Operating Segments

6 Months Ended

Jun. 30, 2012

Operating Segments

NOTE 9—Operating Segments:

Segment income represents operating profit (adjusted for significant non-recurring items) and equity in net income of unconsolidated investments and is reduced by net income attributable to noncontrolling interests. Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs.

Summarized financial information concerning our reportable segments is shown in the following table. Corporate & other includes corporate-related items not allocated to the reportable segments.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Net sales:
Polymer Solutions	$	247,016		$	290,450		$	475,147		$	548,673
Catalysts		229,144			266,851			522,666			527,808
Fine Chemistry		208,734			184,807			398,785			362,157
Total net sales	$	684,894		$	742,108		$	1,396,598		$	1,438,638
Segment operating profit:
Polymer Solutions	$	61,811		$	78,850		$	114,523		$	148,681
Catalysts		56,304			53,438			131,719			115,569
Fine Chemistry		47,583			42,635			89,507			76,594
Total segment operating profit		165,698			174,923			335,749			340,844
Equity in net income of unconsolidated investments:
Polymer Solutions		1,913			2,650			3,758			5,139
Catalysts		10,799			12,165			17,540			22,626
Fine Chemistry		—			—			—			—
Corporate & Other		—			(28	)		—			(147	)
Total equity in net income of unconsolidated investments		12,712			14,787			21,298			27,618
Net (income) loss attributable to noncontrolling interests:
Polymer Solutions		349			(4,333	)		(653	)		(7,179	)
Catalysts		—			—			—			—
Fine Chemistry		(3,832	)		(5,225	)		(7,204	)		(9,650	)
Corporate & Other		(23	)		23			(20	)		107
Total net income attributable to noncontrolling interests		(3,506	)		(9,535	)		(7,877	)		(16,722	)
Segment income:
Polymer Solutions		64,073			77,167			117,628			146,641
Catalysts		67,103			65,603			149,259			138,195
Fine Chemistry		43,751			37,410			82,303			66,944
Total segment income		174,927			180,180			349,190			351,780
Corporate & other		(18,571	)		(25,833	)		(40,473	)		(49,427	)
Restructuring and other charges(a)		(94,703	)		—			(94,703	)		—
Interest and financing expenses		(8,486	)		(9,274	)		(17,220	)		(18,866	)
Other expenses, net		(688	)		(760	)		(806	)		(422	)
Income tax expense		(14,747	)		(30,154	)		(50,213	)		(62,326	)
Net income attributable to Albemarle Corporation	$	37,732		$	114,159		$	145,775		$	220,739

(a) The three-month and six-month periods ended June 30, 2012 include charges amounting to $94,703 ($73,590 after income taxes) in connection with our exit of the phosphorous flame retardants business.