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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information:
The Company’s three reportable segments include: (1) Energy Storage; (2) Specialties; and (3) Ketjen. The segments are organized based on their similar markets, customers, economic characteristics and production processes. The organizational structure 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.
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 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. Effective January 1, 2024, the Company changed its definition of adjusted EBITDA for financial accounting purposes. The updated definition includes Albemarle’s share of the pre-tax earnings of the Windfield joint venture, whereas the prior definition included Albemarle’s share of Windfield earnings net of tax. This calculation is consistent with the definition of adjusted EBITDA used in the leverage financial covenant calculation in the amended 2022 Credit Agreement, which is a material agreement for the Company and aligns the information presented to various stakeholders. This presentation more closely represents the materiality and financial contribution of the strategic investment in Windfield to the Company’s earnings, and more closely represents a measure of EBITDA. The Company’s updated definition of adjusted EBITDA is earnings before interest and financing expenses, income tax expenses, the proportionate share of Windfield income tax expense, 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, certain litigation and arbitration costs and charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business and enterprise 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 additional useful measurements to review the Company’s operations, provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA for the prior period has been recast to conform to the current year presentation.
Segment information for the three-month and nine-month periods ended September 30, 2024 and 2023 were as follows (in thousands).
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net sales:
Energy Storage$767,291 $1,697,163 $2,398,299 $5,403,910 
Specialties342,376 352,722 993,041 1,142,802 
Ketjen245,025 260,711 754,473 714,326 
Total net sales$1,354,692 $2,310,596 $4,145,813 $7,261,038 
Adjusted EBITDA:
Energy Storage$142,887 $604,948 $623,862 $3,337,720 
Specialties56,273 46,307 155,629 268,665 
Ketjen35,473 15,159 95,288 72,584 
Total segment adjusted EBITDA$234,633 $666,414 $874,779 $3,678,969 
Depreciation and amortization:
Energy Storage$124,346 $67,323 $312,053 $176,025 
Specialties24,474 22,699 70,081 63,890 
Ketjen12,988 13,259 38,282 39,486 
Total segment depreciation and amortization161,808 103,281 420,416 279,401 
Corporate1,694 2,164 5,116 6,400 
Total depreciation and amortization$163,502 $105,445 $425,532 $285,801 
See below for a reconciliation of total segment adjusted EBITDA to the Company’s consolidated Net (loss) 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
September 30,		Nine Months Ended
September 30,
2024202320242023
Total segment adjusted EBITDA$234,633 $666,414 $874,779 $3,678,969 
Corporate expenses, net(23,135)(13,442)14,315 1,949 
Depreciation and amortization(163,502)(105,445)(425,532)(285,801)
Interest and financing expenses(47,760)(29,332)(120,916)(81,686)
Income tax (expense) benefit(110,853)8,551 (76,472)(311,399)
Proportionate share of Windfield income tax expense(a)
(99,523)(199,685)(292,992)(599,646)
Acquisition and integration related costs(b)
(439)(10,043)(3,927)(21,653)
Restructuring charges and asset write-offs(c)
(860,864)(1,757)(1,194,614)(9,196)
Non-operating pension and OPEB items331 (620)993 (1,833)
(Loss) gain in fair value of public equity securities(d)
(4,983)(26,445)(65,922)34,401 
Legal accrual(e)
— — — (218,510)
Other(f)
7,103 14,337 35,546 5,561 
Net (loss) income attributable to Albemarle Corporation$(1,068,992)$302,533 $(1,254,742)$2,191,156 
(a)Albemarle’s 49% ownership interest in the reported income tax expense of the Windfield joint venture.
(b)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in SG&A.
(c)See Note 9, “Restructuring Charges and Asset Write-offs,” for further details.
(d)Loss of $5.0 million and $32.2 million recorded in Other (expenses) income, net for the three and nine months ended September 30, 2024, respectively, resulting from the net change in fair value of investments in public equity securities and a loss of $33.7 million recorded in Other (expenses) income, net for the nine months ended September 30, 2024 resulting from the sale of investments in public equity securities. (Loss) gain of ($26.4) million and $34.4 million recorded in Other (expenses) income, net for the three and nine months ended September 30, 2023, respectively, resulting from the net change in fair value of investments in public equity securities.
(e)Accrual recorded in SG&A representing for the agreements in principle to resolve a previously disclosed legal matter with the DOJ and SEC. This matter was settled in the third quarter of 2023.
(f)Included amounts for the three months ended September 30, 2024 recorded in:
•SG&A - $0.1 million of expenses related to certain historical legal matters.
•Other (expenses) income, net - $9.2 million of income from PIK dividends of preferred equity in a Grace subsidiary, partially offset by a $2.0 million loss resulting from the adjustment of indemnification related to a previously disposed business.
Included amounts for the three months ended September 30, 2023 recorded in:
•SG&A - $0.7 million of facility closure expenses related to offices in Germany and $0.3 million of a loss from the sale of legacy properties not part of our operations.
•Other (expenses) income, net - $8.2 million gain in the fair value of preferred equity of a Grace subsidiary and a $7.2 million gain resulting from insurance proceeds of a prior legal matter.
Included amounts for the nine months ended September 30, 2024 recorded in:
•Cost of goods sold - $1.4 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
•SG&A - $5.3 million of expenses related to certain historical legal and environmental matters.
•Other (expenses) income, net - $26.8 million of income from PIK dividends of preferred equity in a Grace subsidiary, a $17.3 million gain primarily from the sale of assets at a site not part of our operations, a $0.6 million gain from an updated cost estimate of an environmental reserve at a site not part of our operations and a $0.4 million net gain primarily resulting from the adjustment of indemnification related to previously disposed businesses, partially offset by $2.9 million of charges for asset retirement obligations at a site not part of our operations.
Included amounts for the nine months ended September 30, 2023 recorded in:
•SG&A - $2.1 million of facility closure expenses related to offices in Germany, $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $1.0 million primarily related to shortfall contributions for a multiemployer plan financial improvement plan.
•Other (expenses) income, net - $10.9 million gain in the fair value of preferred equity of a Grace subsidiary and a $7.2 million gain resulting from insurance proceeds of a prior legal matter, partially offset by $3.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses and $3.6 million of charges for asset retirement obligations at a site not part of our operations.