XML 47 R33.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Information (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting [Abstract] |
Reportable Segments Summarized Financial Information |
| Three Months Ended March 31,
| 2018 |  | 2017
| (In thousands)
Net sales: |  |  |
Lithium | $ | 298,032 |  |  | $ | 216,229 |
Bromine Specialties | 225,639 |  |  | 219,191 |
Catalysts | 260,717 |  |  | 253,558 |
All Other | 37,165 |  |  | 32,419 |
Corporate | 76 |  |  | 666 |
Total net sales | $ | 821,629 |  |  | $ | 722,063 |
Adjusted EBITDA: |  |  |
Lithium | $ | 131,014 |  |  | $ | 99,852 |
Bromine Specialties | 69,969 |  |  | 68,488 |
Catalysts | 67,830 |  |  | 69,749 |
All Other | 3,862 |  |  | 5,156 |
Corporate | (23,957 | ) |  | (31,869 | )
Total adjusted EBITDA | $ | 248,718 |  |  | $ | 211,376 |
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
| Lithium |  | Bromine Specialties |  | Catalysts |  | Reportable Segments Total |  | All Other |  | Corporate |  | Consolidated Total
Three months ended March 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 108,334 |  |  | $ | 59,536 |  |  | $ | 55,660 |  |  | $ | 223,530 |  |  | $ | 1,760 |  |  | $ | (93,530 | ) |  | $ | 131,760 |
Depreciation and amortization | 24,065 |  |  | 10,433 |  |  | 12,170 |  |  | 46,668 |  |  | 2,102 |  |  | 1,560 |  |  | 50,330 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,201 |  |  | 2,201 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,538 |  |  | 13,538 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,361 |  |  | 20,361 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,197 | ) |  | (2,197 | )
Legal accrual(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,628 |  |  | 17,628 |
Other(c) | (1,385 | ) |  | — |  |  | — |  |  | (1,385 | ) |  | — |  |  | 16,482 |  |  | 15,097 |
Adjusted EBITDA | $ | 131,014 |  |  | $ | 69,969 |  |  | $ | 67,830 |  |  | $ | 268,813 |  |  | $ | 3,862 |  |  | $ | (23,957 | ) |  | $ | 248,718 |
Three months ended March 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 77,614 |  |  | $ | 58,694 |  |  | $ | 56,966 |  |  | $ | 193,274 |  |  | $ | 3,246 |  |  | $ | (145,307 | ) |  | $ | 51,213 |
Depreciation and amortization | 19,065 |  |  | 9,794 |  |  | 12,783 |  |  | 41,642 |  |  | 1,910 |  |  | 1,518 |  |  | 45,070 |
Utilization of inventory markup(d) | 10,606 |  |  | — |  |  | — |  |  | 10,606 |  |  | — |  |  | — |  |  | 10,606 |
Restructuring and other, net(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,905 |  |  | 12,905 |
Gain on acquisition(f) | (7,433 | ) |  | — |  |  | — |  |  | (7,433 | ) |  | — |  |  | — |  |  | (7,433 | )
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,281 |  |  | 14,281 |
Interest and financing expenses(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 68,513 |  |  | 68,513 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,971 |  |  | 11,971 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,063 | ) |  | (1,063 | )
Other(h) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,313 |  |  | 5,313 |
Adjusted EBITDA | $ | 99,852 |  |  | $ | 68,488 |  |  | $ | 69,749 |  |  | $ | 238,089 |  |  | $ | 5,156 |  |  | $ | (31,869 | ) |  | $ | 211,376 |
(a) | Included amounts for the three-month periods ended March 31, 2018 and 2017 recorded in (1) Cost of goods sold of $1.0 million and $8.9 million, respectively; and (2) Selling, general and administrative expenses of $1.2 million and $5.4 million, respectively, relating to various significant projects, including the Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) acquisition, which contains unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements.
(b) | Included in Other (expenses) income, see Note 10, “Commitments and Contingencies” for additional information.
(c) | Included amounts for the three months ended March 31, 2018 recorded in:
▪ | Cost of goods sold - $1.1 million related to the write-off of fixed assets in our JBC joint venture.
▪ | Selling, general and administrative expenses - $1.4 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year.
▪ | Other (expenses) income, net - $15.6 million of environmental charges related to a site formerly owned by Albemarle, partially offset by a net gain of $0.2 million related to the the reversal of previously recorded expenses of disposed businesses.
(d) | 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 inventory markup was expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup.
(e) | During the first quarter of 2017, we initiated actions to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2018, with the expectation that the majority of these plans will be completed by the end of 2018.
(f) | Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile. The calculation of the initial gain recorded during the three months ended March 31, 2017 was based on management’s preliminary estimates and assumptions available at that time.
(g) | During the first quarter of 2017, we repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million. As a result, included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes.
(h) | Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business.

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: 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 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration