XML 31 R19.htm IDEA: XBRL DOCUMENT
v3.21.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2021
Segment Reporting [Abstract] |
Segment Information | Segment Information:Our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. 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 includes only the FCS business that does not fit into any of our core businesses. In February 2021, we announced that we signed a definitive agreement to sell the FCS business. See Note 2, “Divestitures,” for additional information. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“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 inter-segment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items. 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.
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  | (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium |  |  |  |  | $ | 278,976 |  |  | $ | 236,818 |
Bromine Specialties |  |  |  |  | 280,447 |  |  | 231,592 |
Catalysts |  |  |  |  | 220,243 |  |  | 207,207 |
All Other |  |  |  |  | 49,625 |  |  | 63,228 |
Total net sales |  |  |  |  | $ | 829,291 |  |  | $ | 738,845 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium |  |  |  |  | $ | 106,436 |  |  | $ | 78,637 |
Bromine Specialties |  |  |  |  | 94,640 |  |  | 83,262 |
Catalysts |  |  |  |  | 25,427 |  |  | 47,470 |
All Other |  |  |  |  | 21,479 |  |  | 22,824 |
Corporate |  |  |  |  | (17,928) |  |  | (35,828) |
Total adjusted EBITDA |  |  |  |  | $ | 230,054 |  |  | $ | 196,365 |
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, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 74,630 |  |  | $ | 82,113 |  |  | $ | 12,916 |  |  | $ | 169,659 |  |  | $ | 20,016 |  |  | $ | (93,998) |  |  | $ | 95,677 |
Depreciation and amortization | 31,806 |  |  | 12,527 |  |  | 12,511 |  |  | 56,844 |  |  | 1,463 |  |  | 3,953 |  |  | 62,260 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,162 |  |  | 2,162 |
Interest and financing expenses(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 43,882 |  |  | 43,882 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22,107 |  |  | 22,107 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,465) |  |  | (5,465) |
Other(c) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,431 |  |  | 9,431 |
Adjusted EBITDA | $ | 106,436 |  |  | $ | 94,640 |  |  | $ | 25,427 |  |  | $ | 226,503 |  |  | $ | 21,479 |  |  | $ | (17,928) |  |  | $ | 230,054 |
Three months ended March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 53,240 |  |  | $ | 71,665 |  |  | $ | 34,892 |  |  | $ | 159,797 |  |  | $ | 20,846 |  |  | $ | (73,439) |  |  | $ | 107,204 |
Depreciation and amortization | 25,397 |  |  | 11,597 |  |  | 12,578 |  |  | 49,572 |  |  | 1,978 |  |  | 2,144 |  |  | 53,694 |
Restructuring and other(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,847 |  |  | 1,847 |
Acquisition and integration related costs(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,951 |  |  | 2,951 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,885 |  |  | 16,885 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,442 |  |  | 18,442 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,908) |  |  | (2,908) |
Other(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,750) |  |  | (1,750) |
Adjusted EBITDA | $ | 78,637 |  |  | $ | 83,262 |  |  | $ | 47,470 |  |  | $ | 209,369 |  |  | $ | 22,824 |  |  | $ | (35,828) |  |  | $ | 196,365 |
(a)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (b)Included in Interest and financing expenses is a loss on early extinguishment of debt of $27.8 million. See Note 8, “Long-Term Debt,” for additional information. (c)Included amounts for the three months ended March 31, 2021 recorded in: •SG&A - $5.5 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements. •Other income, net - $3.9 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle. (d)In 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Germany and with our Jordanian joint venture partner. During the three months ended March 31, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $1.5 million in SG&A and a $0.3 million gain in Net income attributable to noncontrolling interests for the portion of severance expense allocated to our Jordanian joint venture partner. The balance of unpaid severance is recorded in Accrued expenses and is expected to primarily be paid through 2021. (e)Included amounts for the three months ended March 31, 2020 recorded in: ▪Other income, net - $2.6 million net gain resulting from the settlement of legal matters related to a business sold, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses.

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

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration