XML 69 R18.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2015
Segment Reporting [Abstract] |
Operating Segments | Segment Information: As a result of the Rockwood acquisition, we have realigned our organizational structure under three reportable segments. Our new reportable business segments consist of the following: Performance Chemicals, Refining Solutions and Chemetall Surface Treatment. The Performance Chemicals segment includes the Lithium, PCS and Bromine product categories. The Refining Solutions segment consists of the Company’s Heavy Oil Upgrading and Clean Fuels Technologies product categories. The Chemetall Surface Treatment segment consists of the Surface Treatment product category. Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset and market focus, agility and responsiveness. The new business structure aligns with the markets and customers we serve through each of the segments. The new structure also facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. Summarized financial information concerning our reportable segments is shown in the following tables. Results for 2014 have been recast to reflect the change in segments noted above and a change in our measure of segment profit or loss to adjusted EBITDA as discussed below. Segment results for all periods presented exclude discontinued operations as further described in Note 17. During the first quarter we announced our intention to pursue strategic alternatives for three operating segments - Minerals, Fine Chemistry Services and Metal Sulfides, which together comprise the “All Other” category. All three operating segments have been and are expected to continue to be profitable, but do not fit into any of our core businesses subsequent to the acquisition of Rockwood. We expect to use the cash generated from the sale of these businesses to reduce the debt incurred for the acquisition of Rockwood. We have considered the accounting guidance in Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment, and determined that the relevant asset groups did not meet the criteria to be accounted for as assets held for sale as of the balance sheet date. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the reportable segments. Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs. Beginning in 2015, the Company uses earnings before interest, taxes, depreciation and amortization, as adjusted for certain non-recurring or unusual items such as restructuring charges, facility divestiture charges and other significant non-recurring items (“adjusted EBITDA”), on a segment basis to assess the ongoing performance of the Company’s business segments. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, GAAP. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA should not be considered as an alternative to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP.
| Three Months Ended March 31,
| 2015 |  | 2014
| (In thousands)
Net sales: |  |  |
Performance Chemicals | $ | 388,366 |  |  | $ | 275,897 |
Refining Solutions | 179,166 |  |  | 194,661 |
Chemetall Surface Treatment | 192,091 |  |  | — |
All Other | 122,369 |  |  | 129,285 |
Corporate | 2,412 |  |  | — |
Total net sales | $ | 884,404 |  |  | $ | 599,843 |
Adjusted EBITDA: |  |  |
Performance Chemicals | $ | 130,528 |  |  | $ | 73,385 |
Refining Solutions | 42,193 |  |  | 61,034 |
Chemetall Surface Treatment | 46,004 |  |  | — |
All Other | 13,564 |  |  | 20,695 |
Corporate | 33,339 |  |  | (19,084 | )
Total Adjusted EBITDA | $ | 265,628 |  |  | $ | 136,030 |
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP, (in thousands):
| Performance Chemicals |  | Refining Solutions |  | Chemetall Surface Treatment |  | Reportable Segments Total |  | All Other |  | Corporate |  | Consolidated Total
Three months ended March 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA | $ | 130,528 |  |  | $ | 42,193 |  |  | $ | 46,004 |  |  | $ | 218,725 |  |  | $ | 13,564 |  |  | $ | 33,339 |  |  | $ | 265,628 |
Depreciation and amortization | (30,283 | ) |  | (8,110 | ) |  | (18,196 | ) |  | (56,589 | ) |  | (5,498 | ) |  | (1,899 | ) |  | (63,986 | )
Utilization of inventory markup(a) | (28,582 | ) |  | — |  |  | (16,953 | ) |  | (45,535 | ) |  | (2,651 | ) |  | — |  |  | (48,186 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (59,523 | ) |  | (59,523 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (35,746 | ) |  | (35,746 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14,140 | ) |  | (14,140 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,509 |  |  | 3,509 |
Other(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,441 | ) |  | (4,441 | )
Net income (loss) attributable to Albemarle Corporation | $ | 71,663 |  |  | $ | 34,083 |  |  | $ | 10,855 |  |  | $ | 116,601 |  |  | $ | 5,415 |  |  | $ | (78,901 | ) |  | $ | 43,115 |
Three months ended March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA | $ | 73,385 |  |  | $ | 61,034 |  |  | $ | — |  |  | $ | 134,419 |  |  | $ | 20,695 |  |  | $ | (19,084 | ) |  | $ | 136,030 |
Depreciation and amortization(d) | (12,056 | ) |  | (8,680 | ) |  | — |  |  | (20,736 | ) |  | (3,364 | ) |  | (544 | ) |  | (24,644 | )
Restructuring and other charges, net(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (17,000 | ) |  | (17,000 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,773 | ) |  | (8,773 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (13,190 | ) |  | (13,190 | )
Loss from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,769 | ) |  | (1,769 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14,071 | ) |  | (14,071 | )
Net income (loss) attributable to Albemarle Corporation | $ | 61,329 |  |  | $ | 52,354 |  |  | $ | — |  |  | $ | 113,683 |  |  | $ | 17,331 |  |  | $ | (74,431 | ) |  | $ | 56,583 |
(a) | In connection with the acquisition of Rockwood, the Company valued Rockwood’s existing inventory at fair value as of the Acquisition Closing Date, which resulted in a markup of the underlying net book value of the inventory totaling approximately $103 million. The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2015, $40.3 million was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $7.9 million, related to the utilization of the inventory markup.
(b) | See Note 2, “Acquisitions.”
(c) | Financing-related fees expensed in the 2015 period in connection with the acquisition of Rockwood.
(d) | Excludes discontinued operations.
(e) | See Note 15, “Restructuring and Other.”

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration