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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
Reportable Segments Summarized Financial Information |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium | $ | 317,563 |  |  | $ | 243,821 |  |  | $ | 615,595 |  |  | $ | 460,050 |
Bromine Specialties | 220,514 |  |  | 203,945 |  |  | 446,153 |  |  | 423,136 |
Catalysts | 284,966 |  |  | 258,255 |  |  | 545,683 |  |  | 511,813 |
All Other | 30,748 |  |  | 30,704 |  |  | 67,913 |  |  | 63,123 |
Corporate | 83 |  |  | 533 |  |  | 159 |  |  | 1,199 |
Total net sales | $ | 853,874 |  |  | $ | 737,258 |  |  | $ | 1,675,503 |  |  | $ | 1,459,321 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium | $ | 141,617 |  |  | $ | 115,200 |  |  | $ | 272,631 |  |  | $ | 215,052 |
Bromine Specialties | 69,367 |  |  | 62,075 |  |  | 139,336 |  |  | 130,563 |
Catalysts | 75,102 |  |  | 67,427 |  |  | 142,932 |  |  | 137,176 |
All Other | (101 | ) |  | 2,444 |  |  | 3,761 |  |  | 7,600 |
Corporate | (27,423 | ) |  | (28,205 | ) |  | (51,380 | ) |  | (60,074 | )
Total adjusted EBITDA | $ | 258,562 |  |  | $ | 218,941 |  |  | $ | 507,280 |  |  | $ | 430,317 |
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 June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 117,292 |  |  | $ | 59,673 |  |  | $ | 280,887 |  |  | $ | 457,852 |  |  | $ | (2,079 | ) |  | $ | (153,312 | ) |  | $ | 302,461 |
Depreciation and amortization | 24,325 |  |  | 9,694 |  |  | 12,920 |  |  | 46,939 |  |  | 1,978 |  |  | 1,557 |  |  | 50,474 |
Gain on sale of business(a) | — |  |  | — |  |  | (218,705 | ) |  | (218,705 | ) |  | — |  |  | — |  |  | (218,705 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,510 |  |  | 6,510 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,308 |  |  | 13,308 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 80,102 |  |  | 80,102 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,204 | ) |  | (2,204 | )
Legal accrual(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,416 |  |  | 10,416 |
Albemarle Foundation contribution(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,000 |  |  | 15,000 |
Other(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,200 |  |  | 1,200 |
Adjusted EBITDA | $ | 141,617 |  |  | $ | 69,367 |  |  | $ | 75,102 |  |  | $ | 286,086 |  |  | $ | (101 | ) |  | $ | (27,423 | ) |  | $ | 258,562 |
Three months ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 81,819 |  |  | $ | 51,739 |  |  | $ | 53,994 |  |  | $ | 187,552 |  |  | $ | 152 |  |  | $ | (84,371 | ) |  | $ | 103,333 |
Depreciation and amortization | 21,460 |  |  | 10,336 |  |  | 13,433 |  |  | 45,229 |  |  | 2,292 |  |  | 1,601 |  |  | 49,122 |
Utilization of inventory markup(f) | 11,921 |  |  | — |  |  | — |  |  | 11,921 |  |  | — |  |  | — |  |  | 11,921 |
Restructuring and other(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,235 |  |  | 4,235 |
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,479 |  |  | 6,479 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,590 |  |  | 14,590 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,130 |  |  | 23,130 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,053 | ) |  | (1,053 | )
Multiemployer plan shortfall contributions(h) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,940 |  |  | 4,940 |
Other(i) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,244 |  |  | 2,244 |
Adjusted EBITDA | $ | 115,200 |  |  | $ | 62,075 |  |  | $ | 67,427 |  |  | $ | 244,702 |  |  | $ | 2,444 |  |  | $ | (28,205 | ) |  | $ | 218,941 |
Six months ended June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 225,626 |  |  | $ | 119,209 |  |  | $ | 336,547 |  |  | $ | 681,382 |  |  | $ | (319 | ) |  | $ | (246,842 | ) |  | $ | 434,221 |
Depreciation and amortization | 48,390 |  |  | 20,127 |  |  | 25,090 |  |  | 93,607 |  |  | 4,080 |  |  | 3,117 |  |  | 100,804 |
Gain on sale of business(a) | — |  |  | — |  |  | (218,705 | ) |  | (218,705 | ) |  | — |  |  | — |  |  | (218,705 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,712 |  |  | 8,712 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26,846 |  |  | 26,846 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100,463 |  |  | 100,463 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,401 | ) |  | (4,401 | )
Legal accrual(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 28,044 |  |  | 28,044 |
Albemarle Foundation contribution(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,000 |  |  | 15,000 |
Other(e) | (1,385 | ) |  | — |  |  | — |  |  | (1,385 | ) |  | — |  |  | 17,681 |  |  | 16,296 |
Adjusted EBITDA | $ | 272,631 |  |  | $ | 139,336 |  |  | $ | 142,932 |  |  | $ | 554,899 |  |  | $ | 3,761 |  |  | $ | (51,380 | ) |  | $ | 507,280 |
Six months ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 159,433 |  |  | $ | 110,433 |  |  | $ | 110,960 |  |  | $ | 380,826 |  |  | $ | 3,398 |  |  | $ | (229,678 | ) |  | $ | 154,546 |
Depreciation and amortization | 40,525 |  |  | 20,130 |  |  | 26,216 |  |  | 86,871 |  |  | 4,202 |  |  | 3,119 |  |  | 94,192 |
Utilization of inventory markup(f) | 22,527 |  |  | — |  |  | — |  |  | 22,527 |  |  | — |  |  | — |  |  | 22,527 |
Restructuring and other(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,141 |  |  | 17,141 |
Gain on acquisition(j) | (7,433 | ) |  | — |  |  | — |  |  | (7,433 | ) |  | — |  |  | — |  |  | (7,433 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,760 |  |  | 20,760 |
Interest and financing expenses(k) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 83,103 |  |  | 83,103 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,101 |  |  | 35,101 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,116 | ) |  | (2,116 | )
Multiemployer plan shortfall contributions(h) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,940 |  |  | 4,940 |
Other(i) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,556 |  |  | 7,556 |
Adjusted EBITDA | $ | 215,052 |  |  | $ | 130,563 |  |  | $ | 137,176 |  |  | $ | 482,791 |  |  | $ | 7,600 |  |  | $ | (60,074 | ) |  | $ | 430,317 |
(a) | See Note 2, “Divestitures,” for additional information.
(b) | Included amounts for the three-month and six-month periods ended June 30, 2018 recorded in (1) Cost of goods sold of $1.0 million and $1.9 million, respectively; and (2) Selling, general and administrative expenses of $5.5 million and $6.8 million, respectively, relating to various significant projects. Included amounts for the three-month and six-month periods ended June 30, 2017 recorded in (1) Cost of goods sold of $1.8 million and $10.7 million, respectively; and (2) Selling, general and administrative expenses of $4.7 million and $10.1 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.
(c) | Included in Other expenses, net. See Note 10, “Commitments and Contingencies,” for additional information.
(d) | Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the sale of the polyolefin catalysts and components portion of the PCS business, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the normal annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate.
(e) | Included amounts for the three months ended June 30, 2018 recorded in:
▪ | Other expenses, net - $1.2 million related to the revision of previously recorded expenses of disposed businesses.
Included amounts for the six months ended June 30, 2018 recorded in:
▪ | Cost of goods sold - $1.1 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian 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, net - $15.6 million of environmental charges related to a site formerly owned by Albemarle and $1.0 million related to the revision of previously recorded expenses of disposed businesses.
(f) | 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 and six-month periods ended June 30, 2017, $11.9 million and $22.5 million, respectively, was included in Cost of goods sold related to the utilization of the inventory markup.
(g) | 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 $4.2 million in Selling, general and administrative expenses for the three-month period ended June 30, 2017 and $2.9 million in Cost of goods sold, $8.4 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses for the six-month period ended June 30, 2017, primarily related to expected severance payments. The unpaid balance is recorded in Accrued expenses at June 30, 2018, with the expectation that the majority of these plans will be completed by the end of 2018.
(h) | Included shortfall contributions for our multiemployer plan financial improvement plan. See Note 12, “Pension Plans and Other Postretirement Benefits,” for additional information.
(i) | Included amounts for the three-month and six-month periods ended June 30, 2017 recorded in (1) Selling, general and administrative expenses related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition of $1.0 million; and (2) Other expenses, net related to final settlement claims associated with the previous disposal of a business of $2.0 million and the revision of tax indemnification expenses of $1.2 million primarily related to a competent authority agreement for a previously disposed business. Also included in Other expenses, net for the six-month period ended June 30, 2017 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.
(j) | Gain recorded in Other expenses, net related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile.
(k) | 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.

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- 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
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