Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Summarized Financial Information by Reportable Segments

	Year Ended December 31,
	2017			2016			2015
	(In thousands)
Net sales:
Lithium and Advanced Materials	$	1,308,153		$	968,216		$	834,590
Bromine Specialties	855,143			792,425			775,729
Refining Solutions	778,304			732,137			729,261
All Other	128,914			180,988			471,434
Corporate	1,462			3,437			15,415
Total net sales	$	3,071,976		$	2,677,203		$	2,826,429
Adjusted EBITDA:
Lithium and Advanced Materials	$	518,530		$	363,360		$	312,867
Bromine Specialties	258,901			226,926			222,653
Refining Solutions	212,005			238,963			197,595
All Other	13,878			14,772			53,993
Corporate	(117,834		)	(85,804		)	(31,108		)
Total adjusted EBITDA	$	885,480		$	758,217		$	756,000

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

	Lithium and Advanced Materials			Bromine Specialties		Refining Solutions			Reportable Segments Total			All Other			Corporate			Consolidated Total
2017
Net income (loss) attributable to Albemarle Corporation	$	400,360		$	218,839	$	173,297		$	792,496		$	5,521		$	(743,167	)	$	54,850
Depreciation and amortization	102,389			40,062		39,958			182,409			8,357			6,162			196,928
Utilization of inventory markup(a)	23,095			—		—			23,095			—			—			23,095
Restructuring and other, net(b)	—			—		—			—			—			17,056			17,056
Gain on acquisition(c)	(6,221		)	—		—			(6,221		)	—			—			(6,221		)
Acquisition and integration related costs(d)	—			—		—			—			—			33,954			33,954
Interest and financing expenses(e)	—			—		—			—			—			115,350			115,350
Income tax expense	—			—		—			—			—			431,817			431,817
Non-operating pension and OPEB items	—			—		—			—			—			(16,125		)	(16,125		)
Multiemployer plan shortfall contributions(f)	—			—		—			—			—			7,887			7,887
Note receivable reserve(g)	—			—		—			—			—			28,730			28,730
Other(h)	(1,093		)	—		(1,250		)	(2,343		)	—			502			(1,841		)
Adjusted EBITDA	$	518,530		$	258,901	$	212,005		$	989,436		$	13,878		$	(117,834	)	$	885,480
2016
Net income (loss) attributable to Albemarle Corporation	$	261,394		$	187,364	$	202,874		$	651,632		$	131,301		$	(139,258	)	$	643,675
Depreciation and amortization	101,966			39,562		36,089			177,617			7,302			6,056			190,975
(Gain) loss on sales of businesses, net(i)	—			—		—			—			(123,831		)	1,533			(122,298		)
Acquisition and integration related costs(d)	—			—		—			—			—			57,384			57,384
Interest and financing expenses	—			—		—			—			—			65,181			65,181
Income tax expense	—			—		—			—			—			96,263			96,263
Income from discontinued operations (net of tax)	—			—		—			—			—			(202,131		)	(202,131		)
Non-operating pension and OPEB items	—			—		—			—			—			25,589			25,589
Other(j)	—			—		—			—			—			3,579			3,579
Adjusted EBITDA	$	363,360		$	226,926	$	238,963		$	829,249		$	14,772		$	(85,804	)	$	758,217
2015
Net income (loss) attributable to Albemarle Corporation	$	148,821		$	186,474	$	161,585		$	496,880		$	32,781		$	(194,755	)	$	334,906
Depreciation and amortization	84,069			36,179		34,039			154,287			18,183			8,703			181,173
Utilization of inventory markup(k)	79,977			—		—			79,977			3,029			—			83,006
Restructuring and other, net(l)	—			—		—			—			—			(6,804		)	(6,804		)
Acquisition and integration related costs(d)	—			—		—			—			—			132,299			132,299
Interest and financing expenses	—			—		—			—			—			81,650			81,650
Income tax expense	—			—		—			—			—			11,134			11,134
Income from discontinued operations (net of tax)	—			—		—			—			—			(32,476		)	(32,476		)
Non-operating pension and OPEB items	—			—		—			—			—			(35,300		)	(35,300		)
Other(m)	—			—		1,971			1,971			—			4,441			6,412
Adjusted EBITDA	$	312,867		$	222,653	$	197,595		$	733,115		$	53,993		$	(31,108	)	$	756,000

(a) In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.1 million. The utilization of this inventory markup was included in Costs of goods sold during the year ended December 31, 2017, the estimated remaining selling period.

(b) During 2017, we initiated action to reduce costs in each of our reportable segments at several locations, primarily at our Lithium sites in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $8.4 million in Selling, general and administrative expenses, and $5.7 million in Research and development expenses for the year ended December 31, 2017, primarily related to expected severance payments. The unpaid balance is recorded in Accrued expenses at December 31, 2017, with the expectation that the majority of these plans will be completed by the end of 2018.

(c) Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information.

(d) See Note 2, “Acquisitions,” for additional information.

(e) Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million. See Note 14, “Long-Term Debt,” for additional information.

(f) Shortfall contributions for our multiemployer plan financial improvement plan. See Note 15, “Pension Plans and Other Postretirement Benefits,” for additional information.

(g) Reserve recorded in Other (expenses) income, net against a note receivable on one of our European entities no longer deemed probable of collection.

(h) Included amounts for the year ended December 31, 2017 recorded in:

▪ Cost of goods sold - $1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment.

▪ Selling, general and administrative expenses - $1.0 million related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition.

▪ Other (expenses) income, net - $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle, losses of $4.1 million related to final settlements of previously disposed businesses, the revision of tax indemnification expenses of $3.7 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business and $1.0 million related to the settlement of a legal claim. This is partially offset by gains of $10.6 million and $1.1 million related to the reversal of liabilities recorded as part of purchase accounting from a previous acquisition and the previous disposal of a property, respectively.

(i) See Note 3, “Divestitures,” for additional information.

(j) Included amounts for the year ended December 31, 2016 recorded in:

▪ Research and development expenses - $1.4 million related to the write-off of fixed assets in China.

▪ Selling, general and administrative expenses - $0.9 million related to the net loss on the sales of properties.

▪ Other (expenses) income, net -$2.4 million related to environmental charges related to a site formerly owned by Albemarle, partially offset by a gain related to a previously disposed of site in China of $1.1 million.

(k) 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 $103.4 million. The inventory markup was expensed over the estimated remaining selling period. For the year ended December 31, 2015, $55.9 million was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $27.1 million related to the utilization of the inventory markup.

(l) Included in Restructuring and other, net, for the year ended December 31, 2015 is a gain of $6.8 million recognized upon the sale of land in Avonmouth, U.K., which was utilized by the phosphorus flame retardants business we exited in 2012. In 2012, charges in connection with our exit of the phosphorus flame retardants business were recorded in Restructuring and other, net, on our consolidated statements of income.

(m) Refining Solutions included an impairment charge of approximately $2.0 million related to our unconsolidated investment in Fábrica Carioca de Catalisadores SA. Corporate included approximately $4.4 million of financing-related fees expensed in connection with the acquisition of Rockwood.

	As of December 31,
	2017		2016		2015
			(In thousands)
Identifiable assets:
Lithium and Advanced Materials	$	4,057,242	$	3,809,883	$	3,658,669
Bromine Specialties	745,007		724,218		699,929
Refining Solutions	1,016,519		913,923		937,445
Discontinued Operations	—		—		3,208,902
All Other	126,486		130,595		517,695
Corporate(a)	1,805,518		2,582,588		575,314
Total identifiable assets	$	7,750,772	$	8,161,207	$	9,597,954
Goodwill:
Lithium and Advanced Materials	$	1,396,140	$	1,348,261	$	1,267,505
Bromine Specialties	20,319		20,319		20,319
Refining Solutions	187,310		164,866		172,728
All Other	6,586		6,586		—
Total goodwill	$	1,610,355	$	1,540,032	$	1,460,552

(a) As of December 31, 2016, Corporate included the net proceeds received from the sale of the Chemetall Surface Treatment business completed on December 14, 2016, less the repayment of the term loans and commercial paper using those proceeds. See Note 3, “Divestitures,” and Note 14, “Long-Term Debt” for additional details about these transactions.

	Year Ended December 31,
	2017		2016		2015
			(In thousands)
Depreciation and amortization:
Lithium and Advanced Materials	$	102,389	$	101,966	$	84,069
Bromine Specialties	40,062		39,562		36,179
Refining Solutions	39,958		36,089		34,039
Discontinued Operations	—		35,194		78,903
All Other	8,357		7,302		18,183
Corporate	6,162		6,056		8,703
Total depreciation and amortization	$	196,928	$	226,169	$	260,076
Capital expenditures:
Lithium and Advanced Materials	$	207,410	$	91,967	$	104,344
Bromine Specialties	46,427		46,414		54,994
Refining Solutions	31,716		27,546		28,836
Discontinued Operations	—		19,281		23,738
All Other	3,657		9,251		13,054
Corporate	28,493		2,195		2,683
Total capital expenditures	$	317,703	$	196,654	$	227,649

Net Sales by Geographic Area

	Year Ended December 31,
	2017		2016		2015
			(In thousands)
Net Sales:
United States	$	840,589	$	797,267	$	911,519
Foreign(a)	2,231,387		1,879,936		1,914,910
Total	$	3,071,976	$	2,677,203	$	2,826,429

(a) In 2017 and 2016, net sales to China represented 15% and 13%, respectively, of total net sales. No net sales in any other foreign country exceed 10% of total net sales. Also, net sales are attributed to countries based upon shipments to final destination.

Long-Lived Assets by Geographic Area

	As of December 31,
	2017		2016		2015
			(In thousands)
Long-Lived Assets(a):
United States	$	833,002	$	850,689	$	800,214
Chile	1,069,859		922,878		916,965
Netherlands	171,980		145,917		155,128
Jordan	242,626		227,222		230,460
Australia	364,624		288,553		280,222
Brazil	47,255		46,380		39,299
Germany	115,305		117,027		137,890
China	50,532		31,564		4,773
France	40,852		39,470		39,344
Korea(b)	495		65,963		72,685
Other foreign countries	60,131		57,936		58,899
Total	$	2,996,661	$	2,793,599	$	2,735,879

(a) Long-lived assets are comprised of the Company’s Property, plant and equipment and Investments.

(b) The reduction as of December 31, 2017, relates to the assets of the polyolefin catalysts and components portion of the PCS business that are included in Assets held for sale in the consolidated balance sheet.

Net Sales to External Customers by Product Category

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

	Year Ended December 31,
	2017		2016		2015
			(In thousands)
Lithium and Advanced Materials:
Lithium	$	1,018,885	$	668,852	$	508,844
Performance Catalyst Solutions	289,268		299,364		325,746
Total Lithium and Advanced Materials	$	1,308,153	$	968,216	$	834,590
Bromine Specialties	$	855,143	$	792,425	$	775,729
Refining Solutions	$	778,304	$	732,137	$	729,261