Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Summarized Financial Information by Reportable Segments

	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Net sales:
Lithium	$	5,008,850	$	1,363,284	$	1,144,778
Bromine	1,411,682		1,128,343		964,962
Catalysts	899,572		761,235		797,914
All Other	—		75,095		221,255
Total net sales	$	7,320,104	$	3,327,957	$	3,128,909
Adjusted EBITDA:
Lithium	$	3,102,662	$	479,538	$	393,093
Bromine	456,916		360,682		323,605
Catalysts	28,732		106,941		130,134
All Other	—		29,858		84,821
Corporate	(112,453)		(106,045)		(112,915)
Total adjusted EBITDA	$	3,475,857	$	870,974	$	818,738

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):

	Lithium		Bromine		Catalysts		All Other		Corporate		Consolidated Total
2022
Net income (loss) attributable to Albemarle Corporation	$	2,903,076	$	402,820	$	(27,104)	$	—	$	(588,976)	$	2,689,816
Depreciation and amortization	189,347		54,096		51,417		—		5,981		300,841
Loss on sale of interest in properties(a)	8,400		—		—		—		—		8,400
Acquisition and integration related costs(b)	—		—		—		—		16,259		16,259
Interest and financing expenses(c)	—		—		—		—		122,973		122,973
Income tax expense	—		—		—		—		390,588		390,588
Non-operating pension and OPEB items	—		—		—		—		(57,032)		(57,032)
Other(d)	1,839		—		4,419		—		(2,246)		4,012
Adjusted EBITDA	$	3,102,662	$	456,916	$	28,732	$	—	$	(112,453)	$	3,475,857
2021
Net income (loss) attributable to Albemarle Corporation	$	192,244	$	309,501	$	55,353	$	27,988	$	(461,414)	$	123,672
Depreciation and amortization	138,772		51,181		51,588		1,870		10,589		254,000
Restructuring and other(e)	—		—		—		—		3,027		3,027
Loss (gain) on sale of business/interest in properties, net(f)	132,400		—		—		—		(428,371)		(295,971)
Acquisition and integration related costs(b)	—		—		—		—		12,670		12,670
Interest and financing expenses(c)	—		—		—		—		61,476		61,476
Income tax expense	—		—		—		—		29,446		29,446
Non-operating pension and OPEB items	—		—		—		—		(78,814)		(78,814)
Legal accrual(g)	—		—		—		—		657,412		657,412
Albemarle Foundation contribution(h)	—		—		—		—		20,000		20,000
Indemnification adjustments(i)	—		—		—		—		39,381		39,381
Other(j)	16,122		—		—		—		28,553		44,675
Adjusted EBITDA	$	479,538	$	360,682	$	106,941	$	29,858	$	(106,045)	$	870,974
2020
Net income (loss) attributable to Albemarle Corporation	$	277,711	$	274,495	$	80,149	$	76,323	$	(332,914)	$	375,764
Depreciation and amortization	112,854		50,310		49,985		8,498		10,337		231,984
Restructuring and other(e)	—		—		—		—		19,597		19,597
Acquisition and integration related costs(b)	—		—		—		—		17,263		17,263
Interest and financing expenses	—		—		—		—		73,116		73,116
Income tax expense	—		—		—		—		54,425		54,425
Non-operating pension and OPEB items	—		—		—		—		40,668		40,668
Other(k)	2,528		(1,200)		—		—		4,593		5,921
Adjusted EBITDA	$	393,093	$	323,605	$	130,134	$	84,821	$	(112,915)	$	818,738

(a)Expense recorded as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues. The corresponding obligation was recorded in Accrued liabilities to be transferred to Mineral Resources Limited (“MRL”), which maintains a 40% ownership interest in these Kemerton assets.

(b)See Note 2, “Acquisitions,” for additional information.

(c)Included in Interest and financing expenses is a loss on early extinguishment of debt of $19.2 million and $29.0 million for the years ended December 31, 2022 and 2021, respectively. See Note 14, “Long-term Debt,” for additional information. In addition, Interest and financing expenses for the year ended December 31, 2022 includes the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods. See Note 1, “Summary of Significant Accounting Policies,” for further details.

(d)Included amounts for the year ended December 31, 2022 recorded in:

•Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment, and $0.5 million related to the settlement of a legal matter resulting from a prior acquisition.

•SG&A - $4.3 million primarily related to facility closure expenses of offices in Germany, $2.8 million of charges for environmental reserves at sites not part of our operations, $2.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $1.9 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review, partially offset by $4.3 million of gains from the sale of legacy properties not part of our operations.

•Other income (expenses), net - $4.3 million net gain related to the fair value adjustment of equity securities in a public company, a $3.0 million gain from the reversal of a liability related to a previous divestiture, a $2.0 million gain relating to the adjustment of an environmental reserve at non-operating businesses we previously divested and a $0.6 million gain related to a settlement received from a legal matter in a prior period, partially offset by a $3.2 million loss resulting from the adjustment of indemnification related to previously disposed businesses.

(e)In 2021, we recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in SG&A. During the year ended December 31, 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Belgium, Germany and with our Jordanian joint venture partner. We recorded expenses of $0.7 million in Cost of goods sold, $19.2 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.

(f)Includes a $428.4 million gain related to the FCS divestiture recorded during the year ended December 31, 2021. See Note 3, “Divestitures,” for additional information on this gain. In addition, includes a $132.4 million expense related to anticipated cost overruns for MRL’s 40% interest in lithium hydroxide conversion assets being built in Kemerton. See Note 2, “Acquisitions,” for additional information.

(g)Loss recorded in Other income (expenses), net for the year ended December 31, 2021 related to the settlement of an arbitration ruling for a prior legal matter. See Note 17, “Commitments and Contingencies,” for further details.

(h)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 the Company’s 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.

(i)Included in Other income (expenses), net to revise an indemnification estimate for an ongoing tax-related matter of a previously disposed business in Germany. A corresponding discrete tax benefit of $27.9 million was recorded in Income tax expense during the same period, netting to an expected cash obligation of approximately $11.5 million.

(j)Included amounts for the year ended December 31, 2021 recorded in:

•Cost of goods sold - $10.5 million of expense related to a legal matter as part of a prior acquisition in our Lithium business.

•SG&A - $11.5 million of legal fees related to a legacy Rockwood legal matter noted above, $9.8 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 $3.8 million of charges for environmental reserves at a sites not part of our operations.

•Other income (expenses), net - $4.8 million of net expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.

(k)Included amounts for the year ended December 31, 2020 recorded in:

•Cost of goods sold - $1.3 million of expense related to a legal matter as part of a prior acquisition in our Lithium business.

•SG&A - $3.1 million of shortfall contributions for our multiemployer plan financial improvement plan and $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested.

•Other income (expenses), net - $7.2 million gain related to the sale of our ownership percentage in the SOCC joint venture, $3.6 million of a net gain primarily relating to the sale of intangible assets in our Bromine business and property in Germany not used as part of our operations and a $2.5 million net gain resulting from the settlement of legal matters related to a business sold or a site in the process of being sold, partially offset by $9.6 million of losses resulting from the adjustment of indemnifications related to previously disposed businesses and $1.2 million of expenses related to other costs outside of our regular operations.

	December 31,
	2022		2021		2020
			(In thousands)
Identifiable assets:
Lithium(a)	$	10,795,997	$	7,676,259	$	7,134,229
Bromine	1,072,535		939,808		867,648
Catalysts	1,214,482		1,149,592		1,066,089
All Other	—		—		136,659
Corporate	2,373,508		1,208,459		1,246,321
Total identifiable assets	$	15,456,522	$	10,974,118	$	10,450,946

(a)Increase in Lithium identifiable assets each year primarily due to capital expenditures for growth and capacity increases, and the impact of increased lithium pricing on working capital balances.

	Year Ended December 31,
	2022		2021		2020
			(In thousands)
Depreciation and amortization:
Lithium	$	189,347	$	138,772	$	112,854
Bromine	54,096		51,181		50,310
Catalysts	51,417		51,588		49,985
All Other	—		1,870		8,498
Corporate	5,981		10,589		10,337
Total depreciation and amortization	$	300,841	$	254,000	$	231,984
Capital expenditures:
Lithium	$	1,010,661	$	813,128	$	720,563
Bromine	153,407		70,711		57,486
Catalysts	66,319		49,312		44,448
All Other	—		2,339		6,792
Corporate	31,259		18,177		21,188
Total capital expenditures	$	1,261,646	$	953,667	$	850,477

Net Sales by Geographic Area

	Year Ended December 31,
	2022		2021		2020
			(In thousands)
Net Sales(a):
United States	$	888,612	$	730,738	$	743,834
Foreign(b)	6,431,492		2,597,219		2,385,075
Total	$	7,320,104	$	3,327,957	$	3,128,909

(a)Net sales are attributed to countries based upon shipments to final destination.

(b)In 2022, net sales to China, South Korea and Japan represented 33%, 22% and 15%, respectively, of total net sales. In 2021, net sales to China, Japan and South Korea represented 18%, 14% and 11%, respectively, of total net sales. In 2020, net sales to South Korea, China and Japan represented 14%, 14%, and 13%, respectively, of total net sales.

During 2022, the only customer that represented more than 10% of the Company’s consolidated net sales was Umicore N.V. and its affiliates.

Long-Lived Assets by Geographic Area

	As of December 31,
	2022		2021		2020
			(In thousands)
Long-Lived Assets(a):
United States	$	1,371,347	$	1,040,252	$	1,007,793
Australia	3,253,069		2,736,590		2,362,377
Chile	2,057,270		1,923,821		1,814,658
China	438,090		139,537		122,749
Jordan	267,612		262,392		256,640
Netherlands	167,264		177,405		181,206
Germany	77,845		80,956		90,174
France	52,894		49,740		45,505
Brazil	31,855		29,474		24,393
Other foreign countries	77,747		62,667		66,273
Total	$	7,794,993	$	6,502,834	$	5,971,768

(a)    Long-lived assets are comprised of the Company’s Property, plant and equipment and joint ventures included in Investments.