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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Reportable Segments Summarized Financial Information |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium | $ | 330,386 |  |  | $ | 270,928 |  |  | $ | 947,030 |  |  | $ | 886,523 |
Bromine Specialties | 256,267 |  |  | 232,616 |  |  | 760,752 |  |  | 678,769 |
Catalysts | 261,346 |  |  | 251,139 |  |  | 779,295 |  |  | 796,822 |
All Other | 31,748 |  |  | 23,065 |  |  | 109,786 |  |  | 90,978 |
Corporate | — |  |  | — |  |  | — |  |  | 159 |
Total net sales | $ | 879,747 |  |  | $ | 777,748 |  |  | $ | 2,596,863 |  |  | $ | 2,453,251 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium | $ | 127,459 |  |  | $ | 113,629 |  |  | $ | 384,854 |  |  | $ | 386,260 |
Bromine Specialties | 88,814 |  |  | 78,585 |  |  | 248,743 |  |  | 217,921 |
Catalysts | 66,944 |  |  | 62,602 |  |  | 193,890 |  |  | 205,534 |
All Other | 10,448 |  |  | 3,968 |  |  | 28,931 |  |  | 7,729 |
Corporate | (39,314 | ) |  | (23,702 | ) |  | (114,300 | ) |  | (75,082 | )
Total adjusted EBITDA | $ | 254,351 |  |  | $ | 235,082 |  |  | $ | 742,118 |  |  | $ | 742,362 |
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, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 102,136 |  |  | $ | 75,224 |  |  | $ | 54,345 |  |  | $ | 231,705 |  |  | $ | 8,305 |  |  | $ | (84,940 | ) |  | $ | 155,070 |
Depreciation and amortization | 25,212 |  |  | 12,448 |  |  | 12,599 |  |  | 50,259 |  |  | 2,143 |  |  | 2,085 |  |  | 54,487 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,114 |  |  | 4,114 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,108 |  |  | 11,108 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25,341 |  |  | 25,341 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (551 | ) |  | (551 | )
Other(b) | 111 |  |  | 1,142 |  |  | — |  |  | 1,253 |  |  | — |  |  | 3,529 |  |  | 4,782 |
Adjusted EBITDA | $ | 127,459 |  |  | $ | 88,814 |  |  | $ | 66,944 |  |  | $ | 283,217 |  |  | $ | 10,448 |  |  | $ | (39,314 | ) |  | $ | 254,351 |
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(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,724 |  |  | 3,724 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,017 | ) |  | (1,017 | )
Other(e) | (54 | ) |  | — |  |  | — |  |  | (54 | ) |  | — |  |  | 4,712 |  |  | 4,658 |
Adjusted EBITDA | $ | 113,629 |  |  | $ | 78,585 |  |  | $ | 62,602 |  |  | $ | 254,816 |  |  | $ | 3,968 |  |  | $ | (23,702 | ) |  | $ | 235,082 |
Nine months ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 312,609 |  |  | $ | 212,320 |  |  | $ | 156,328 |  |  | $ | 681,257 |  |  | $ | 22,629 |  |  | $ | (261,049 | ) |  | $ | 442,837 |
Depreciation and amortization | 71,669 |  |  | 35,281 |  |  | 37,562 |  |  | 144,512 |  |  | 6,302 |  |  | 5,904 |  |  | 156,718 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,388 |  |  | 14,388 |
Gain on sale of property(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (11,079 | ) |  | (11,079 | )
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,295 |  |  | 35,295 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 93,266 |  |  | 93,266 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,810 | ) |  | (1,810 | )
Other(b) | 576 |  |  | 1,142 |  |  | — |  |  | 1,718 |  |  | — |  |  | 10,785 |  |  | 12,503 |
Adjusted EBITDA | $ | 384,854 |  |  | $ | 248,743 |  |  | $ | 193,890 |  |  | $ | 827,487 |  |  | $ | 28,931 |  |  | $ | (114,300 | ) |  | $ | 742,118 |
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(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,724 |  |  | 3,724 |
Gain on sale of business(g) | — |  |  | — |  |  | (218,705 | ) |  | (218,705 | ) |  | — |  |  | — |  |  | (218,705 | )
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27,027 |  |  | 27,027 |
Environmental accrual(h) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,597 |  |  | 15,597 |
Albemarle Foundation contribution(i) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,000 |  |  | 15,000 |
Other(e) | (1,439 | ) |  | — |  |  | — |  |  | (1,439 | ) |  | — |  |  | 6,797 |  |  | 5,358 |
Adjusted EBITDA | $ | 386,260 |  |  | $ | 217,921 |  |  | $ | 205,534 |  |  | $ | 809,715 |  |  | $ | 7,729 |  |  | $ | (75,082 | ) |  | $ | 742,362 |
(a) | Included acquisition and integration related costs relating to various significant projects. For the three-month and nine-month periods ended September 30, 2019, $4.1 million and $14.4 million was recorded in Selling, general and administrative expenses. For the three-month and nine-month periods ended September 30, 2018, $0.9 million and $2.9 million was recorded in Cost of goods sold, respectively, and $3.4 million and $10.2 million was recorded in Selling, general and administrative expenses, respectively.
(b) | Included amounts for the three months ended September 30, 2019 recorded in:
▪ | Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements.
▪ | Selling, general and administrative expenses - $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment.
▪ | Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, as well as a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting.
Included amounts for the nine months ended September 30, 2019 recorded in:
▪ | Cost of goods sold - $0.6 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements.
▪ | Selling, general and administrative expenses - Expected severance payments to be made in 2019 as part of a business reorganization plan of $5.3 million, with the unpaid balance recorded in Accrued expenses as of September 30, 2019, $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan, and $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment.
▪ | Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting, and $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses.
(c) | Severance payments as part of a business reorganization plan, recorded in Selling, general and administrative expenses.
(d) | Included in Other (expenses) income, net for the three-month and nine-month periods ended September 30, 2018 is a gain of $1.4 million and an expense of $16.2 million, respectively, resulting from a jury rendered verdict against Albemarle related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures and expenses of $0.4 million and $10.8 million, respectively, resulting from a settlement of a legal matter related to guarantees from a previously disposed business.
(e) | 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 (expenses) income, 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 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 (expenses) income, net - $0.8 million related to the revision of previously recorded expenses of disposed businesses.
(f) | Gain recorded in Other (expenses) income, net related to the sale of land in Pasadena, Texas not used as part of our operations.
(g) | Gain related to the sale of the Polyolefin Catalysts Divestiture, which closed in the second quarter of 2018.
(h) | Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other (expenses) income, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage.
(i) 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 ordinary 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.

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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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