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Segment and Geographic Area Information | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment and Geographic Area Information | Segment and Geographic Area Information: As of December 31, 2017 our three reportable segments include Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. On June 17, 2016, the Company signed a definitive agreement to sell its Chemetall Surface Treatment business, a separate reportable segment, to BASF SE. This business was classified as discontinued operations and its results are excluded from segment results for all periods presented. 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. This business structure aligns with the markets and customers we serve through each of the segments. This 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. The “All Other” category comprises 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 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 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,
| 2017 |  | 2016 |  | 2015
| (In thousands)
Net sales: |  |  |  |  |
Lithium and Advanced Materials | $ | 1,308,153 |  |  | $ | 968,216 |  |  | $ | 834,590 |
Bromine Specialties | 855,143 |  |  | 792,425 |  |  | 775,729 |
Refining Solutions | 778,304 |  |  | 732,137 |  |  | 729,261 |
All Other | 128,914 |  |  | 180,988 |  |  | 471,434 |
Corporate | 1,462 |  |  | 3,437 |  |  | 15,415 |
Total net sales | $ | 3,071,976 |  |  | $ | 2,677,203 |  |  | $ | 2,826,429 |
Adjusted EBITDA: |  |  |  |  |
Lithium and Advanced Materials | $ | 518,530 |  |  | $ | 363,360 |  |  | $ | 312,867 |
Bromine Specialties | 258,901 |  |  | 226,926 |  |  | 222,653 |
Refining Solutions | 212,005 |  |  | 238,963 |  |  | 197,595 |
All Other | 13,878 |  |  | 14,772 |  |  | 53,993 |
Corporate | (117,834 | ) |  | (85,804 | ) |  | (31,108 | )
Total adjusted EBITDA | $ | 885,480 |  |  | $ | 758,217 |  |  | $ | 756,000 |
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, to Net income 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
2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 400,360 |  |  | $ | 218,839 |  |  | $ | 173,297 |  |  | $ | 792,496 |  |  | $ | 5,521 |  |  | $ | (743,167 | ) |  | $ | 54,850 |
Depreciation and amortization | 102,389 |  |  | 40,062 |  |  | 39,958 |  |  | 182,409 |  |  | 8,357 |  |  | 6,162 |  |  | 196,928 |
Utilization of inventory markup(a) | 23,095 |  |  | — |  |  | — |  |  | 23,095 |  |  | — |  |  | — |  |  | 23,095 |
Restructuring and other, net(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,056 |  |  | 17,056 |
Gain on acquisition(c) | (6,221 | ) |  | — |  |  | — |  |  | (6,221 | ) |  | — |  |  | — |  |  | (6,221 | )
Acquisition and integration related costs(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 33,954 |  |  | 33,954 |
Interest and financing expenses(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 115,350 |  |  | 115,350 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 431,817 |  |  | 431,817 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16,125 | ) |  | (16,125 | )
Multiemployer plan shortfall contributions(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,887 |  |  | 7,887 |
Note receivable reserve(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 28,730 |  |  | 28,730 |
Other(h) | (1,093 | ) |  | — |  |  | (1,250 | ) |  | (2,343 | ) |  | — |  |  | 502 |  |  | (1,841 | )
Adjusted EBITDA | $ | 518,530 |  |  | $ | 258,901 |  |  | $ | 212,005 |  |  | $ | 989,436 |  |  | $ | 13,878 |  |  | $ | (117,834 | ) |  | $ | 885,480 |
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(i) | — |  |  | — |  |  | — |  |  | — |  |  | (123,831 | ) |  | 1,533 |  |  | (122,298 | )
Acquisition and integration related costs(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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(j) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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(k) | 79,977 |  |  | — |  |  | — |  |  | 79,977 |  |  | 3,029 |  |  | — |  |  | 83,006 |
Restructuring and other, net(l) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,804 | ) |  | (6,804 | )
Acquisition and integration related costs(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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(m) | — |  |  | — |  |  | 1,971 |  |  | 1,971 |  |  | — |  |  | 4,441 |  |  | 6,412 |
Adjusted EBITDA | $ | 312,867 |  |  | $ | 222,653 |  |  | $ | 197,595 |  |  | $ | 733,115 |  |  | $ | 53,993 |  |  | $ | (31,108 | ) |  | $ | 756,000 |
(a) | In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.1 million. The utilization of this inventory markup was included in Costs of goods sold during the year ended December 31, 2017, the estimated remaining selling period.
(b) | During 2017, we initiated action to reduce costs in each of our reportable segments at several locations, primarily at our Lithium sites in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $8.4 million in Selling, general and administrative expenses, and $5.7 million in Research and development expenses for the year ended December 31, 2017, primarily related to expected severance payments. The unpaid balance is recorded in Accrued expenses at December 31, 2017, with the expectation that the majority of these plans will be completed by the end of 2018.
(c) | Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information.
(d) | See Note 2, “Acquisitions,” for additional information.
(e) | Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million. See Note 14, “Long-Term Debt,” for additional information.
(f) | Shortfall contributions for our multiemployer plan financial improvement plan. See Note 15, “Pension Plans and Other Postretirement Benefits,” for additional information.
(g) | Reserve recorded in Other (expenses) income, net against a note receivable on one of our European entities no longer deemed probable of collection.
(h) | Included amounts for the year ended December 31, 2017 recorded in:
▪ | Cost of goods sold - $1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment.
▪ | Selling, general and administrative expenses - $1.0 million related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition.
▪ | Other (expenses) income, net - $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle, losses of $4.1 million related to final settlements of previously disposed businesses, the revision of tax indemnification expenses of $3.7 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business and $1.0 million related to the settlement of a legal claim. This is partially offset by gains of $10.6 million and $1.1 million related to the reversal of liabilities recorded as part of purchase accounting from a previous acquisition and the previous disposal of a property, respectively.
(i) | See Note 3, “Divestitures,” for additional information.
(j) | Included amounts for the year ended December 31, 2016 recorded in:
▪ | Research and development expenses - $1.4 million related to the write-off of fixed assets in China.
▪ | Selling, general and administrative expenses - $0.9 million related to the net loss on the sales of properties.
▪ | Other (expenses) income, net -$2.4 million related to environmental charges related to a site formerly owned by Albemarle, partially offset by a gain related to a previously disposed of site in China of $1.1 million.
(k) | 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.
(l) | Included in Restructuring and other, net, for the year ended December 31, 2015 is a gain of $6.8 million recognized upon the sale of land in Avonmouth, U.K., which was utilized by the phosphorus flame retardants business we exited in 2012. In 2012, charges in connection with our exit of the phosphorus flame retardants business were recorded in Restructuring and other, net, on our consolidated statements of income.
(m) | Refining Solutions included an impairment charge of approximately $2.0 million related to our unconsolidated investment in Fábrica Carioca de Catalisadores SA. Corporate included approximately $4.4 million of financing-related fees expensed in connection with the acquisition of Rockwood.
| As of December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Identifiable assets: |  |  |  |  |
Lithium and Advanced Materials | $ | 4,057,242 |  |  | $ | 3,809,883 |  |  | $ | 3,658,669 |
Bromine Specialties | 745,007 |  |  | 724,218 |  |  | 699,929 |
Refining Solutions | 1,016,519 |  |  | 913,923 |  |  | 937,445 |
Discontinued Operations | — |  |  | — |  |  | 3,208,902 |
All Other | 126,486 |  |  | 130,595 |  |  | 517,695 |
Corporate(a) | 1,805,518 |  |  | 2,582,588 |  |  | 575,314 |
Total identifiable assets | $ | 7,750,772 |  |  | $ | 8,161,207 |  |  | $ | 9,597,954 |
Goodwill: |  |  |  |  |
Lithium and Advanced Materials | $ | 1,396,140 |  |  | $ | 1,348,261 |  |  | $ | 1,267,505 |
Bromine Specialties | 20,319 |  |  | 20,319 |  |  | 20,319 |
Refining Solutions | 187,310 |  |  | 164,866 |  |  | 172,728 |
All Other | 6,586 |  |  | 6,586 |  |  | — |
Total goodwill | $ | 1,610,355 |  |  | $ | 1,540,032 |  |  | $ | 1,460,552 |
(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. See Note 3, “Divestitures,” and Note 14, “Long-Term Debt” for additional details about these transactions.
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Depreciation and amortization: |  |  |  |  |
Lithium and Advanced Materials | $ | 102,389 |  |  | $ | 101,966 |  |  | $ | 84,069 |
Bromine Specialties | 40,062 |  |  | 39,562 |  |  | 36,179 |
Refining Solutions | 39,958 |  |  | 36,089 |  |  | 34,039 |
Discontinued Operations | — |  |  | 35,194 |  |  | 78,903 |
All Other | 8,357 |  |  | 7,302 |  |  | 18,183 |
Corporate | 6,162 |  |  | 6,056 |  |  | 8,703 |
Total depreciation and amortization | $ | 196,928 |  |  | $ | 226,169 |  |  | $ | 260,076 |
Capital expenditures: |  |  |  |  |
Lithium and Advanced Materials | $ | 207,410 |  |  | $ | 91,967 |  |  | $ | 104,344 |
Bromine Specialties | 46,427 |  |  | 46,414 |  |  | 54,994 |
Refining Solutions | 31,716 |  |  | 27,546 |  |  | 28,836 |
Discontinued Operations | — |  |  | 19,281 |  |  | 23,738 |
All Other | 3,657 |  |  | 9,251 |  |  | 13,054 |
Corporate | 28,493 |  |  | 2,195 |  |  | 2,683 |
Total capital expenditures | $ | 317,703 |  |  | $ | 196,654 |  |  | $ | 227,649 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Net Sales: |  |  |  |  |
United States | $ | 840,589 |  |  | $ | 797,267 |  |  | $ | 911,519 |
Foreign(a) | 2,231,387 |  |  | 1,879,936 |  |  | 1,914,910 |
Total | $ | 3,071,976 |  |  | $ | 2,677,203 |  |  | $ | 2,826,429 |
(a) | In 2017 and 2016, net sales to China represented 15% and 13%, respectively, 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,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Long-Lived Assets(a): |  |  |  |  |
United States | $ | 833,002 |  |  | $ | 850,689 |  |  | $ | 800,214 |
Chile | 1,069,859 |  |  | 922,878 |  |  | 916,965 |
Netherlands | 171,980 |  |  | 145,917 |  |  | 155,128 |
Jordan | 242,626 |  |  | 227,222 |  |  | 230,460 |
Australia | 364,624 |  |  | 288,553 |  |  | 280,222 |
Brazil | 47,255 |  |  | 46,380 |  |  | 39,299 |
Germany | 115,305 |  |  | 117,027 |  |  | 137,890 |
China | 50,532 |  |  | 31,564 |  |  | 4,773 |
France | 40,852 |  |  | 39,470 |  |  | 39,344 |
Korea(b) | 495 |  |  | 65,963 |  |  | 72,685 |
Other foreign countries | 60,131 |  |  | 57,936 |  |  | 58,899 |
Total | $ | 2,996,661 |  |  | $ | 2,793,599 |  |  | $ | 2,735,879 |
(a) | Long-lived assets are comprised of the Company’s Property, plant and equipment and Investments.
(b) | The reduction as of December 31, 2017, relates to the assets of the polyolefin catalysts and components portion of the PCS business that are included in Assets held for sale in the consolidated balance sheet.
Net sales to external customers by product category in each of the segments consists of the following:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Lithium and Advanced Materials: |  |  |  |  |
Lithium | $ | 1,018,885 |  |  | $ | 668,852 |  |  | $ | 508,844 |
Performance Catalyst Solutions | 289,268 |  |  | 299,364 |  |  | 325,746 |
Total Lithium and Advanced Materials | $ | 1,308,153 |  |  | $ | 968,216 |  |  | $ | 834,590 |
Bromine Specialties | $ | 855,143 |  |  | $ | 792,425 |  |  | $ | 775,729 |
Refining Solutions | $ | 778,304 |  |  | $ | 732,137 |  |  | $ | 729,261 |
In November 2017, we announced that during the first quarter of 2018, the PCS product category will merge with the Refining Solutions reportable segment to form a global business focused on catalysts. As a result, our three reportable segments will include: (1) Lithium, (2) Bromine Specialties and (3) Catalysts.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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