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Segment and Geographic Area Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment and Geographic Area Information | Segment and Geographic Area Information: As a result of the Rockwood acquisition, in 2015 we realigned our organizational structure under three reportable segments: Performance Chemicals, Refining Solutions and Chemetall Surface Treatment. 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 and 2013 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 3, “Divestitures.” The “All Other” category is comprised of three operating segments that did not fit into any of our core businesses subsequent to the acquisition of Rockwood: mineral-based flame retardants and specialty chemicals, fine chemistry services and metal sulfides. For additional information about these businesses, see Note 3, “Divestitures.” 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, non-operating pension and OPEB items 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, U.S. 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 U.S. GAAP.
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
| (In thousands)
Net sales: |  |  |  |  |
Performance Chemicals | $ | 1,610,319 |  |  | $ | 1,121,645 |  |  | $ | 1,141,890 |
Refining Solutions | 729,261 |  |  | 852,139 |  |  | 775,207 |
Chemetall Surface Treatment | 824,906 |  |  | — |  |  | — |
All Other | 471,434 |  |  | 471,764 |  |  | 477,173 |
Corporate | 15,415 |  |  | — |  |  | — |
Total net sales | $ | 3,651,335 |  |  | $ | 2,445,548 |  |  | $ | 2,394,270 |
Adjusted EBITDA: |  |  |  |  |
Performance Chemicals | $ | 535,520 |  |  | $ | 306,572 |  |  | $ | 364,712 |
Refining Solutions | 197,595 |  |  | 256,485 |  |  | 190,388 |
Chemetall Surface Treatment | 202,028 |  |  | — |  |  | — |
All Other | 53,993 |  |  | 73,973 |  |  | 71,691 |
Corporate | (29,814 | ) |  | (74,875 | ) |  | (69,240 | )
Total adjusted EBITDA | $ | 959,322 |  |  | $ | 562,155 |  |  | $ | 557,551 |
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
2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA | $ | 535,520 |  |  | $ | 197,595 |  |  | $ | 202,028 |  |  | $ | 935,143 |  |  | $ | 53,993 |  |  | $ | (29,814 | ) |  | $ | 959,322 |
Depreciation and amortization | (120,248 | ) |  | (34,039 | ) |  | (78,903 | ) |  | (233,190 | ) |  | (18,183 | ) |  | (8,703 | ) |  | (260,076 | )
Utilization of inventory markup(a) | (79,977 | ) |  | — |  |  | (20,030 | ) |  | (100,007 | ) |  | (3,029 | ) |  | — |  |  | (103,036 | )
Restructuring and other, net(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,804 |  |  | 6,804 |
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (146,096 | ) |  | (146,096 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (132,722 | ) |  | (132,722 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (29,122 | ) |  | (29,122 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,244 |  |  | 46,244 |
Other(d) | — |  |  | (1,971 | ) |  | — |  |  | (1,971 | ) |  | — |  |  | (4,441 | ) |  | (6,412 | )
Net income (loss) attributable to Albemarle Corporation | $ | 335,295 |  |  | $ | 161,585 |  |  | $ | 103,095 |  |  | $ | 599,975 |  |  | $ | 32,781 |  |  | $ | (297,850 | ) |  | $ | 334,906 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA | $ | 306,572 |  |  | $ | 256,485 |  |  | $ | — |  |  | $ | 563,057 |  |  | $ | 73,973 |  |  | $ | (74,875 | ) |  | $ | 562,155 |
Depreciation and amortization(e) | (51,707 | ) |  | (32,670 | ) |  | — |  |  | (84,377 | ) |  | (13,478 | ) |  | (2,552 | ) |  | (100,407 | )
Restructuring and other, net(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (25,947 | ) |  | (25,947 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (30,158 | ) |  | (30,158 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (41,358 | ) |  | (41,358 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (18,484 | ) |  | (18,484 | )
(Loss) income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (69,531 | ) |  | (69,531 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (125,462 | ) |  | (125,462 | )
Other(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (17,492 | ) |  | (17,492 | )
Net income (loss) attributable to Albemarle Corporation | $ | 254,865 |  |  | $ | 223,815 |  |  | $ | — |  |  | $ | 478,680 |  |  | $ | 60,495 |  |  | $ | (405,859 | ) |  | $ | 133,316 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA | $ | 364,712 |  |  | $ | 190,388 |  |  | $ | — |  |  | $ | 555,100 |  |  | $ | 71,691 |  |  | $ | (69,240 | ) |  | $ | 557,551 |
Depreciation and amortization(e) | (46,225 | ) |  | (33,580 | ) |  | — |  |  | (79,805 | ) |  | (13,323 | ) |  | (2,188 | ) |  | (95,316 | )
Restructuring and other, net(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (33,361 | ) |  | (33,361 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (31,559 | ) |  | (31,559 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (134,445 | ) |  | (134,445 | )
(Loss) income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,108 |  |  | 4,108 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 146,193 |  |  | 146,193 |
Net income (loss) attributable to Albemarle Corporation | $ | 318,487 |  |  | $ | 156,808 |  |  | $ | — |  |  | $ | 475,295 |  |  | $ | 58,368 |  |  | $ | (120,492 | ) |  | $ | 413,171 |
(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 was expensed over the estimated remaining selling period. For the year ended December 31, 2015, $75.9 million was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $27.1 million related to the utilization of the inventory markup.
(b) | See Note 2, “Acquisitions.”
(c) | See Note 21, “Restructuring and Other.”
(d) | For the year ended December 31, 2015, Refining Solutions includes an impairment charge of approximately $2.0 million related to our unconsolidated investment in Fábrica Carioca de Catalisadores SA. For the years ended December 31, 2015 and 2014, Corporate includes approximately $4.4 million and $17.5 million, respectively, of financing-related fees expensed in connection with the acquisition of Rockwood.
(e) | Excludes discontinued operations.
| As of December 31,
| 2015 |  | 2014 |  | 2013
|  |  | (In thousands) |  |
Identifiable assets: |  |  |  |  |
Performance Chemicals | $ | 4,358,598 |  |  | $ | 1,085,246 |  |  | $ | 1,148,478 |
Refining Solutions | 937,445 |  |  | 1,100,361 |  |  | 1,217,313 |
Chemetall Surface Treatment | 3,207,621 |  |  | — |  |  | — |
All Other | 517,695 |  |  | 268,555 |  |  | 468,147 |
Corporate(a) | 593,655 |  |  | 2,768,941 |  |  | 750,859 |
Total identifiable assets | $ | 9,615,014 |  |  | $ | 5,223,103 |  |  | $ | 3,584,797 |
Goodwill: |  |  |  |  |
Performance Chemicals | $ | 1,287,824 |  |  | $ | 42,016 |  |  | $ | 42,025 |
Refining Solutions | 172,728 |  |  | 192,657 |  |  | 218,382 |
Chemetall Surface Treatment | 1,433,259 |  |  | — |  |  | — |
All Other | — |  |  | 8,589 |  |  | 23,796 |
Total goodwill | $ | 2,893,811 |  |  | $ | 243,262 |  |  | $ | 284,203 |
(a) | As of December 31, 2014, Corporate included net proceeds received from the issuance of the 2014 Senior Notes, which, together with borrowings from our Commercial Paper Notes, August 2014 Term Loan Agreement and Cash Bridge Facility, were used to finance the cash portion of the Merger Consideration, pay related fees and expenses and repay our senior notes which matured on February 1, 2015. See Note 14, “Long-Term Debt” and Note 2, “Acquisitions” for additional details about these transactions.
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
|  |  | (In thousands) |  |
Depreciation and amortization: |  |  |  |  |
Performance Chemicals | $ | 120,248 |  |  | $ | 51,707 |  |  | $ | 46,225 |
Refining Solutions | 34,039 |  |  | 32,670 |  |  | 33,580 |
Chemetall Surface Treatment | 78,903 |  |  | — |  |  | — |
Discontinued Operations | — |  |  | 3,165 |  |  | 12,054 |
All Other | 18,183 |  |  | 13,478 |  |  | 13,323 |
Corporate | 8,703 |  |  | 2,552 |  |  | 2,188 |
Total depreciation and amortization | $ | 260,076 |  |  | $ | 103,572 |  |  | $ | 107,370 |
Capital expenditures: |  |  |  |  |
Performance Chemicals | $ | 159,338 |  |  | $ | 52,280 |  |  | $ | 119,500 |
Refining Solutions | 28,836 |  |  | 49,219 |  |  | 16,501 |
Chemetall Surface Treatment | 23,738 |  |  | — |  |  | — |
All Other | 13,054 |  |  | 9,053 |  |  | 18,831 |
Corporate | 2,683 |  |  | 24 |  |  | 514 |
Total capital expenditures | $ | 227,649 |  |  | $ | 110,576 |  |  | $ | 155,346 |
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
|  |  | (In thousands) |  |
Net Sales: |  |  |  |  |
United States | $ | 1,118,847 |  |  | $ | 884,373 |  |  | $ | 933,182 |
Foreign(a) | 2,532,488 |  |  | 1,561,175 |  |  | 1,461,088 |
Total | $ | 3,651,335 |  |  | $ | 2,445,548 |  |  | $ | 2,394,270 |
(a) | No sales in a foreign country exceed 10% of total net sales. Also, net sales are attributed to countries based upon shipments to final destination.
| As of December 31,
| 2015 |  | 2014 |  | 2013
|  |  | (In thousands) |  |
Long-Lived Assets: |  |  |  |  |
United States | $ | 833,238 |  |  | $ | 698,863 |  |  | $ | 748,719 |
Chile | 916,965 |  |  | — |  |  | — |
Netherlands | 157,644 |  |  | 167,965 |  |  | 193,775 |
Jordan | 230,460 |  |  | 227,805 |  |  | 227,818 |
Australia | 282,552 |  |  | — |  |  | — |
Brazil | 45,847 |  |  | 59,474 |  |  | 78,078 |
Germany | 189,895 |  |  | 75,813 |  |  | 86,175 |
China | 29,780 |  |  | 5,310 |  |  | 41,858 |
France | 50,991 |  |  | 37,347 |  |  | 34,523 |
Korea | 72,685 |  |  | 80,362 |  |  | 86,827 |
United Kingdom | 5,320 |  |  | 3,665 |  |  | 3,665 |
Other foreign countries | 103,977 |  |  | 48,819 |  |  | 47,139 |
Total | $ | 2,919,354 |  |  | $ | 1,405,423 |  |  | $ | 1,548,577 |
Net sales to external customers by product category in each of the segments consists of the following:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
|  |  | (In thousands) |  |
Performance Chemicals: |  |  |  |  |
Bromine | $ | 775,729 |  |  | $ | 808,857 |  |  | $ | 856,298 |
Lithium | 508,844 |  |  | — |  |  | — |
Performance Catalyst Solutions | 325,746 |  |  | 312,788 |  |  | 285,592 |
Total Performance Chemicals | $ | 1,610,319 |  |  | $ | 1,121,645 |  |  | $ | 1,141,890 |
Refining Solutions | $ | 729,261 |  |  | $ | 852,139 |  |  | $ | 775,207 |
Chemetall Surface Treatment | $ | 824,906 |  |  | $ | — |  |  | $ | — |
On October 26, 2015, we announced that effective January 1, 2016, Performance Chemicals will be split into two separate reportable segments: (1) Bromine Specialties, and (2) Lithium and Advanced Materials, which will include Performance Catalyst Solutions and Curatives.

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- 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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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 3: 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 4: 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 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 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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