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Segment Information | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Information | Segment Information:Our three reportable segments include: (1) Lithium; (2) Bromine; 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 included only the FCS business that did 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 June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (In thousands) |  | (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium | $ | 891,516 |  |  | $ | 320,334 |  |  | $ | 1,441,788 |  |  | $ | 599,310 |
Bromine | 377,752 |  |  | 279,748 |  |  | 737,331 |  |  | 560,195 |
Catalysts | 210,325 |  |  | 148,344 |  |  | 428,202 |  |  | 368,587 |
All Other | — |  |  | 25,470 |  |  | — |  |  | 75,095 |
Total net sales | $ | 1,479,593 |  |  | $ | 773,896 |  |  | $ | 2,607,321 |  |  | $ | 1,603,187 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium | $ | 495,208 |  |  | $ | 109,441 |  |  | $ | 803,823 |  |  | $ | 215,877 |
Bromine | 135,683 |  |  | 92,646 |  |  | 264,917 |  |  | 187,286 |
Catalysts | 9,792 |  |  | 21,164 |  |  | 26,702 |  |  | 46,591 |
All Other | — |  |  | 8,379 |  |  | — |  |  | 29,858 |
Corporate | (30,474) |  |  | (37,002) |  |  | (53,303) |  |  | (54,930) |
Total adjusted EBITDA | $ | 610,209 |  |  | $ | 194,628 |  |  | $ | 1,042,139 |  |  | $ | 424,682 |
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):
| Lithium |  | Bromine |  | Catalysts |  | Reportable Segments Total |  | All Other |  | Corporate |  | Consolidated Total
Three months ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 452,099 |  |  | $ | 122,461 |  |  | $ | (3,383) |  |  | $ | 571,177 |  |  | $ | — |  |  | $ | (164,404) |  |  | $ | 406,773 |
Depreciation and amortization | 42,502 |  |  | 13,222 |  |  | 13,175 |  |  | 68,899 |  |  | — |  |  | 2,094 |  |  | 70,993 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,375 |  |  | 5,375 |
Interest and financing expenses(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41,409 |  |  | 41,409 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 89,018 |  |  | 89,018 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,038) |  |  | (5,038) |
Other(c) | 607 |  |  | — |  |  | — |  |  | 607 |  |  | — |  |  | 1,072 |  |  | 1,679 |
Adjusted EBITDA | $ | 495,208 |  |  | $ | 135,683 |  |  | $ | 9,792 |  |  | $ | 640,683 |  |  | $ | — |  |  | $ | (30,474) |  |  | $ | 610,209 |
Three months ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 74,593 |  |  | $ | 80,148 |  |  | $ | 8,446 |  |  | $ | 163,187 |  |  | $ | 7,972 |  |  | $ | 253,441 |  |  | $ | 424,600 |
Depreciation and amortization | 33,497 |  |  | 12,498 |  |  | 12,718 |  |  | 58,713 |  |  | 407 |  |  | 2,303 |  |  | 61,423 |
Restructuring and other(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 766 |  |  | 766 |
Gain on sale of business(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (429,408) |  |  | (429,408) |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,915 |  |  | 1,915 |
Interest and financing expenses(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,152 |  |  | 7,152 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 106,985 |  |  | 106,985 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,471) |  |  | (5,471) |
Albemarle Foundation contribution(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,000 |  |  | 20,000 |
Other(g) | 1,351 |  |  | — |  |  | — |  |  | 1,351 |  |  | — |  |  | 5,315 |  |  | 6,666 |
Adjusted EBITDA | $ | 109,441 |  |  | $ | 92,646 |  |  | $ | 21,164 |  |  | $ | 223,251 |  |  | $ | 8,379 |  |  | $ | (37,002) |  |  | $ | 194,628 |
Six months ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 713,788 |  |  | $ | 239,022 |  |  | $ | 606 |  |  | $ | 953,416 |  |  | $ | — |  |  | $ | (293,260) |  |  | $ | 660,156 |
Depreciation and amortization | 81,028 |  |  | 25,895 |  |  | 26,096 |  |  | 133,019 |  |  | — |  |  | 4,548 |  |  | 137,567 |
Loss on sale of interest in properties(h) | 8,400 |  |  | — |  |  | — |  |  | 8,400 |  |  | — |  |  | — |  |  | 8,400 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,099 |  |  | 7,099 |
Interest and financing expenses(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,243 |  |  | 69,243 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 169,548 |  |  | 169,548 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,318) |  |  | (10,318) |
Other(c) | 607 |  |  | — |  |  | — |  |  | 607 |  |  | — |  |  | (163) |  |  | 444 |
Adjusted EBITDA | $ | 803,823 |  |  | $ | 264,917 |  |  | $ | 26,702 |  |  | $ | 1,095,442 |  |  | $ | — |  |  | $ | (53,303) |  |  | $ | 1,042,139 |
Six months ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 144,965 |  |  | $ | 162,261 |  |  | $ | 21,362 |  |  | $ | 328,588 |  |  | $ | 27,988 |  |  | $ | 163,701 |  |  | $ | 520,277 |
Depreciation and amortization | 65,303 |  |  | 25,025 |  |  | 25,229 |  |  | 115,557 |  |  | 1,870 |  |  | 6,256 |  |  | 123,683 |
Restructuring and other(d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,540 |  |  | 1,540 |
Gain on sale of business(e) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (429,408) |  |  | (429,408) |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,076 |  |  | 4,076 |
Interest and financing expenses(b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 51,034 |  |  | 51,034 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 129,092 |  |  | 129,092 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,936) |  |  | (10,936) |
Albemarle Foundation contribution(f) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,000 |  |  | 20,000 |
Other(g) | 5,609 |  |  | — |  |  | — |  |  | 5,609 |  |  | — |  |  | 9,715 |  |  | 15,324 |
Adjusted EBITDA | $ | 215,877 |  |  | $ | 187,286 |  |  | $ | 46,591 |  |  | $ | 449,754 |  |  | $ | 29,858 |  |  | $ | (54,930) |  |  | $ | 424,682 |
(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 $19.2 million for the three and six months ended June 30, 2022, and $1.2 million and $29.0 million for the three and six months ended June 30, 2021, respectively. See Note 9, “Long-term Debt,” for additional information. In addition, Interest and financing expenses for the six months ended June 30, 2022 includes the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods. See Note 1, “Basis of Presentation,” for further details. (c)Included amounts for the three months ended June 30, 2022 recorded in: •Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. •SG&A - $1.1 million primarily related to facility closure expenses of offices in Germany. Included amounts for the six months ended June 30, 2022 recorded in: •Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. •SG&A - $4.3 million of gains from the sale of legacy properties not part of our operations, partially offset by $2.8 million of charges for environmental reserves at sites not part of our operations and $1.1 million primarily related to facility closure expenses of offices in Germany. •Other income, net - $0.6 million gain related to a settlement received from a legal matter in a prior period. (d)In 2021, the Company recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in SG&A. (e)See Note 3, “Divestitures,” for additional information. (f)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 the Company’s 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. (g)Included amounts for the three months ended June 30, 2021 recorded in: •SG&A - $4.0 million of a loss resulting from the sale of property, plant and equipment, $1.6 million of charges for an environmental reserve at a site not part of our operations and $1.4 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements. •Other income, net - $0.3 million of a gain resulting from the adjustment of indemnifications related to previously disposed businesses. Included amounts for the six months ended June 30, 2021 recorded in: •SG&A - $6.0 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 income, net - $3.6 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle. (h)Expense recorded as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues. The corresponding obligation was recorded in Accrued liabilities to be transferred to Mineral Resources Limited (“MRL”), which maintains a 40% ownership interest in these Kemerton assets.

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- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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