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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Reportable Segments Summarized Financial Information |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium | $ | 270,928 |  |  | $ | 269,238 |  |  | $ | 886,523 |  |  | $ | 729,288 |
Bromine Specialties | 232,616 |  |  | 212,923 |  |  | 678,769 |  |  | 636,059 |
Catalysts | 251,139 |  |  | 244,594 |  |  | 796,822 |  |  | 756,407 |
All Other | 23,065 |  |  | 28,021 |  |  | 90,978 |  |  | 91,144 |
Corporate | — |  |  | 90 |  |  | 159 |  |  | 1,289 |
Total net sales | $ | 777,748 |  |  | $ | 754,866 |  |  | $ | 2,453,251 |  |  | $ | 2,214,187 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium | $ | 113,629 |  |  | $ | 112,944 |  |  | $ | 386,260 |  |  | $ | 327,996 |
Bromine Specialties | 78,585 |  |  | 63,936 |  |  | 217,921 |  |  | 194,499 |
Catalysts | 62,602 |  |  | 60,394 |  |  | 205,534 |  |  | 197,570 |
All Other | 3,968 |  |  | 306 |  |  | 7,729 |  |  | 7,906 |
Corporate | (23,702 | ) |  | (28,197 | ) |  | (75,082 | ) |  | (88,271 | )
Total adjusted EBITDA | $ | 235,082 |  |  | $ | 209,383 |  |  | $ | 742,362 |  |  | $ | 639,700 |
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 September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 90,313 |  |  | $ | 67,967 |  |  | $ | 50,491 |  |  | $ | 208,771 |  |  | $ | 1,978 |  |  | $ | (81,004 | ) |  | $ | 129,745 |
Depreciation and amortization | 23,370 |  |  | 10,618 |  |  | 12,111 |  |  | 46,099 |  |  | 1,990 |  |  | 1,618 |  |  | 49,707 |
Restructuring and other(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,724 |  |  | 3,724 |
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,305 |  |  | 4,305 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,988 |  |  | 12,988 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 33,167 |  |  | 33,167 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,195 | ) |  | (2,195 | )
Legal accrual(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,017 | ) |  | (1,017 | )
Other(d) | (54 | ) |  | — |  |  | — |  |  | (54 | ) |  | — |  |  | 4,712 |  |  | 4,658 |
Adjusted EBITDA | $ | 113,629 |  |  | $ | 78,585 |  |  | $ | 62,602 |  |  | $ | 254,816 |  |  | $ | 3,968 |  |  | $ | (23,702 | ) |  | $ | 235,082 |
Three months ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 89,745 |  |  | $ | 53,760 |  |  | $ | 47,846 |  |  | $ | 191,351 |  |  | $ | (1,776 | ) |  | $ | (70,905 | ) |  | $ | 118,670 |
Depreciation and amortization | 22,316 |  |  | 10,176 |  |  | 13,798 |  |  | 46,290 |  |  | 2,082 |  |  | 1,523 |  |  | 49,895 |
Utilization of inventory markup(e) | 568 |  |  | — |  |  | — |  |  | 568 |  |  | — |  |  | — |  |  | 568 |
Adjustment to gain on acquisition(f) | 1,408 |  |  | — |  |  | — |  |  | 1,408 |  |  | — |  |  | — |  |  | 1,408 |
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,635 |  |  | 5,635 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,792 |  |  | 15,792 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,495 |  |  | 18,495 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,028 | ) |  | (1,028 | )
Multiemployer plan shortfall contributions(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,646 |  |  | 1,646 |
Other(h) | (1,093 | ) |  | — |  |  | (1,250 | ) |  | (2,343 | ) |  | — |  |  | 645 |  |  | (1,698 | )
Adjusted EBITDA | $ | 112,944 |  |  | $ | 63,936 |  |  | $ | 60,394 |  |  | $ | 237,274 |  |  | $ | 306 |  |  | $ | (28,197 | ) |  | $ | 209,383 |
Nine months ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 315,939 |  |  | $ | 187,176 |  |  | $ | 387,038 |  |  | $ | 890,153 |  |  | $ | 1,659 |  |  | $ | (327,846 | ) |  | $ | 563,966 |
Depreciation and amortization | 71,760 |  |  | 30,745 |  |  | 37,201 |  |  | 139,706 |  |  | 6,070 |  |  | 4,735 |  |  | 150,511 |
Restructuring and other(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,724 |  |  | 3,724 |
Gain on sale of business(i) | — |  |  | — |  |  | (218,705 | ) |  | (218,705 | ) |  | — |  |  | — |  |  | (218,705 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,016 |  |  | 13,016 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 39,834 |  |  | 39,834 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 133,630 |  |  | 133,630 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,596 | ) |  | (6,596 | )
Legal accrual(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27,027 |  |  | 27,027 |
Albemarle Foundation contribution(j) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,000 |  |  | 15,000 |
Other(d) | (1,439 | ) |  | — |  |  | — |  |  | (1,439 | ) |  | — |  |  | 22,394 |  |  | 20,955 |
Adjusted EBITDA | $ | 386,260 |  |  | $ | 217,921 |  |  | $ | 205,534 |  |  | $ | 809,715 |  |  | $ | 7,729 |  |  | $ | (75,082 | ) |  | $ | 742,362 |
Nine months ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 249,178 |  |  | $ | 164,193 |  |  | $ | 158,806 |  |  | $ | 572,177 |  |  | $ | 1,622 |  |  | $ | (300,583 | ) |  | $ | 273,216 |
Depreciation and amortization | 62,841 |  |  | 30,306 |  |  | 40,014 |  |  | 133,161 |  |  | 6,284 |  |  | 4,642 |  |  | 144,087 |
Utilization of inventory markup(e) | 23,095 |  |  | — |  |  | — |  |  | 23,095 |  |  | — |  |  | — |  |  | 23,095 |
Restructuring and other(k) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,141 |  |  | 17,141 |
Gain on acquisition(f) | (6,025 | ) |  | — |  |  | — |  |  | (6,025 | ) |  | — |  |  | — |  |  | (6,025 | )
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26,395 |  |  | 26,395 |
Interest and financing expenses(l) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98,895 |  |  | 98,895 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 53,596 |  |  | 53,596 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,144 | ) |  | (3,144 | )
Multiemployer plan shortfall contributions(g) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,586 |  |  | 6,586 |
Other(h) | (1,093 | ) |  | — |  |  | (1,250 | ) |  | (2,343 | ) |  | — |  |  | 8,201 |  |  | 5,858 |
Adjusted EBITDA | $ | 327,996 |  |  | $ | 194,499 |  |  | $ | 197,570 |  |  | $ | 720,065 |  |  | $ | 7,906 |  |  | $ | (88,271 | ) |  | $ | 639,700 |
(a) | Expected severance payments as part of a business reorganization plan, recorded in Selling, general and administrative expenses. The unpaid balance is recorded in Accrued expenses at September 30, 2018, and is expected to be paid out by the end of 2018.
(b) | Included amounts for the three-month and nine-month periods ended September 30, 2018 recorded in (1) Cost of goods sold of $0.9 million and $2.9 million, respectively; and (2) Selling, general and administrative expenses of $3.4 million and $10.2 million, respectively, relating to various significant projects. Included amounts for the three-month and nine-month periods ended September 30, 2017 recorded in (1) Cost of goods sold of $1.8 million and $12.5 million, respectively; and (2) Selling, general and administrative expenses of $3.8 million and $13.9 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 income (expenses), net. See Note 9, “Commitments and Contingencies,” for additional information.
(d) | Included amounts for the three months ended September 30, 2018 recorded in:
▪ | Cost of goods sold - $3.8 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture.
▪ | Selling, general and administrative expenses - $0.1 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community.
▪ | Other income (expenses), net - $0.2 million gain related to the revision of previously recorded expenses of disposed businesses.
Included amounts for the nine months ended September 30, 2018 recorded in:
▪ | Cost of goods sold - $4.9 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture.
▪ | Selling, general and administrative expenses - $1.5 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community.
▪ | Other income (expenses), net - $15.6 million of environmental charges related to a site formerly owned by Albemarle and $0.8 million related to the revision of previously recorded expenses of disposed businesses.
(e) | 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 nine-month periods ended September 30, 2017, $0.6 million and $23.1 million, respectively, was included in Cost of goods sold related to the utilization of the inventory markup.
(f) | Gain recorded in Other income (expenses), net related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile.
(g) | Included shortfall contributions for our multiemployer plan financial improvement plan. See Note 11, “Pension Plans and Other Postretirement Benefits,” for additional information.
(h) | Included amounts for the three-month period ended September 30, 2017 recorded in:
▪ | Cost of goods sold - $1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment.
▪ | Other income (expenses), net - $1.1 million related to a reversal of a liability associated with the previous disposal of a property, partially offset by the revision of tax indemnification expenses of $0.7 million primarily related to the filing of tax returns for a previously disposed business.
Included amounts for the nine-month period ended September 30, 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 income (expenses), 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 associated with the previous disposal of businesses and the revision of tax indemnification expenses of $1.9 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business. This is partially offset by $1.1 million related to a reversal of a liability associated with the previous disposal of a property.
(i) | See Note 2, “Divestitures,” for additional information.
(j) | Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, 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.
(k) | 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 $5.8 million in Research and development expenses for the nine-month period ended September 30, 2017, primarily related to expected severance payments. The unpaid balance is recorded in Accrued expenses at September 30, 2018, with the expectation that the majority of these plans will be completed by the end of 2018.
(l) | 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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