XML 37 R8.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Basis of Presentation | 9 Months Ended
--- | ---
Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of Presentation | Basis of Presentation: In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012, our consolidated statements of income and consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012 and our condensed consolidated statements of cash flows and consolidated statements of changes in equity for the nine-month periods ended September 30, 2013 and 2012. All adjustments are of a normal and recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission (SEC) on February 15, 2013. The December 31, 2012 consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). The results of operations for the three-month and nine-month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying consolidated financial statements and the notes thereto to conform to the current presentation. Change in accounting principle regarding pension and other postretirement benefits During 2012, we elected to change our method of accounting for actuarial gains and losses relating to our global pension and other postretirement benefit (OPEB) plans. Previously, we recognized actuarial gains and losses from our pension and OPEB plans in our consolidated balance sheets as Accumulated other comprehensive income (loss) within shareholders’ equity, with amortization of these gains and losses that exceeded ten percent of the greater of plan assets or projected benefit obligations recognized each quarter in our consolidated statements of income over the average future service period of active employees. Under the new method of accounting, referred to as mark-to-market accounting, these gains and losses will be recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. The remaining components of pension and OPEB plan expense, primarily service cost, interest cost and expected return on assets, will be recorded on a quarterly basis. The gain/loss subject to amortization and expected return on assets components of our pension expense has historically been calculated using a five-year smoothing of asset gains and losses referred to as the market-related value. Under mark-to-market accounting, the market-related value of assets will equal the actual market value as of the date of measurement. While our historical policy of recognizing pension and OPEB plan expense is considered acceptable under U.S. GAAP, we believe that the new policy is preferable as it eliminates the delay in recognizing gains and losses within operating results. This change will also improve transparency within our operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these gains and losses are actually incurred. This change in accounting principle has been applied retrospectively, adjusting all prior periods presented. In the second quarter of 2013, we identified that our consolidated statement of income for the nine-month period ended September 30, 2012 included a correction of $10.3 million for pension and OPEB plan actuarial gains that related to 2011. This amount was deemed to be not material with respect to our financial statements for the year ended December 31, 2012 and any prior period financial statements. The impact of this accounting policy change on Albemarle’s consolidated financial statements for the three-month and nine-month periods ended September 30, 2012 is summarized below: Consolidated Statements of Income
Three Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Net sales |  | $ | 661,226 |  |  | $ | — |  |  | $ | 661,226 |
Cost of goods sold |  | 446,469 |  |  | (2,993 | ) |  | 443,476 |
Gross profit |  | 214,757 |  |  | 2,993 |  |  | 217,750 |
Selling, general and administrative expenses |  | 59,982 |  |  | (6,578 | ) |  | 53,404 |
Research and development expenses |  | 19,831 |  |  | — |  |  | 19,831 |
Restructuring and other charges, net |  | 6,508 |  |  | (6,508 | ) |  | — |
Operating profit |  | 128,436 |  |  | 16,079 |  |  | 144,515 |
Interest and financing expenses |  | (7,914 | ) |  | — |  |  | (7,914 | )
Other income, net |  | 2,370 |  |  | — |  |  | 2,370 |
Income before income taxes and equity in net income of unconsolidated investments |  | 122,892 |  |  | 16,079 |  |  | 138,971 |
Income tax expense |  | 26,591 |  |  | 5,881 |  |  | 32,472 |
Income before equity in net income of unconsolidated investments |  | 96,301 |  |  | 10,198 |  |  | 106,499 |
Equity in net income of unconsolidated investments (net of tax) |  | 7,935 |  |  | — |  |  | 7,935 |
Net income |  | 104,236 |  |  | 10,198 |  |  | 114,434 |
Net income attributable to noncontrolling interests |  | (4,975 | ) |  | — |  |  | (4,975 | )
Net income attributable to Albemarle Corporation |  | $ | 99,261 |  |  | $ | 10,198 |  |  | $ | 109,459 |
Basic earnings per share |  | $ | 1.11 |  |  | $ | 0.12 |  |  | $ | 1.23 |
Diluted earnings per share |  | $ | 1.10 |  |  | $ | 0.12 |  |  | $ | 1.22 |
Weighted-average common shares outstanding – basic |  | 89,327 |  |  | — |  |  | 89,327 |
Weighted-average common shares outstanding – diluted |  | 89,879 |  |  | — |  |  | 89,879 |
Cash dividends declared per share of common stock |  | $ | 0.20 |  |  | $ | — |  |  | $ | 0.20 |
Nine Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Net sales |  | $ | 2,057,824 |  |  | $ | — |  |  | $ | 2,057,824 |
Cost of goods sold |  | 1,352,495 |  |  | (12,689 | ) |  | 1,339,806 |
Gross profit |  | 705,329 |  |  | 12,689 |  |  | 718,018 |
Selling, general and administrative expenses |  | 215,298 |  |  | (26,155 | ) |  | 189,143 |
Research and development expenses |  | 59,791 |  |  | — |  |  | 59,791 |
Restructuring and other charges, net |  | 101,211 |  |  | (6,508 | ) |  | 94,703 |
Operating profit |  | 329,029 |  |  | 45,352 |  |  | 374,381 |
Interest and financing expenses |  | (25,134 | ) |  | — |  |  | (25,134 | )
Other income, net |  | 1,564 |  |  | — |  |  | 1,564 |
Income before income taxes and equity in net income of unconsolidated investments |  | 305,459 |  |  | 45,352 |  |  | 350,811 |
Income tax expense |  | 76,804 |  |  | 16,578 |  |  | 93,382 |
Income before equity in net income of unconsolidated investments |  | 228,655 |  |  | 28,774 |  |  | 257,429 |
Equity in net income of unconsolidated investments (net of tax) |  | 29,233 |  |  | — |  |  | 29,233 |
Net income |  | 257,888 |  |  | 28,774 |  |  | 286,662 |
Net income attributable to noncontrolling interests |  | (12,852 | ) |  | — |  |  | (12,852 | )
Net income attributable to Albemarle Corporation |  | $ | 245,036 |  |  | $ | 28,774 |  |  | $ | 273,810 |
Basic earnings per share |  | $ | 2.75 |  |  | $ | 0.32 |  |  | $ | 3.07 |
Diluted earnings per share |  | $ | 2.72 |  |  | $ | 0.32 |  |  | $ | 3.04 |
Weighted-average common shares outstanding – basic |  | 89,246 |  |  | — |  |  | 89,246 |
Weighted-average common shares outstanding – diluted |  | 89,959 |  |  | — |  |  | 89,959 |
Cash dividends declared per share of common stock |  | $ | 0.60 |  |  | $ | — |  |  | $ | 0.60 |
Consolidated Statements of Comprehensive Income
Three Months Ended September 30, 2012 (In Thousands) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Net income |  | $ | 104,236 |  |  | $ | 10,198 |  |  | $ | 114,434 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |
Foreign currency translation |  | 29,165 |  |  | — |  |  | 29,165 |
Pension and postretirement benefits |  | 10,030 |  |  | (10,198 | ) |  | (168 | )
Other |  | 29 |  |  | — |  |  | 29 |
Total other comprehensive income, net of tax |  | 39,224 |  |  | (10,198 | ) |  | 29,026 |
Comprehensive income |  | 143,460 |  |  | — |  |  | 143,460 |
Comprehensive income attributable to non-controlling interests |  | (4,975 | ) |  | — |  |  | (4,975 | )
Comprehensive income attributable to Albemarle Corporation |  | $ | 138,485 |  |  | $ | — |  |  | $ | 138,485 |
Nine Months Ended September 30, 2012 (In Thousands) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Net income |  | $ | 257,888 |  |  | $ | 28,774 |  |  | $ | 286,662 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |
Foreign currency translation |  | 2,295 |  |  | — |  |  | 2,295 |
Pension and postretirement benefits |  | 28,272 |  |  | (28,774 | ) |  | (502 | )
Other |  | 95 |  |  | — |  |  | 95 |
Total other comprehensive income, net of tax |  | 30,662 |  |  | (28,774 | ) |  | 1,888 |
Comprehensive income |  | 288,550 |  |  | — |  |  | 288,550 |
Comprehensive income attributable to non-controlling interests |  | (13,007 | ) |  | — |  |  | (13,007 | )
Comprehensive income attributable to Albemarle Corporation |  | $ | 275,543 |  |  | $ | — |  |  | $ | 275,543 |
Consolidated Statements of Changes In Equity
Nine Months Ended September 30, 2012 (In Thousands) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Accumulated other comprehensive (loss) income: |  |  |  |  |  |
Balance at January 1, 2012 |  | $ | (222,922 | ) |  | $ | 283,251 |  |  | $ | 60,329 |
Other comprehensive income |  | 30,507 |  |  | (28,774 | ) |  | 1,733 |
Balance at September 30, 2012 |  | $ | (192,415 | ) |  | $ | 254,477 |  |  | $ | 62,062 |
Retained earnings: |  |  |  |  |  |
Balance at January 1, 2012 |  | $ | 1,798,117 |  |  | $ | (283,251 | ) |  | $ | 1,514,866 |
Net income |  | 245,036 |  |  | 28,774 |  |  | 273,810 |
Cash dividends declared |  | (53,567 | ) |  | — |  |  | (53,567 | )
Balance at September 30, 2012 |  | $ | 1,989,586 |  |  | $ | (254,477 | ) |  | $ | 1,735,109 |
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2012 (In Thousands) |  | As Previously Reported |  | Effect of Accounting Change |  | As Adjusted
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | $ | 257,888 |  |  | $ | 28,774 |  |  | $ | 286,662 |
Non-cash charges associated with restructuring and other, net |  | 77,095 |  |  | (6,508 | ) |  | 70,587 |
Pension and postretirement expense (benefit) |  | 28,727 |  |  | (38,844 | ) |  | (10,117 | )
Deferred income taxes |  | (2,136 | ) |  | 16,578 |  |  | 14,442 |

X
- Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2134480 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS140-4/FIN46(R)-8 -Paragraph 8, C1, C7 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2122150 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -SubTopic 15 -URI http://asc.fasb.org/subtopic&trid=2122524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2197480 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 2-6 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 915 -SubTopic 235 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2209116 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-6 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration