Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Reportable Segments Summarized Financial Information

Segment information for the three-month periods ended March 31, 2023 and 2022 were as follows (in thousands). Prior period amounts have been recast to reflect the current segment structure.


	Three Months Ended March 31,
		2023		2022
Net sales:
Energy Storage		$	1,943,682	$	463,704
Specialties		418,778		446,147
Ketjen		217,792		217,877


Total net sales		$	2,580,252	$	1,127,728









Adjusted EBITDA:
Energy Storage		$	1,406,181	$	285,247
Specialties		162,158		152,602
Ketjen		14,543		16,910
Total segment adjusted EBITDA		1,582,882		454,759

Corporate		12,837		(22,829)
Total adjusted EBITDA		$	1,595,719	$	431,930

Depreciation and amortization:
Energy Storage		$	52,162	$	35,046
Specialties		19,892		16,153
Ketjen		13,143		12,921

Corporate		2,074		2,454
Total depreciation and amortization		$	87,271	$	66,574

See below for a reconciliation of total segment adjusted EBITDA to the companies consolidated Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):


	Three Months Ended March 31,
		2023		2022
Total segment adjusted EBITDA		$	1,582,882	$	454,759
Corporate expenses, net		12,837		(22,829)
Depreciation and amortization		(87,271)		(66,574)
Interest and financing expenses(a)		(26,777)		(27,834)
Income tax expense		(276,963)		(80,530)

Loss on sale of interest in properties, net(b)		—		(8,400)
Acquisition and integration related costs(c)		(5,108)		(1,724)

Non-operating pension and OPEB items		(601)		5,280

Mark-to-market gain on public equity securities(d)		45,826		—



Other(e)		(6,245)		1,235
Net income attributable to Albemarle Corporation		$	1,238,580	$	253,383

(a)Included in Interest and financing expenses for the three months ended March 31, 2022 is the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods.

(b)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 MRL, which maintains a 40% ownership interest in these Kemerton assets.

(c)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”).

(d)Gain recorded in Other income, net for the three months ended March 31, 2023, resulting from the increase in fair value of investments in public equity securities.

(e)Included amounts for the three months ended March 31, 2023 recorded in:

•SG&A - $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $0.7 million of facility closure expenses related to offices in Germany.

•Other income, net - $3.6 million of charges for asset retirement obligations at a site not part of our operations.

Included amounts for the three months ended March 31, 2022 recorded in:

•SG&A - $4.3 million of gains from the sale of legacy properties not part of our operations, partially offset by $2.8 million of charges for environmental reserves at sites not part of our operations and $0.7 million of facility closure expenses related to offices in Germany.

•Other income, net - $0.6 million gain related to a settlement received from a legal matter in a prior period.