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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
_________________________________________________ 
FORM 10-Q
_________________________________________________ 
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended September 30, 2021
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-12658
_________________________________________________ 

ALBEMARLE CORPORATION
(Exact name of registrant as specified in its charter)
_________________________________________________ 
Virginia 54-1692118
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
4250 Congress Street, Suite 900
Charlotte, North Carolina 28209
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code - (980) 299-5700
_________________________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☒Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
COMMON STOCK, $.01 Par ValueALBNew York Stock Exchange
Number of shares of common stock, $.01 par value, outstanding as of October 29, 2021: 116,976,318

Table of Contents
ALBEMARLE CORPORATION
INDEX – FORM 10-Q
 
  Page
Number(s)
EXHIBITS
2
Table of Contents
PART I. FINANCIAL INFORMATION
 
Item 1.Financial Statements (Unaudited).
ALBEMARLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2021202020212020
Net sales$830,566 $746,868 $2,433,753 $2,249,762 
Cost of goods sold581,293 492,812 1,672,376 1,520,329 
Gross profit249,273 254,056 761,377 729,433 
Selling, general and administrative expenses103,477 96,092 318,180 304,918 
Research and development expenses13,289 13,532 41,901 43,839 
Gain on sale of business984 — (428,424)— 
Operating profit131,523 144,432 829,720 380,676 
Interest and financing expenses(5,136)(19,227)(56,170)(53,964)
Other expense, net(643,196)(3,661)(631,870)(1,620)
(Loss) income before income taxes and equity in net income of unconsolidated investments(516,809)121,544 141,680 325,092 
Income tax (benefit) expense(114,670)30,653 14,422 64,526 
(Loss) income before equity in net income of unconsolidated investments(402,139)90,891 127,258 260,566 
Equity in net income of unconsolidated investments (net of tax)27,706 26,154 62,215 83,872 
Net (loss) income(374,433)117,045 189,473 344,438 
Net income attributable to noncontrolling interests(18,348)(18,744)(61,977)(53,309)
Net (loss) income attributable to Albemarle Corporation$(392,781)$98,301 $127,496 $291,129 
Basic (loss) earnings per share$(3.36)$0.92 $1.10 $2.74 
Diluted (loss) earnings per share$(3.36)$0.92 $1.10 $2.73 
Weighted-average common shares outstanding – basic116,965 106,386 115,455 106,314 
Weighted-average common shares outstanding – diluted116,965 106,873 116,140 106,640 
See accompanying Notes to the Condensed Consolidated Financial Statements.
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ALBEMARLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(In Thousands)
(Unaudited)

 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2021202020212020
Net (loss) income $(374,433)$117,045 $189,473 $344,438 
Other comprehensive (loss) income, net of tax:
Foreign currency translation and other(39,274)37,499 (46,852)18,377 
Net investment hedge— (12,408)5,110 (16,083)
Cash flow hedge214 6,993 (563)(6,822)
Interest rate swap651 647 1,951 1,943 
Total other comprehensive (loss) income, net of tax(38,409)32,731 (40,354)(2,585)
Comprehensive (loss) income(412,842)149,776 149,119 341,853 
Comprehensive income attributable to noncontrolling interests(18,374)(18,811)(61,927)(53,456)
Comprehensive (loss) income attributable to Albemarle Corporation$(431,216)$130,965 $87,192 $288,397 
See accompanying Notes to the Condensed Consolidated Financial Statements.
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ALBEMARLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
September 30,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents
$595,049 $746,724 
Trade accounts receivable, less allowance for doubtful accounts (2021 – $2,574; 2020 – $2,083)
520,746 530,838 
Other accounts receivable56,298 61,958 
Inventories745,598 750,237 
Other current assets160,415 116,427 
Total current assets2,078,106 2,206,184 
Property, plant and equipment, at cost7,783,962 7,427,641 
Less accumulated depreciation and amortization2,128,485 2,073,016 
Net property, plant and equipment5,655,477 5,354,625 
Investments902,504 656,244 
Other assets251,786 219,268 
Goodwill1,623,471 1,665,520 
Other intangibles, net of amortization320,981 349,105 
Total assets$10,832,325 $10,450,946 
Liabilities And Equity
Current liabilities:
Accounts payable$545,922 $483,221 
Accrued expenses956,506 440,763 
Current portion of long-term debt611 804,677 
Dividends payable45,450 40,937 
Income taxes payable42,553 32,251 
Total current liabilities1,591,042 1,801,849 
Long-term debt2,021,487 2,767,381 
Postretirement benefits47,020 48,075 
Pension benefits299,875 340,818 
Other noncurrent liabilities617,488 629,377 
Deferred income taxes360,181 394,852 
Commitments and contingencies (Note 10)
Equity:
Albemarle Corporation shareholders’ equity:
Common stock, $.01 par value, issued and outstanding – 116,976 in 2021 and 106,842 in 2020
1,170 1,069 
Additional paid-in capital2,913,383 1,438,038 
Accumulated other comprehensive loss(366,436)(326,132)
Retained earnings3,145,999 3,155,252 
Total Albemarle Corporation shareholders’ equity5,694,116 4,268,227 
Noncontrolling interests201,116 200,367 
Total equity5,895,232 4,468,594 
Total liabilities and equity$10,832,325 $10,450,946 
See accompanying Notes to the Condensed Consolidated Financial Statements.
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ALBEMARLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
(In Thousands, Except Share Data)Additional
Paid-in Capital		Accumulated Other
Comprehensive Loss		Retained EarningsTotal Albemarle
Shareholders’ Equity		Noncontrolling
Interests		Total Equity
Common Stock
SharesAmounts
Balance at July 1, 2021116,944,511 $1,169 $2,907,981 $(328,001)$3,584,400 $6,165,549 $200,222 $6,365,771 
Net (loss) income(392,781)(392,781)18,348 (374,433)
Other comprehensive (loss) income(38,435)(38,435)26 (38,409)
Cash dividends declared, $0.39 per common share
(45,620)(45,620)(17,480)(63,100)
Stock-based compensation4,203 4,203 4,203 
Fees related to public issuance of common stock23 23 23 
Exercise of stock options22,226 1 1,884 1,885 1,885 
Issuance of common stock, net12,688 — — — — 
Withholding taxes paid on stock-based compensation award distributions(3,107)— (708)(708)(708)
Balance at September 30, 2021116,976,318 $1,170 $2,913,383 $(366,436)$3,145,999 $5,694,116 $201,116 $5,895,232 
Balance at July 1, 2020106,336,982 $1,064 $1,400,105 $(431,131)$3,054,434 $4,024,472 $181,689 $4,206,161 
Net income98,301 98,301 18,744 117,045 
Other comprehensive income32,664 32,664 67 32,731 
Cash dividends declared, $0.385 per common share
(40,986)(40,986)— (40,986)
Stock-based compensation5,098 5,098 5,098 
Exercise of stock options96,356 1 6,115 6,116 6,116 
Issuance of common stock, net33,798 — — — — 
Withholding taxes paid on stock-based compensation award distributions(10,088)— (784)(784)(784)
Balance at September 30, 2020106,457,048 $1,065 $1,410,534 $(398,467)$3,111,749 $4,124,881 $200,500 $4,325,381 
Balance at January 1, 2021106,842,369 $1,069 $1,438,038 $(326,132)$3,155,252 $4,268,227 $200,367 $4,468,594 
Net income127,496 127,496 61,977 189,473 
Other comprehensive loss(40,304)(40,304)(50)(40,354)
Cash dividends declared, $1.17 per common share
(136,749)(136,749)(61,178)(197,927)
Stock-based compensation13,981 13,981 13,981 
Fees related to public issuance of common stock(888)(888)(888)
Exercise of stock options263,875 3 16,217 16,220 16,220 
Issuance of common stock, net9,918,778 99 1,453,789 1,453,888 1,453,888 
Withholding taxes paid on stock-based compensation award distributions(48,704)(1)(7,754)(7,755)(7,755)
Balance at September 30, 2021116,976,318 $1,170 $2,913,383 $(366,436)$3,145,999 $5,694,116 $201,116 $5,895,232 
Balance at January 1, 2020106,040,215 $1,061 $1,383,446 $(395,735)$2,943,478 $3,932,250 $161,330 $4,093,580 
Net income291,129 291,129 53,309 344,438 
Other comprehensive (loss) income(2,732)(2,732)147 (2,585)
Cash dividends declared, $1.155 per common share
(122,858)(122,858)(14,286)(137,144)
Stock-based compensation14,970 14,970 14,970 
Exercise of stock options300,833 3 16,922 16,925 16,925 
Issuance of common stock, net179,368 2 (2)— — 
Withholding taxes paid on stock-based compensation award distributions(63,368)(1)(4,802)(4,803)(4,803)
Balance at September 30, 2020106,457,048 $1,065 $1,410,534 $(398,467)$3,111,749 $4,124,881 $200,500 $4,325,381 
See accompanying Notes to the Condensed Consolidated Financial Statements.
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ALBEMARLE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended
September 30,
20212020
Cash and cash equivalents at beginning of year$746,724 $613,110 
Cash flows from operating activities:
Net income 189,473 344,438 
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization185,765 170,214 
Gain on sale of business(428,424)— 
Stock-based compensation and other14,668 15,864 
Equity in net income of unconsolidated investments (net of tax)(62,215)(83,872)
Dividends received from unconsolidated investments and nonmarketable securities43,374 61,309 
Pension and postretirement benefit(12,451)(4,975)
Pension and postretirement contributions(24,145)(10,323)
Unrealized gain on investments in marketable securities(3,912)(3,377)
Loss on early extinguishment of debt28,955 — 
Deferred income taxes(38,924)7,920 
Working capital changes456,405 (167,436)
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL135,928 131,929 
Other, net6,089 23 
Net cash provided by operating activities490,586 461,714 
Cash flows from investing activities:
Acquisitions, net of cash acquired— (22,572)
Capital expenditures(652,739)(621,371)
Cash proceeds from divestitures, net289,791 — 
Sales of marketable securities, net4,407 1,208 
Investments in equity and other corporate investments(286)(786)
Net cash used in investing activities(358,827)(643,521)
Cash flows from financing activities:
Proceeds from issuance of common stock1,453,888 — 
Repayments of long-term debt and credit agreements(1,173,823)(250,000)
Proceeds from borrowings of credit agreements— 452,163 
Other debt (repayments) borrowings, net(327,292)202,786 
Fees related to early extinguishment of debt(24,877)— 
Dividends paid to shareholders(132,236)(120,836)
Dividends paid to noncontrolling interests(61,178)(14,286)
Proceeds from exercise of stock options16,220 16,925 
Withholding taxes paid on stock-based compensation award distributions(7,755)(4,803)
Other(1,384)(2,751)
Net cash (used in) provided by financing activities(258,437)279,198 
Net effect of foreign exchange on cash and cash equivalents(24,997)(8,428)
(Decrease) increase in cash and cash equivalents(151,675)88,963 
Cash and cash equivalents at end of period$595,049 $702,073 
See accompanying Notes to the Condensed Consolidated Financial Statements.
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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

NOTE 1—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 consolidated balance sheets as of September 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 nine-month periods ended September 30, 2021 and 2020 and our condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2021 and 2020. 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 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 nine-month periods ended September 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.
Cost of goods sold for the three-month period ended September 30, 2021 includes expense of $13.5 million for the correction of out-of-period errors regarding misstated inventory foreign exchange values relating to prior periods. These misstatements in prior periods (understated) overstated Cost of goods sold by ($18.3) million and $9.6 million for the years ended December 31, 2020 and 2019, respectively, and ($4.8) million for the six months ended June 30, 2021. In addition, Income tax expense for the nine-month period ended September 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 these are material to the consolidated financial statements for any of the prior periods presented or to the three-month period ended September 30, 2021.
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.

NOTE 2—Acquisitions:
On September 30, 2021, the Company signed a definitive agreement to acquire all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co., Ltd. (“Tianyuan”), for approximately $200 million in cash. Tianyuan's operations include a recently constructed lithium processing plant strategically positioned near the Port of Qinzhou in Guangxi. The plant has designed annual conversion capacity of up to 25,000 metric tons of LCE and is capable of producing battery-grade lithium carbonate and lithium hydroxide. The plant is currently in the commissioning stage and is expected to begin commercial production in the first half of 2022. The Company expects the transaction, which is subject to customary closing conditions, to close in early 2022.

NOTE 3—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 nine-month period ended September 30, 2021 we recorded a gain of $428.4 million ($330.9 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 are included in the consolidated statements of income through June 1, 2021. This business did not qualify for discontinued operations treatment
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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.

NOTE 4—Goodwill and Other Intangibles:

The following table summarizes the changes in goodwill by reportable segment for the nine months ended September 30, 2021 (in thousands):
LithiumBromine SpecialtiesCatalystsAll OtherTotal
Balance at December 31, 2020
$1,441,781 $20,319 $196,834 $6,586 $1,665,520 
   Divestitures(a)
— — — (6,586)(6,586)
   Foreign currency translation adjustments(27,623)— (7,840)— (35,463)
Balance at September 30, 2021$1,414,158 $20,319 $188,994 $— $1,623,471 
(a)    Represents goodwill of the FCS business. See Note 3, “Divestitures,” for additional information.

The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2021 (in thousands):
Customer Lists and Relationships
Trade Names and Trademarks(a)
Patents and TechnologyOtherTotal
Gross Asset Value
  Balance at December 31, 2020
$448,748 $18,710 $58,096 $39,864 $565,418 
    Divestitures(b)
— — — (1,473)(1,473)
Foreign currency translation adjustments and other(12,075)(484)(507)(1,070)(14,136)
  Balance at September 30, 2021
$436,673 $18,226 $57,589 $37,321 $549,809 
Accumulated Amortization
  Balance at December 31, 2020
$(147,286)$(8,176)$(39,500)$(21,351)$(216,313)
    Amortization(17,342)— (1,095)(674)(19,111)
    Divestitures(b)
— — — 1,457 1,457 
Foreign currency translation adjustments and other4,023 111 685 320 5,139 
  Balance at September 30, 2021
$(160,605)$(8,065)$(39,910)$(20,248)$(228,828)
Net Book Value at December 31, 2020
$301,462 $10,534 $18,596 $18,513 $349,105 
Net Book Value at September 30, 2021
$276,068 $10,161 $17,679 $17,073 $320,981 
(a)    Net Book Value includes only indefinite-lived intangible assets.
(b)    Represents other intangibles of the FCS business. See Note 3, “Divestitures,” for additional information.

NOTE 5—Income Taxes:
The effective income tax rate for the three-month and nine-month periods ended September 30, 2021 was 22.2% and 10.2% compared to 25.2% and 19.8% for the three-month and nine-month periods ended September 30, 2020, respectively. The three- and nine-month periods ended September 30, 2021 include a tax benefit of $152.9 million related to an accrual recorded as a subsequent event for a legal arbitration ruling in October 2021. See Note 10, “Commitments and Contingencies,” for further details of this legal matter. The nine-month period ended September 30, 2021 also includes discrete tax expenses related to global intangible low-taxed income, 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 and foreign uncertain tax positions, partially offset by 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. The Company’s effective income tax rate fluctuates based on, among other factors, the amount and location of income. The difference between the U.S. federal
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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2021 and September 30, 2020 was impacted by a variety of factors, primarily stemming from the location in which income was earned. In addition, the nine-month period ended September 30, 2021 includes $97.5 million in tax expense recorded for the gain on the sale of the FCS business, offset by the tax benefit for the legal arbitration ruling noted above and a benefit from foreign rate differences.

NOTE 6—Earnings Per Share:
Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2021 and 2020 are calculated as follows (in thousands, except per share amounts):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Basic earnings per share
Numerator:
Net (loss) income attributable to Albemarle Corporation$(392,781)$98,301 $127,496 $291,129 
Denominator:
Weighted-average common shares for basic earnings per share116,965 106,386 115,455 106,314 
Basic (loss) earnings per share$(3.36)$0.92 $1.10 $2.74 
Diluted earnings per share
Numerator:
Net (loss) income attributable to Albemarle Corporation$(392,781)$98,301 $127,496 $291,129 
Denominator:
Weighted-average common shares for basic earnings per share116,965 106,386 115,455 106,314 
Incremental shares under stock compensation plans— 487 685 326 
Weighted-average common shares for diluted earnings per share116,965 106,873 116,140 106,640 
Diluted (loss) earnings per share$(3.36)$0.92 $1.10 $2.73 

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 9, “Long-Term Debt,” for further details.
On July 20, 2021, the Company declared a cash dividend of $0.39, an increase from the prior year regular quarterly dividend. This dividend was paid on October 1, 2021 to shareholders of record at the close of business as of September 17, 2021. On October 25, 2021, the Company declared a cash dividend of $0.39 per share, which is payable on January 3, 2022 to shareholders of record at the close of business as of December 17, 2021.
NOTE 7—Inventories:
The following table provides a breakdown of inventories at September 30, 2021 and December 31, 2020 (in thousands):
September 30,December 31,
20212020
Finished goods$426,616 $454,162 
Raw materials and work in process(a)
240,881 219,896 
Stores, supplies and other78,101 76,179 
Total$745,598 $750,237 

(a)Included $145.0 million and $129.6 million at September 30, 2021 and December 31, 2020, respectively, of work in process in our Lithium segment.


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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
NOTE 8—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 $469.4 million and $479.6 million at September 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 $8.2 million and $8.0 million at September 30, 2021 and December 31, 2020, respectively. Our unconsolidated VIEs are reported in Investments on the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.
As part of the 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 $248.8 million at September 30, 2021, which is reported in Investments in the consolidated balance sheets.

NOTE 9—Long-Term Debt:
Long-term debt at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):
September 30,December 31,
20212020
1.125% notes due 2025
$441,090 $610,800 
1.625% notes due 2028
584,800 610,800 
1.875% Senior notes due 2021
— 480,007 
3.45% Senior notes due 2029
171,612 300,000 
4.15% Senior notes due 2024
425,000 425,000 
5.45% Senior notes due 2044
350,000 350,000 
Floating rate notes— 200,000 
Credit facilities— 223,900 
Commercial paper notes— 325,000 
Variable-rate foreign bank loans5,404 7,702 
Finance lease obligations58,579 59,181 
Unamortized discount and debt issuance costs(14,387)(20,332)
Total long-term debt2,022,098 3,572,058 
Less amounts due within one year611 804,677 
Long-term debt, less current portion$2,021,487 $2,767,381 
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
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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
As a result, included in Interest and financing expenses for the nine-month period ended September 30, 2021 is a loss on early extinguishment of debt of $29.0 million 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 nine-month periods ended September 30, 2020 we recorded losses of $12.4 million and $16.1 million (net of income taxes), respectively in accumulated other comprehensive loss.

NOTE 10—Commitments and Contingencies:
Environmental
We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2021 (in thousands):
Beginning balance at December 31, 2020
$45,771 
Expenditures(1,529)
Accretion of discount723 
Additions and changes in estimates1,576 
Foreign currency translation adjustments and other(814)
Ending balance at September 30, 2021
45,727 
Less amounts reported in Accrued expenses9,850 
Amounts reported in Other noncurrent liabilities$35,877 
Environmental remediation liabilities included discounted liabilities of $38.2 million and $39.2 million at September 30, 2021 and December 31, 2020, respectively, discounted at rates with a weighted-average of 3.5%, and with the undiscounted amount totaling $71.2 million and $73.6 million at September 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,
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ALBEMARLE CORPORATION AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.
On February 6, 2017, Huntsman International LLC (“Huntsman”), a subsidiary of Huntsman Corporation, filed a lawsuit in New York state court against Rockwood Holdings, Inc. (“Rockwood”), Rockwood Specialties, Inc., certain former executives of Rockwood and its subsidiaries—Seifollah Ghasemi, Thomas Riordan, Andrew Ross, and Michael Valente, and Albemarle. The lawsuit arises out of Huntsman’s acquisition of certain Rockwood subsidiaries in connection with a stock purchase agreement (the “SPA”), dated September 17, 2013. Before that transaction closed on October 1, 2014, Albemarle began discussions with Rockwood to purchase all outstanding equity of Rockwood and did so in a transaction that closed on January 12, 2015. Huntsman’s complaint asserted that certain technology that Rockwood had developed for a production facility in Augusta, Georgia, and which was among the assets that Huntsman acquired pursuant to the SPA, did not work, and that Rockwood and the defendant executives had intentionally misled Huntsman about that technology in connection with the Huntsman-Rockwood transaction. The complaint asserted claims for, among other things, fraud, negligent misrepresentation, and breach of the SPA, and sought certain costs for completing construction of the production facility.
On March 10, 2017, Albemarle moved in New York state court to compel arbitration, which was granted on January 8, 2018 (although Huntsman unsuccessfully appealed that decision). Huntsman’s arbitration demand asserted claims substantially similar to those asserted in its state court complaint, and sought various forms of legal remedies, including cost overruns, compensatory damages, expectation damages, punitive damages, and restitution. After a trial, the arbitration panel issued an award on October 28, 2021, awarding approximately $600 million (including interest) to be paid by Albemarle to Huntsman, in addition to the possibility of attorney’s fees, costs and expenses. Albemarle continues to assess its legal rights and options. Albemarle and Huntsman have initiated discussions regarding a resolution of the matter.</