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Segment Information | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
Reportable Segments | Segment Information: Effective January 1, 2016, our former Performance Chemicals reportable segment was split into two reportable segments: (1) Lithium and Advanced Materials and (2) Bromine Specialties. In addition, on June 17, 2016, the Company signed a definitive agreement to sell its Chemetall Surface Treatment business to BASF SE. This business, a separate reportable segment, is classified as discontinued operations and its results are excluded from segment results for all periods presented. As a result, our three reportable segments include Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. 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 2015 have been recast to reflect the change in segments noted above. The “All Other” category comprises three operating segments that do not fit into any of our core businesses subsequent to the acquisition of Rockwood: minerals-based flame retardants and specialty chemicals, fine chemistry services and metal sulfides. During the first quarter of 2016, we completed the sales of the metal sulfides business and the minerals-based flame retardants and specialty chemicals businesses. 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. The Company’s chief operating decision maker uses earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items such as acquisition and integration related costs, utilization of inventory markup, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items (“adjusted EBITDA”), in a balanced manner and on a segment basis to assess the ongoing performance of the Company’s business segments and to allocate resources. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. 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 is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. 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, or any other financial measure reported in accordance with U.S. GAAP.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
| (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium and Advanced Materials | $ | 240,424 |  |  | $ | 208,820 |  |  | $ | 689,950 |  |  | $ | 620,597 |
Bromine Specialties | 194,496 |  |  | 190,716 |  |  | 597,912 |  |  | 604,267 |
Refining Solutions | 190,453 |  |  | 185,102 |  |  | 539,044 |  |  | 528,841 |
All Other | 28,272 |  |  | 102,224 |  |  | 150,987 |  |  | 337,997 |
Corporate | 365 |  |  | 6,354 |  |  | 2,655 |  |  | 12,117 |
Total net sales | $ | 654,010 |  |  | $ | 693,216 |  |  | $ | 1,980,548 |  |  | $ | 2,103,819 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium and Advanced Materials | $ | 91,719 |  |  | $ | 77,408 |  |  | $ | 260,861 |  |  | $ | 234,988 |
Bromine Specialties | 51,807 |  |  | 58,801 |  |  | 179,977 |  |  | 180,431 |
Refining Solutions | 64,960 |  |  | 54,517 |  |  | 181,620 |  |  | 144,910 |
All Other | 5,470 |  |  | 6,262 |  |  | 14,810 |  |  | 29,540 |
Corporate | (25,627 | ) |  | (16,307 | ) |  | (66,435 | ) |  | (8,350 | )
Total adjusted EBITDA | $ | 188,329 |  |  | $ | 180,681 |  |  | $ | 570,833 |  |  | $ | 581,519 |
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 U.S. GAAP, (in thousands):
| Lithium and Advanced Materials |  | Bromine Specialties |  | Refining Solutions |  | Reportable Segments Total |  | All Other |  | Corporate |  | Consolidated Total
Three months ended September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 66,166 |  |  | $ | 41,621 |  |  | $ | 55,981 |  |  | $ | 163,768 |  |  | $ | 3,806 |  |  | $ | (39,354 | ) |  | $ | 128,220 |
Depreciation and amortization | 25,553 |  |  | 10,186 |  |  | 8,979 |  |  | 44,718 |  |  | 1,664 |  |  | 1,592 |  |  | 47,974 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,749 |  |  | 6,749 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,946 |  |  | 15,946 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,394 |  |  | 12,394 |
Income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (23,185 | ) |  | (23,185 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (231 | ) |  | (231 | )
Other(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 462 |  |  | 462 |
Adjusted EBITDA | $ | 91,719 |  |  | $ | 51,807 |  |  | $ | 64,960 |  |  | $ | 208,486 |  |  | $ | 5,470 |  |  | $ | (25,627 | ) |  | $ | 188,329 |
Three months ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 38,498 |  |  | $ | 49,395 |  |  | $ | 45,713 |  |  | $ | 133,606 |  |  | $ | 617 |  |  | $ | (68,831 | ) |  | $ | 65,392 |
Depreciation and amortization | 22,076 |  |  | 9,406 |  |  | 8,804 |  |  | 40,286 |  |  | 5,645 |  |  | 2,712 |  |  | 48,643 |
Utilization of inventory markup(c) | 16,834 |  |  | — |  |  | — |  |  | 16,834 |  |  | — |  |  | — |  |  | 16,834 |
Restructuring and other, net(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,804 | ) |  | (6,804 | )
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 36,514 |  |  | 36,514 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,294 |  |  | 19,294 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,144 |  |  | 13,144 |
Income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (11,030 | ) |  | (11,030 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,306 | ) |  | (1,306 | )
Adjusted EBITDA | $ | 77,408 |  |  | $ | 58,801 |  |  | $ | 54,517 |  |  | $ | 190,726 |  |  | $ | 6,262 |  |  | $ | (16,307 | ) |  | $ | 180,681 |
Nine months ended September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 186,373 |  |  | $ | 150,221 |  |  | $ | 154,767 |  |  | $ | 491,361 |  |  | $ | 133,012 |  |  | $ | (582,788 | ) |  | $ | 41,585 |
Depreciation and amortization | 74,488 |  |  | 29,756 |  |  | 26,853 |  |  | 131,097 |  |  | 5,629 |  |  | 4,562 |  |  | 141,288 |
(Gain) loss on sales of businesses, net(e) | — |  |  | — |  |  | — |  |  | — |  |  | (123,831 | ) |  | 1,533 |  |  | (122,298 | )
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 44,337 |  |  | 44,337 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,860 |  |  | 46,860 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 61,535 |  |  | 61,535 |
Loss from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 357,843 |  |  | 357,843 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (779 | ) |  | (779 | )
Other(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 462 |  |  | 462 |
Adjusted EBITDA | $ | 260,861 |  |  | $ | 179,977 |  |  | $ | 181,620 |  |  | $ | 622,458 |  |  | $ | 14,810 |  |  | $ | (66,435 | ) |  | $ | 570,833 |
Nine months ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 88,219 |  |  | $ | 154,353 |  |  | $ | 119,513 |  |  | $ | 362,085 |  |  | $ | 9,644 |  |  | $ | (211,075 | ) |  | $ | 160,654 |
Depreciation and amortization | 67,530 |  |  | 26,078 |  |  | 25,397 |  |  | 119,005 |  |  | 16,867 |  |  | 6,933 |  |  | 142,805 |
Utilization of inventory markup(c) | 79,239 |  |  | — |  |  | — |  |  | 79,239 |  |  | 3,029 |  |  | — |  |  | 82,268 |
Restructuring and other, net(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,804 | ) |  | (6,804 | )
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 117,171 |  |  | 117,171 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 62,193 |  |  | 62,193 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41,780 |  |  | 41,780 |
Income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (19,074 | ) |  | (19,074 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,915 | ) |  | (3,915 | )
Other(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,441 |  |  | 4,441 |
Adjusted EBITDA | $ | 234,988 |  |  | $ | 180,431 |  |  | $ | 144,910 |  |  | $ | 560,329 |  |  | $ | 29,540 |  |  | $ | (8,350 | ) |  | $ | 581,519 |
(a) | See Note 2, “Acquisitions,” for additional information.
(b) | Includes the write-off of fixed assets of $1.4 million included in Research and development expenses, partially offset by a net gain of $0.9 million on the sales of properties included in Other income, net.
(c) | 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 $103.4 million. The inventory markup was expensed over the estimated remaining selling period. For the three-month and nine-month periods ended September 30, 2015, $7.7 million and $55.4 million, respectively, was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $9.1 million and $26.9 million, respectively, related to the utilization of the inventory markup.
(d) | Gain recognized upon the sale of land in Avonmouth, UK, which was utilized by the phosphorus flame retardants business we exited in 2012.
(e) | See Note 3, “Divestitures,” for additional information.
(f) | Financing-related fees expensed in connection with the acquisition of Rockwood.

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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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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