

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Net sales:
Performance Chemicals	$	399,536		$	299,947		$	1,224,864		$	856,221
Refining Solutions	185,102			218,950			528,841			618,635
Chemetall Surface Treatment	211,877			—			617,163			—
All Other	102,224			123,521			337,997			372,126
Corporate	6,354			—			12,117			—
Total net sales	$	905,093		$	642,418		$	2,720,982		$	1,846,982

Adjusted EBITDA:
Performance Chemicals	$	136,209		$	82,329		$	415,419		$	232,668
Refining Solutions	54,517			61,674			144,910			189,259
Chemetall Surface Treatment	53,898			—			148,344			—
All Other	6,262			20,971			29,540			63,482
Corporate	(15,890		)	(20,370		)	(7,508		)	(60,087		)
Total adjusted EBITDA	$	234,996		$	144,604		$	730,705		$	425,322

See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP, (in thousands):



	Performance Chemicals			Refining Solutions			Chemetall Surface Treatment			Reportable Segments Total			All Other			Corporate			Consolidated Total
Three months ended September 30, 2015
Adjusted EBITDA	$	136,209		$	54,517		$	53,898		$	244,624		$	6,262		$	(15,890	)	$	234,996
Depreciation and amortization	(31,482		)	(8,804		)	(20,260		)	(60,546		)	(5,645		)	(2,712		)	(68,903		)
Utilization of inventory markup^(a)	(16,834		)	—			—			(16,834		)	—			—			(16,834		)
Restructuring and other, net^(c)	—			—			—			—			—			6,804			6,804
Acquisition and integration related costs^(b)	—			—			—			—			—			(42,798		)	(42,798		)
Interest and financing expenses	—			—			—			—			—			(32,058		)	(32,058		)
Income tax expense	—			—			—			—			—			(16,892		)	(16,892		)
Non-operating pension and OPEB items	—			—			—			—			—			1,077			1,077
Net income (loss) attributable to Albemarle Corporation	$	87,893		$	45,713		$	33,638		$	167,244		$	617		$	(102,469	)	$	65,392
Three months ended September 30, 2014
Adjusted EBITDA	$	82,329		$	61,674		$	—		$	144,003		$	20,971		$	(20,370	)	$	144,604
Depreciation and amortization	(12,593		)	(8,823		)	—			(21,416		)	(3,492		)	(722		)	(25,630		)
Restructuring and other, net^(c)	—			—			—			—			—			(293		)	(293		)
Acquisition and integration related costs^(b)	—			—			—			—			—			(10,261		)	(10,261		)
Interest and financing expenses	—			—			—			—			—			(8,749		)	(8,749		)
Income tax expense	—			—			—			—			—			(11,737		)	(11,737		)
Loss from discontinued operations (net of tax)	—			—			—			—			—			(6,679		)	(6,679		)
Non-operating pension and OPEB items	—			—			—			—			—			(1,440		)	(1,440		)
Other^(d)	—			—			—			—			—			(7,021		)	(7,021		)
Net income (loss) attributable to Albemarle Corporation	$	69,736		$	52,851		$	—		$	122,587		$	17,479		$	(67,272	)	$	72,794
Nine months ended September 30, 2015
Adjusted EBITDA	$	415,419		$	144,910		$	148,344		$	708,673		$	29,540		$	(7,508	)	$	730,705
Depreciation and amortization	(93,608		)	(25,397		)	(57,567		)	(176,572		)	(16,867		)	(6,933		)	(200,372		)
Utilization of inventory markup^(a)	(79,239		)	—			(20,030		)	(99,269		)	(3,029		)	—			(102,298		)
Restructuring and other, net^(c)	—			—			—			—			—			6,804			6,804
Acquisition and integration related costs^(b)	—			—			—			—			—			(126,487		)	(126,487		)
Interest and financing expenses	—			—			—			—			—			(100,986		)	(100,986		)
Income tax expense	—			—			—			—			—			(48,171		)	(48,171		)
Non-operating pension and OPEB items	—			—			—			—			—			5,900			5,900
Other^(d)	—			—			—			—			—			(4,441		)	(4,441		)
Net income (loss) attributable to Albemarle Corporation	$	242,572		$	119,513		$	70,747		$	432,832		$	9,644		$	(281,822	)	$	160,654
Nine months ended September 30, 2014
Adjusted EBITDA	$	232,668		$	189,259		$	—		$	421,927		$	63,482		$	(60,087	)	$	425,322
Depreciation and amortization^(e)	(37,742		)	(25,351		)	—			(63,093		)	(10,279		)	(1,807		)	(75,179		)
Restructuring and other, net^(c)	—			—			—			—			—			(20,625		)	(20,625		)
Acquisition and integration related costs^(b)	—			—			—			—			—			(15,104		)	(15,104		)
Interest and financing expenses	—			—			—			—			—			(26,255		)	(26,255		)
Income tax expense	—			—			—			—			—			(46,700		)	(46,700		)
Loss from discontinued operations (net of tax)	—			—			—			—			—			(68,473		)	(68,473		)
Non-operating pension and OPEB items	—			—			—			—			—			(14,141		)	(14,141		)
Other^(d)	—			—			—			—			—			(7,021		)	(7,021		)
Net income (loss) attributable to Albemarle Corporation	$	194,926		$	163,908		$	—		$	358,834		$	53,203		$	(260,213	)	$	151,824

(a)

In connection with the acquisition of Rockwood, the Company valued Rockwood’s existing inventory at fair value as of the Acquisition Closing Date, which resulted in a markup of the underlying net book value of the inventory totaling approximately $103 million. The inventory markup is being expensed over the estimated remaining selling period. For the three-month and nine-month periods ended September 30, 2015, $7.7 million and $75.4 million, respectively, was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $9.1 million and $26.9 million, respectively, related to the utilization of the inventory markup.


(b)	See Note 2, “Acquisitions.”


(c)	See Note 15, “Restructuring and Other.”


(d)	Financing-related fees expensed in connection with the acquisition of Rockwood.


(e)	Excludes discontinued operations.