Operating Segments (Tables)

9 Months Ended

Sep. 30, 2012

Reportable Segments Summarized Financial Information

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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(In thousands)
Net sales:
Polymer Solutions	$	216,992		$	243,931		$	692,139		$	792,604
Catalysts		251,201			299,531			773,867			827,339
Fine Chemistry		193,033			179,515			591,818			541,672
Total net sales	$	661,226		$	722,977		$	2,057,824		$	2,161,615
Segment operating profit:
Polymer Solutions	$	42,964		$	55,219		$	157,487		$	203,900
Catalysts		53,937			93,682			185,656			209,251
Fine Chemistry		46,036			34,793			135,543			111,387
Total segment operating profit		142,937			183,694			478,686			524,538
Equity in net income of unconsolidated investments:
Polymer Solutions		1,199			1,357			4,957			6,496
Catalysts		6,736			8,170			24,276			30,796
Fine Chemistry		—			—			—			—
Corporate & other		—			(27	)		—			(174	)
Total equity in net income of unconsolidated investments		7,935			9,500			29,233			37,118
Net (income) loss attributable to noncontrolling interests:
Polymer Solutions		(602	)		(2,021	)		(1,255	)		(9,200	)
Catalysts		—			—			—			—
Fine Chemistry		(4,373	)		(4,789	)		(11,577	)		(14,439	)
Corporate & other		—			(50	)		(20	)		57
Total net income attributable to noncontrolling interests		(4,975	)		(6,860	)		(12,852	)		(23,582	)
Segment income:
Polymer Solutions		43,561			54,555			161,189			201,196
Catalysts		60,673			101,852			209,932			240,047
Fine Chemistry		41,663			30,004			123,966			96,948
Total segment income		145,897			186,411			495,087			538,191
Corporate & other(a)		(7,993	)		(23,462	)		(48,466	)		(72,889	)
Restructuring and other charges(b)		(6,508	)		—			(101,211	)		—
Interest and financing expenses		(7,914	)		(9,710	)		(25,134	)		(28,576	)
Other income, net		2,370			956			1,564			534
Income tax expense(c)		(26,591	)		(38,097	)		(76,804	)		(100,423	)
Net income attributable to Albemarle Corporation	$	99,261		$	116,098		$	245,036		$	336,837

(a) Corporate and other charges for the three-month and nine-month periods ended September 30, 2012 include reductions in performance-based incentive compensation accruals comprised of approximately $5.4 million in adjustments based on current estimates of related performance achievement measures and approximately $2.2 million in adjustments associated with forfeitures from employee departures. These items are reflected primarily in Selling, general and administrative expenses in our consolidated statements of income.

(b) The three-month and nine-month periods ended September 30, 2012 include a settlement charge of $6.5 million ($4.1 million after income taxes) associated with our SERP in connection with the retirement of our former CEO and executive chairman. The nine-month period ended September 30, 2012 also includes charges amounting to $94.7 million ($73.6 million after income taxes) in connection with our exit of the phosphorous flame retardants business.

(c) The three-month and nine-month periods ended September 30, 2012 includes $4.5 million of net tax benefits related principally to the release of various tax reserves for uncertain domestic tax positions due to the expiration of the statute of limitations related to the 2008 tax year.