Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Reportable Segments Summarized Financial Information

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2019			2018			2019			2018
	(In thousands)
Net sales:
Lithium	$	324,758		$	317,563		$	616,644		$	615,595
Bromine Specialties	255,433			220,514			504,485			446,153
Catalysts	266,301			284,966			517,949			545,683
All Other	38,560			30,748			78,038			67,913
Corporate	—			83			—			159
Total net sales	$	885,052		$	853,874		$	1,717,116		$	1,675,503
Adjusted EBITDA:
Lithium	$	141,779		$	141,617		$	257,395		$	272,631
Bromine Specialties	81,332			69,367			159,929			139,336
Catalysts	66,875			75,102			126,946			142,932
All Other	11,240			(101		)	18,483			3,761
Corporate	(39,326		)	(27,423		)	(74,986		)	(51,380		)
Total adjusted EBITDA	$	261,900		$	258,562		$	487,767		$	507,280

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

	Lithium			Bromine Specialties		Catalysts			Reportable Segments Total			All Other			Corporate			Consolidated Total
Three months ended June 30, 2019
Net income (loss) attributable to Albemarle Corporation	$	117,303		$	69,616	$	54,124		$	241,043		$	9,118		$	(95,963	)	$	154,198
Depreciation and amortization	24,365			11,716		12,751			48,832			2,122			1,994			52,948
Acquisition and integration related costs(a)	—			—		—			—			—			4,990			4,990
Interest and financing expenses	—			—		—			—			—			11,601			11,601
Income tax expense	—			—		—			—			—			30,411			30,411
Non-operating pension and OPEB items	—			—		—			—			—			(676		)	(676		)
Other(b)	111			—		—			111			—			8,317			8,428
Adjusted EBITDA	$	141,779		$	81,332	$	66,875		$	289,986		$	11,240		$	(39,326	)	$	261,900
Three months ended June 30, 2018
Net income (loss) attributable to Albemarle Corporation	$	117,292		$	59,673	$	280,887		$	457,852		$	(2,079	)	$	(153,312	)	$	302,461
Depreciation and amortization	24,325			9,694		12,920			46,939			1,978			1,557			50,474
Gain on sale of business(c)	—			—		(218,705		)	(218,705		)	—			—			(218,705		)
Acquisition and integration related costs(a)	—			—		—			—			—			6,510			6,510
Interest and financing expenses	—			—		—			—			—			13,308			13,308
Income tax expense	—			—		—			—			—			80,102			80,102
Non-operating pension and OPEB items	—			—		—			—			—			(2,204		)	(2,204		)
Legal accrual(d)	—			—		—			—			—			10,416			10,416
Albemarle Foundation contribution(e)	—			—		—			—			—			15,000			15,000
Other(f)	—			—		—			—			—			1,200			1,200
Adjusted EBITDA	$	141,617		$	69,367	$	75,102		$	286,086		$	(101	)	$	(27,423	)	$	258,562
Six months ended June 30, 2019
Net income (loss) attributable to Albemarle Corporation	$	210,472		$	137,096	$	101,983		$	449,551		$	14,324		$	(176,108	)	$	287,767
Depreciation and amortization	46,457			22,833		24,963			94,253			4,159			3,819			102,231
Acquisition and integration related costs(a)	—			—		—			—			—			10,274			10,274
Gain on sale of property(g)	—			—		—			—			—			(11,079		)	(11,079		)
Interest and financing expenses	—			—		—			—			—			24,187			24,187
Income tax expense	—			—		—			—			—			67,925			67,925
Non-operating pension and OPEB items	—			—		—			—			—			(1,259		)	(1,259		)
Other(b)	466			—		—			466			—			7,255			7,721
Adjusted EBITDA	$	257,395		$	159,929	$	126,946		$	544,270		$	18,483		$	(74,986	)	$	487,767
Six months ended June 30, 2018
Net income (loss) attributable to Albemarle Corporation	$	225,626		$	119,209	$	336,547		$	681,382		$	(319	)	$	(246,842	)	$	434,221
Depreciation and amortization	48,390			20,127		25,090			93,607			4,080			3,117			100,804
Gain on sale of business(c)	—			—		(218,705		)	(218,705		)	—			—			(218,705		)
Acquisition and integration related costs(a)	—			—		—			—			—			8,712			8,712
Interest and financing expenses	—			—		—			—			—			26,846			26,846
Income tax expense	—			—		—			—			—			100,463			100,463
Non-operating pension and OPEB items	—			—		—			—			—			(4,401		)	(4,401		)
Legal accrual(d)	—			—		—			—			—			28,044			28,044
Environmental accrual(h)	—			—		—			—			—			15,597			15,597
Albemarle Foundation contribution(e)	—			—		—			—			—			15,000			15,000
Other(f)	(1,385		)	—		—			(1,385		)	—			2,084			699
Adjusted EBITDA	$	272,631		$	139,336	$	142,932		$	554,899		$	3,761		$	(51,380	)	$	507,280

(a) Included acquisition and integration related costs relating to various significant projects. For the three-month and six-month periods ended June 30, 2019, $5.0 million and $10.3 million was recorded in Selling, general and administrative expenses. For the three-month

and six-month periods ended June 30, 2018, $1.0 million and $1.9 million was recorded in Cost of goods sold, respectively, and $5.5 million and $6.8 million was recorded in Selling, general and administrative expenses, respectively.

(b) Included amounts for the three months ended June 30, 2019 recorded in:

▪ Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements.

▪ Selling, general and administrative expenses - Expected severance payments to be made in 2019 as part of a business reorganization plan of $4.8 million, with the unpaid balance recorded in Accrued expenses as of June 30, 2019, and $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan.

▪ Other (expenses) income, net - $2.5 million of a net loss primarily resulting from the revision of indemnifications related to previously disposed businesses.

Included amounts for the six months ended June 30, 2019 recorded in:

▪ Cost of goods sold - $0.5 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements.

▪ Selling, general and administrative expenses - Expected severance payments to be made in 2019 as part of a business reorganization plan of $5.3 million, with the unpaid balance recorded in Accrued expenses as of June 30, 2019, and $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan.

▪ Other (expenses) income, net - $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses.

(c) Gain related to the sale of the Polyolefin Catalysts Divestiture, which closed in the second quarter of 2018.

(d) Included in Other (expenses) income, net for the three-month and six-month periods ended June 30, 2018 is a $10.4 million expense resulting from a settlement of a legal matter related to guarantees from a previously disposed business. Also included in Other (expenses) income, net, for the six months ended June 30, 2018 is a $17.6 million expense resulting from a jury rendered verdict against Albemarle related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures.

(e) Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the ordinary annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate.

(f) Included amounts for the three months ended June 30, 2018 recorded in:

▪ Other (expenses) income, net - $1.2 million related to the revision of previously recorded expenses of disposed businesses.

Included amounts for the six months ended June 30, 2018 recorded in:

▪ Cost of goods sold - $1.1 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture.

▪ Selling, general and administrative expenses - $1.4 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year.

▪ Other (expenses) income, net - $1.0 million related to the revision of previously recorded expenses of disposed businesses.

(g) Gain recorded in Other (expenses) income, net related to the sale of land in Pasadena, Texas not used as part of our operations.

(h)

Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other (expenses) income, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage.