Operating Segments

6 Months Ended

Jun. 30, 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 the Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services product categories, consolidating our bromine, mineral and custom manufacturing assets under one business unit. The Catalyst Solutions segment includes the Refinery Catalyst Solutions and Performance Catalyst Solutions product categories. 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, and each segment president is responsible for execution of the segment’s business strategy.

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, and segment results for all periods presented exclude discontinued operations as further described in Notes 1 and 15. Corporate & other includes corporate-related items not allocated to the reportable segments. Pension and 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 each segment whereas the remaining components of pension and OPEB benefits cost or credit are included in Corporate & other.

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
	(In thousands)
Net sales:
Performance Chemicals	$	334,187		$	343,024		$	684,444		$	694,048
Catalyst Solutions	270,534			233,818			520,120			469,391
Total net sales	$	604,721		$	576,842		$	1,204,564		$	1,163,439
Segment operating profit:
Performance Chemicals	$	77,265		$	88,694		$	157,741		$	174,159
Catalyst Solutions	59,918			36,271			109,130			78,410
Total segment operating profit	137,183			124,965			266,871			252,569
Equity in net income of unconsolidated investments:
Performance Chemicals	2,660			2,328			5,577			4,636
Catalyst Solutions	7,989			7,381			13,973			15,334
Total equity in net income of unconsolidated investments	10,649			9,709			19,550			19,970
Net income attributable to noncontrolling interests:
Performance Chemicals	(6,932		)	(8,389		)	(14,584		)	(13,918		)
Total net income attributable to noncontrolling interests	(6,932		)	(8,389		)	(14,584		)	(13,918		)
Segment income:
Performance Chemicals	72,993			82,633			148,734			164,877
Catalyst Solutions	67,907			43,652			123,103			93,744
Total segment income	140,900			126,285			271,837			258,621
Corporate & other(a)	(18,768		)	(16,585		)	(53,533		)	(31,806		)
Restructuring and other charges, net	(8,175		)	—			(25,175		)	—
Interest and financing expenses	(8,733		)	(7,608		)	(17,506		)	(12,839		)
Other (expenses) income, net	(979		)	(1,585		)	164			(5,779		)
Income tax expense	(21,773		)	(20,396		)	(34,963		)	(45,934		)
(Loss) income from discontinued operations (net of tax)	(60,025		)	2,628			(61,794		)	4,463
Net income attributable to Albemarle Corporation	$	22,447		$	82,739		$	79,030		$	166,726

(a) For the three months ended June 30, 2014 and 2013, Corporate & other includes $0.9 million and $0.9 million, respectively, of pension and OPEB plan credits, and for the six months ended June 30, 2014 and 2013, Corporate & other includes $(13.7) million and $2.0 million, respectively, of pension and OPEB plan (costs) credits.