XML 46 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Investments | 12 Months Ended
--- | ---
Dec. 31, 2024
Investments [Abstract] |
Investments | Investments: Investments include our share of unconsolidated joint ventures, nonmarketable securities and marketable equity securities. The following table details the Company’s investment balances at December 31, 2024 and 2023 (in thousands):
|  | December 31,
|  | 2024 |  | 2023
Joint ventures |  | $ | 726,594 |  |  | $ | 855,131 |
Available for sale debt securities |  | 313,991 |  |  | 289,307 |
Nonmarketable securities |  | 16,528 |  |  | 18,389 |
Marketable equity securities |  | 60,626 |  |  | 207,028 |
Total |  | $ | 1,117,739 |  |  | $ | 1,369,855 |
Unconsolidated Joint Ventures The Company’s ownership positions in significant unconsolidated investments are shown below:
|  |  | December 31,
|  |  | 2024 |  | 2023 |  | 2022
* |  | Windfield Holdings Pty. Ltd. (“Windfield”) - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate | 49 | % |  | 49 | % |  | 49 | %
* |  | Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls | 50 | % |  | 50 | % |  | 50 | %
* |  | Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts | 50 | % |  | 50 | % |  | 50 | %
* |  | Eurecat S.A. - a joint venture with Axens Group for refinery catalysts regeneration services | 50 | % |  | 50 | % |  | 50 | %
* |  | Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities | 50 | % |  | 50 | % |  | 50 | %
The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the years ended December 31, 2024, 2023 and 2022 (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Windfield |  | $ | 692,965 |  |  | $ | 1,833,589 |  |  | $ | 750,378 |
Other joint ventures |  | 22,468 |  |  | 20,493 |  |  | 21,897 |
Total |  | $ | 715,433 |  |  | $ | 1,854,082 |  |  | $ | 772,275 |
Our investment in the significant unconsolidated joint ventures above amounted to $712.2 million and $841.5 million as of December 31, 2024 and 2023, respectively. Undistributed earnings attributable to our significant unconsolidated investments represented approximately $464.6 million and $97.3 million of our consolidated retained earnings at December 31, 2024 and 2023, respectively. All of the unconsolidated joint ventures in which we have investments are private companies and, accordingly, do not have a quoted market price available. The following summary lists the assets, liabilities and results of operations for the Company’s significant unconsolidated joint ventures presented herein (in thousands):
|  | December 31,
|  | 2024 |  | 2023
Summary of Balance Sheet Information: |  |  |  |
Current assets |  | $ | 968,453 |  |  | $ | 1,424,059 |
Noncurrent assets |  | 2,707,216 |  |  | 2,321,261 |
Total assets |  | $ | 3,675,669 |  |  | $ | 3,745,320 |
Current liabilities |  | $ | 390,522 |  |  | $ | 773,931 |
Noncurrent liabilities |  | 1,727,181 |  |  | 1,267,271 |
Total liabilities |  | $ | 2,117,703 |  |  | $ | 2,041,202 |
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Summary of Statements of Income Information: |  |  |  |  |  |
Net sales |  | $ | 1,810,801 |  |  | $ | 7,019,117 |  |  | $ | 4,290,223 |
Gross profit |  | $ | 1,047,714 |  |  | $ | 6,373,472 |  |  | $ | 3,765,304 |
Income before income taxes |  | $ | 695,932 |  |  | $ | 5,988,737 |  |  | $ | 3,301,875 |
Net income |  | $ | 485,392 |  |  | $ | 4,224,961 |  |  | $ | 2,314,094 |
We have evaluated each of the unconsolidated investments pursuant to current accounting guidance and none qualify for consolidation. Dividends received from our significant unconsolidated investments were $346.8 million, $2.0 billion and $800.9 million in 2024, 2023 and 2022, respectively. The Company holds a 49% equity interest in Windfield, which we acquired in the Rockwood acquisition. With regards to the Company’s ownership in Windfield, the parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is within the Energy Storage segment and the most significant VIE, was $583.6 million and $712.0 million at December 31, 2024 and 2023, respectively. The Company’s unconsolidated VIEs are reported in Investments in the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments. Proportionately Consolidated Joint Ventures On October 18, 2023, the Company closed on the restructuring of the MARBL joint venture with MRL. This updated structure is intended to significantly simplify the commercial operation agreements previously entered into, allowed us to retain full control of downstream conversion assets and provide greater strategic opportunities for each company based on their global operations and the evolving lithium market. Under the amended agreements, Albemarle acquired the remaining 40% ownership of the Kemerton lithium hydroxide processing facility in Australia that was jointly owned with MRL through the MARBL joint venture, bringing Albemarle’s ownership in the processing facility to 100%. Following this restructuring, Albemarle and MRL each own 50% of Wodgina, and MRL operates the Wodgina mine on behalf of the joint venture. During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which included $180 million of consideration for the remaining ownership of Kemerton as well as a payment for the economic effective date of the transaction being retroactive to April 1, 2022. As a result of this transaction, the Company recorded a gain of $71.2 million on the consolidated statement of (loss) income during the fourth quarter of 2023. The fair value of the 40% ownership of the Kemerton lithium hydroxide processing facility was based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the consolidated financial statements could be subject to possible impairment. This joint venture is unincorporated with each investor holding an undivided interest in each asset and proportionately liable for each liability; therefore, our proportionate share of assets, liabilities, revenue and expenses are included in the appropriate classifications in the consolidated financial statements. Public Equity Securities Included in the Company’s marketable equity securities balance are holdings in equity securities of public companies. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income, net in our consolidated statements of (loss) income. During the year ended December 31, 2023, the Company purchased approximately $203.4 million of shares in publicly-traded companies. In addition, during the years ended December 31, 2024, 2023 and 2022, the Company recorded unrealized mark-to-market (losses) gains of ($37.0) million, ($41.4) million and $4.3 million, respectively, in Other income, net for all public equity securities held at the end of the balance sheet date. In January 2024, the Company sold equity securities of a public company for proceeds of approximately $81.5 million. As a result of the sale, the Company realized a loss of $33.7 million in the year ended December 31, 2024. Other The Company holds a 50% equity interest in Jordan Bromine Company Limited (“JBC”), reported in the Specialties segment. The Company consolidates this venture as it is considered the primary beneficiary due to its operational and financial control. As part of the proceeds from the sale of the fine chemistry services (“FCS”) business on June 1, 2021, W.R. Grace & Co. (“Grace”) issued Albemarle preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and began accruing payment-in-kind (“PIK”) dividends at an annual rate of 12% on June 1, 2023. In addition, the preferred equity can be redeemed by Albemarle when the accumulated balance reaches 200% of the original value. This preferred equity had a fair value of $314.0 million and $289.3 million at December 31, 2024 and 2023, respectively, which is reported in Investments in the consolidated balance sheets. We maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of our Executive Deferred Compensation Plan (“EDCP”), subject to the claims of our creditors in the event of our insolvency. Assets of the Trust, in conjunction with our EDCP, are accounted for as trading securities in accordance with authoritative accounting guidance. The assets of the Trust consist primarily of mutual fund investments and are marked-to-market on a monthly basis through the consolidated statements of (loss) income. At December 31, 2024 and 2023, these marketable securities amounted to $38.2 million and $33.6 million, respectively.

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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