7
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders		1.5	2.0
Loss from discontinued operations, net of income taxes		0.0	(0.3)
Net income attributable to GCP shareholders		$ 1.5	$ 1.7
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in usd per share)	[1]	$ 0.02	$ 0.03
Loss from discontinued operations, net of income taxes (in usd per share)	[1]	0	0
Net income attributable to GCP shareholders (in usd per share)	[1],[2]	$ 0.02	$ 0.02
Weighted average number of basic shares (in shares)	[1]	73.2	72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in dollars per share)	[1]	$ 0.02	$ 0.03
Loss from discontinued operations, net of income taxes (in dollars per share)	[1]	0	0
Net income attributable to GCP shareholders (in dollars per share)	[1],[2]	$ 0.02	$ 0.02
Weighted average number of diluted shares (in shares)	[1]	73.4	73.0
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales			$ 216.7
Cost of goods sold			134.8
Gross profit			81.9
Selling, general and administrative expenses			68.1
Research and development expenses			4.9
Interest expense and related financing costs			5.7
Repositioning expenses			2.7
Restructuring expenses and asset write offs			3.1
Other income, net			(2.2)
Total costs and expenses			82.3
Loss (income) from continuing operations before income taxes			(0.4)
Benefit from income taxes			1.9
Income from continuing operations			1.5
Loss from discontinued operations, net of income taxes			(0.3)
Net income			1.2
Less: Net income attributable to noncontrolling interests			(0.1)
Net income attributable to GCP shareholders			1.1
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders			1.4
Loss from discontinued operations, net of income taxes			(0.3)
Net income attributable to GCP shareholders			$ 1.1
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in usd per share)			$ 0.02
Loss from discontinued operations, net of income taxes (in usd per share)			0
Net income attributable to GCP shareholders (in usd per share)			$ 0.02
Weighted average number of basic shares (in shares)			72.9
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in dollars per share)			$ 0.02
Loss from discontinued operations, net of income taxes (in dollars per share)			0
Net income attributable to GCP shareholders (in dollars per share)			$ 0.02
Weighted average number of diluted shares (in shares)			73.0
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales			$ 0.0
Cost of goods sold			(0.9)
Gross profit			0.9
Selling, general and administrative expenses			0.0
Research and development expenses			0.0
Interest expense and related financing costs			0.0
Repositioning expenses			0.0
Restructuring expenses and asset write offs			0.0
Other income, net			0.0
Total costs and expenses			0.0
Loss (income) from continuing operations before income taxes			0.9
Benefit from income taxes			(0.3)
Income from continuing operations			0.6
Loss from discontinued operations, net of income taxes			0.0
Net income			0.6
Less: Net income attributable to noncontrolling interests			0.0
Net income attributable to GCP shareholders			0.6
Amounts Attributable to GCP Shareholders:
Income from continuing operations attributable to GCP shareholders			0.6
Loss from discontinued operations, net of income taxes			0.0
Net income attributable to GCP shareholders			$ 0.6
Basic earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in usd per share)			$ 0.01
Loss from discontinued operations, net of income taxes (in usd per share)			0
Net income attributable to GCP shareholders (in usd per share)			$ 0
Weighted average number of basic shares (in shares)			0.0
Diluted earnings (loss) per share:
Income from continuing operations attributable to GCP shareholders (in dollars per share)			$ 0.01
Loss from discontinued operations, net of income taxes (in dollars per share)			0
Net income attributable to GCP shareholders (in dollars per share)			$ 0
Weighted average number of diluted shares (in shares)			0.0

[1] Dilutive effect is only applicable to the periods during which GCP generated net income from continuing operations.

[2] Amounts may not sum due to rounding.

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Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income	$ 1.6	$ 1.8
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes	0.0	0.1
Currency translation adjustments, net of income taxes	(8.0)	(33.8)
Gain from hedging activities, net of income taxes	0.0	0.2
Total other comprehensive loss	(8.0)	(33.5)
Comprehensive loss	(6.4)	(31.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.1)	(0.1)
Comprehensive loss attributable to GCP shareholders	$ (6.5)	(31.8)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		1.2
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes		0.1
Currency translation adjustments, net of income taxes		(33.8)
Gain from hedging activities, net of income taxes		0.2
Total other comprehensive loss		(33.5)
Comprehensive loss		(32.3)
Less: Comprehensive income attributable to noncontrolling interests		(0.1)
Comprehensive loss attributable to GCP shareholders		(32.4)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		0.6
Other comprehensive loss:
Defined benefit pension and other postretirement plans, net of income taxes		0.0
Currency translation adjustments, net of income taxes		0.0
Gain from hedging activities, net of income taxes		0.0
Total other comprehensive loss		0.0
Comprehensive loss		0.6
Less: Comprehensive income attributable to noncontrolling interests		0.0
Comprehensive loss attributable to GCP shareholders		$ 0.6

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Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Stockholders' Equity (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2021		Mar. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Beginning balance		$ 654.1		$ 541.0
Net income		1.6		1.8
Share-based compensation		1.4	[1]	0.5
Exercise of stock options	[2]	2.2		0.4
Share repurchases	[3]	(0.7)		(0.3)
Other comprehensive loss		(8.0)		(33.5)
Ending balance		$ 650.6		509.9
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Beginning balance				541.1
Net income				1.2
Share-based compensation				0.5
Exercise of stock options				0.4
Share repurchases				(0.3)
Other comprehensive loss				(33.5)
Ending balance				509.4
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Beginning balance				(0.1)
Net income				0.6
Share-based compensation				0.0
Exercise of stock options				0.0
Share repurchases				0.0
Other comprehensive loss				0.0
Ending balance				$ 0.5

[1] During the three months ended March 31, 2021, $0.7 million of the stock-based compensation expense is included in "Restructuring expenses and asset write offs" related to accelerated vesting of stock options, RSUs and PBUs.

[2] The par value of common shares issued may not be included in the table due to rounding. Total share amounts for common stock and treasury stock may not sum due to rounding.

[3] Refer to Note 14, “Stock Incentive Plans”, for further information.

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Revisions of Previously Issued Consolidated Financial Statements - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATING ACTIVITIES
Net income	$ 1.6	$ 1.8
Less: Loss from discontinued operations	0.0	(0.3)
Income from continuing operations	1.6	2.1
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	11.3	11.0
Amortization of debt discount and financing costs	0.4	0.4
Stock-based compensation expense	1.0	0.8
Unrealized (gain) loss on foreign currency	(2.3)	0.5
Deferred income taxes	(0.2)	(4.9)
Loss (gain) on disposal of property and equipment	1.1	(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	5.0	17.4
Inventories	(19.9)	(11.4)
Accounts payable	9.9	6.6
Pension assets and liabilities, net	1.1	1.0
Other assets and liabilities, net	(8.3)	(9.1)
Net cash provided by operating activities from continuing operations	0.7	14.3
Net cash used in operating activities from discontinued operations	0.0	(0.9)
Net cash provided by operating activities	0.7	13.4
INVESTING ACTIVITIES
Capital expenditures	(8.1)	(9.2)
Other investing activities	0.0	0.4
Net cash used in investing activities	(8.1)	(8.8)
FINANCING ACTIVITIES
Payments on finance lease obligations	(0.2)	(0.2)
Payments of tax withholding obligations related to employee equity awards	(0.7)	(0.3)
Proceeds from exercise of stock options	1.8	0.4
Net cash provided by (used in) financing activities from continuing operations	0.6	(0.1)
Effect of currency exchange rate changes on cash and cash equivalents		(9.3)
Decrease in cash and cash equivalents	$ (9.8)	(4.8)
Cash and cash equivalents, beginning of period		325.0
Cash and cash equivalents, end of period		320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable		5.5
As Previously Reported
OPERATING ACTIVITIES
Net income		1.2
Less: Loss from discontinued operations		(0.3)
Income from continuing operations		1.5
Reconciliation to net cash provided by operating activities:
Depreciation and amortization		11.0
Amortization of debt discount and financing costs		0.4
Stock-based compensation expense		0.8
Unrealized (gain) loss on foreign currency		0.5
Deferred income taxes		(5.2)
Loss (gain) on disposal of property and equipment		(0.1)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable		17.4
Inventories		(11.4)
Accounts payable		6.6
Pension assets and liabilities, net		1.0
Other assets and liabilities, net		(8.5)
Net cash provided by operating activities from continuing operations		14.0
Net cash used in operating activities from discontinued operations		(0.9)
Net cash provided by operating activities		13.1
INVESTING ACTIVITIES
Capital expenditures		(8.9)
Other investing activities		0.4
Net cash used in investing activities		(8.5)
FINANCING ACTIVITIES
Payments on finance lease obligations		(0.2)
Payments of tax withholding obligations related to employee equity awards		(0.3)
Proceeds from exercise of stock options		0.4
Net cash provided by (used in) financing activities from continuing operations		(0.1)
Effect of currency exchange rate changes on cash and cash equivalents		(9.3)
Decrease in cash and cash equivalents		(4.8)
Cash and cash equivalents, beginning of period		325.0
Cash and cash equivalents, end of period		320.2
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable		5.5
Adjustments
OPERATING ACTIVITIES
Net income		0.6
Less: Loss from discontinued operations		0.0
Income from continuing operations		0.6
Reconciliation to net cash provided by operating activities:
Depreciation and amortization		0.0
Amortization of debt discount and financing costs		0.0
Stock-based compensation expense		0.0
Unrealized (gain) loss on foreign currency		0.0
Deferred income taxes		0.3
Loss (gain) on disposal of property and equipment		0.0
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable		0.0
Inventories		0.0
Accounts payable		0.0
Pension assets and liabilities, net		0.0
Other assets and liabilities, net		(0.6)
Net cash provided by operating activities from continuing operations		0.3
Net cash used in operating activities from discontinued operations		0.0
Net cash provided by operating activities		0.3
INVESTING ACTIVITIES
Capital expenditures		(0.3)
Other investing activities		0.0
Net cash used in investing activities		(0.3)
FINANCING ACTIVITIES
Payments on finance lease obligations		0.0
Payments of tax withholding obligations related to employee equity awards		0.0
Proceeds from exercise of stock options		0.0
Net cash provided by (used in) financing activities from continuing operations		0.0
Effect of currency exchange rate changes on cash and cash equivalents		0.0
Decrease in cash and cash equivalents		0.0
Cash and cash equivalents, beginning of period		0.0
Cash and cash equivalents, end of period		0.0
Supplemental disclosure of non-cash investing activities:
Property and equipment purchases unpaid and included in accounts payable		$ 0.0