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Segment Information
 6 Months Ended
Jun. 30, 2021
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.
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
(In thousands)(In thousands)
Net sales:
Lithium$320,334 $283,722 $599,310 $520,540 
Bromine Specialties279,748 232,779 560,195 464,371 
Catalysts148,344 197,053 368,587 404,260 
All Other25,470 50,495 75,095 113,723 
Total net sales$773,896 $764,049 $1,603,187 $1,502,894 
Adjusted EBITDA:
Lithium$109,441 $94,536 $215,877 $173,173 
Bromine Specialties92,646 73,041 187,286 156,303 
Catalysts21,164 22,777 46,591 70,247 
All Other8,379 18,598 29,858 41,422 
Corporate(37,002)(23,759)(54,930)(59,587)
Total adjusted EBITDA$194,628 $185,193 $424,682 $381,558 
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
LithiumBromine SpecialtiesCatalystsReportable Segments TotalAll OtherCorporateConsolidated Total
Three months ended June 30, 2021
Net income (loss) attributable to Albemarle Corporation$74,593 $80,148 $8,446 $163,187 $7,972 $253,441 $424,600 
Depreciation and amortization33,497 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 amortization28,498 12,349 12,075 52,922 2,173 2,746 57,841 
Restructuring and other(a)
— — — — — 6,733 6,733 
Acquisition and integration related costs(c)
— — — — — 5,470 5,470 
Interest and financing expenses— — — — — 17,852 17,852 
Income tax expense— — — — — 15,431 15,431 
Non-operating pension and OPEB items— — — — — (2,895)(2,895)
Other(g)
— — — — — (863)(863)
Adjusted EBITDA$94,536 $73,041 $22,777 $190,354 $18,598 $(23,759)$185,193 
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 amortization65,303 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 amortization53,895 23,946 24,653 102,494 4,151 4,890 111,535 
Restructuring and other(a)
— — — — — 8,580 8,580 
Acquisition and integration related costs(c)
— — — — — 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 
(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.