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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Reportable Segments Segment Information:
Our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. 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. This business structure aligns with the markets and customers we serve through each of the segments. This structure also facilitates the continued standardization of business processes across the organization, and 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.
Summarized financial information concerning our reportable segments is shown in the following tables. The “All Other” category includes only the fine chemistry services business that does not fit into any of our core businesses.
The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating 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 the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes inter-segment transfers of raw materials at cost and allocations for certain corporate costs.
The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP.
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
(In thousands)(In thousands)
Net sales:
Lithium$283,722  $324,758  $520,540  $616,644  
Bromine Specialties232,779  255,433  464,371  504,485  
Catalysts197,053  266,301  404,260  517,949  
All Other50,495  38,560  113,723  78,038  
Total net sales$764,049  $885,052  $1,502,894  $1,717,116  
Adjusted EBITDA:
Lithium$94,536  $141,779  $173,173  $257,395  
Bromine Specialties73,041  81,332  156,303  159,929  
Catalysts22,777  66,875  70,247  126,946  
All Other18,598  11,240  41,422  18,483  
Corporate(23,759) (39,326) (59,587) (74,986) 
Total adjusted EBITDA$185,193  $261,900  $381,558  $487,767  
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):
LithiumBromine SpecialtiesCatalystsReportable Segments TotalAll OtherCorporateConsolidated Total
Three months ended June 30, 2020
Net income (loss) attributable to Albemarle Corporation$66,038  $60,692  $10,702  $137,432  $16,425  $(68,233) $85,624  
Depreciation and amortization28,498  12,349  12,075  52,922  2,173  2,746  57,841  
Restructuring and other(a)
—  —  —  —  —  6,733  6,733  
Acquisition and integration related costs(b)
—  —  —  —  —  5,470  5,470  
Interest and financing expenses—  —  —  —  —  17,852  17,852  
Income tax expense—  —  —  —  —  15,431  15,431  
Non-operating pension and OPEB items—  —  —  —  —  (2,895) (2,895) 
Other(c)
—  —  —  —  —  (863) (863) 
Adjusted EBITDA$94,536  $73,041  $22,777  $190,354  $18,598  $(23,759) $185,193  
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 amortization24,365  11,716  12,751  48,832  2,122  1,994  52,948  
Restructuring and other(a)
—  —  —  —  —  4,760  4,760  
Acquisition and integration related costs(b)
—  —  —  —  —  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(d)
111  —  —  111  —  3,557  3,668  
Adjusted EBITDA$141,779  $81,332  $66,875  $289,986  $11,240  $(39,326) $261,900  
Six months ended June 30, 2020
Net income (loss) attributable to Albemarle Corporation$119,278  $132,357  $45,594  $297,229  $37,271  $(141,672) $192,828  
Depreciation and amortization53,895  23,946  24,653  102,494  4,151  4,890  111,535  
Restructuring and other(a)
—  —  —  —  —  8,580  8,580  
Acquisition and integration related costs(b)
—  —  —  —  —  8,426  8,426  
Interest and financing expenses—  —  —  —  —  34,737  34,737  
Income tax expense—  —  —  —  —  33,873  33,873  
Non-operating pension and OPEB items—  —  —  —  —  (5,803) (5,803) 
Other(c)
—  —  —  —  —  (2,618) (2,618) 
Adjusted EBITDA$173,173  $156,303  $70,247  $399,723  $41,422  $(59,587) $381,558  
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 amortization46,457  22,833  24,963  94,253  4,159  3,819  102,231  
Restructuring and other(a)
—  —  —  —  —  5,290  5,290  
Acquisition and integration related costs(b)
—  —  —  —  —  10,274  10,274  
Gain on sale of property(e)
—  —  —  —  —  (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(d)
466  —  —  466  —  1,965  2,431  
Adjusted EBITDA$257,395  $159,929  $126,946  $544,270  $18,483  $(74,986) $487,767  
(a)Severance expenses as part of a business reorganization plan, primarily within our Lithium business in Germany, as well in our Bromine Specialties business in 2020. During the three months ended June 30, 2020, we recorded expenses of $6.7 million in Selling, general and
administrative expenses. During the six months ended June 30, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $8.2 million in Selling, general and administrative expenses and a $0.3 million gain in Net income attributable to noncontrolling interests for the portion of severance expense allocated to our Jordanian joint venture partner. The balance of unpaid severance is recorded in Accrued expenses and is expected to primarily be paid through the first quarter of 2021. During the three and six months ended June 30, 2019, severance expenses of $4.8 million and $5.3 million, respectively, were recorded in Selling, general and administrative expenses as part of a business reorganization plan primarily in Catalysts, Lithium and Corporate.
(b)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses.
(c)Included amounts for the three months ended June 30, 2020 recorded in:
▪Other (expenses) income, net - $0.9 million net gain primarily relating to the sale of idle properties in Germany.
Included amounts for the six months ended June 30, 2020 recorded in:
▪Other (expenses) income, net - $2.7 million gain resulting from the settlement of a legal matter related to a business sold and $0.8 million net gain primarily relating to the sale of idle properties in Germany, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses.
(d) 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 were outside normal compensation arrangements.
▪Selling, general and administrative expenses - $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 adjustment 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 were outside normal compensation arrangements.
▪Selling, general and administrative expenses - $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 adjustment of indemnifications and other liabilities related to previously disposed businesses.
(e) Gain recorded in Other (expenses) income, net related to the sale of land in Pasadena, Texas not used as part of our operations.