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Segment Information
 9 Months Ended
Sep. 30, 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. On June 1, 2021, we completed the sale of the FCS business. See Note 3, “Divestitures,” for additional information. Amounts in the “All Other” category represent activity in this business until divested on June 1, 2021.
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 and financing expenses, income tax expenses, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items in a balanced manner and on a segment basis. These non-operating, non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business and enterprise 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 (loss) 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
September 30,		Nine Months Ended
September 30,
2021202020212020
(In thousands)(In thousands)
Net sales:
Lithium$359,229 $265,646 $958,539 $786,186 
Bromine Specialties277,783 237,193 837,978 701,564 
Catalysts193,554 197,919 562,141 602,179 
All Other— 46,110 75,095 159,833 
Total net sales$830,566 $746,868 $2,433,753 $2,249,762 
Adjusted EBITDA:
Lithium$125,416 $97,789 $341,293 $270,962 
Bromine Specialties86,012 79,448 273,298 235,751 
Catalysts33,103 37,834 79,694 108,081 
All Other— 24,985 29,858 66,407 
Corporate(26,962)(24,001)(81,892)(83,588)
Total adjusted EBITDA$217,569 $216,055 $642,251 $597,613 
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
LithiumBromine SpecialtiesCatalystsReportable Segments TotalAll OtherCorporateConsolidated Total
Three months ended September 30, 2021
Net income (loss) attributable to Albemarle Corporation$92,449 $73,409 $20,039 $185,897 $— $(578,678)$(392,781)
Depreciation and amortization34,256 12,603 13,064 59,923 — 2,159 62,082 
Restructuring and other(a)
— — — — — 754 754 
Gain on sale of business(b)
— — — — — 984 984 
Acquisition and integration related costs(c)
— — — — — 1,553 1,553 
Interest and financing expenses— — — — — 5,136 5,136 
Income tax expense— — — — — (114,670)(114,670)
Non-operating pension and OPEB items— — — — — (5,471)(5,471)
Legal accrual(d)
— — — — — 657,412 657,412 
Other(e)
(1,289)— — (1,289)— 3,859 2,570 
Adjusted EBITDA$125,416 $86,012 $33,103 $244,531 $— $(26,962)$217,569 
Three months ended September 30, 2020
Net income (loss) attributable to Albemarle Corporation$69,102 $66,548 $25,176 $160,826 $22,798 $(85,323)$98,301 
Depreciation and amortization28,687 12,900 12,658 54,245 2,187 2,247 58,679 
Restructuring and other(a)
— — — — — 2,251 2,251 
Acquisition and integration related costs(c)
— — — — — 5,928 5,928 
Interest and financing expenses— — — — — 19,227 19,227 
Income tax expense— — — — — 30,653 30,653 
Non-operating pension and OPEB items— — — — — (2,901)(2,901)
Other(f)
— — — — — 3,917 3,917 
Adjusted EBITDA$97,789 $79,448 $37,834 $215,071 $24,985 $(24,001)$216,055 
Nine months ended September 30, 2021
Net income (loss) attributable to Albemarle Corporation$237,293 $235,670 $41,401 $514,364 $27,988 $(414,856)$127,496 
Depreciation and amortization99,559 37,628 38,293 175,480 1,870 8,415 185,765 
Restructuring and other(a)
— — — — — 2,294 2,294 
Gain on sale of business(b)
— — — — — (428,424)(428,424)
Acquisition and integration related costs(c)
— — — — — 5,629 5,629 
Interest and financing expenses(g)
— — — — — 56,170 56,170 
Income tax expense— — — — — 14,422 14,422 
Non-operating pension and OPEB items— — — — — (16,407)(16,407)
Legal accrual(d)
— — — — — 657,412 657,412 
Albemarle Foundation contribution(h)
— — — — — 20,000 20,000 
Other(e)
4,441 — — 4,441 — 13,453 17,894 
Adjusted EBITDA$341,293 $273,298 $79,694 $694,285 $29,858 $(81,892)$642,251 
Nine months ended September 30, 2020
Net income (loss) attributable to Albemarle Corporation$188,380 $198,905 $70,770 $458,055 $60,069 $(226,995)$291,129 
Depreciation and amortization82,582 36,846 37,311 156,739 6,338 7,137 170,214 
Restructuring and other(a)
— — — — — 10,831 10,831 
Acquisition and integration related costs(c)
— — — — — 14,349 14,349 
Interest and financing expenses— — — — — 53,964 53,964 
Income tax expense— — — — — 64,526 64,526 
Non-operating pension and OPEB items— — — — — (8,704)(8,704)
Other(f)
— — — — — 1,304 1,304 
Adjusted EBITDA$270,962 $235,751 $108,081 $614,794 $66,407 $(83,588)$597,613 
(a)In 2021, we recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in Selling, general and administrative expenses (“SG&A”). 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 September 30, 2020, we recorded expenses of $2.3 million in SG&A. During the nine months ended September 30, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $10.4 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.
(b)See Note 3, “Divestitures,” for additional information.
(c)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in SG&A.
(d)Loss recorded in Other expense, net in the three months ended September 30, 2021 related to an arbitration ruling for the Huntsman legal matter. See Note 10, “Commitments and Contingencies,” for further details.
(e)Included amounts for the three months ended September 30, 2021 recorded in:
•SG&A - $2.5 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
•Other expense, net - $0.1 million of a loss resulting from the adjustment of indemnifications related to previously disposed businesses.
Included amounts for the nine months ended September 30, 2021 recorded in:
•SG&A - $8.6 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements, a $4.0 million loss resulting from the sale of property, plant and equipment and $1.6 million of charges for an environmental reserve at a site not part of our operations.
•Other expense, net - $3.7 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.
(f)Included amounts for the three months ended September 30, 2020 recorded in:
•SG&A - $3.8 million of a net expense primarily related to the increase of environmental reserves at non-operating businesses we had previously divested.
•Other expense, net - $0.2 million loss resulting from the settlement of a historical legal matter of an acquired company.
Included amounts for the nine months ended September 30, 2020 recorded in:
▪SG&A - $3.8 million of a net expense primarily related to the increase of environmental reserves at non-operating businesses we had previously divested.
▪Other expense, net - $2.5 million net gain resulting from the settlement of legal matters related to a business sold and $0.8 million net gain primarily related to the sale of idle properties in Germany, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses.
(g)Included in Interest and financing expenses is a loss on early extinguishment of debt of $29.0 million for the nine months ended September 30, 2021, respectively. See Note 9, “Long-Term Debt,” for additional information.
(h)Included in SG&A is a charitable contribution, using a portion of the proceeds received from the FCS 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 the Company operates. 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 these communities.