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Excerpt from "DECREE ON ECUMENISM (UNITATIS REDINTEGRATIO)"
http://www.vatican.va/archive/hist_councils/ii_vatican_council/documents/vat-ii_decree_19641121_unitatis-redintegratio_en.html

3. Even in the beginnings of this one and only Church of God there arose certain rifts,(19) which the Apostle strongly condemned.(20) But in subsequent centuries much more serious dissensions made their appearance and quite large communities came to be separated from full communion with the Catholic Church-for which, often enough, men of both sides were to blame. The children who are born into these Communities and who grow up believing in Christ cannot be accused of the sin involved in the separation, and the Catholic Church embraces upon them as brothers, with respect and affection. For men who believe in Christ and have been truly baptized are in communion with the Catholic Church even though this communion is imperfect. The differences that exist in varying degrees between them and the Catholic Church-whether in doctrine and sometimes in discipline, or concerning the structure of the Church-do indeed create many obstacles, sometimes serious ones, to full ecclesiastical communion. The ecumenical movement is striving to overcome these obstacles. But even in spite of them it remains true that all who have been justified by faith in Baptism are members of Christ's body,(21) and have a right to be called Christian, and so are correctly accepted as brothers by the children of the Catholic Church.(22)

Moreover, some and even very many of the significant elements and endowments which together go to build up and give life to the Church itself, can exist outside the visible boundaries of the Catholic Church: the written word of God; the life of grace; faith, hope and charity, with the other interior gifts of the Holy Spirit, and visible elements too. All of these, which come from Christ and lead back to Christ, belong by right to the one Church of Christ.

The brethren divided from us also use many liturgical actions of the Christian religion. These most certainly can truly engender a life of grace in ways that vary according to the condition of each Church or Community. These liturgical actions must be regarded as capable of giving access to the community of salvation.

It follows that the separated Churches(23) and Communities as such, though we believe them to be deficient in some respects, have been by no means deprived of significance and importance in the mystery of salvation. For the Spirit of Christ has not refrained from using them as means of salvation which derive their efficacy from the very fullness of grace and truth entrusted to the Church.