Investments

12 Months Ended

Dec. 31, 2021

Investments:

Investments include our share of unconsolidated joint ventures, nonmarketable securities and marketable equity securities. The following table details our investment balances at December 31, 2021 and 2020 (in thousands):


	December 31,
	2021		2020
Joint ventures	$	593,344	$	604,964
Available for sale debt securities	246,517		—
Nonmarketable securities	20,660		14,171
Marketable equity securities	37,187		37,109
Total	$	897,708	$	656,244

Our ownership positions in significant unconsolidated investments are shown below:


		December 31,
		2021		2020		2019
*	Windfield Holdings Pty. Ltd. - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate	49	%	49	%	49	%
*	Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls	50	%	50	%	50	%

*	Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts	50	%	50	%	50	%
*	Eurecat S.A. - a joint venture with Axens Group for refinery catalysts regeneration services	50	%	50	%	50	%
*	Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities	50	%	50	%	50	%

Our investment in the significant unconsolidated joint ventures above amounted to $575.3 million and $587.6 million as of December 31, 2021 and 2020, respectively, and the amount included in Equity in net income of unconsolidated investments (net of tax) in the consolidated statements of income totaled $94.9 million, $126.0 million and $128.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. Undistributed earnings attributable to our significant unconsolidated investments represented approximately $271.9 million and $255.4 million of our consolidated retained earnings at December 31, 2021 and 2020, respectively. All of the unconsolidated joint ventures in which we have investments are private companies and accordingly do not have a quoted market price available.

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


	December 31,
	2021		2020
Summary of Balance Sheet Information:
Current assets	$	485,730	$	449,441
Noncurrent assets	1,590,958		1,590,204
Total assets	$	2,076,688	$	2,039,645

Current liabilities	$	209,621	$	116,136
Noncurrent liabilities	739,599		769,114
Total liabilities	$	949,220	$	885,250


	Year Ended December 31,
	2021		2020		2019
Summary of Statements of Income Information:
Net sales	$	827,848	$	597,082	$	910,891
Gross profit	$	443,129	$	266,026	$	496,150
Income before income taxes	$	269,788	$	225,436	$	384,690
Net income	$	187,084	$	157,628	$	229,733

We have evaluated each of the unconsolidated investments pursuant to current accounting guidance and none qualify for consolidation. Dividends received from our significant unconsolidated investments were $78.4 million, $87.4 million and $71.0 million in 2021, 2020 and 2019, respectively.

At December 31, 2021 and 2020, the carrying amount of our investments in unconsolidated joint ventures differed from the amount of underlying equity in net assets by approximately $30.4 million and $32.1 million, respectively. These amounts represent the differences between the value of certain assets of the joint ventures and our related valuation on a U.S. GAAP basis.

The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), which we acquired in the Rockwood acquisition. With regards to the Company’s ownership in Windfield, the parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $462.3 million and $479.6 million at December 31, 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 $8.0 million and $8.0 million at December 31, 2021 and December 31, 2020, respectively. Our unconsolidated VIEs are reported in Investments in the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.

In the fourth quarter of 2020, the Company divested its ownership interest in the Saudi Organometallic Chemicals Company LLC (“SOCC”) joint venture for cash proceeds of $11.0 million. As a result of this divestiture, the Company recorded a gain of $7.2 million in Other expenses, net during the year ended December 31, 2020.

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

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

On June 1, 2021, the Company completed the sale of its FCS business to 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 PIK dividends at an annual rate of 12% beginning June 1, 2023, two years after issuance. The fair value of this preferred equity was $246.5 million at December 31, 2021.

We maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of our Executive Deferred Compensation Plan (“EDCP”), subject to the claims of our creditors in the event of our insolvency. Assets of the Trust, in conjunction with our EDCP, are accounted for as trading securities in accordance with authoritative accounting guidance. The assets of the Trust consist primarily of mutual fund investments and are marked-to-market on a monthly basis through the consolidated statements of income. At December 31, 2021 and 2020, these marketable securities amounted to $32.5 million and $32.4 million, respectively.