Discontinued Operations (Notes)

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Assets Held For Sale

Discontinued Operations:

On April 15, 2014, the Company signed a definitive agreement to sell its antioxidant, ibuprofen and propofol businesses and assets to SI Group, Inc. for an undisclosed amount of cash. Included in the transaction are Albemarle’s manufacturing sites in Orangeburg, South Carolina and Jinshan, China, along with Albemarle’s antioxidant product lines manufactured in Ningbo, China. The sale is subject to customary closing conditions and is expected to close later in 2014.

In the second quarter of 2014, the Company began accounting for these assets as held for sale and recorded a pre-tax charge of $80.7 million ($60.3 million after income taxes) related to the expected loss on the anticipated sale of the assets. The expected loss represents the difference between the carrying value of the related assets and their estimated fair value, based on the estimated sales price as outlined in the agreement less estimated costs to sell. The expected loss is primarily attributable to goodwill, intangibles and long-lived assets which are included in the assets classified as held for sale at June 30, 2014. Cumulative foreign currency translation gains of $16.7 million were also included in the assessment of the assets’ carrying value for purposes of calculating the expected loss. The final selling price of these assets may be higher or lower than our current assessment of fair value. The expected loss and estimated costs to sell, net of related taxes, are included in (Loss) income from discontinued operations in our consolidated statements of income for the three-month and six-month periods ended June 30, 2014. A summary of results of discontinued operations is as follows (in thousands):

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Net sales	$	59,412		$	57,355	$	116,248		$	112,383
(Loss) income from discontinued operations	$	(80,174	)	$	3,682	$	(82,687	)	$	6,171
Income tax (benefit) expense	(20,149		)	1,054		(20,893		)	1,708
(Loss) income from discontinued operations (net of tax)	$	(60,025	)	$	2,628	$	(61,794	)	$	4,463

The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at June 30, 2014, are as follows (in thousands):

	June 30, 2014
Assets
Inventories	$	58,108
All other current assets	4,140
Net property, plant and equipment	52,367
Other intangibles, net of amortization	23,250
All other noncurrent assets	119
Assets of discontinued operations held for sale	$	137,984
Liabilities
Accounts payable	$	4,140
All other current liabilities	438
Noncurrent liabilities	6,600
Liabilities of discontinued operations held for sale	$	11,178

Assets of discontinued operations held for sale and related liabilities are classified as current in the condensed consolidated balance sheet as of June 30, 2014 because the Company expects to complete the sale of such assets in 2014.