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Segment and Geographic Area Information | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment and Geographic Area Information | Segment and Geographic Area 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 and 2014 have been recast to reflect the change in segments noted above. The “All Other” category comprises three operating segments that did 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 business. 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.
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (In thousands)
Net sales: |  |  |  |  |
Lithium and Advanced Materials | $ | 968,216 |  |  | $ | 834,590 |  |  | $ | 312,788 |
Bromine Specialties | 792,425 |  |  | 775,729 |  |  | 808,857 |
Refining Solutions | 732,137 |  |  | 729,261 |  |  | 852,139 |
All Other | 180,988 |  |  | 471,434 |  |  | 471,764 |
Corporate | 3,437 |  |  | 15,415 |  |  | — |
Total net sales | $ | 2,677,203 |  |  | $ | 2,826,429 |  |  | $ | 2,445,548 |
Adjusted EBITDA: |  |  |  |  |
Lithium and Advanced Materials | $ | 363,360 |  |  | $ | 312,867 |  |  | $ | 81,596 |
Bromine Specialties | 226,926 |  |  | 222,653 |  |  | 224,976 |
Refining Solutions | 238,963 |  |  | 197,595 |  |  | 256,485 |
All Other | 14,772 |  |  | 53,993 |  |  | 73,973 |
Corporate | (85,804 | ) |  | (31,108 | ) |  | (74,875 | )
Total adjusted EBITDA | $ | 758,217 |  |  | $ | 756,000 |  |  | $ | 562,155 |
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
2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 261,394 |  |  | $ | 187,364 |  |  | $ | 202,874 |  |  | $ | 651,632 |  |  | $ | 131,301 |  |  | $ | (139,258 | ) |  | $ | 643,675 |
Depreciation and amortization | 101,966 |  |  | 39,562 |  |  | 36,089 |  |  | 177,617 |  |  | 7,302 |  |  | 6,056 |  |  | 190,975 |
(Gain) loss on sales of businesses, net(a) | — |  |  | — |  |  | — |  |  | — |  |  | (123,831 | ) |  | 1,533 |  |  | (122,298 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 57,384 |  |  | 57,384 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 65,181 |  |  | 65,181 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 96,263 |  |  | 96,263 |
Income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (202,131 | ) |  | (202,131 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25,589 |  |  | 25,589 |
Other(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,579 |  |  | 3,579 |
Adjusted EBITDA | $ | 363,360 |  |  | $ | 226,926 |  |  | $ | 238,963 |  |  | $ | 829,249 |  |  | $ | 14,772 |  |  | $ | (85,804 | ) |  | $ | 758,217 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 148,821 |  |  | $ | 186,474 |  |  | $ | 161,585 |  |  | $ | 496,880 |  |  | $ | 32,781 |  |  | $ | (194,755 | ) |  | $ | 334,906 |
Depreciation and amortization | 84,069 |  |  | 36,179 |  |  | 34,039 |  |  | 154,287 |  |  | 18,183 |  |  | 8,703 |  |  | 181,173 |
Utilization of inventory markup(d) | 79,977 |  |  | — |  |  | — |  |  | 79,977 |  |  | 3,029 |  |  | — |  |  | 83,006 |
Restructuring and other, net(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,804 | ) |  | (6,804 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 132,299 |  |  | 132,299 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 81,650 |  |  | 81,650 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,134 |  |  | 11,134 |
Income from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (32,476 | ) |  | (32,476 | )
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (35,300 | ) |  | (35,300 | )
Other(f) | — |  |  | — |  |  | 1,971 |  |  | 1,971 |  |  | — |  |  | 4,441 |  |  | 6,412 |
Adjusted EBITDA | $ | 312,867 |  |  | $ | 222,653 |  |  | $ | 197,595 |  |  | $ | 733,115 |  |  | $ | 53,993 |  |  | $ | (31,108 | ) |  | $ | 756,000 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 65,806 |  |  | $ | 189,059 |  |  | $ | 223,815 |  |  | $ | 478,680 |  |  | $ | 60,495 |  |  | $ | (405,859 | ) |  | $ | 133,316 |
Depreciation and amortization | 15,790 |  |  | 35,917 |  |  | 32,670 |  |  | 84,377 |  |  | 13,478 |  |  | 2,552 |  |  | 100,407 |
Restructuring and other, net(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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 from discontinued operations (net of tax) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,531 |  |  | 69,531 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 125,462 |  |  | 125,462 |
Other(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,492 |  |  | 17,492 |
Adjusted EBITDA | $ | 81,596 |  |  | $ | 224,976 |  |  | $ | 256,485 |  |  | $ | 563,057 |  |  | $ | 73,973 |  |  | $ | (74,875 | ) |  | $ | 562,155 |
(a) | See Note 3, “Divestitures,” for additional information.
(b) | See Note 2, “Acquisitions,” for additional information.
(c) | Includes amounts recorded in (1) Research and development expenses related to the write-off of fixed assets of $1.4 million; (2) Selling, general and administrative expenses related to the net loss on the sales of properties of $0.9 million and (3) Other income (expenses), net related to environmental charges related to a site formerly owned by Albemarle of $2.4 million, partially offset by a gain related to a previously disposed of site in China of $1.1 million.
(d) | 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 year ended December 31, 2015, $55.9 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.
(e) | See Note 21, “Restructuring and Other,” for additional information.
(f) | 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.
| As of December 31,
| 2016 |  | 2015 |  | 2014
|  |  | (In thousands) |  |
Identifiable assets: |  |  |  |  |
Lithium and Advanced Materials | $ | 3,809,883 |  |  | $ | 3,658,669 |  |  | $ | 351,175 |
Bromine Specialties | 724,218 |  |  | 699,929 |  |  | 734,071 |
Refining Solutions | 913,923 |  |  | 937,445 |  |  | 1,100,361 |
Discontinued Operations | — |  |  | 3,208,902 |  |  | — |
All Other | 130,595 |  |  | 517,695 |  |  | 268,555 |
Corporate(a) | 2,582,588 |  |  | 575,314 |  |  | 2,748,275 |
Total identifiable assets | $ | 8,161,207 |  |  | $ | 9,597,954 |  |  | $ | 5,202,437 |
Goodwill: |  |  |  |  |
Lithium and Advanced Materials | $ | 1,348,261 |  |  | $ | 1,267,505 |  |  | $ | 21,697 |
Bromine Specialties | 20,319 |  |  | 20,319 |  |  | 20,319 |
Refining Solutions | 164,866 |  |  | 172,728 |  |  | 192,657 |
All Other | 6,586 |  |  | — |  |  | 8,589 |
Total goodwill | $ | 1,540,032 |  |  | $ | 1,460,552 |  |  | $ | 243,262 |
(a) | As of December 31, 2016, Corporate included the net proceeds received from the sale of the Chemetall Surface Treatment business completed on December 14, 2016, less the repayment of the term loans and commercial paper using those proceeds. 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 2, “Acquisitions,” Note 3, “Divestitures,” and Note 14, “Long-Term Debt” for additional details about these transactions.
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
|  |  | (In thousands) |  |
Depreciation and amortization: |  |  |  |  |
Lithium and Advanced Materials | $ | 101,966 |  |  | $ | 84,069 |  |  | $ | 15,790 |
Bromine Specialties | 39,562 |  |  | 36,179 |  |  | 35,917 |
Refining Solutions | 36,089 |  |  | 34,039 |  |  | 32,670 |
Discontinued Operations | 35,194 |  |  | 78,903 |  |  | 3,165 |
All Other | 7,302 |  |  | 18,183 |  |  | 13,478 |
Corporate | 6,056 |  |  | 8,703 |  |  | 2,552 |
Total depreciation and amortization | $ | 226,169 |  |  | $ | 260,076 |  |  | $ | 103,572 |
Capital expenditures: |  |  |  |  |
Lithium and Advanced Materials | $ | 91,967 |  |  | $ | 104,344 |  |  | $ | 12,888 |
Bromine Specialties | 46,414 |  |  | 54,994 |  |  | 39,392 |
Refining Solutions | 27,546 |  |  | 28,836 |  |  | 49,219 |
Discontinued Operations | 19,281 |  |  | 23,738 |  |  | — |
All Other | 9,251 |  |  | 13,054 |  |  | 9,053 |
Corporate | 2,195 |  |  | 2,683 |  |  | 24 |
Total capital expenditures | $ | 196,654 |  |  | $ | 227,649 |  |  | $ | 110,576 |
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
|  |  | (In thousands) |  |
Net Sales: |  |  |  |  |
United States | $ | 797,267 |  |  | $ | 911,519 |  |  | $ | 884,373 |
Foreign(a) | 1,879,936 |  |  | 1,914,910 |  |  | 1,561,175 |
Total | $ | 2,677,203 |  |  | $ | 2,826,429 |  |  | $ | 2,445,548 |
(a) | In 2016, net sales to China represented 13% of total net sales. No net sales in any other 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,
| 2016 |  | 2015 |  | 2014
|  |  | (In thousands) |  |
Long-Lived Assets: |  |  |  |  |
United States | $ | 850,689 |  |  | $ | 800,214 |  |  | $ | 698,863 |
Chile | 922,878 |  |  | 916,965 |  |  | — |
Netherlands | 145,917 |  |  | 155,128 |  |  | 167,965 |
Jordan | 227,222 |  |  | 230,460 |  |  | 227,805 |
Australia | 288,553 |  |  | 280,222 |  |  | — |
Brazil | 46,380 |  |  | 39,299 |  |  | 59,474 |
Germany | 117,027 |  |  | 137,890 |  |  | 75,813 |
China | 31,564 |  |  | 4,773 |  |  | 5,310 |
France | 39,470 |  |  | 39,344 |  |  | 37,347 |
Korea | 65,963 |  |  | 72,685 |  |  | 80,362 |
United Kingdom | 3,665 |  |  | 3,665 |  |  | 3,665 |
Other foreign countries | 54,271 |  |  | 55,234 |  |  | 48,819 |
Total | $ | 2,793,599 |  |  | $ | 2,735,879 |  |  | $ | 1,405,423 |
Net sales to external customers by product category in each of the segments consists of the following:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
|  |  | (In thousands) |  |
Lithium and Advanced Materials: |  |  |  |  |
Lithium | $ | 668,852 |  |  | $ | 508,844 |  |  | $ | — |
Performance Catalyst Solutions | 299,364 |  |  | 325,746 |  |  | 312,788 |
Total Lithium and Advanced Materials | $ | 968,216 |  |  | $ | 834,590 |  |  | $ | 312,788 |
Bromine Specialties | $ | 792,425 |  |  | $ | 775,729 |  |  | $ | 808,857 |
Refining Solutions | $ | 732,137 |  |  | $ | 729,261 |  |  | $ | 852,139 |

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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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