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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Reportable Segments Summarized Financial Information |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (In thousands) |  | (In thousands)
Net sales: |  |  |  |  |  |  |
Lithium | $ | 1,501,073 |  |  | $ | 359,229 |  |  | $ | 2,942,861 |  |  | $ | 958,539 |
Bromine | 354,908 |  |  | 277,783 |  |  | 1,092,239 |  |  | 837,978 |
Catalysts | 235,824 |  |  | 193,554 |  |  | 664,026 |  |  | 562,141 |
All Other | — |  |  | — |  |  | — |  |  | 75,095 |
Total net sales | $ | 2,091,805 |  |  | $ | 830,566 |  |  | $ | 4,699,126 |  |  | $ | 2,433,753 |
Adjusted EBITDA: |  |  |  |  |  |  |
Lithium | $ | 1,111,243 |  |  | $ | 125,416 |  |  | $ | 1,915,066 |  |  | $ | 341,293 |
Bromine | 106,958 |  |  | 86,012 |  |  | 371,875 |  |  | 273,298 |
Catalysts | 4,635 |  |  | 33,103 |  |  | 31,337 |  |  | 79,694 |
All Other | — |  |  | — |  |  | — |  |  | 29,858 |
Corporate | (32,870) |  |  | (26,962) |  |  | (86,173) |  |  | (81,892) |
Total adjusted EBITDA | $ | 1,189,966 |  |  | $ | 217,569 |  |  | $ | 2,232,105 |  |  | $ | 642,251 |
See below for a reconciliation of adjusted EBITDA, a 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 |  |  |  | All Other |  | Corporate |  | Consolidated Total
Three months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 1,063,426 |  |  | $ | 93,186 |  |  | $ | (12,473) |  |  |  |  | $ | — |  |  | $ | (246,924) |  |  | $ | 897,215 |
Depreciation and amortization | 47,758 |  |  | 13,772 |  |  | 12,689 |  |  |  |  | — |  |  | 3,494 |  |  | 77,713 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 2,145 |  |  | 2,145 |
Interest and financing expenses | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 29,691 |  |  | 29,691 |
Income tax expense | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 196,938 |  |  | 196,938 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (5,027) |  |  | (5,027) |
Other(b) | 59 |  |  | — |  |  | 4,419 |  |  |  |  | — |  |  | (13,187) |  |  | (8,709) |
Adjusted EBITDA | $ | 1,111,243 |  |  | $ | 106,958 |  |  | $ | 4,635 |  |  |  |  | $ | — |  |  | $ | (32,870) |  |  | $ | 1,189,966 |
Three months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 92,449 |  |  | $ | 73,409 |  |  | $ | 20,039 |  |  |  |  | $ | — |  |  | $ | (578,678) |  |  | $ | (392,781) |
Depreciation and amortization | 34,256 |  |  | 12,603 |  |  | 13,064 |  |  |  |  | — |  |  | 2,159 |  |  | 62,082 |
Restructuring and other(c) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 754 |  |  | 754 |
Gain on sale of business(d) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 984 |  |  | 984 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 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(e) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 657,412 |  |  | 657,412 |
Other(f) | (1,289) |  |  | — |  |  | — |  |  |  |  | — |  |  | 3,859 |  |  | 2,570 |
Adjusted EBITDA | $ | 125,416 |  |  | $ | 86,012 |  |  | $ | 33,103 |  |  |  |  | $ | — |  |  | $ | (26,962) |  |  | $ | 217,569 |
Nine months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 1,777,214 |  |  | $ | 332,208 |  |  | $ | (11,867) |  |  |  |  | $ | — |  |  | $ | (540,184) |  |  | $ | 1,557,371 |
Depreciation and amortization | 128,786 |  |  | 39,667 |  |  | 38,785 |  |  |  |  | — |  |  | 8,042 |  |  | 215,280 |
Loss on sale of interest in properties(g) | 8,400 |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 8,400 |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 9,244 |  |  | 9,244 |
Interest and financing expenses(h) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 98,934 |  |  | 98,934 |
Income tax expense | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 366,486 |  |  | 366,486 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (15,345) |  |  | (15,345) |
Other(b) | 666 |  |  | — |  |  | 4,419 |  |  |  |  | — |  |  | (13,350) |  |  | (8,265) |
Adjusted EBITDA | $ | 1,915,066 |  |  | $ | 371,875 |  |  | $ | 31,337 |  |  |  |  | $ | — |  |  | $ | (86,173) |  |  | $ | 2,232,105 |
Nine months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Albemarle Corporation | $ | 237,293 |  |  | $ | 235,670 |  |  | $ | 41,401 |  |  |  |  | $ | 27,988 |  |  | $ | (414,856) |  |  | $ | 127,496 |
Depreciation and amortization | 99,559 |  |  | 37,628 |  |  | 38,293 |  |  |  |  | 1,870 |  |  | 8,415 |  |  | 185,765 |
Restructuring and other(c) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 2,294 |  |  | 2,294 |
Gain on sale of business(d) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (428,424) |  |  | (428,424) |
Acquisition and integration related costs(a) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 5,629 |  |  | 5,629 |
Interest and financing expenses(h) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 56,170 |  |  | 56,170 |
Income tax expense | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 14,422 |  |  | 14,422 |
Non-operating pension and OPEB items | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (16,407) |  |  | (16,407) |
Legal accrual(e) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 657,412 |  |  | 657,412 |
Albemarle Foundation contribution(i) | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 20,000 |  |  | 20,000 |
Other(f) | 4,441 |  |  | — |  |  | — |  |  |  |  | — |  |  | 13,453 |  |  | 17,894 |
Adjusted EBITDA | $ | 341,293 |  |  | $ | 273,298 |  |  | $ | 79,694 |  |  |  |  | $ | 29,858 |  |  | $ | (81,892) |  |  | $ | 642,251 |
(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 amounts for the three months ended September 30, 2022 recorded in: •Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment. •SG&A - $1.9 million of expense primarily related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment and $1.3 million primarily related to facility closure expenses of offices in Germany. •Other income, net - $10.6 million net gain related to the fair value adjustment of equity securities in a public company, a $3.0 million gain from the reversal of a liability related to a previous divestiture and $1.1 million of gain resulting from the adjustment of indemnification related to previously disposed businesses. Included amounts for the nine months ended September 30, 2022 recorded in: •Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment, and $0.5 million related to the settlement of a legal matter resulting from a prior acquisition. •SG&A - $3.2 million primarily related to facility closure expenses of offices in Germany, $2.8 million of charges for environmental reserves at sites not part of our operations and $1.9 million of expense primarily related to one-time retention payments for certain employees during the Catalysts strategic review, partially offset by $4.3 million of gains from the sale of legacy properties not part of our operations. •Other income, net - $10.6 million net gain related to the fair value adjustment of equity securities in a public company, a $3.0 million gain from the reversal of a liability related to a previous divestiture, $1.1 million of gain resulting from the adjustment of indemnification related to previously disposed businesses and a $0.6 million gain related to a settlement received from a legal matter in a prior period. (c)In 2021, the Company recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in SG&A. (d)See Note 3, “Divestitures,” for additional information. (e)Loss recorded in Other expense, net in the three and nine months ended September 30, 2021 related to the settlement of an arbitration ruling for a prior legal matter. See Note 10, “Commitments and Contingencies,” for further details. (f)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 income, net - $0.1 million of loss resulting from the adjustment of indemnification 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 income, 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. (g)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. (h)Included in Interest and financing expenses is a loss on early extinguishment of debt of $19.2 million and $29.0 million for the nine months ended September 30, 2022 and 2021, respectively. See Note 9, “Long-term Debt,” for additional information. In addition, Interest and financing expenses for the nine months ended September 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. (i)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.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=121556970&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 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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