QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Page Number(s) | ||||||||
EXHIBITS |
Item 1. | Financial Statements (Unaudited). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Gain on sale of business | ( | ( | |||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest and financing expenses | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated investments | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Income before equity in net income of unconsolidated investments | |||||||||||||||||||||||
Equity in net income of unconsolidated investments (net of tax) | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding – basic | |||||||||||||||||||||||
Weighted-average common shares outstanding – diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation and other | ( | ( | |||||||||||||||||||||
Net investment hedge | ( | ( | |||||||||||||||||||||
Cash flow hedge | ( | ( | |||||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income attributable to Albemarle Corporation | $ | $ | $ | $ |
June 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance for doubtful accounts (2021 – $ | |||||||||||
Other accounts receivable | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, at cost | |||||||||||
Less accumulated depreciation and amortization | |||||||||||
Net property, plant and equipment | |||||||||||
Investments | |||||||||||
Other assets | |||||||||||
Goodwill | |||||||||||
Other intangibles, net of amortization | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities And Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Current portion of long-term debt | |||||||||||
Dividends payable | |||||||||||
Income taxes payable | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Postretirement benefits | |||||||||||
Pension benefits | |||||||||||
Other noncurrent liabilities | |||||||||||
Deferred income taxes | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Equity: | |||||||||||
Albemarle Corporation shareholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Albemarle Corporation shareholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
(In Thousands, Except Share Data) | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Albemarle Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amounts | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Fees related to public issuance of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | |||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Fees related to public issuance of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | |||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ( | $ | $ | $ | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash and cash equivalents at beginning of year | $ | $ | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | |||||||||||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on sale of business | ( | ||||||||||
Stock-based compensation and other | |||||||||||
Equity in net income of unconsolidated investments (net of tax) | ( | ( | |||||||||
Dividends received from unconsolidated investments and nonmarketable securities | |||||||||||
Pension and postretirement benefit | ( | ( | |||||||||
Pension and postretirement contributions | ( | ( | |||||||||
Unrealized gain on investments in marketable securities | ( | ( | |||||||||
Loss on early extinguishment of debt | |||||||||||
Deferred income taxes | |||||||||||
Working capital changes | ( | ||||||||||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Cash proceeds from divestitures, net | |||||||||||
Sales of marketable securities, net | |||||||||||
Investments in equity and other corporate investments | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | |||||||||||
Repayments of long-term debt and credit agreements | ( | ||||||||||
Proceeds from borrowings of credit agreements | |||||||||||
Other debt repayments, net | ( | ||||||||||
Fees related to early extinguishment of debt | ( | ||||||||||
Dividends paid to shareholders | ( | ( | |||||||||
Dividends paid to noncontrolling interests | ( | ( | |||||||||
Proceeds from exercise of stock options | |||||||||||
Withholding taxes paid on stock-based compensation award distributions | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net effect of foreign exchange on cash and cash equivalents | ( | ( | |||||||||
Increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Lithium | Bromine Specialties | Catalysts | All Other | Total | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Divestitures(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ |
Customer Lists and Relationships | Trade Names and Trademarks(a) | Patents and Technology | Other | Total | |||||||||||||||||||||||||
Gross Asset Value | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Divestitures(b) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments and other | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||||||||
Divestitures(b) | |||||||||||||||||||||||||||||
Foreign currency translation adjustments and other | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net Book Value at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net Book Value at June 30, 2021 | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Basic earnings per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares for basic earnings per share | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares for basic earnings per share | |||||||||||||||||||||||
Incremental shares under stock compensation plans | |||||||||||||||||||||||
Weighted-average common shares for diluted earnings per share | |||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
June 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Finished goods | $ | $ | |||||||||
Raw materials and work in process(a) | |||||||||||
Stores, supplies and other | |||||||||||
Total | $ | $ |
June 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
$ | $ | ||||||||||
Floating rate notes | |||||||||||
Credit facilities | |||||||||||
Commercial paper notes | |||||||||||
Variable-rate foreign bank loans | |||||||||||
Finance lease obligations | |||||||||||
Unamortized discount and debt issuance costs | ( | ( | |||||||||
Total long-term debt | |||||||||||
Less amounts due within one year | |||||||||||
Long-term debt, less current portion | $ | $ |
Beginning balance at December 31, 2020 | $ | ||||
Expenditures | ( | ||||
Accretion of discount | |||||
Additions and changes in estimates | |||||
Foreign currency translation adjustments and other | ( | ||||
Ending balance at June 30, 2021 | |||||
Less amounts reported in Accrued expenses | |||||
Amounts reported in Other noncurrent liabilities | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right of use assets | |||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | |||||||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | |||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
Operating leases: | |||||||||||
Other assets | $ | $ | |||||||||
Accrued expenses | |||||||||||
Other noncurrent liabilities | |||||||||||
Total operating lease liabilities | |||||||||||
Finance leases: | |||||||||||
Net property, plant and equipment | |||||||||||
Current portion of long-term debt(a) | |||||||||||
Long-term debt | |||||||||||
Total finance lease liabilities | |||||||||||
Weighted average remaining lease term (in years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate (%): | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Operating Leases | Finance Leases | ||||||||||
Remainder of 2021 | $ | $ | |||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less imputed interest | |||||||||||
Total | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Lithium | $ | $ | $ | $ | |||||||||||||||||||
Bromine Specialties | |||||||||||||||||||||||
Catalysts | |||||||||||||||||||||||
All Other | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Lithium | $ | $ | $ | $ | |||||||||||||||||||
Bromine Specialties | |||||||||||||||||||||||
Catalysts | |||||||||||||||||||||||
All Other | |||||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Total adjusted EBITDA | $ | $ | $ | $ |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of business(b) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses(d) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Albemarle Foundation contribution(e) | |||||||||||||||||||||||||||||||||||||||||
Other(f) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(g) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of business(b) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses(d) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Albemarle Foundation contribution(e) | |||||||||||||||||||||||||||||||||||||||||
Other(f) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(g) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Pension Benefits Cost (Credit): | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service benefit | |||||||||||||||||||||||
Total net pension benefits credit | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Postretirement Benefits Cost: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Total net postretirement benefits cost | $ | $ | $ | $ | |||||||||||||||||||
Total net pension and postretirement benefits credit | $ | ( | $ | ( | $ | ( | $ | ( |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Recorded Amount | Fair Value | Recorded Amount | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||
Designated as hedging instruments(a) | $ | $ | $ | $ | |||||||||||||||||||
Not Designated as hedging instruments(b) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||||||
Income (loss) recognized in Other comprehensive income (loss) | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||||||
Income (loss) recognized in Other income (expense), net(a) | $ | $ | ( | $ | $ | ( |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | ||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | ||||
Level 3 | Unobservable inputs for the asset or liability |
June 30, 2021 | Quoted Prices in Active Markets for Identical Items (Level 1) | Quoted Prices in Active Markets for Similar Items (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale debt securities(a) | $ | $ | $ | $ | |||||||||||||||||||
Investments under executive deferred compensation plan(b) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities measured at net asset value(c)(d) | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Foreign currency forward contracts(e) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Obligations under executive deferred compensation plan(b) | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency forward contracts(e) | $ | $ | $ | $ |
December 31, 2020 | Quoted Prices in Active Markets for Identical Items (Level 1) | Quoted Prices in Active Markets for Similar Items (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments under executive deferred compensation plan(b) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities measured at net asset value(c)(d) | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Foreign currency forward contracts(e) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Obligations under executive deferred compensation plan(b) | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency forward contracts(e) | $ | $ | $ | $ |
Available for Sale Debt Securities | |||||
Beginning balance at December 31, 2020 | $ | ||||
Additions | |||||
Ending balance at June 30, 2021 | $ |
Foreign Currency Translation and Other | Net Investment Hedge(a) | Cash Flow Hedge(b) | Interest Rate Swap(c) | Total | |||||||||||||||||||||||||
Three months ended June 30, 2021 | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Other comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||
Three months ended June 30, 2020 | |||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||||||||
Other comprehensive loss attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified within accumulated other comprehensive loss | ( | ||||||||||||||||||||||||||||
Other comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||
Six months ended June 30, 2020 | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ( | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ( | |||||||||||||||||||||||||
Other comprehensive loss attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation and Other | Net Investment Hedge | Cash Flow Hedge | Interest Rate Swap | ||||||||||||||||||||
Three months ended June 30, 2021 | |||||||||||||||||||||||
Other comprehensive income, before tax | $ | $ | $ | $ | |||||||||||||||||||
Income tax expense | ( | ( | |||||||||||||||||||||
Other comprehensive income, net of tax | $ | $ | $ | $ | |||||||||||||||||||
Three months ended June 30, 2020 | |||||||||||||||||||||||
Other comprehensive income (loss), before tax | $ | $ | ( | $ | $ | ||||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | $ | ( | $ | $ | ||||||||||||||||||
Six months ended June 30, 2021 | |||||||||||||||||||||||
Other comprehensive (loss) income, before tax | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Income tax (expense) | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Six months ended June 30, 2020 | |||||||||||||||||||||||
Other comprehensive (loss) income, before tax | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Sales to unconsolidated affiliates | $ | $ | $ | $ | |||||||||||||||||||
Purchases from unconsolidated affiliates(a) | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||
Receivables from unconsolidated affiliates | $ | $ | |||||||||
Payables to unconsolidated affiliates | $ | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Supplemental non-cash disclosure related to investing activities: | |||||||||||
Capital expenditures included in Accounts payable | $ | $ | |||||||||
Non-cash proceeds from divestitures(a) | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 773,896 | $ | 764,049 | $ | 9,847 | 1 | % | |||||||||||||||
▪$25.0 million decrease in net sales resulting from the sale of the FCS business on June 1, 2021 ▪$21.6 million of higher sales volume in Lithium and Bromine Specialties, partially offset by Catalysts ▪Pricing was essentially flat, primarily driven by lower Lithium pricing, offset by Bromine Specialties ▪$13.1 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Gross profit | $ | 248,417 | $ | 233,359 | $ | 15,058 | 6 | % | |||||||||||||||
Gross profit margin | 32.1 | % | 30.5 | % | |||||||||||||||||||
▪Higher sales volume in Lithium and Bromine Specialties, partially offset by unfavorable pricing in Lithium ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Decrease in net sales resulting from the disposal of the FCS business on June 1, 2021 ▪The second quarter of 2020 included $9.8 million of additional expense in Cost of goods sold related to the correction of errors regarding inventory values and overstated freight costs primarily from the first quarter of 2020 ▪Increased freight costs in Bromine Specialties and Catalysts ▪Favorable currency exchange impacts resulting from the weaker U.S. Dollar against various currencies |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Selling, general and administrative expenses | $ | 121,516 | $ | 106,949 | $ | 14,567 | 14 | % | |||||||||||||||
Percentage of Net sales | 15.7 | % | 14.0 | % | |||||||||||||||||||
▪$20.0 million charitable contribution, using a portion of the proceeds received from the FCS divestiture, to the Albemarle Foundation, in addition to the normal annual contributions in 2021 ▪$4.0 million loss resulting from the sale of property, plant and equipment in 2021 ▪Increase in Corporate costs primarily related to higher incentive compensation ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs ▪$9.5 million decrease in restructuring and other expenses and acquisition and integration related costs for various significant projects |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Research and development expenses | $ | 13,976 | $ | 14,210 | $ | (234) | (2) | % | |||||||||||||||
Percentage of Net sales | 1.8 | % | 1.9 | % | |||||||||||||||||||
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Gain on sale of business | $ | (429,408) | $ | — | $ | (429,408) | |||||||||||||||||
▪Gain resulting from sale of FCS business on June 1, 2021 |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Interest and financing expenses | $ | (7,152) | $ | (17,852) | $ | 10,700 | (60) | % | |||||||||||||||
▪Decreased debt balance as certain debt instruments were repaid in the first quarter of 2021 ▪Higher capitalized interest from continued capital expenditures in 2021 |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Other income, net | $ | 14 | $ | (6,273) | $ | 6,287 | (100) | % | |||||||||||||||
•$6.9 million decrease in foreign exchange losses •$2.6 million increase in non-operating pension and OPEB benefits |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Income tax expense | $ | 106,985 | $ | 15,431 | $ | 91,554 | 593 | % | |||||||||||||||
Effective income tax rate | 20.0 | % | 17.5 | % | |||||||||||||||||||
•$97.8 million one-time tax expense recorded for the gain on the sale of the FCS business in 2021 •Change in geographic mix of earnings, mainly attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Equity in net income of unconsolidated investments | $ | 17,998 | $ | 31,114 | $ | (13,116) | (42) | % | |||||||||||||||
▪Primarily lower earnings from our Lithium segment joint venture, Windfield Holdings Pty Ltd (“Talison”), primarily driven by lower pricing and unfavorable foreign exchange impacts, partially offset by higher volumes |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net income attributable to noncontrolling interests | $ | (21,608) | $ | (18,134) | $ | (3,474) | 19 | % | |||||||||||||||
▪Increase in consolidated income related to our JBC joint venture from higher sales volume |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 424,600 | $ | 85,624 | $ | 338,976 | 396 | % | |||||||||||||||
Percentage of Net sales | 54.9 | % | 11.2 | % | |||||||||||||||||||
Basic earnings per share | $ | 3.63 | $ | 0.81 | $ | 2.82 | 348 | % | |||||||||||||||
Diluted earnings per share | $ | 3.62 | $ | 0.80 | $ | 2.82 | 353 | % | |||||||||||||||
▪Gain on sale of FCS business of $331.6 million, net of tax ▪Increased sales volume from Lithium and Bromine Specialties, partially offset by unfavorable pricing in Lithium ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Decreased interest and financing expenses due to lower debt balances ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪Loss of month of sales from FCS business following the disposition on June 1, 2021 ▪Increased SG&A expenses, primarily related to additional charitable contribution using proceeds from the sale of the FCS business ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Earnings per share also impacted by the underwritten public offering of our common stock in February 2021, increasing share count by 9.8 million shares |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | 22,037 | $ | 95,392 | $ | (73,355) | (77) | % | |||||||||||||||
▪Foreign currency translation and other | $ | 20,564 | $ | 62,855 | $ | (42,291) | (67) | % | |||||||||||||||
▪2021 included favorable movements in the Brazilian Real of approximately $11 million, the Chinese Renminbi of $5 million and a net favorable variance in various other currencies of $5 million ▪2020 included favorable movements in the Euro of approximately $60 million and a net unfavorable variance in various other currencies totaling approximately $7 million, partially offset by unfavorable movements in the Brazilian Real of approximately $4 million | |||||||||||||||||||||||
▪Cash flow hedge | $ | 823 | $ | 37,645 | $ | (36,822) | |||||||||||||||||
▪Net investment hedge | $ | — | $ | (5,756) | $ | 5,756 | (100) | % |
Three Months Ended June 30, | Percentage Change | ||||||||||||||||||||||||||||
2021 | % | 2020 | % | 2021 vs 2020 | |||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Lithium | $ | 320,334 | 41.4 | % | $ | 283,722 | 37.1 | % | 13 | % | |||||||||||||||||||
Bromine Specialties | 279,748 | 36.1 | % | 232,779 | 30.5 | % | 20 | % | |||||||||||||||||||||
Catalysts | 148,344 | 19.2 | % | 197,053 | 25.8 | % | (25) | % | |||||||||||||||||||||
All Other | 25,470 | 3.3 | % | 50,495 | 6.6 | % | (50) | % | |||||||||||||||||||||
Total net sales | $ | 773,896 | 100.0 | % | $ | 764,049 | 100.0 | % | 1 | % | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||
Lithium | $ | 109,441 | 56.2 | % | $ | 94,536 | 51.0 | % | 16 | % | |||||||||||||||||||
Bromine Specialties | 92,646 | 47.6 | % | 73,041 | 39.4 | % | 27 | % | |||||||||||||||||||||
Catalysts | 21,164 | 10.9 | % | 22,777 | 12.3 | % | (7) | % | |||||||||||||||||||||
All Other | 8,379 | 4.3 | % | 18,598 | 10.1 | % | (55) | % | |||||||||||||||||||||
Corporate | (37,002) | (19.0) | % | (23,759) | (12.8) | % | (56) | % | |||||||||||||||||||||
Total adjusted EBITDA | $ | 194,628 | 100.0 | % | $ | 185,193 | 100.0 | % | 5 | % |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 74,593 | $ | 80,148 | $ | 8,446 | $ | 163,187 | $ | 7,972 | $ | 253,441 | $ | 424,600 | |||||||||||||||||||||||||||
Depreciation and amortization | 33,497 | 12,498 | 12,718 | 58,713 | 407 | 2,303 | 61,423 | ||||||||||||||||||||||||||||||||||
Restructuring and other(a) | — | — | — | — | — | 766 | 766 | ||||||||||||||||||||||||||||||||||
Gain on sale of business(b) | — | — | — | — | — | (429,408) | (429,408) | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | — | — | — | — | — | 1,915 | 1,915 | ||||||||||||||||||||||||||||||||||
Interest and financing expenses(d) | — | — | — | — | — | 7,152 | 7,152 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 106,985 | 106,985 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (5,471) | (5,471) | ||||||||||||||||||||||||||||||||||
Albemarle Foundation contribution(e) | — | — | — | — | — | 20,000 | 20,000 | ||||||||||||||||||||||||||||||||||
Other(f) | 1,351 | — | — | 1,351 | — | 5,315 | 6,666 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 109,441 | $ | 92,646 | $ | 21,164 | $ | 223,251 | $ | 8,379 | $ | (37,002) | $ | 194,628 | |||||||||||||||||||||||||||
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 amortization | 28,498 | 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(c) | — | — | — | — | — | 5,470 | 5,470 | ||||||||||||||||||||||||||||||||||
Gain on sale of property | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
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(g) | — | — | — | — | — | (863) | (863) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 94,536 | $ | 73,041 | $ | 22,777 | $ | 190,354 | $ | 18,598 | $ | (23,759) | $ | 185,193 |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 320,334 | $ | 283,722 | $ | 36,612 | 13 | % | |||||||||||||||
▪$47.1 million of higher sales volume, driven by some customers accelerating orders under long-term commitments in hydroxide ▪$18.1 million of unfavorable pricing impacts, primarily in battery- and tech-grade carbonate and hydroxide due to lower contract pricing ▪$7.6 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 109,441 | $ | 94,536 | $ | 14,905 | 16 | % | |||||||||||||||
▪Higher sales volume, partially offset by unfavorable pricing impacts ▪Higher spodumene volumes at the Talison joint venture ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪$4.5 million of unfavorable currency translation resulting from a stronger Chilean Peso |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 279,748 | $ | 232,779 | $ | 46,969 | 20 | % | |||||||||||||||
▪$26.0 million of higher sales volume related to increased demand across all products ▪$17.2 million of favorable pricing impacts, primarily in the flame retardants division ▪$3.7 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 92,646 | $ | 73,041 | $ | 19,605 | 27 | % | |||||||||||||||
▪Higher sales volume and favorable pricing impacts as a result of a favorable first quarter 2021 customer mix ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪Increased freight costs ▪$3.3 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 148,344 | $ | 197,053 | $ | (48,709) | (25) | % | |||||||||||||||
▪$51.5 million of lower sales volume, primarily from clean fuel technologies due to timing of shipments ▪$0.9 million of favorable pricing impacts, primarily in PCS, partially offset by FCC ▪$1.8 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 21,164 | $ | 22,777 | $ | (1,613) | (7) | % | |||||||||||||||
▪Lower sales volume, primarily from clean fuel technologies due to timing of shipments ▪Increased freight costs ▪The second quarter of 2020 included $12.0 million of additional expense related to the correction of errors primarily regarding inventory values and overstated freight costs primarily from the first quarter of 2020 ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs ▪Favorable PCS volume and price ▪$1.1 million of unfavorable currency translation resulting from the stronger U.S. Dollar against various currencies |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 25,470 | $ | 50,495 | $ | (25,025) | (50) | % | |||||||||||||||
▪Decreased volume resulting from the sale of the FCS business in the second quarter of 2021 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 8,379 | $ | 18,598 | $ | (10,219) | (55) | % | |||||||||||||||
▪Decreased volume resulting from the sale of the FCS business in the second quarter of 2021 |
In thousands | Q2 2021 | Q2 2020 | $ Change | % Change | |||||||||||||||||||
Adjusted EBITDA | $ | (37,002) | $ | (23,759) | $ | (13,243) | (56) | % | |||||||||||||||
▪$6.1 million of unfavorable currency exchange impacts, including a $13.0 million decrease in foreign exchange impacts from our Talison joint venture ▪Increase in incentive compensation costs |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 1,603,187 | $ | 1,502,894 | $ | 100,293 | 7 | % | |||||||||||||||
▪$38.5 million decrease in net sales from the FCS business, which was sold on June 1, 2021 ▪$135.9 million of higher sales volume from reportable segments, primarily in Lithium and Bromine Specialties, partially offset by Catalysts ▪$27.1 million of unfavorable pricing from reportable segments, primarily driven by Lithium, partially offset by Bromine Specialties ▪$30.1 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Gross profit | $ | 512,104 | $ | 475,377 | $ | 36,727 | 8 | % | |||||||||||||||
Gross profit margin | 31.9 | % | 31.6 | % | |||||||||||||||||||
▪Higher sales volume in Lithium and Bromine Specialties, partially offset by unfavorable pricing in Lithium ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Decrease in net sales resulting from the disposal of the FCS business on June 1, 2021 ▪Increased production and utility costs of approximately $23 million in Bromine Specialties and Catalysts resulting from the U.S. Gulf Coast winter storm ▪Increased freight costs in Bromine Specialties and Catalysts ▪Favorable currency exchange impacts resulting from the weaker U.S. Dollar against various currencies |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Selling, general and administrative expenses | $ | 214,703 | $ | 208,826 | $ | 5,877 | 3 | % | |||||||||||||||
Percentage of Net sales | 13.4 | % | 13.9 | % | |||||||||||||||||||
▪$20.0 million charitable contribution, using a portion of the proceeds received from the FCS divestiture, to the Albemarle Foundation, in addition to the normal annual contributions in 2021 ▪$6.0 million of expenses in 2021 primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements ▪$4.0 million loss resulting from the sale of property, plant and equipment ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs ▪$11.0 million decrease in restructuring and other expenses, and acquisition and integration related costs for various significant projects |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Research and development expenses | $ | 28,612 | $ | 30,307 | $ | (1,695) | (6) | % | |||||||||||||||
Percentage of Net sales | 1.8 | % | 2.0 | % | |||||||||||||||||||
▪Decreased research and development spend in each of the reportable segments |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Gain on sale of business | $ | (429,408) | $ | — | $ | (429,408) | |||||||||||||||||
▪Gain resulting from sale of FCS business on June 1, 2021 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Interest and financing expenses | $ | (51,034) | $ | (34,737) | $ | (16,297) | 47 | % | |||||||||||||||
▪$29.0 million loss on early extinguishment of debt, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of debt during the first quarter of 2021 ▪Partially offset by decreased debt balance as certain debt instruments were repaid in the first quarter of 2021 ▪Higher capitalized interest from continued capital expenditures in 2021 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Other income, net | $ | 11,326 | $ | 2,041 | $ | 9,285 | 455 | % | |||||||||||||||
•$9.8 million decrease in foreign exchange losses •$5.1 million increase in non-operating pension and OPEB benefits •$3.6 million expense related to asset retirement obligation charges in 2021 •$2.7 million gain resulting from the settlement of legal matters in 2020 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Income tax expense | $ | 129,092 | $ | 33,873 | $ | 95,219 | 281 | % | |||||||||||||||
Effective income tax rate | 19.6 | % | 16.6 | % | |||||||||||||||||||
•$97.8 million one-time tax expense recorded for the gain on the sale of the FCS business in 2021 •Change in geographic mix of earnings, mainly attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan •2021 includes certain discrete tax benefits, partially offset by expense due to an out-of-period adjustment for an overstated deferred tax liability recorded during the three-month period ended December 31, 2017 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Equity in net income of unconsolidated investments | $ | 34,509 | $ | 57,718 | $ | (23,209) | (40) | % | |||||||||||||||
▪Primarily lower earnings from our Lithium segment joint venture, Talison, primarily driven by lower pricing and unfavorable foreign exchange impacts, partially offset by higher volumes |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net income attributable to noncontrolling interests | $ | (43,629) | $ | (34,565) | $ | (9,064) | 26 | % | |||||||||||||||
▪Increase in consolidated income related to our JBC joint venture from higher sales volume |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 520,277 | $ | 192,828 | $ | 327,449 | 170 | % | |||||||||||||||
Percentage of Net sales | 32.5 | % | 12.8 | % | |||||||||||||||||||
Basic earnings per share | $ | 4.54 | $ | 1.81 | $ | 2.73 | 151 | % | |||||||||||||||
Diluted earnings per share | $ | 4.51 | $ | 1.81 | $ | 2.70 | 149 | % | |||||||||||||||
▪Gain on sale of FCS business of $331.6 million, net of tax ▪Increased sales volume from Lithium and Bromine Specialties, partially offset by unfavorable pricing in Lithium ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Decreased interest and financing expenses due to lower debt balances ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪Loss of month of sales from FCS business following the disposition on June 1, 2021 ▪Increased production and utility costs in Bromine Specialties and Catalysts resulting from the winter storms in the southern U.S. ▪Increased SG&A expenses, primarily related to additional charitable contribution using proceeds from the sale of the FCS business ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Earnings per share also impacted by the underwritten public offering of our common stock in February 2021, increasing share count by 9.8 million shares |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | (1,945) | $ | (35,316) | $ | 33,371 | (94) | % | |||||||||||||||
▪Foreign currency translation and other | $ | (7,578) | $ | (19,122) | $ | 11,544 | (60) | % | |||||||||||||||
▪2021 included unfavorable movements in the Euro of approximately $11 million and the Japanese Yen of approximately $5 million, partially offset by favorable movements in the Brazilian Real of approximately $5 million and the Chinese Remninbi of approximately $4 million ▪2020 included unfavorable movements in the Brazilian Real of approximately $20 million, and a net unfavorable movement in various other currencies totaling approximately $4 million, partially offset by favorable movements in the Euro of approximately $5 million | |||||||||||||||||||||||
▪Cash flow hedge | $ | (777) | $ | (13,815) | $ | 13,038 | |||||||||||||||||
▪Net investment hedge | $ | 5,110 | $ | (3,675) | $ | 8,785 | (239) | % |
Six Months Ended June 30, | Percentage Change | ||||||||||||||||||||||||||||
2021 | % | 2020 | % | 2021 vs 2020 | |||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Lithium | $ | 599,310 | 37.4 | % | $ | 520,540 | 34.6 | % | 15 | % | |||||||||||||||||||
Bromine Specialties | 560,195 | 34.9 | % | 464,371 | 30.9 | % | 21 | % | |||||||||||||||||||||
Catalysts | 368,587 | 23.0 | % | 404,260 | 26.9 | % | (9) | % | |||||||||||||||||||||
All Other | 75,095 | 4.7 | % | 113,723 | 7.6 | % | (34) | % | |||||||||||||||||||||
Total net sales | $ | 1,603,187 | 100.0 | % | $ | 1,502,894 | 100.0 | % | 7 | % | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||
Lithium | $ | 215,877 | 50.8 | % | $ | 173,173 | 45.4 | % | 25 | % | |||||||||||||||||||
Bromine Specialties | 187,286 | 44.1 | % | 156,303 | 41.0 | % | 20 | % | |||||||||||||||||||||
Catalysts | 46,591 | 11.0 | % | 70,247 | 18.4 | % | (34) | % | |||||||||||||||||||||
All Other | 29,858 | 7.0 | % | 41,422 | 10.8 | % | (28) | % | |||||||||||||||||||||
Corporate | (54,930) | (12.9) | % | (59,587) | (15.6) | % | 8 | % | |||||||||||||||||||||
Total adjusted EBITDA | $ | 424,682 | 100.0 | % | $ | 381,558 | 100.0 | % | 11 | % |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 144,965 | $ | 162,261 | $ | 21,362 | $ | 328,588 | $ | 27,988 | $ | 163,701 | $ | 520,277 | |||||||||||||||||||||||||||
Depreciation and amortization | 65,303 | 25,025 | 25,229 | 115,557 | 1,870 | 6,256 | 123,683 | ||||||||||||||||||||||||||||||||||
Restructuring and other(a) | — | — | — | — | — | 1,540 | 1,540 | ||||||||||||||||||||||||||||||||||
Gain on sale of business(b) | — | — | — | — | — | (429,408) | (429,408) | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(c) | — | — | — | — | — | 4,076 | 4,076 | ||||||||||||||||||||||||||||||||||
Interest and financing expenses(d) | — | — | — | — | — | 51,034 | 51,034 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 129,092 | 129,092 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (10,936) | (10,936) | ||||||||||||||||||||||||||||||||||
Albemarle Foundation contribution(e) | — | — | — | — | — | 20,000 | 20,000 | ||||||||||||||||||||||||||||||||||
Other(f) | 5,609 | — | — | 5,609 | — | 9,715 | 15,324 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 215,877 | $ | 187,286 | $ | 46,591 | $ | 449,754 | $ | 29,858 | $ | (54,930) | $ | 424,682 | |||||||||||||||||||||||||||
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 amortization | 53,895 | 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(g) | — | — | — | — | — | (2,618) | (2,618) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 173,173 | $ | 156,303 | $ | 70,247 | $ | 399,723 | $ | 41,422 | $ | (59,587) | $ | 381,558 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 599,310 | $ | 520,540 | $ | 78,770 | 15 | % | |||||||||||||||
▪$114.1 million of higher sales volume, driven by some customers accelerating orders under long-term commitments in hydroxide ▪$50.6 million of unfavorable pricing impacts, primarily in battery- and tech-grade carbonate due to lower contract pricing ▪$15.2 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 215,877 | $ | 173,173 | $ | 42,704 | 25 | % | |||||||||||||||
▪Higher sales volume, partially offset by unfavorable pricing impacts ▪Lower commission expenses in Chile resulting from the lower pricing in Lithium ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪$6.9 million of unfavorable currency translation resulting from a stronger Chilean Peso |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 560,195 | $ | 464,371 | $ | 95,824 | 21 | % | |||||||||||||||
▪$60.0 million of higher sales volume related to increased demand across all products ▪$28.2 million of favorable pricing impacts, primarily in the flame retardants division and as a result of a favorable 2021 customer mix ▪$7.6 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 187,286 | $ | 156,303 | $ | 30,983 | 20 | % | |||||||||||||||
▪Higher sales volume and favorable pricing impacts as a result of a favorable 2021 customer mix ▪Productivity improvements and a reduction in professional fees and other administrative costs ▪Increased production and utility costs of approximately $6 million resulting from the U.S. Gulf Coast winter storm ▪Increased freight costs ▪$6.9 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 368,587 | $ | 404,260 | $ | (35,673) | (9) | % | |||||||||||||||
▪$38.2 million of lower sales volume, primarily from lower demand in clean fuel technologies ▪$4.7 million of unfavorable pricing impacts, primarily in FCC ▪$7.2 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 46,591 | $ | 70,247 | $ | (23,656) | (34) | % | |||||||||||||||
▪Lower sales volume, primarily from lower demand in clean fuel technologies, as well as unfavorable pricing impacts, primarily in FCC ▪Increased production and utility costs of approximately $17 million resulting from the U.S. Gulf Coast winter storm ▪Increased freight costs ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 75,095 | $ | 113,723 | $ | (38,628) | (34) | % | |||||||||||||||
▪Primarily decreased volume resulting from the sale of the FCS business in the second quarter of 2021 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 29,858 | $ | 41,422 | $ | (11,564) | (28) | % | |||||||||||||||
▪Primarily decreased volume resulting from the sale of the FCS business in the second quarter of 2021 |
In thousands | YTD 2021 | YTD 2020 | $ Change | % Change | |||||||||||||||||||
Adjusted EBITDA | $ | (54,930) | $ | (59,587) | $ | 4,657 | 8 | % | |||||||||||||||
▪$7.2 million of favorable currency exchange impacts, including a $2.6 million decrease in foreign currency impacts from our Talison joint venture ▪Productivity improvements and a reduction in professional fees and other administrative costs |
Issue Month/Year | Principal (in millions) | Interest Rate | Interest Payment Dates | Maturity Date | |||||||||||||||||||||||||
November 2019 | €371.7 | 1.125% | November 25 | November 25, 2025 | |||||||||||||||||||||||||
November 2019 | €500.0 | 1.625% | November 25 | November 25, 2028 | |||||||||||||||||||||||||
November 2019(a) | $171.6 | 3.45% | May 15 and November 15 | November 15, 2029 | |||||||||||||||||||||||||
November 2014(a) | $425.0 | 4.15% | June 1 and December 1 | December 1, 2024 | |||||||||||||||||||||||||
November 2014(a) | $350.0 | 5.45% | June 1 and December 1 | December 1, 2044 |
Maturities of Long-term Debt | Expected Interest Payments | ||||||||||
Remainder of 2021 | $ | 0.6 | $ | 36.3 | |||||||
2022 | — | 57.4 | |||||||||
2023 | — | 57.4 | |||||||||
2024 | 425.0 | 55.9 | |||||||||
2025 | 450.1 | 39.3 | |||||||||
Thereafter | 1,183.8 | 413.7 |
$ in thousands | Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||||||||
Net sales(a) | $ | 752,132 | $ | 1,621,651 | |||||||
Gross profit | 151,181 | 357,431 | |||||||||
Income (loss) before income taxes and equity in net income of unconsolidated investments(b)(c) | 299,183 | (205,486) | |||||||||
Net income (loss) attributable to the Parent Guarantor and the Issuer | 218,294 | (222,097) |
$ in thousands | June 30, 2021 | December 31, 2020 | |||||||||
Current assets(a) | $ | 1,264,129 | $ | 1,194,278 | |||||||
Net property, plant and equipment | 2,714,368 | 2,621,012 | |||||||||
Other noncurrent assets | 525,381 | 305,544 | |||||||||
Current liabilities(b) | $ | 1,362,313 | $ | 2,236,233 | |||||||
Long-term debt | 995,480 | 1,321,413 | |||||||||
Other noncurrent liabilities(c) | 7,324,745 | 7,317,103 |
$ in thousands | Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||||||||
Net sales(a) | $ | 752,132 | $ | 1,621,651 | |||||||
Gross profit | 160,039 | 375,138 | |||||||||
Income (loss) before income taxes and equity in net income of unconsolidated investments(b) | 326,656 | (124,464) | |||||||||
Net income (loss) attributable to the Subsidiary Guarantor and the Parent Issuer | 240,798 | (152,509) |
$ in thousands | June 30, 2021 | December 31, 2020 | |||||||||
Current assets(a) | $ | 1,122,126 | $ | 1,315,110 | |||||||
Net property, plant and equipment | 721,928 | 770,230 | |||||||||
Other non-current assets(b) | 1,553,934 | 970,268 | |||||||||
Current liabilities(c) | $ | 1,323,229 | $ | 2,133,548 | |||||||
Long-term debt | 1,808,445 | 2,404,193 | |||||||||
Other noncurrent liabilities(c) | 6,612,424 | 6,468,644 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 6. | Exhibits. |
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended June 30, 2021, furnished in XBRL (eXtensible Business Reporting Language)). |
# | Management contract or compensatory plan or arrangement. | ||||
* | Included with this filing. |
ALBEMARLE CORPORATION | |||||||||||||||||
(Registrant) | |||||||||||||||||
Date: | August 4, 2021 | By: | /S/ SCOTT A. TOZIER | ||||||||||||||
Scott A. Tozier | |||||||||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||||||||
(principal financial officer) |
Date: | August 4, 2021 |
/s/ J. KENT MASTERS | ||
J. Kent Masters | ||
Chairman, President and Chief Executive Officer |
Date: | August 4, 2021 |
/s/ SCOTT A. TOZIER | ||
Scott A. Tozier | ||
Executive Vice President and Chief Financial Officer |
/s/ J. KENT MASTERS | ||
J. Kent Masters | ||
Chairman, President and Chief Executive Officer | ||
August 4, 2021 |
/s/ SCOTT A. TOZIER | ||
Scott A. Tozier | ||
Executive Vice President and Chief Financial Officer | ||
August 4, 2021 |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Statement [Abstract] | ||||
Net sales | $ 773,896 | $ 764,049 | $ 1,603,187 | $ 1,502,894 |
Cost of goods sold | 525,479 | 530,690 | 1,091,083 | 1,027,517 |
Gross profit | 248,417 | 233,359 | 512,104 | 475,377 |
Selling, general and administrative expenses | 121,516 | 106,949 | 214,703 | 208,826 |
Research and development expenses | 13,976 | 14,210 | 28,612 | 30,307 |
Gain (Loss) on Disposition of Business | (429,408) | 0 | (429,408) | 0 |
Operating profit | 542,333 | 112,200 | 698,197 | 236,244 |
Interest and financing expenses | (7,152) | (17,852) | (51,034) | (34,737) |
Other income (expense), net | 14 | (6,273) | 11,326 | 2,041 |
Income before income taxes and equity in net income of unconsolidated investments | 535,195 | 88,075 | 658,489 | 203,548 |
Income tax expense | 106,985 | 15,431 | 129,092 | 33,873 |
Income before equity in net income of unconsolidated investments | 428,210 | 72,644 | 529,397 | 169,675 |
Equity in net income of unconsolidated investments (net of tax) | 17,998 | 31,114 | 34,509 | 57,718 |
Net income | 446,208 | 103,758 | 563,906 | 227,393 |
Net income attributable to noncontrolling interests | (21,608) | (18,134) | (43,629) | (34,565) |
Net income attributable to Albemarle Corporation | $ 424,600 | $ 85,624 | $ 520,277 | $ 192,828 |
Basic earnings per share (in dollars per share) | $ 3.63 | $ 0.81 | $ 4.54 | $ 1.81 |
Diluted earnings per share (in dollars per share) | $ 3.62 | $ 0.80 | $ 4.51 | $ 1.81 |
Weighted-average common shares outstanding - basic (in shares) | 116,809 | 106,329 | 114,700 | 106,278 |
Weighted-average common shares outstanding - diluted (in shares) | 117,436 | 106,535 | 115,383 | 106,524 |
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 446,208 | $ 103,758 | $ 563,906 | $ 227,393 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation and other | 20,564 | 62,855 | (7,578) | (19,122) |
Net investment hedge | 0 | (5,756) | 5,110 | (3,675) |
Cash flow hedge | 823 | 37,645 | (777) | (13,815) |
Interest rate swap | 650 | 648 | 1,300 | 1,296 |
Total other comprehensive income (loss), net of tax | 22,037 | 95,392 | (1,945) | (35,316) |
Comprehensive income | 468,245 | 199,150 | 561,961 | 192,077 |
Comprehensive income attributable to noncontrolling interests | (21,532) | (18,168) | (43,553) | (34,645) |
Comprehensive income attributable to Albemarle Corporation | $ 446,713 | $ 180,982 | $ 518,408 | $ 157,432 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,623 | $ 2,083 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 116,945 | 106,842 |
Common stock, outstanding (in shares) | 116,945 | 106,842 |
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Financial Position [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.39 | $ 0.385 | $ 0.78 | $ 0.77 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three- and six-month periods ended June 30, 2021 and 2020 and our condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020. Income tax expense for the six-month period ended June 30, 2021 includes expense of $7.9 million due to the correction of an out-of-period error regarding an overstated deferred tax liability for the three-month period ended December 31, 2017. The Company does not believe this adjustment is material to the consolidated financial statements for the six-month period ended June 30, 2021, or the three-month period or year ended December 31, 2017. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on February 19, 2021. The December 31, 2020 condensed consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three-month and six-month periods ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation. The current novel coronavirus (“COVID-19”) pandemic is having an impact on overall global economic conditions. While we have not seen a material impact to our operations to date, the ultimate impact on our business will depend on the length and severity of the outbreak throughout the world. The Company has taken, and plans to continue to take, certain measures to maintain financial flexibility while still protecting our employees and customers.
|
Divestitures |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Divestitures: On June 1, 2021, the Company completed the sale of its fine chemistry services (“FCS”) business to W. R. Grace & Co. (“Grace”) for proceeds of approximately $570 million, consisting of $300 million in cash and the issuance to Albemarle of preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and will accrue payment-in-kind (“PIK”) dividends at an annual rate of 12% beginning two years after issuance. As part of the transaction, Grace acquired our manufacturing facilities located in South Haven, Michigan and Tyrone, Pennsylvania. The sale of the FCS business reflects the Company’s commitment to investing in its core, growth-oriented business segments. During the three-month period ended June 30, 2021 we recorded a gain of $429.4 million ($331.6 million after taxes) related to the sale of this business. We determined that this business met the assets held for sale criteria in accordance with ASC 360, Property, Plant and Equipment during the first quarter of 2021. The results of operations of the business classified as held for sale, through June 1, 2021, are included in the consolidated statements of income. This business did not qualify for discontinued operations treatment because the Company’s management does not consider the sale as representing a strategic shift that had or will have a major effect on the Company’s operations and financial results.
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Goodwill and Other Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the six months ended June 30, 2021 (in thousands):
(a) Represents goodwill of the FCS business. See Note 2, “Divestitures,” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the six months ended June 30, 2021 (in thousands):
(a) Net Book Value includes only indefinite-lived intangible assets.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The effective income tax rate for the three-month and six-month periods ended June 30, 2021 was 20.0% and 19.6% compared to 17.5% and 16.6% for the three-month and six-month periods ended June 30, 2020, respectively. The six-month period ended June 30, 2021 includes discrete tax benefits related to the release of a foreign valuation allowance, excess tax benefits realized from stock-based compensation arrangements, and the revaluation of deferred taxes due to tax rate changes, offset by tax expense due to an out-of-period adjustment regarding an overstated deferred tax liability recorded during the three-month period ended December 31, 2017. The Company’s effective income tax rate fluctuates based on, among other factors, its level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and six-month periods ended June 30, 2021 and June 30, 2020 was impacted by a variety of factors, primarily stemming from the location in which income was earned. In addition, 2021 includes a $97.8 million tax expense recorded for the gain on the sale of the FCS business, partially offset by a benefit from foreign rate differences primarily attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2021 and 2020 are calculated as follows (in thousands, except per share amounts):
On February 8, 2021, we completed an underwritten public offering of 8,496,773 shares of our common stock, par value $0.01 per share, at a price to the public of $153.00 per share. The Company also granted to the underwriters an option to purchase up to an additional 1,274,509 shares, which was exercised. The total gross proceeds from this offering were approximately $1.5 billion, before deducting expenses, underwriting discounts and commissions. The net proceeds were used for debt repayments and general corporate purposes. See Note 8, “Long-Term Debt,” for further details. On May 4, 2021, the Company declared a cash dividend of $0.39, an increase from the prior year regular quarterly dividend. This dividend was paid on July 1, 2021 to shareholders of record at the close of business as of June 11, 2021. On July 20, 2021, the Company declared a cash dividend of $0.39 per share, which is payable on October 1, 2021 to shareholders of record at the close of business as of September 17, 2021.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories: The following table provides a breakdown of inventories at June 30, 2021 and December 31, 2020 (in thousands):
(a)Included $142.6 million and $129.6 million at June 30, 2021 and December 31, 2020, respectively, of work in process in our Lithium segment.
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Investments |
6 Months Ended |
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Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments:The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), where the ownership 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 this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $485.9 million and $479.6 million at June 30, 2021 and December 31, 2020, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs for which the Company is not the primary beneficiary was $8.1 million and $8.0 million at June 30, 2021 and December 31, 2020, respectively. Our unconsolidated VIEs are reported in Investments on the condensed 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 proceeds from the sale of the FCS business on June 1, 2021, Grace issued Albemarle preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and will accrue PIK dividends at an annual rate of 12% beginning two years after issuance. This preferred equity has a fair value of $244.5 million at June 30, 2021, which is reported in Investments in the condensed consolidated balance sheets.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-Term Debt: Long-term debt at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
In the first quarter of 2021, the Company made the following debt principal payments using proceeds from the February 2021 underwritten public offering of common stock: •€123.8 million of the 1.125% notes due in November 2025 •€393.0 million, the remaining balance, of the 1.875% Senior notes originally due in December 2021 •$128.4 million of the 3.45% Senior notes due in November 2029 •$200.0 million, the remaining balance, of the floating rate notes originally due in November 2022 •€183.3 million, the outstanding balance, of the unsecured credit facility originally entered into on August 14, 2019, as amended and restated on December 15, 2020 •$325.0 million, the outstanding balance, of the commercial paper notes As a result, included in Interest and financing expenses for the three-month and six-month period ended June 30, 2021 is a loss on early extinguishment of debt of $1.2 million and $29.0 million, respectively, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of this debt. Prior to repayment in the first quarter of 2021, the carrying value of our 1.875% Euro-denominated senior notes was designated as an effective hedge of our net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency were recorded in accumulated other comprehensive loss. Upon repayment of these notes, this net investment hedge was discontinued. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. Prior to the net investment hedge being discontinued, we recorded a gain of $5.1 million (net of income taxes) in 2021, and during the three-month and six-month periods ended June 30, 2020 we recorded losses of $5.8 million and $3.7 million (net of income taxes), respectively in accumulated other comprehensive loss.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the six months ended June 30, 2021 (in thousands):
Environmental remediation liabilities included discounted liabilities of $38.7 million and $39.2 million at June 30, 2021 and December 31, 2020, respectively, discounted at rates with a weighted-average of 3.5%, and with the undiscounted amount totaling $72.3 million and $73.6 million at June 30, 2021 and December 31, 2020, respectively. For certain locations where the Company is operating groundwater monitoring and/or remediation systems, prior owners or insurers have assumed all or most of the responsibility. The amounts recorded represent our future remediation and other anticipated environmental liabilities. These liabilities typically arise during the normal course of our operational and environmental management activities or at the time of acquisition of the site, and are based on internal analysis as well as input from outside consultants. As evaluations proceed at each relevant site, changes in risk assessment practices, remediation techniques and regulatory requirements can occur, therefore such liability estimates may be adjusted accordingly. The timing and duration of remediation activities at these sites will be determined when evaluations are completed. Although it is difficult to quantify the potential financial impact of these remediation liabilities, management estimates (based on the latest available information) that there is a reasonable possibility that future environmental remediation costs associated with our past operations, could be an additional $10 million to $37 million before income taxes in excess of amounts already recorded. The variability of this range is primarily driven by possible environmental remediation activity at a formerly owned site where we indemnify the buyer through a set cutoff date in 2024. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period. Litigation We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. As previously reported in 2018, following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, within our Catalysts segment, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business, within our Catalysts segment, to the U.S. Department of Justice (“DOJ”), SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, SEC, and DPP in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with any investigations by the DOJ, SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, SEC, or DPP, or what penalties or remedial actions they may seek to impose. Any determination that our operations or activities are not in compliance with existing laws or regulations could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses. We do not believe, however, that any fines, penalties, disgorgement, equitable relief or other losses would have a material adverse effect on our financial condition or liquidity. Indemnities We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties who may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party who may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities. The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $28.3 million and $30.5 million at June 30, 2021 and December 31, 2020, respectively, recorded in Other noncurrent liabilities, primarily related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. Other We have contracts with certain of our customers which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis, as well as blanket coverage of multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):
Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2021 and 2020 is as follows (in thousands):
Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2021 and December 31, 2020 is as follows (in thousands, except as noted):
(a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities at June 30, 2021 were as follows (in thousands):
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Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):
Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2021 and 2020 is as follows (in thousands):
Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2021 and December 31, 2020 is as follows (in thousands, except as noted):
(a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities at June 30, 2021 were as follows (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 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 FCS business that does not fit into any of our core businesses. On June 1, 2021, we completed the sale of the FCS business. See Note 2, “Divestitures,” for additional information. Amounts in the “All Other” category represent activity in this business until divested on June 1, 2021. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“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 and financing expenses, income tax expenses, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items in a balanced manner and on a segment basis. These non-operating, 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.
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):
(a)In 2021, we recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in Selling, general and administrative expenses (“SG&A”). In 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Germany and with our Jordanian joint venture partner. During the three months ended June 30, 2020, we recorded expenses of $6.7 million in SG&A. During the six months ended June 30, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $8.2 million in SG&A 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 2021. (b)See Note 2, “Divestitures,” for additional information. (c)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in SG&A. (d)Included in Interest and financing expenses is a loss on early extinguishment of debt of $1.2 million and $29.0 million for the three and six months ended June 30, 2021, respectively. See Note 8, “Long-Term Debt,” for additional information. (e)Included in SG&A is a charitable contribution, using a portion of the proceeds received from the FCS 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 the Company operates. This contribution is in addition to the normal 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 these communities. (f)Included amounts for the three months ended June 30, 2021 recorded in: •SG&A - $4.0 million of a loss resulting from the sale of property, plant and equipment, $1.6 million of charges for an environmental reserve at a site not part of our operations and $1.4 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements. •Other income (expense), net - $0.3 million of a gain resulting from the adjustment of indemnifications related to previously disposed businesses. Included amounts for the six months ended June 30, 2021 recorded in: •SG&A - $6.0 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements, a $4.0 million loss resulting from the sale of property, plant and equipment and $1.6 million of charges for an environmental reserve at a site not part of our operations. •Other income (expense), net - $3.6 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle. (g)Included amounts for the three months ended June 30, 2020 recorded in: •Other income (expense), 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 income (expense), net - $2.7 million gain resulting from the settlement of legal matters related to a business sold and $0.8 million net gain primarily related 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.
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Pension Plans and Other Postretirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month and six-month periods ended June 30, 2021 and 2020 were as follows (in thousands):
All components of net benefit cost (credit), other than service cost, are included in Other income (expense), net on the consolidated statements of income. During the three-month and six-month periods ended June 30, 2021, we made contributions of $4.2 million and $18.9 million, respectively, to our qualified and nonqualified pension plans. During the three-month and six-month periods ended June 30, 2020, we made contributions of $2.1 million and $5.2 million, respectively, to our qualified and nonqualified pension plans. We paid $0.8 million and $1.4 million, respectively, in premiums to the U.S. postretirement benefit plan during the three-month and six-month periods ended June 30, 2021, respectively. During the three-month and six-month periods ended June 30, 2020, we paid $0.8 million and $1.5 million, respectively, in premiums to the U.S. postretirement benefit plan.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments: In assessing the fair value of financial instruments, we use methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for our financial instruments is as follows: Long-Term Debt—the fair values of our notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.
Foreign Currency Forward Contracts—During the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under ASC 815, Derivatives and Hedging. At June 30, 2021 and December 31, 2020, we had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $158.0 million and $75.4 million, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging, in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At June 30, 2021 and December 31, 2020, we had outstanding non-designated foreign currency forward contracts with notional values totaling $520.1 million and $611.1 million, respectively, hedging our exposure to various currencies including the Euro, Australian dollar, Taiwanese dollar, Chinese renminbi and Chilean peso. The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 (in thousands):
(a) Included $1.9 million in Accrued expenses at June 30, 2021 and $6.2 million in Other current assets and $0.9 million in Other assets at December 31, 2020. (b) Included $7.4 million in Other current assets, $0.1 million in Other assets and $0.8 million in Accrued expenses at June 30, 2021 and $6.6 million in Other current assets and $4.8 million in Accrued expenses at December 31, 2020. The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):
(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income (expense), net. In addition, for the six-month periods ended June 30, 2021 and 2020, we recorded net cash settlements of $0.4 million and $19.5 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. As of June 30, 2021, there are no unrealized gains or losses related to the cash flow hedges expected to be reclassified to earnings in the next twelve months. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties.
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (in thousands):
(a)Preferred equity of a Grace subsidiary acquired as a portion of the proceeds of the FCS sale on June 1, 2021. See Note 2, “Divestitures,” for further details on the major terms and conditions. A third-party estimate of the fair value was prepared using expected future cash flows over the period in which the asset is likely to be redeemed, applying a discount rate that appropriately captures a market participant's view of the risk associated with the investment. These are considered to be Level 3 inputs. (b)We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (c)Primarily consists of private equity securities reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other income, net, in our consolidated statements of income. (d)Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (e)As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts.
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Accumulated Other Comprehensive (Loss) Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands):
(a)During the first quarter of 2021 the net investment hedge was discontinued following the repayment of the 1.875% Euro-denominated senior notes. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge have been reclassified to Foreign currency translation and other, and will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. (b)We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. See Note 13, “Fair Value of Financial Instruments,” for additional information. (c)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and six-month periods ended June 30, 2021 and 2020 is provided in the following tables (in thousands):
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions: Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
(a)Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands):
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands):
(a)Fair value of preferred equity of a Grace subsidiary received as part of proceeds for the sale of our FCS business. See Note 2, “Divestitures,” for further details. As part of the purchase price paid for the acquisition of a 60% interest in MRL’s Wodgina Project, the Company transferred 96.2 million and $87.8 million of its construction in progress of the designated Kemerton assets during the six months ended June 30, 2021 and 2020, respectively, representing MRL’s 40% interest in the assets. Since the acquisition, we have transferred $440.3 million of construction in progress to MRL through June 30, 2021. The cash outflow for these assets is recorded in Capital expenditures within Cash flows from investing activities on the condensed consolidated statements of cash flows. The non-cash transfer of these assets is recorded in Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL within Cash flows from operating activities on the consolidated statements of cash flows. The Company expects to transfer a total of approximately $480 million over the construction of these assets, as defined in the purchase agreement. Other, net within Cash flows from operating activities on the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 included $28.7 million and $30.4 million, respectively, representing the reclassification of the current portion of the one-time transition tax resulting from the enactment of the U.S. Tax Cuts and Jobs Act, from Other noncurrent liabilities to Income taxes payable within current liabilities.
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Recently Issued Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In March 2020, the FASB issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances is effective March 12, 2020 through December 31, 2022. We currently do not expect this guidance to have a significant impact on our consolidated financial statements.
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Recently Issued Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In March 2020, the FASB issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances is effective March 12, 2020 through December 31, 2022. We currently do not expect this guidance to have a significant impact on our consolidated financial statements.
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Goodwill and Other Intangibles (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the six months ended June 30, 2021 (in thousands):
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Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the six months ended June 30, 2021 (in thousands):
(a) Net Book Value includes only indefinite-lived intangible assets.
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2021 and 2020 are calculated as follows (in thousands, except per share amounts):
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of Inventories | The following table provides a breakdown of inventories at June 30, 2021 and December 31, 2020 (in thousands):
(a)Included $142.6 million and $129.6 million at June 30, 2021 and December 31, 2020, respectively, of work in process in our Lithium segment.
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the six months ended June 30, 2021 (in thousands):
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):
Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2021 and 2020 is as follows (in thousands):
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Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2021 and December 31, 2020 is as follows (in thousands, except as noted):
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Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at June 30, 2021 were as follows (in thousands):
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Finance Lease, Liability, Maturity | Maturities of lease liabilities at June 30, 2021 were as follows (in thousands):
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Segment Information (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments Summarized Financial Information |
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Pension Plans and Other Postretirement Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month and six-month periods ended June 30, 2021 and 2020 were as follows (in thousands):
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Long-Term Debt | The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 (in thousands):
(a) Included $1.9 million in Accrued expenses at June 30, 2021 and $6.2 million in Other current assets and $0.9 million in Other assets at December 31, 2020. (b) Included $7.4 million in Other current assets, $0.1 million in Other assets and $0.8 million in Accrued expenses at June 30, 2021 and $6.6 million in Other current assets and $4.8 million in Accrued expenses at December 31, 2020.
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Derivative Instruments, Losses | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):
(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income (expense), net.
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Fair Value Measurement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (in thousands):
(a)Preferred equity of a Grace subsidiary acquired as a portion of the proceeds of the FCS sale on June 1, 2021. See Note 2, “Divestitures,” for further details on the major terms and conditions. A third-party estimate of the fair value was prepared using expected future cash flows over the period in which the asset is likely to be redeemed, applying a discount rate that appropriately captures a market participant's view of the risk associated with the investment. These are considered to be Level 3 inputs. (b)We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (c)Primarily consists of private equity securities reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other income, net, in our consolidated statements of income. (d)Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (e)As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables set forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements (in thousands):
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Accumulated Other Comprehensive (Loss) Income (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands):
(a)During the first quarter of 2021 the net investment hedge was discontinued following the repayment of the 1.875% Euro-denominated senior notes. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge have been reclassified to Foreign currency translation and other, and will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. (b)We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. See Note 13, “Fair Value of Financial Instruments,” for additional information. (c)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense.
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Amount of Income Tax (Expense) Benefit Allocated to Component Of Other Comprehensive Income (Loss) | The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and six-month periods ended June 30, 2021 and 2020 is provided in the following tables (in thousands):
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
(a)Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands):
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Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands):
(a)Fair value of preferred equity of a Grace subsidiary received as part of proceeds for the sale of our FCS business. See Note 2, “Divestitures,” for further details.
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Basis of Presentation (Details) - USD ($) $ in Thousands |
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Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 525,479 | $ 530,690 | $ 1,091,083 | $ 1,027,517 |
Income before income taxes and equity in net income of unconsolidated investments | 535,195 | 88,075 | 658,489 | 203,548 |
Income tax expense | 106,985 | $ 15,431 | $ 129,092 | $ 33,873 |
Out-of-period adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Income tax expense | $ 7,900 |
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 25, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Disposition of Business | $ 429,408 | $ 0 | $ 429,408 | $ 0 | |
Fine Chemistry Services | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Non-cash proceeds from divestitures | $ 570,000 | ||||
Cash Proceeds from Divestiture | 300,000 | ||||
Preferred Stock, Value, Outstanding | $ 270,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||||
Gain (Loss) on Disposition of Business | (429,400) | ||||
Gain (Loss) on Disposition of Business, net of tax | $ 331,600 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.00% | 17.50% | 19.60% | 16.60% |
Tax expense, gain on sale of business | $ 97.8 |
Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Feb. 08, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jul. 20, 2021 |
May 04, 2021 |
Dec. 31, 2020 |
|
Earnings Per Share Disclosure [Line Items] | ||||||||
Issuance of common stock, net (in shares) | 8,496,773 | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Stock Issued During Period Value Per Share New Issues | $ 153.00 | |||||||
Stock Issued During Period Shares New Issues Underwriter Option | 1,274,509 | |||||||
Issuance of common stock, net | $ 1,500,000 | $ 0 | $ 0 | $ 1,453,888 | $ 0 | |||
Cash dividend, amount per share (in dollars per share) | $ 0.39 | |||||||
Subsequent Event | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Cash dividend, amount per share (in dollars per share) | $ 0.39 |
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 432,084 | $ 454,162 |
Raw materials and work in process | 224,560 | 219,896 |
Stores, supplies and other | 75,919 | 76,179 |
Total inventories | $ 732,563 | $ 750,237 |
Inventories - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 142.6 | $ 129.6 |
Investments (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Feb. 25, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Schedule of Investments [Line Items] | ||||
Non-cash proceeds from divestitures | $ 244,530 | $ 0 | ||
Fine Chemistry Services | ||||
Schedule of Investments [Line Items] | ||||
Preferred Stock, Value, Outstanding | $ 270,000 | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | |||
Windfield Holdings | ||||
Schedule of Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | |||
Carrying value of unconsolidated investment | $ 485,900 | $ 479,600 | ||
Other variable interest entities | ||||
Schedule of Investments [Line Items] | ||||
Carrying value of unconsolidated investment | $ 8,100 | $ 8,000 |
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of period | $ 45,771 |
Expenditures | (879) |
Accretion of discount | 483 |
Foreign currency translation adjustments and other | (408) |
Balance at end of period | 46,543 |
Less amounts reported in Accrued expenses | 9,582 |
Amounts reported in Other noncurrent liabilities | $ 36,961 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 38.7 | $ 39.2 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.50% | |
Environmental remediation liabilities - undiscounted | $ 72.3 | 73.6 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 10.0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 37.0 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 28.3 | $ 30.5 |
Leases - Additional Information (Details) |
Jun. 30, 2021 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 50 years |
Real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 1 year |
Real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 30 years |
Non-real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 2 years |
Non-real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 15 years |
Leases - Leases Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 9,735 | $ 8,473 | $ 19,147 | $ 17,213 |
Amortization of right of use assets | 156 | 153 | 313 | 307 |
Interest on lease liabilities | 752 | 630 | 1,507 | 1,280 |
Total finance lease cost | 908 | 783 | 1,820 | 1,587 |
Short-term lease cost | 2,176 | 3,514 | 4,780 | 6,397 |
Variable lease cost | 1,813 | 2,084 | 4,178 | 4,032 |
Total lease cost | $ 14,632 | $ 14,854 | $ 29,925 | $ 29,229 |
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 14,980 | $ 18,664 |
Operating cash flows from finance leases | 876 | 749 |
Financing cash flows from finance leases | 316 | 344 |
Right-of-use asset obtained in exchange for operating leases | $ 50,856 | $ 17,197 |
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Other assets | $ 172,058 | $ 136,292 |
Accrued expenses | 34,114 | 22,297 |
Other noncurrent liabilities | 142,122 | 116,765 |
Total operating lease liabilities | 176,236 | 139,062 |
Net property, plant and equipment | 58,582 | 58,963 |
Current portion of long-term debt(a) | 2,369 | 1,752 |
Long-term debt | 58,168 | 58,543 |
Total finance lease liabilities | $ 60,537 | $ 60,295 |
Weighted average remaining lease term, operating leases | 12 years 6 months | 15 years 3 months 18 days |
Weighted average remaining lease term, finance leases | 27 years 2 months 12 days | 27 years 6 months |
Weighted average discount rate, operating leases, percent | 3.79% | 3.94% |
Weighted average discount rate, finance leases, percent | 4.57% | 4.56% |
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating Leases | ||
Remainder of 2021 | $ 21,752 | |
2021 | 36,814 | |
2022 | 33,521 | |
2023 | 20,182 | |
2024 | 14,265 | |
Thereafter | 131,613 | |
Total lease payments | 258,147 | |
Less imputed interest | 81,911 | |
Total operating lease liabilities | 176,236 | $ 139,062 |
Finance Leases | ||
Remainder of 2021 | 1,091 | |
2021 | 4,463 | |
2022 | 4,463 | |
2023 | 4,463 | |
2024 | 4,463 | |
Thereafter | 89,916 | |
Total lease payments | 108,859 | |
Less imputed interest | 48,322 | |
Total finance lease liabilities | $ 60,537 | $ 60,295 |
Segment Information - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Total net pension and postretirement benefits credit | $ (4,239) | $ (1,593) | $ (8,465) | $ (3,312) |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,172 | 1,207 | 2,351 | 2,421 |
Interest cost | 5,120 | 6,666 | 10,239 | 13,353 |
Expected return on assets | (10,901) | (10,028) | (21,794) | (20,091) |
Amortization of prior service benefit | 29 | 69 | 58 | 18 |
Total net pension and postretirement benefits credit | (4,580) | (2,086) | (9,146) | (4,299) |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 31 | 26 | 62 | 52 |
Interest cost | 310 | 467 | 619 | 935 |
Total net pension and postretirement benefits credit | $ 341 | $ 493 | $ 681 | $ 987 |
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Retirement Benefits [Abstract] | ||||
Employer contributions | $ 4.2 | $ 2.1 | $ 18.9 | $ 5.2 |
Payment for other postretirement benefits | $ 0.8 | $ 0.8 | $ 1.4 | $ 1.5 |
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 2,056,328 | $ 3,588,157 |
Total long-term debt, fair value, excluding debt issuance costs | $ 2,259,180 | $ 3,783,225 |
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Related Party Transaction [Line Items] | |||||
Sales to unconsolidated affiliates | $ 4,998 | $ 5,281 | $ 10,728 | $ 12,498 | |
Purchases from unconsolidated affiliates | 55,771 | $ 55,149 | 88,921 | $ 131,624 | |
Receivables from unconsolidated affiliates | 2,771 | 2,771 | $ 4,098 | ||
Payables to unconsolidated affiliates | $ 37,795 | $ 37,795 | $ 30,123 |
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 169,532 | $ 180,707 |
Non-cash proceeds from divestitures | $ 244,530 | $ 0 |
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | 17 Months Ended | ||
---|---|---|---|---|
Oct. 31, 2019 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Mar. 31, 2021 |
|
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 396,915 | $ 418,991 | ||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | 96,185 | 87,750 | ||
Reclassification of one-time transition tax | 28,700 | 30,400 | ||
Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 60.00% | |||
Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 40.00% | |||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Consideration transferred | 480,000 | |||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | $ 96,200 | $ 87,800 | $ 440,300 |
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