<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 14, 1998
-------------
W. R. GRACE & CO.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-13953 65-0773649
- ---------------- ---------------- ------------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1750 Clint Moore Road, Boca Raton, Florida 33487-2707
-----------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 561/362-2000
------------
<PAGE>
Item 5. Other Events.
------------
As previously reported, W. R. Grace & Co. ("Company") has (1) adopted
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share," which supersedes Accounting Principles Board Opinion No. 15, "Earnings
per Share," and (2) classified its former flexible packaging business as a
discontinued operation. The Company is filing this Current Report on Form 8-K
to file restated financial data schedules that reflect the new basic and
diluted earnings per share amounts required by SFAS No. 128 and the
discontinued operation classification.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
------------------------------------------------------------------
-- Restated Financial Data Schedule for the year ended December 31, 1995.
-- Restated Financial Data Schedule for the year ended December 31, 1996.
-- Restated Financial Data Schedule for the period ended March
31, 1996.
-- Restated Financial Data Schedule for the period ended June
30, 1996.
-- Restated Financial Data Schedule for the period ended
September 30, 1996.
-- Restated Financial Data Schedule for the period ended March
31, 1997.
-- Restated Financial Data Schedule for the period ended June
30, 1997.
-- Restated Financial Data Schedule for the period ended
September 30, 1997.
-2-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed by the undersigned,
thereunto duly authorized.
W. R. GRACE & CO.
-----------------------------
(Registrant)
By /s/Kathleen A. Browne
-----------------------------
Kathleen A. Browne
Vice President and Controller
Dated: July 14, 1998
-3-
<PAGE>
W. R. GRACE & CO.
Current Report on Form 8-K
Exhibit Index
-------------
Exhibit No. Description
- ----------- -----------
27.1 Restated Financial Data Schedule for the year ended
December 31, 1995.
27.2 Restated Financial Data Schedule for the year ended
December 31, 1996.
27.3 Restated Financial Data Schedule for the period ended
March 31, 1996.
27.4 Restated Financial Data Schedule for the period ended
June 30, 1996.
27.5 Restated Financial Data Schedule for the period ended
September 30, 1996.
27.6 Restated Financial Data Schedule for the period ended
March 31, 1997.
27.7 Restated Financial Data Schedule for the period ended
June 30, 1997.
27.8 Restated Financial Data Schedule for the period ended
September 30, 1997.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 40,600
<SECURITIES> 0
<RECEIVABLES> 609,700
<ALLOWANCES> 12,900
<INVENTORY> 491,900
<CURRENT-ASSETS> 1,681,300<F1>
<PP&E> 3,154,900
<DEPRECIATION> 1,418,800
<TOTAL-ASSETS> 6,297,600<F1>
<CURRENT-LIABILITIES> 2,214,200
<BONDS> 1,295,500
0
7,400
<COMMON> 97,400
<OTHER-SE> 1,127,000
<TOTAL-LIABILITY-AND-EQUITY> 6,297,600
<SALES> 1,860,500<F2>
<TOTAL-REVENUES> 1,897,400
<CGS> 1,127,000
<TOTAL-COSTS> 1,127,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,900
<INCOME-PRETAX> (517,200)<F3>
<INCOME-TAX> (192,400)
<INCOME-CONTINUING> (324,800)<F3>
<DISCONTINUED> (1,100)<F4><F5><F6>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (325,900)
<EPS-PRIMARY> (3.40)
<EPS-DILUTED> (3.40)
<FN>
<F1>Included within current assets and total assets are net assets of
discontinued operations of $323,700 and $1,759,000, respectively.
<F2>Excludes 1995 sales of the discontinued health care business of
$2,076,800, the TEC Systems business of $112,900, and the Packaging
business of $1,692,100.
<F3>Includes provisions of $30,000 ($18,600 after-tax) for corporate
governance, $220,000 ($144,000 after-tax) for restructuring, asset
impairments and other costs, $77,000 ($50,000 after-tax) for environmental
liabilities and $275,000 ($178,700 after-tax) for asbestos-related
liabilities.
<F4>In June 1995, the Company announced that its Board of Directors had
approved a plan to spin off NMC. As a result, Grace has classified its
health care business as a discontinued operation.
<F5>Includes after-tax provisions of $83,600 for asset impairments,
$5,600 for the phase-out of certain health care research programs, $4,800
for additional costs associated with Grace's long-term incentive programs,
$1,800 for changes in accounting estimates and $6,600 for other items.
<F6>Discontinued operations includes an after-tax provision of $151,300
relating to a reassessment of forecasts for all remaining discontinued
operations.
<F7> Restated to reflect the adoption of SFAS No. 128 and the
classification of income and expenses of Grace's flexible packaging
business and TEC Systems business as net loss from discontinued
operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF W. R. GRACE & CO. FOR THE YEAR ENDED DECEMBER 31, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 68,300
<SECURITIES> 0
<RECEIVABLES> 842,900
<ALLOWANCES> 11,500
<INVENTORY> 376,100
<CURRENT-ASSETS> 1,774,900<F1>
<PP&E> 3,307,900
<DEPRECIATION> 1,436,600
<TOTAL-ASSETS> 4,945,800<F2>
<CURRENT-LIABILITIES> 1,487,100
<BONDS> 1,073,000
0
0
<COMMON> 800
<OTHER-SE> 631,600
<TOTAL-LIABILITY-AND-EQUITY> 4,945,800
<SALES> 1,718,700<F2>
<TOTAL-REVENUES> 1,749,600
<CGS> 999,800
<TOTAL-COSTS> 999,800
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 21,500
<INCOME-PRETAX> 183,300<F3>
<INCOME-TAX> 70,400
<INCOME-CONTINUING> 112,900<F3>
<DISCONTINUED> 2,744,800<F4><F5><F6>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,857,700
<EPS-PRIMARY> 31.06
<EPS-DILUTED> 30.57
<FN>
<F1>Includes net assets of discontinued operations of $297,400.
<F2>Excludes 1996 sales from the discontinued health care, TEC Systems, and
Packaging businesses of $1,666,900, $102,500, and $1,735,400, respectively.
<F3>Includes gain on sales of businesses of $326,400 ($210,100 after-tax),
offset by provisions of $229,100 ($148,900 after-tax) for asbestos-related
liabilities and insurance coverage and $107,500 ($69,900 after-tax) for
restructuring costs and asset impairments.
<F4>Includes TEC Systems' after-tax operating losses of $11,300 and an
after-tax provision of $4,600 related to its anticipated operating losses and
the loss anticipated on its divestment.
<F5>Includes (i) after-tax income of $24,800 from health care operations, (ii)
an after-tax gain of $2,483,700 on the separation of National Medical Care,
Inc., (iii) an after-tax gain of $79,400 on the sale of the transgenic plant
business, (iv) an after-tax gain of $40,000 on the sale of Amicon, and (v)
after-tax income of $100,900 from the Packaging business.
<F6>Includes a $31,900 after-tax reversal of previously recorded provisions for
Grace's cocoa business.
<F7> Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business as net income of
discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<PERIOD-START> JAN-01-1996
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 56,500
<SECURITIES> 0
<RECEIVABLES> 666,800<F1>
<ALLOWANCES> 0
<INVENTORY> 481,100
<CURRENT-ASSETS> 1,747,900<F2>
<PP&E> 3,256,700
<DEPRECIATION> 1,446,700
<TOTAL-ASSETS> 6,485,500<F2>
<CURRENT-LIABILITIES> 2,389,200
<BONDS> 1,265,400
0
7,400
<COMMON> 98,500
<OTHER-SE> 1,225,000
<TOTAL-LIABILITY-AND-EQUITY> 6,485,500
<SALES> 452,500<F3>
<TOTAL-REVENUES> 455,400
<CGS> 262,100
<TOTAL-COSTS> 262,100
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,400
<INCOME-PRETAX> 20,000
<INCOME-TAX> 7,700
<INCOME-CONTINUING> 12,300
<DISCONTINUED> 51,300<F4>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63,600
<EPS-PRIMARY> 0.65
<EPS-DILUTED> 0.64
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets and total assets are net assets of
discontinued operations of $314,400 and $1,854,900, respectively.
<F3>Excludes discontinued health care segment sales of $539,700, TEC Systems
sales of $24,400, and Packaging sales of $409,100.
<F4>In the second quarter of 1995, Grace classified its health care business as
a discontinued operation.
<F5>Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business and TEC Systems
business as net income of discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 73,700
<SECURITIES> 0
<RECEIVABLES> 712,500<F1>
<ALLOWANCES> 0
<INVENTORY> 402,400
<CURRENT-ASSETS> 1,704,900<F2>
<PP&E> 3,170,700
<DEPRECIATION> 1,398,900
<TOTAL-ASSETS> 6,305,800<F2>
<CURRENT-LIABILITIES> 2,301,100
<BONDS> 1,262,800
0
7,400
<COMMON> 98,700
<OTHER-SE> 1,159,900
<TOTAL-LIABILITY-AND-EQUITY> 6,305,800
<SALES> 950,500<F3>
<TOTAL-REVENUES> 966,300
<CGS> 549,300
<TOTAL-COSTS> 549,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,200
<INCOME-PRETAX> 370,800<F4>
<INCOME-TAX> 133,300
<INCOME-CONTINUING> 237,500<F4>
<DISCONTINUED> 160,000<F5>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 397,500
<EPS-PRIMARY> 4.09
<EPS-DILUTED> 4.01
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets and total assets are net assets of
discontinued operations of $296,900 and $1,868,500, respectively.
<F3>Excludes discontinued health care segment sales of $1,105,200, TEC Systems
sales of $53,000, and Packaging sales of $831,400.
<F4>Includes (i) a gain of $326,400 ($210,100 after-tax) on the sales of
businesses, principally the water treatment and process chemicals business, and
(ii) a charge of $53,700 ($32,400 after-tax) relating to restructuring costs.
<F5>Includes (i) after-tax income of $43,400 from health care operations, (ii)
an after-tax gain of $79,400 on the sale of the transgenic plant business of
Grace's Agracetus subsidiary, (iii) after-tax income of $41,000 from the
Packaging business, and (iv) after-tax loss of $3,800 from the TEC Systems
business.
<F6>Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business and TEC Systems
business as net income of discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 491,600
<SECURITIES> 0
<RECEIVABLES> 765,900<F1>
<ALLOWANCES> 0
<INVENTORY> 415,300
<CURRENT-ASSETS> 2,287,600<F2>
<PP&E> 3,262,000
<DEPRECIATION> 1,428,400
<TOTAL-ASSETS> 5,346,800
<CURRENT-LIABILITIES> 1,828,000
<BONDS> 741,600
0
0
<COMMON> 900
<OTHER-SE> 1,269,500
<TOTAL-LIABILITY-AND-EQUITY> 5,346,800
<SALES> 1,336,200<F3>
<TOTAL-REVENUES> 1,358,100
<CGS> 783,900
<TOTAL-COSTS> 783,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,400
<INCOME-PRETAX> 398,300<F4>
<INCOME-TAX> 143,900
<INCOME-CONTINUING> 254,400<F4>
<DISCONTINUED> 2,663,000<F5>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,917,400
<EPS-PRIMARY> 30.64
<EPS-DILUTED> 30.02
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets are net assets of discontinued operations of
$369,800.
<F3>Excludes discontinued health care segment sales of $1,650,700, Packaging
business sales of $1,267,000, and TEC Systems business sales of $53,000.
<F4>Includes (i) a gain of $326,400 ($210,100 after-tax) on the sales of
businesses, principally the water treatment and process chemicals business, and
(ii) a charge of $53,700 ($32,400 after-tax) relating to restructuring costs.
<F5>Includes (i) after-tax income of $24,100 from health care operations, (ii)
an after-tax gain of $2,483,700 on the separation of National Medical Care,
Inc., (iii) an after-tax gain of $79,400 on the sale of the transgenic plant
business of Grace's Agracetus subsidiary, (iv) after-tax income from the
Packaging business of $79,600, and (v) after-tax loss from the TEC Systems
business of $3,800.
<F6>Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business and TEC Systems
business as net income of discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 76,900
<SECURITIES> 0
<RECEIVABLES> 613,200<F1>
<ALLOWANCES> 0
<INVENTORY> 379,400
<CURRENT-ASSETS> 1,350,600<F2>
<PP&E> 3,282,300
<DEPRECIATION> 1,456,600
<TOTAL-ASSETS> 4,430,700
<CURRENT-LIABILITIES> 1,362,600
<BONDS> 0
0
0
<COMMON> 800
<OTHER-SE> 310,000
<TOTAL-LIABILITY-AND-EQUITY> 4,430,700
<SALES> 362,400<F3>
<TOTAL-REVENUES> 366,000
<CGS> 223,000
<TOTAL-COSTS> 223,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,800
<INCOME-PRETAX> 17,500
<INCOME-TAX> 6,400
<INCOME-CONTINUING> 11,100
<DISCONTINUED> 35,300<F4>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 46,400
<EPS-PRIMARY> .62
<EPS-DILUTED> .60
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets are net assets of discontinued operations of
$57,500.
<F3>Excludes 1997 sales from the discontinued Packaging business segment of
$422,700.
<F4>Represents after-tax income from the discontinued Packaging business segment.
<F5> Restated to reflect the adoption of SFAS No. 128 and the classification of income
and expenses of Grace's flexible packaging business as net income of discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 43,200
<SECURITIES> 0
<RECEIVABLES> 635,100<F1>
<ALLOWANCES> 0
<INVENTORY> 376,000
<CURRENT-ASSETS> 1,259,400<F2>
<PP&E> 3,293,500
<DEPRECIATION> 1,478,900
<TOTAL-ASSETS> 4,312,300<F2>
<CURRENT-LIABILITIES> 1,144,900
<BONDS> 0
0
0
<COMMON> 800
<OTHER-SE> 421,100
<TOTAL-LIABILITY-AND-EQUITY> 4,312,300
<SALES> 741,600<F3>
<TOTAL-REVENUES> 763,200
<CGS> 454,400
<TOTAL-COSTS> 454,400
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,800
<INCOME-PRETAX> 148,700<F4>
<INCOME-TAX> 56,900
<INCOME-CONTINUING> 91,800<F4>
<DISCONTINUED> 72,000<F5>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 163,800
<EPS-PRIMARY> 2.21
<EPS-DILUTED> 2.15
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets and total assets are net assets of
discontinued operations of $56,800.
<F3>Excludes 1997 sales from the discontinued Packaging business segment of
$886,000.
<F4>Includes a pretax gain of $103,100 ($63,000 after-tax) on the sale of
Grace's specialty polymer business, and a pretax provision of $12,400 ($8,000
after-tax) relating to restructuring costs.
<F5>Represents after-tax income from the discontinued Packaging business
segment.
<F6> Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business as net income of
discontinued operations.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 66,200
<SECURITIES> 0
<RECEIVABLES> 616,000<F1>
<ALLOWANCES> 0
<INVENTORY> 370,000
<CURRENT-ASSETS> 1,221,500<F2>
<PP&E> 3,261,100
<DEPRECIATION> 1,489,600
<TOTAL-ASSETS> 4,200,000<F2>
<CURRENT-LIABILITIES> 1,049,500
<BONDS> 0
0
0
<COMMON> 800
<OTHER-SE> 479,200
<TOTAL-LIABILITY-AND-EQUITY> 4,200,000
<SALES> 1,114,100<F3>
<TOTAL-REVENUES> 1,147,200
<CGS> 678,500
<TOTAL-COSTS> 678,500
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,900
<INCOME-PRETAX> 173,200<F4>
<INCOME-TAX> 65,900
<INCOME-CONTINUING> 107,300<F4>
<DISCONTINUED> 127,600<F5>
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 234,900
<EPS-PRIMARY> 3.18
<EPS-DILUTED> 3.08
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets and total assets are net assets of
discontinued operations of $26,800.
<F3>Excludes 1997 sales from the discontinued Packaging business segment of
$1,346,600.
<F4>Includes a pretax gain of $103,100 ($63,000 after-tax) on the sale of
Grace's specialty polymers business and a pretax provision of $12,400 ($8,000
after-tax) relating to restructuring costs.
<F5>Represents a $19,000 ($12,400 after-tax) reversal of previously recorded
provisions for Grace's cocoa business and after-tax income of $115,200 from the
Packaging business.
<F6> Restated to reflect the adoption of SFAS No. 128 and the classification of
income and expenses of Grace's flexible packaging business as net income of
discontinued operations.
</FN>
</TABLE>
