Operating Segments and Geographic Area Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Operating Segments and Geographic Area Information

Operating Segments and Geographic Area Information:

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, 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 tables. Results for all periods presented 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 2. 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 and Corporate & other, whereas the remaining components of pension and OPEB benefits cost or credit are included in Corporate & other.

	Year Ended December 31,
	2014			2013			2012
				(In thousands)
Net sales:
Performance Chemicals	$	1,351,596		$	1,392,664		$	1,451,247
Catalyst Solutions	1,093,952			1,001,606			1,067,907
Total net sales	$	2,445,548		$	2,394,270		$	2,519,154
Segment operating profit:
Performance Chemicals	$	306,616		$	334,275		$	410,359
Catalyst Solutions	224,407			194,322			230,648
Total segment operating profit	531,023			528,597			641,007
Equity in net income of unconsolidated investments:
Performance Chemicals	10,068			8,875			6,416
Catalyst Solutions	25,674			22,854			31,651
Total equity in net income of unconsolidated investments	35,742			31,729			38,067
Net income attributable to noncontrolling interests:
Performance Chemicals	(27,590		)	(26,663		)	(18,571		)
Corporate & other	—			—			(20		)
Total net income attributable to noncontrolling interests	(27,590		)	(26,663		)	(18,591		)
Segment income:
Performance Chemicals	289,094			316,487			398,204
Catalyst Solutions	250,081			217,176			262,299
Total segment income	539,175			533,663			660,503
Corporate & other(a)	(203,620		)	81,439			(129,559		)
Restructuring and other charges, net(b)	(25,947		)	(33,361		)	(111,685		)
Acquisition and integration related costs(c)	(30,158		)	—			—
Interest and financing expenses	(41,358		)	(31,559		)	(32,800		)
Other (expenses) income, net	(16,761		)	(6,674		)	1,229
Income tax expense	(18,484		)	(134,445		)	(80,433		)
(Loss) income from discontinued operations (net of tax)	(69,531		)	4,108			4,281
Net income attributable to Albemarle Corporation	$	133,316		$	413,171		$	311,536

(a) For the years ended December 31, 2014, 2013 and 2012, Corporate & other includes $(127.2) million, $143.1 million and $(68.0) million, respectively, of pension and OPEB plan (costs) credits (including mark-to-market actuarial gains and losses).

(b) See Note 20, “Restructuring and Other.”

(c) See Note 23, “Acquisitions.”

	As of December 31,
	2014		2013		2012
			(In thousands)
Identifiable assets:
Performance Chemicals	$	1,042,177	$	1,129,838	$	1,110,006
Catalyst Solutions	1,375,202		1,695,120		1,572,883
Corporate & other(a)	2,805,724		759,839		754,402
Total identifiable assets	$	5,223,103	$	3,584,797	$	3,437,291
Goodwill:
Performance Chemicals	$	42,282	$	43,603	$	43,519
Catalyst Solutions	200,980		240,600		233,447
Total goodwill	$	243,262	$	284,203	$	276,966

(a) As of December 31, 2014, Corporate & other included net proceeds received from the issuance of the 2014 Senior Notes, which, together with borrowings from our Commercial Paper Notes, Term Loan and Cash Bridge Facility, were used to finance the cash portion of the Merger Consideration, pay related fees and expenses and repay our senior notes which matured on February 1, 2015. See Note 13, “Long-Term Debt” and Note 23 “Acquisitions” for additional details about these transactions.

	Year Ended December 31,
	2014		2013		2012
			(In thousands)
Depreciation and amortization:
Performance Chemicals	$	48,233	$	43,472	$	37,831
Catalyst Solutions	49,622		49,656		47,155
Discontinued Operations	3,165		12,054		12,120
Corporate & other	2,552		2,188		1,914
Total depreciation and amortization	$	103,572	$	107,370	$	99,020
Capital expenditures:
Performance Chemicals	$	48,831	$	94,506	$	156,648
Catalyst Solutions	61,721		60,326		122,746
Corporate & other	24		514		1,479
Total capital expenditures	$	110,576	$	155,346	$	280,873

	Year Ended December 31,
	2014		2013		2012
			(In thousands)
Net Sales:
United States	$	884,373	$	933,182	$	959,571
Foreign(a)	1,561,175		1,461,088		1,559,583
Total	$	2,445,548	$	2,394,270	$	2,519,154

(a) No sales in a foreign country exceed 10% of total net sales. Also, net sales are attributed to countries based upon shipments to final destination.

	As of December 31,
	2014		2013		2012
			(In thousands)
Long-Lived Assets:
United States	$	698,863	$	748,719	$	735,269
Netherlands	167,965		193,775		192,540
Jordan	227,805		227,818		209,133
Brazil	59,474		78,078		85,353
Germany	75,813		86,175		72,797
China	5,310		41,858		39,542
France	37,347		34,523		32,305
Korea	80,362		86,827		81,962
United Kingdom	3,665		3,665		—
Other foreign countries	48,819		47,139		33,598
Total	$	1,405,423	$	1,548,577	$	1,482,499

Net sales to external customers by product category in each of the segments consists of the following:

	Year Ended December 31,
	2014		2013		2012
			(In thousands)
Performance Chemicals:
Fire Safety Solutions	$	607,477	$	620,972	$	665,293
Specialty Chemicals	520,297		520,998		519,606
Fine Chemistry Services	223,822		250,694		266,348
Total Performance Chemicals	$	1,351,596	$	1,392,664	$	1,451,247
Catalyst Solutions:
Refinery Catalyst Solutions	$	844,221	$	768,837	$	794,933
Performance Catalyst Solutions	249,731		232,769		272,974
Total Catalyst Solutions	$	1,093,952	$	1,001,606	$	1,067,907