Investments

12 Months Ended

Dec. 31, 2019

Investments:

Investments include our share of unconsolidated joint ventures, nonmarketable securities and marketable equity securities. The following table details our investment balances at December 31, 2019 and 2018 (in thousands):



	December 31,
	2019		2018
Joint ventures	$	534,430	$	486,032
Nonmarketable securities	11,746		9,177
Marketable equity securities	33,637		33,513
Total	$	579,813	$	528,722

Our ownership positions in significant unconsolidated investments are shown below:



		December 31,
		2019		2018		2017
*	Windfield Holdings Pty. Ltd. - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate	49	%	49	%	49	%
*	Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls	50	%	50	%	50	%
*	Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts	50	%	50	%	50	%
*	Eurecat S.A. - a joint venture with Axens Group for refinery catalysts regeneration services	50	%	50	%	50	%
*	Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities	50	%	50	%	50	%

Our investment in the significant unconsolidated joint ventures above amounted to $513.8 million and $466.1 million as of December 31, 2019 and 2018, respectively, and the amount included in Equity in net income of unconsolidated investments (net of tax) in the consolidated statements of income totaled $128.0 million, $88.8 million and $86.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. Undistributed earnings attributable to our significant unconsolidated investments represented approximately $216.9 million and $159.9 million of our consolidated retained earnings at December 31, 2019 and 2018, respectively. All of the unconsolidated joint ventures in which we have investments are private companies and accordingly do not have a quoted market price available.

The following summary lists the assets, liabilities and results of operations for our significant unconsolidated joint ventures presented herein (in thousands):



	December 31,
	2019		2018
Summary of Balance Sheet Information:
Current assets	$	473,426	$	476,460
Noncurrent assets	1,404,765		1,159,866
Total assets	$	1,878,191	$	1,636,326

Current liabilities	$	201,792	$	191,971
Noncurrent liabilities	583,839		422,769
Total liabilities	$	785,631	$	614,740



	Year Ended December 31,
	2019		2018		2017
Summary of Statements of Income Information:
Net sales	$	910,891	$	829,590	$	687,561
Gross profit	$	496,150	$	456,518	$	353,577
Income before income taxes	$	384,690	$	332,632	$	267,805
Net income	$	229,733	$	225,791	$	184,777

We have evaluated each of the unconsolidated investments pursuant to current accounting guidance and none qualify for consolidation. Dividends received from our significant unconsolidated investments were $71.0 million, $56.4 million and $38.1 million in 2019, 2018 and 2017, respectively.

At December 31, 2019 and 2018, the carrying amount of our investments in unconsolidated joint ventures differed from the amount of underlying equity in net assets by approximately $15.3 million and $0.4 million, respectively. These amounts represent the differences between the value of certain assets of the joint ventures and our related valuation on a U.S. GAAP basis.

The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), which we acquired in the Rockwood acquisition. With regards to the Company’s ownership in Windfield, the parties share risks and benefits

disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $397.2 million and $349.6 million at December 31, 2019 and December 31, 2018, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIE’s for which the Company is not the primary beneficiary was $7.6 million and $8.1 million at December 31, 2019 and December 31, 2018, respectively. Our unconsolidated VIEs are reported in Investments in the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.

As part of the original Windfield joint venture agreement, Tianqi Lithium Corporation (“Tianqi”) was granted an option to purchase from 20% to 30% of the equity interests in Rockwood Lithium GmbH, a wholly-owned German subsidiary of Albemarle, and its subsidiaries. In February 2017, Albemarle and Tianqi terminated the option agreement, and as a result, we will retain 100% of the ownership interest in Rockwood Lithium GmbH and its subsidiaries. Following the termination of the option agreement, the $13.1 million fair value of the option agreement originally recorded in Noncontrolling interests was reversed and recorded as an adjustment to Additional paid-in capital.

The Company holds a 50% equity interest in Jordan Bromine Company Limited (“JBC”), reported in the Bromine Specialties segment. The Company consolidates this venture as it is considered the primary beneficiary due to its operational and financial control.

On October 31, 2019, the Company completed the acquisition of 60% interest in MRL’s Wodgina Project and formed an unincorporated joint venture with MRL. The joint venture is unincorporated with each investor holding an undivided interest in each asset and proportionately liable for each liability; therefore our proportionate share of assets, liabilities, revenue and expenses are included in the appropriate classifications in the consolidated financial statements. See Note 2, “Acquisitions,” for additional information.

We maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of our Executive Deferred Compensation Plan (“EDCP”), subject to the claims of our creditors in the event of our insolvency. Assets of the Trust, in conjunction with our EDCP, are accounted for as trading securities in accordance with authoritative accounting guidance. The assets of the Trust consist primarily of mutual fund investments and are marked-to-market on a monthly basis through the consolidated statements of income. As of December 31, 2019 and 2018, these marketable securities amounted to $28.7 million and $26.3 million, respectively.