Operating Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Operating Segments

Operating Segments:

Effective January 1, 2014, the Company’s assets and businesses were realigned under two operating segments to better align the Company’s resources to support its ongoing business strategy. The Performance Chemicals segment includes Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services, consolidating our bromine, mineral and custom manufacturing assets under one business unit. The Catalyst Solutions segment includes Refinery Catalyst Solutions, Performance Catalyst Solutions and Antioxidants. 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. The new structure also facilitates the continued standardization of business processes across the organization as part of our ongoing One Albemarle strategy. The new segment structure 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.

Segment income represents segment operating profit and equity in net income of unconsolidated investments and is reduced by net income attributable to noncontrolling interests. Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs.

Summarized financial information concerning our reportable segments is shown in the following table. Results for 2013 have been recast to reflect the change in operating segments noted above. Corporate & other includes corporate-related items not allocated to the reportable segments.

	Three Months Ended   March 31,
	2014			2013
	(In thousands)
Net sales:
Performance Chemicals	$	360,543		$	361,941
Catalyst Solutions	296,136			279,684
Total net sales	$	656,679		$	641,625
Segment operating profit:
Performance Chemicals	$	75,923		$	82,933
Catalyst Solutions	51,246			47,175
Total segment operating profit	127,169			130,108
Equity in net income of unconsolidated investments:
Performance Chemicals	2,917			2,308
Catalyst Solutions	5,984			7,953
Total equity in net income of unconsolidated investments	8,901			10,261
Net income attributable to noncontrolling interests:
Performance Chemicals	(7,652		)	(5,529		)
Total net income attributable to noncontrolling interests	(7,652		)	(5,529		)
Segment income:
Performance Chemicals	71,188			79,712
Catalyst Solutions	57,230			55,128
Total segment income	128,418			134,840
Corporate & other(a)	(34,765		)	(15,221		)
Restructuring and other charges, net	(17,000		)	—
Interest and financing expenses	(8,773		)	(5,231		)
Other income (expenses), net	1,149			(4,209		)
Income tax expense	(12,446		)	(26,192		)
Net income attributable to Albemarle Corporation	$	56,583		$	83,987

(a) For the three months ended March 31, 2014 and 2013, Corporate & other includes $(14.6) million and $1.2 million, respectively, of pension and OPEB plan (costs) credits.