Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 09, 2013 | |
Document And Entity Information [Abstract] [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ALB | |
Entity Registrant Name | ALBEMARLE CORP | |
Entity Central Index Key | 915913 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,399,291 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net sales | $648,638 | $661,226 | $1,924,460 | $2,057,824 | ||||
Cost of goods sold | 436,989 | 443,476 | 1,316,582 | 1,339,806 | ||||
Gross profit | 211,649 | 217,750 | 607,878 | 718,018 | ||||
Selling, general and administrative expenses | 62,543 | 53,404 | 190,193 | 189,143 | ||||
Research and development expenses | 19,441 | 19,831 | 60,959 | 59,791 | ||||
Restructuring and other charges, net (Note 13) | 0 | [1] | 0 | [1] | 0 | [1] | 94,703 | [1] |
Operating profit | 129,665 | 144,515 | 356,726 | 374,381 | ||||
Interest and financing expenses | -9,496 | -7,914 | -22,335 | -25,134 | ||||
Other (expenses) income, net | -389 | 2,370 | -6,295 | 1,564 | ||||
Income before income taxes and equity in net income of unconsolidated investments | 119,780 | 138,971 | 328,096 | 350,811 | ||||
Income tax expense | 27,274 | 32,472 | 74,916 | 93,382 | ||||
Income before equity in net income of unconsolidated investments | 92,506 | 106,499 | 253,180 | 257,429 | ||||
Equity in net income of unconsolidated investments (net of tax) | 5,338 | 7,935 | 25,308 | 29,233 | ||||
Net income | 97,844 | 114,434 | 278,488 | 286,662 | ||||
Net income attributable to noncontrolling interests | -7,332 | -4,975 | -21,250 | -12,852 | ||||
Net income attributable to Albemarle Corporation | $90,512 | $109,459 | $257,238 | $273,810 | ||||
Basic earnings per share (in dollars per share) | $1.11 | $1.23 | $3.04 | $3.07 | ||||
Diluted earnings per share (in dollars per share) | $1.11 | $1.22 | $3.02 | $3.04 | ||||
Weighted-average common shares outstanding - basic (in shares) | 81,385 | 89,327 | 84,711 | 89,246 | ||||
Weighted-average common shares outstanding - diluted (in shares) | 81,852 | 89,879 | 85,192 | 89,959 | ||||
Cash dividends declared per share of common stock (in dollars per share) | $0.24 | $0.20 | $0.72 | $0.60 | ||||
[1] | See Note 13, “Restructuring and Other.†|
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Net income | $97,844 | $114,434 | $278,488 | $286,662 | ||
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation | 40,613 | 29,165 | 11,945 | 2,295 | ||
Pension and postretirement benefits | -201 | [1] | -168 | -605 | [1] | -502 |
Other | 38 | 29 | 99 | 95 | ||
Total other comprehensive income, net of tax | 40,450 | 29,026 | 11,439 | 1,888 | ||
Comprehensive income | 138,294 | 143,460 | 289,927 | 288,550 | ||
Comprehensive income attributable to non-controlling interests | -7,669 | -4,975 | -21,658 | -13,007 | ||
Comprehensive income attributable to Albemarle Corporation | $130,625 | $138,485 | $268,269 | $275,543 | ||
[1] | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.†|
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $401,427 | $477,696 |
Trade accounts receivable, less allowance for doubtful accounts (2013 – $1,537; 2012 - $1,641) | 409,206 | 378,973 |
Other accounts receivable | 37,507 | 43,844 |
Inventories | 485,804 | 428,145 |
Other current assets | 60,762 | 78,655 |
Total current assets | 1,394,706 | 1,407,313 |
Property, plant and equipment, at cost | 2,934,613 | 2,818,604 |
Less accumulated depreciation and amortization | 1,585,637 | 1,522,033 |
Net property, plant and equipment | 1,348,976 | 1,296,571 |
Investments | 208,077 | 207,141 |
Other assets | 149,076 | 154,836 |
Goodwill | 279,668 | 276,966 |
Other intangibles, net of amortization | 89,562 | 94,464 |
Total assets | 3,470,065 | 3,437,291 |
Current liabilities: | ||
Accounts payable | 192,897 | 172,866 |
Accrued expenses | 160,025 | 177,546 |
Current portion of long-term debt | 19,602 | 12,700 |
Dividends payable | 19,185 | 17,471 |
Income taxes payable | 19,128 | 4,426 |
Total current liabilities | 410,837 | 385,009 |
Long-term debt | 1,060,282 | 686,588 |
Postretirement benefits | 59,730 | 60,815 |
Pension benefits | 192,374 | 195,481 |
Other noncurrent liabilities | 100,925 | 114,022 |
Deferred income taxes | 68,768 | 63,368 |
Commitments and contingencies (Note 8) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding - 81,396 in 2013 and 88,899 in 2012 | 814 | 889 |
Additional paid-in capital | 6,016 | 2,761 |
Accumulated other comprehensive income | 96,295 | 85,264 |
Retained earnings | 1,363,970 | 1,744,684 |
Total Albemarle Corporation shareholders’ equity | 1,467,095 | 1,833,598 |
Noncontrolling interests | 110,054 | 98,410 |
Total equity | 1,577,149 | 1,932,008 |
Total liabilities and equity | $3,470,065 | $3,437,291 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Trade accounts receivable, allowance for doubtful accounts | $1,537 | $1,641 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, issued (in shares) | 81,396 | 88,899 |
Common stock, outstanding (in shares) | 81,396 | 88,899 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Total Albemarle Shareholders' Equity | Non-controlling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $1,678,827 | $888 | $15,194 | $60,329 | $1,514,866 | $1,591,277 | $87,550 |
Beginning Balance (in shares) at Dec. 31, 2011 | 88,841,240 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 286,662 | 273,810 | 273,810 | 12,852 | |||
Other comprehensive income | 1,888 | 1,733 | 1,733 | 155 | |||
Cash dividends declared | -61,195 | -53,567 | -53,567 | -7,628 | |||
Stock-based compensation and other | 10,294 | 10,294 | 10,294 | ||||
Exercise of stock options (in shares) | 897,069 | ||||||
Exercise of stock options | 19,977 | 9 | 19,968 | 19,977 | |||
Shares repurchased (in shares) | -680,000 | ||||||
Shares repurchased | -40,470 | -7 | -40,463 | -40,470 | |||
Tax benefit related to stock plans | 14,424 | 14,424 | 14,424 | ||||
Issuance of common stock, net (in shares) | 341,620 | ||||||
Issuance of common stock, net | 4 | -4 | |||||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | -140,054 | ||||||
Shares withheld for withholding taxes associated with common stock issuances | -9,124 | -1 | -9,123 | -9,124 | |||
Ending Balance at Sep. 30, 2012 | 1,901,283 | 893 | 10,290 | 62,062 | 1,735,109 | 1,808,354 | 92,929 |
Ending Balance (in shares) at Sep. 30, 2012 | 89,259,875 | ||||||
Beginning Balance at Dec. 31, 2012 | 1,932,008 | 889 | 2,761 | 85,264 | 1,744,684 | 1,833,598 | 98,410 |
Beginning Balance (in shares) at Dec. 31, 2012 | 88,899,209 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 278,488 | 257,238 | 257,238 | 21,250 | |||
Other comprehensive income | 11,439 | 11,031 | 11,031 | 408 | |||
Cash dividends declared | -70,302 | -60,288 | -60,288 | -10,014 | |||
Stock-based compensation and other | 6,324 | 6,324 | 6,324 | ||||
Exercise of stock options (in shares) | 152,739 | ||||||
Exercise of stock options | 4,510 | 1 | 4,509 | 4,510 | |||
Shares repurchased (in shares) | -7,814,045 | ||||||
Shares repurchased | -582,298 | -78 | -4,556 | -577,664 | -582,298 | ||
Tax benefit related to stock plans | 3,078 | 3,078 | 3,078 | ||||
Issuance of common stock, net (in shares) | 254,334 | ||||||
Issuance of common stock, net | 3 | -3 | |||||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | -96,080 | ||||||
Shares withheld for withholding taxes associated with common stock issuances | -6,098 | -1 | -6,097 | -6,098 | |||
Ending Balance at Sep. 30, 2013 | $1,577,149 | $814 | $6,016 | $96,295 | $1,363,970 | $1,467,095 | $110,054 |
Ending Balance (in shares) at Sep. 30, 2013 | 81,396,157 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash and cash equivalents at beginning of year | $477,696 | $469,416 |
Cash flows from operating activities: | ||
Net income | 278,488 | 286,662 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 79,477 | 74,428 |
Non-cash charges associated with restructuring and other, net | 0 | 70,587 |
Stock-based compensation | 7,036 | 10,808 |
Excess tax benefits realized from stock-based compensation arrangements | -3,078 | -14,424 |
Equity in net income of unconsolidated investments (net of tax) | -25,308 | -29,233 |
Dividends received from unconsolidated investments and nonmarketable securities | 18,889 | 23,244 |
Pension and postretirement expense (benefit) | 4,730 | -10,117 |
Pension and postretirement contributions | -9,892 | -19,705 |
Unrealized gain on investments in marketable securities | -1,924 | -1,412 |
Deferred income taxes | 7,115 | 14,442 |
Working capital changes | -39,353 | -106,492 |
Other, net | 1,341 | 7,694 |
Net cash provided by operating activities | 317,521 | 306,482 |
Cash flows from investing activities: | ||
Capital expenditures | -135,028 | -218,708 |
Cash payments related to acquisitions and other | -250 | -2,488 |
Sales of (investments in) marketable securities, net | 1,214 | -1,137 |
Long-term advances to joint venture | 0 | -22,500 |
Net cash used in investing activities | -134,064 | -244,833 |
Cash flows from financing activities: | ||
Repayments of long-term debt | -93,913 | -11,701 |
Proceeds from borrowings of long-term debt | 117,000 | 0 |
Other borrowings (repayments), net | 357,379 | -37,542 |
Dividends paid to shareholders | -58,574 | -51,287 |
Dividends paid to noncontrolling interests | -10,014 | -7,628 |
Repurchases of common stock | -582,298 | -40,470 |
Proceeds from exercise of stock options | 4,510 | 19,977 |
Excess tax benefits realized from stock-based compensation arrangements | 3,078 | 14,424 |
Withholding taxes paid on stock-based compensation award distributions | -6,098 | -9,124 |
Debt financing costs | -108 | 0 |
Net cash used in financing activities | -269,038 | -123,351 |
Net effect of foreign exchange on cash and cash equivalents | 9,312 | -5,072 |
Decrease in cash and cash equivalents | -76,269 | -66,774 |
Cash and cash equivalents at end of period | $401,427 | $402,642 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation: | ||||||||||||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012, our consolidated statements of income and consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012 and our condensed consolidated statements of cash flows and consolidated statements of changes in equity for the nine-month periods ended September 30, 2013 and 2012. All adjustments are of a normal and recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission (SEC) on February 15, 2013. The December 31, 2012 consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). The results of operations for the three-month and nine-month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying consolidated financial statements and the notes thereto to conform to the current presentation. | |||||||||||||
Change in accounting principle regarding pension and other postretirement benefits | |||||||||||||
During 2012, we elected to change our method of accounting for actuarial gains and losses relating to our global pension and other postretirement benefit (OPEB) plans. Previously, we recognized actuarial gains and losses from our pension and OPEB plans in our consolidated balance sheets as Accumulated other comprehensive income (loss) within shareholders’ equity, with amortization of these gains and losses that exceeded ten percent of the greater of plan assets or projected benefit obligations recognized each quarter in our consolidated statements of income over the average future service period of active employees. Under the new method of accounting, referred to as mark-to-market accounting, these gains and losses will be recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. The remaining components of pension and OPEB plan expense, primarily service cost, interest cost and expected return on assets, will be recorded on a quarterly basis. The gain/loss subject to amortization and expected return on assets components of our pension expense has historically been calculated using a five-year smoothing of asset gains and losses referred to as the market-related value. Under mark-to-market accounting, the market-related value of assets will equal the actual market value as of the date of measurement. While our historical policy of recognizing pension and OPEB plan expense is considered acceptable under U.S. GAAP, we believe that the new policy is preferable as it eliminates the delay in recognizing gains and losses within operating results. This change will also improve transparency within our operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these gains and losses are actually incurred. This change in accounting principle has been applied retrospectively, adjusting all prior periods presented. In the second quarter of 2013, we identified that our consolidated statement of income for the nine-month period ended September 30, 2012 included a correction of $10.3 million for pension and OPEB plan actuarial gains that related to 2011. This amount was deemed to be not material with respect to our financial statements for the year ended December 31, 2012 and any prior period financial statements. | |||||||||||||
The impact of this accounting policy change on Albemarle’s consolidated financial statements for the three-month and nine-month periods ended September 30, 2012 is summarized below: | |||||||||||||
Consolidated Statements of Income | |||||||||||||
Three Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net sales | $ | 661,226 | $ | — | $ | 661,226 | |||||||
Cost of goods sold | 446,469 | (2,993 | ) | 443,476 | |||||||||
Gross profit | 214,757 | 2,993 | 217,750 | ||||||||||
Selling, general and administrative expenses | 59,982 | (6,578 | ) | 53,404 | |||||||||
Research and development expenses | 19,831 | — | 19,831 | ||||||||||
Restructuring and other charges, net | 6,508 | (6,508 | ) | — | |||||||||
Operating profit | 128,436 | 16,079 | 144,515 | ||||||||||
Interest and financing expenses | (7,914 | ) | — | (7,914 | ) | ||||||||
Other income, net | 2,370 | — | 2,370 | ||||||||||
Income before income taxes and equity in net income of | 122,892 | 16,079 | 138,971 | ||||||||||
unconsolidated investments | |||||||||||||
Income tax expense | 26,591 | 5,881 | 32,472 | ||||||||||
Income before equity in net income of unconsolidated investments | 96,301 | 10,198 | 106,499 | ||||||||||
Equity in net income of unconsolidated investments (net of tax) | 7,935 | — | 7,935 | ||||||||||
Net income | 104,236 | 10,198 | 114,434 | ||||||||||
Net income attributable to noncontrolling interests | (4,975 | ) | — | (4,975 | ) | ||||||||
Net income attributable to Albemarle Corporation | $ | 99,261 | $ | 10,198 | $ | 109,459 | |||||||
Basic earnings per share | $ | 1.11 | $ | 0.12 | $ | 1.23 | |||||||
Diluted earnings per share | $ | 1.1 | $ | 0.12 | $ | 1.22 | |||||||
Weighted-average common shares outstanding – basic | 89,327 | — | 89,327 | ||||||||||
Weighted-average common shares outstanding – diluted | 89,879 | — | 89,879 | ||||||||||
Cash dividends declared per share of common stock | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Nine Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net sales | $ | 2,057,824 | $ | — | $ | 2,057,824 | |||||||
Cost of goods sold | 1,352,495 | (12,689 | ) | 1,339,806 | |||||||||
Gross profit | 705,329 | 12,689 | 718,018 | ||||||||||
Selling, general and administrative expenses | 215,298 | (26,155 | ) | 189,143 | |||||||||
Research and development expenses | 59,791 | — | 59,791 | ||||||||||
Restructuring and other charges, net | 101,211 | (6,508 | ) | 94,703 | |||||||||
Operating profit | 329,029 | 45,352 | 374,381 | ||||||||||
Interest and financing expenses | (25,134 | ) | — | (25,134 | ) | ||||||||
Other income, net | 1,564 | — | 1,564 | ||||||||||
Income before income taxes and equity in net income of | 305,459 | 45,352 | 350,811 | ||||||||||
unconsolidated investments | |||||||||||||
Income tax expense | 76,804 | 16,578 | 93,382 | ||||||||||
Income before equity in net income of unconsolidated investments | 228,655 | 28,774 | 257,429 | ||||||||||
Equity in net income of unconsolidated investments (net of tax) | 29,233 | — | 29,233 | ||||||||||
Net income | 257,888 | 28,774 | 286,662 | ||||||||||
Net income attributable to noncontrolling interests | (12,852 | ) | — | (12,852 | ) | ||||||||
Net income attributable to Albemarle Corporation | $ | 245,036 | $ | 28,774 | $ | 273,810 | |||||||
Basic earnings per share | $ | 2.75 | $ | 0.32 | $ | 3.07 | |||||||
Diluted earnings per share | $ | 2.72 | $ | 0.32 | $ | 3.04 | |||||||
Weighted-average common shares outstanding – basic | 89,246 | — | 89,246 | ||||||||||
Weighted-average common shares outstanding – diluted | 89,959 | — | 89,959 | ||||||||||
Cash dividends declared per share of common stock | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Consolidated Statements of Comprehensive Income | |||||||||||||
Three Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net income | $ | 104,236 | $ | 10,198 | $ | 114,434 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Foreign currency translation | 29,165 | — | 29,165 | ||||||||||
Pension and postretirement benefits | 10,030 | (10,198 | ) | (168 | ) | ||||||||
Other | 29 | — | 29 | ||||||||||
Total other comprehensive income, net of tax | 39,224 | (10,198 | ) | 29,026 | |||||||||
Comprehensive income | 143,460 | — | 143,460 | ||||||||||
Comprehensive income attributable to non-controlling interests | (4,975 | ) | — | (4,975 | ) | ||||||||
Comprehensive income attributable to Albemarle Corporation | $ | 138,485 | $ | — | $ | 138,485 | |||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net income | $ | 257,888 | $ | 28,774 | $ | 286,662 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Foreign currency translation | 2,295 | — | 2,295 | ||||||||||
Pension and postretirement benefits | 28,272 | (28,774 | ) | (502 | ) | ||||||||
Other | 95 | — | 95 | ||||||||||
Total other comprehensive income, net of tax | 30,662 | (28,774 | ) | 1,888 | |||||||||
Comprehensive income | 288,550 | — | 288,550 | ||||||||||
Comprehensive income attributable to non-controlling interests | (13,007 | ) | — | (13,007 | ) | ||||||||
Comprehensive income attributable to Albemarle Corporation | $ | 275,543 | $ | — | $ | 275,543 | |||||||
Consolidated Statements of Changes In Equity | |||||||||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Accumulated other comprehensive (loss) income: | |||||||||||||
Balance at January 1, 2012 | $ | (222,922 | ) | $ | 283,251 | $ | 60,329 | ||||||
Other comprehensive income | 30,507 | (28,774 | ) | 1,733 | |||||||||
Balance at September 30, 2012 | $ | (192,415 | ) | $ | 254,477 | $ | 62,062 | ||||||
Retained earnings: | |||||||||||||
Balance at January 1, 2012 | $ | 1,798,117 | $ | (283,251 | ) | $ | 1,514,866 | ||||||
Net income | 245,036 | 28,774 | 273,810 | ||||||||||
Cash dividends declared | (53,567 | ) | — | (53,567 | ) | ||||||||
Balance at September 30, 2012 | $ | 1,989,586 | $ | (254,477 | ) | $ | 1,735,109 | ||||||
Consolidated Statements of Cash Flows | |||||||||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 257,888 | $ | 28,774 | $ | 286,662 | |||||||
Non-cash charges associated with restructuring and other, net | 77,095 | (6,508 | ) | 70,587 | |||||||||
Pension and postretirement expense (benefit) | 28,727 | (38,844 | ) | (10,117 | ) | ||||||||
Deferred income taxes | (2,136 | ) | 16,578 | 14,442 | |||||||||
Foreign_Exchange
Foreign Exchange | 9 Months Ended |
Sep. 30, 2013 | |
Foreign Currency [Abstract] | |
Foreign Exchange | Foreign Exchange: |
Our consolidated statements of income include foreign exchange transaction (losses) gains of $(2.0) million and $(9.1) million for the three-month and nine-month periods ended September 30, 2013, respectively, and $0.9 million and $(2.5) million for the three-month and nine-month periods ended September 30, 2012, respectively. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: |
The effective income tax rate for the three-month and nine-month periods ended September 30, 2013 was 22.8% , compared to 23.4% and 26.6% for the three-month and nine-month periods ended September 30, 2012, respectively. The Company’s effective income tax rate fluctuates based on, among other factors, our level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the 2013 and 2012 periods is mainly due to the impact of earnings from outside the U.S. Our effective income tax rate for the nine-month period ended September 30, 2012 was also impacted by $94.7 million in pre-tax charges ($73.6 million after income taxes) associated with our exit of the phosphorus flame retardants business (see Note 13). |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | Earnings Per Share: | ||||||||||||||||
Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2013 and 2012 are calculated as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Basic earnings per share | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares for basic earnings per share | 81,385 | 89,327 | 84,711 | 89,246 | |||||||||||||
Basic earnings per share | $ | 1.11 | $ | 1.23 | $ | 3.04 | $ | 3.07 | |||||||||
Diluted earnings per share | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares for basic earnings per share | 81,385 | 89,327 | 84,711 | 89,246 | |||||||||||||
Incremental shares under stock compensation plans | 467 | 552 | 481 | 713 | |||||||||||||
Total shares | 81,852 | 89,879 | 85,192 | 89,959 | |||||||||||||
Diluted earnings per share | $ | 1.11 | $ | 1.22 | $ | 3.02 | $ | 3.04 | |||||||||
On February 12, 2013, the Company increased the regular quarterly dividend by 20% to $0.24 per share. On July 10, 2013, the Company declared a cash dividend of $0.24 per share, which was paid on October 1, 2013 to shareholders of record at the close of business as of September 13, 2013. On October 7, 2013, the Company declared a cash dividend of $0.24 per share, which is payable on January 2, 2014 to shareholders of record at the close of business as of December 13, 2013. | |||||||||||||||||
On February 12, 2013, Albemarle’s Board of Directors authorized an increase in the number of shares the Company is permitted to repurchase under our share repurchase program, pursuant to which the Company is now permitted to repurchase up to a maximum of 15 million shares, including those shares previously authorized but not yet repurchased. | |||||||||||||||||
Under the existing Board authorized share repurchase program, on May 9, 2013, the Company entered into an agreement (the ASR Agreement) with J.P. Morgan Securities LLC (JPMorgan) relating to a fixed-dollar, uncollared accelerated share repurchase program (the ASR Program). Pursuant to the terms of the ASR Agreement, JPMorgan immediately borrowed shares of Albemarle common stock that were sold to the Company, thereby decreasing the Company’s issued and outstanding shares (with no change to its authorized shares). On May 10, 2013, the Company paid $450 million to JPMorgan and received an initial delivery of 5,680,921 shares with a fair market value of approximately $360 million. This purchase was funded through a combination of available cash on hand and debt. | |||||||||||||||||
The Company has determined that the ASR Agreement meets the criteria to be accounted for as a forward contract indexed to its stock and is therefore being treated as an equity instrument. Although the ASR Agreement can be settled, at the Company’s option, in cash or in shares of common stock, the Company intends to settle in shares of common stock. | |||||||||||||||||
The initial delivery of 5,680,921 shares reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2013. The total number of shares to ultimately be purchased by the Company under the ASR Program will be based on the Rule 10b-18 volume-weighted average price of the Company’s common stock during the term of the ASR Agreement, less a forward price adjustment amount of approximately $1.01. | |||||||||||||||||
The Company evaluated the ASR Agreement for its potential dilution of earnings per share and has determined that, based on the Rule 10b-18 volume-weighted average price calculated as of September 30, 2013, additional shares expected to be received upon final settlement (approximately 1.5 million shares) would have an anti-dilutive impact on earnings per share and therefore were not included in the Company’s diluted earnings per share calculation for the three-month and nine-month periods ended September 30, 2013. The final settlement amount may increase or decrease depending upon the Rule 10b-18 volume-weighted average price of the Company’s common stock during the remaining term of the ASR Agreement. The ASR Program will be completed no later than the end of 2013 and is expected to result in a decrease to the Company’s issued and outstanding shares upon completion. | |||||||||||||||||
During the nine-month period ended September 30, 2013, the Company repurchased 7,814,045 shares of its common stock pursuant to the terms of its share repurchase program and the ASR Program. As of September 30, 2013, there were 7,185,955 remaining shares available for repurchase under the Company’s authorized share repurchase program. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories: | ||||||||
The following table provides a breakdown of inventories at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Finished goods | $ | 382,298 | $ | 325,762 | |||||
Raw materials | 57,086 | 57,245 | |||||||
Stores, supplies and other | 46,420 | 45,138 | |||||||
Total inventories | $ | 485,804 | $ | 428,145 | |||||
Investments
Investments | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: |
The carrying value of our unconsolidated investment in Stannica LLC, a variable interest entity for which we are not the primary beneficiary, was $5.5 million and $6.6 million at September 30, 2013 and December 31, 2012, respectively. Our maximum exposure to loss in connection with our continuing involvement with Stannica LLC is limited to our investment carrying value. | |
Additionally, during the nine-month period ended September 30, 2012, we and our joint venture partner each advanced $22.5 million to our 50%-owned joint venture, SOCC, pursuant to a long-term loan arrangement. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-Term Debt: | ||||||||
Long-term debt at September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
5.10% Senior notes, net of unamortized discount of $45 at September 30, 2013 | $ | 324,955 | $ | 324,930 | |||||
and $70 at December 31, 2012 | |||||||||
4.50% Senior notes, net of unamortized discount of $2,264 at September 30, | 347,736 | 347,500 | |||||||
2013 and $2,500 at December 31, 2012 | |||||||||
Commercial paper notes | 363,000 | — | |||||||
Fixed-rate foreign borrowings | 10,728 | 19,458 | |||||||
Variable-rate foreign bank loans | 33,168 | 7,006 | |||||||
Miscellaneous | 297 | 394 | |||||||
Total long-term debt | 1,079,884 | 699,288 | |||||||
Less amounts due within one year | 19,602 | 12,700 | |||||||
Long-term debt, less current portion | $ | 1,060,282 | $ | 686,588 | |||||
On May 29, 2013, we entered into agreements to initiate a commercial paper program on a private placement basis under which we may issue unsecured commercial paper notes (the “Notes”) from time-to-time up to a maximum aggregate principal amount outstanding at any time of $750 million. The proceeds from the issuance of the Notes are expected to be used for general corporate purposes, including the repayment of other debt of the Company. Our September 2011 credit agreement is available to repay the Notes, if necessary. Aggregate borrowings outstanding under the September 2011 credit agreement and the commercial paper program will not exceed the $750 million current maximum amount available under the September 2011 credit agreement. The Notes will be sold at a discount from par, or alternatively, will be sold at par and bear interest at rates that will vary based upon market conditions at the time of the issuance of the Notes. The maturities of the Notes will vary but may not exceed 397 days from the date of issue. The definitive documents relating to the Program contain customary representations, warranties, default and indemnification provisions. | |||||||||
At September 30, 2013, we had $363.0 million of Notes outstanding bearing a weighted-average interest rate of approximately 0.32% and a weighted-average maturity of 41 days. While the outstanding Notes generally have short-term maturities, we classify the Notes as long-term based on our ability and intent to refinance the Notes on a long-term basis through the issuance of additional Notes or borrowings under the September 2011 credit agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies: | |||
We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2013, as follows (in thousands): | ||||
Beginning balance at December 31, 2012 | $ | 20,322 | ||
Expenditures | (2,248 | ) | ||
Changes in estimates recorded to earnings and other | (902 | ) | ||
Foreign currency translation | (147 | ) | ||
Ending balance at September 30, 2013 | 17,025 | |||
Less amounts reported in Accrued expenses | 7,984 | |||
Amounts reported in Other noncurrent liabilities | $ | 9,041 | ||
The amounts recorded represent our future remediation and other anticipated environmental liabilities. These liabilities typically arise during the normal course of our operational and environmental management activities or at the time of acquisition of the site, and are based on internal analysis as well as input from outside consultants. As evaluations proceed at each relevant site, changes in risk assessment practices, remediation techniques and regulatory requirements can occur, therefore such liability estimates may be adjusted accordingly. The timing and duration of remediation activities at these sites will be determined when evaluations are completed. Although it is difficult to quantify the potential financial impact of these remediation liabilities, management estimates (based on the latest available information) that there is a reasonable possibility that future environmental remediation costs associated with our past operations, in excess of amounts already recorded, could be up to approximately $17 million before income taxes. | ||||
Approximately $7.3 million of our recorded liability is related to the closure and post-closure activities at a former landfill associated with our Bergheim, Germany site, which was recorded at the time of our acquisition of this site in 2001. This closure project has been approved under the authority of the governmental permit for this site and is scheduled for completion in 2017, with post-closure monitoring to occur for 30 years thereafter. The remainder of our recorded liability is associated with sites that are being evaluated under governmental authority but for which final remediation plans have not yet been approved. In connection with the remediation activities at our Bergheim, Germany site as required by the German environmental authorities, we have pledged certain of our land and housing facilities at this site which has an estimated fair value of $6.0 million. | ||||
During the second quarter of 2012, the Company recorded $8.7 million in estimated site remediation liabilities at our Avonmouth, United Kingdom site as part of the charges associated with our exit of the phosphorus flame retardant business. Included in these estimated charges are anticipated costs of site investigation, remediation and cleanup activities. We are in the process of reviewing our investigation and remediation plans with local government authorities. Based on current information about site conditions, we anticipate this investigation and remediation program will be substantially completed during 2014. | ||||
We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded should occur over a period of time and should not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period. | ||||
On July 3, 2006, we received a Notice of Violation (the 2006 NOV) from the U.S. Environmental Protection Agency Region 4 (EPA) regarding the implementation of the Pharmaceutical Maximum Achievable Control Technology standards at our plant in Orangeburg, South Carolina. The alleged violations involve (i) the applicability of the specific regulations to certain intermediates manufactured at the plant, (ii) failure to comply with certain reporting requirements, (iii) improper evaluation and testing to properly implement the regulations and (iv) the sufficiency of the leak detection and repair program at the plant. In the second quarter of 2011, the Company was served with a complaint by the EPA in the U.S. District Court for the District of South Carolina, based on the alleged violations set out in the 2006 NOV seeking civil penalties and injunctive relief. The complaint was subsequently amended to add the State of South Carolina as a plaintiff. We intend to vigorously defend this action. Any settlement or finding adverse to us could result in the payment by us of fines, penalties, capital expenditures or some combination thereof. At this time, it is not possible to predict with any certainty the outcome of this litigation or the financial impact which may result therefrom. However, we do not expect any financial impact to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. | ||||
In addition, we are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves as estimated by our general counsel for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. | ||||
We have contracts with certain of our customers, which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis as well as blanket coverage of multiple shipments under customer supply contracts that are executed through certain financial institutions. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. |
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Operating Segments | 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Net sales: | |||||||||||||||||
Polymer Solutions | $ | 224,320 | $ | 216,992 | $ | 663,410 | $ | 692,139 | |||||||||
Catalysts | 226,042 | 251,201 | 695,433 | 773,867 | |||||||||||||
Fine Chemistry | 198,276 | 193,033 | 565,617 | 591,818 | |||||||||||||
Total net sales | $ | 648,638 | $ | 661,226 | $ | 1,924,460 | $ | 2,057,824 | |||||||||
Segment operating profit: | |||||||||||||||||
Polymer Solutions | $ | 40,678 | $ | 44,694 | $ | 128,169 | $ | 162,648 | |||||||||
Catalysts | 53,878 | 55,093 | 146,536 | 189,104 | |||||||||||||
Fine Chemistry | 43,894 | 48,336 | 120,349 | 142,403 | |||||||||||||
Total segment operating profit | 138,450 | 148,123 | 395,054 | 494,155 | |||||||||||||
Equity in net income of unconsolidated investments: | |||||||||||||||||
Polymer Solutions | 1,735 | 1,199 | 6,371 | 4,957 | |||||||||||||
Catalysts | 3,603 | 6,736 | 18,937 | 24,276 | |||||||||||||
Fine Chemistry | — | — | — | — | |||||||||||||
Corporate & other | — | — | — | — | |||||||||||||
Total equity in net income of unconsolidated | |||||||||||||||||
investments | 5,338 | 7,935 | 25,308 | 29,233 | |||||||||||||
Net income attributable to noncontrolling interests: | |||||||||||||||||
Polymer Solutions | (916 | ) | (602 | ) | (4,118 | ) | (1,255 | ) | |||||||||
Catalysts | — | — | — | — | |||||||||||||
Fine Chemistry | (6,416 | ) | (4,373 | ) | (17,132 | ) | (11,577 | ) | |||||||||
Corporate & other | — | — | — | (20 | ) | ||||||||||||
Total net income attributable to noncontrolling | |||||||||||||||||
interests | (7,332 | ) | (4,975 | ) | (21,250 | ) | (12,852 | ) | |||||||||
Segment income: | |||||||||||||||||
Polymer Solutions | 41,497 | 45,291 | 130,422 | 166,350 | |||||||||||||
Catalysts | 57,481 | 61,829 | 165,473 | 213,380 | |||||||||||||
Fine Chemistry | 37,478 | 43,963 | 103,217 | 130,826 | |||||||||||||
Total segment income | 136,456 | 151,083 | 399,112 | 510,556 | |||||||||||||
Corporate & other | (8,785 | ) | (3,608 | ) | (38,328 | ) | (25,091 | ) | |||||||||
Restructuring and other charges, net(1) | — | — | — | (94,703 | ) | ||||||||||||
Interest and financing expenses | (9,496 | ) | (7,914 | ) | (22,335 | ) | (25,134 | ) | |||||||||
Other (expenses) income, net | (389 | ) | 2,370 | (6,295 | ) | 1,564 | |||||||||||
Income tax expense | (27,274 | ) | (32,472 | ) | (74,916 | ) | (93,382 | ) | |||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
-1 | See Note 13, “Restructuring and Other.” | ||||||||||||||||
Effective January 1, 2014, the Company's assets and businesses will be realigned under two operating segments. The Performance Chemicals segment will include Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services, and the Catalyst Solutions segment will include Refinery Catalyst Solutions, Performance Catalyst Solutions and Antioxidants. |
Pension_Plans_and_Other_Postre
Pension Plans and Other Postretirement Benefits | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: | ||||||||||||||||
The following information is provided for domestic and foreign pension and postretirement defined benefit plans: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Net Periodic Pension Benefit Cost (Credit): | |||||||||||||||||
Service cost | $ | 3,488 | $ | 3,174 | $ | 10,462 | $ | 9,391 | |||||||||
Interest cost | 7,470 | 8,076 | 22,403 | 24,269 | |||||||||||||
Expected return on assets | (9,848 | ) | (11,634 | ) | (29,541 | ) | (34,913 | ) | |||||||||
Actuarial gain(a) | — | — | — | (5,840 | ) | ||||||||||||
Amortization of prior service benefit | (173 | ) | (245 | ) | (517 | ) | (731 | ) | |||||||||
Total net periodic pension benefit cost (credit) | $ | 937 | $ | (629 | ) | $ | 2,807 | $ | (7,824 | ) | |||||||
Net Periodic Postretirement Benefit Cost (Credit): | |||||||||||||||||
Service cost | $ | 78 | $ | 69 | $ | 232 | $ | 206 | |||||||||
Interest cost | 691 | 793 | 2,073 | 2,379 | |||||||||||||
Expected return on assets | (104 | ) | (122 | ) | (310 | ) | (366 | ) | |||||||||
Actuarial gain(a) | — | — | — | (4,439 | ) | ||||||||||||
Amortization of prior service benefit | (24 | ) | (25 | ) | (72 | ) | (73 | ) | |||||||||
Total net periodic postretirement benefit cost (credit) | $ | 641 | $ | 715 | $ | 1,923 | $ | (2,293 | ) | ||||||||
Total net periodic pension and postretirement benefit | |||||||||||||||||
cost (credit) | $ | 1,578 | $ | 86 | $ | 4,730 | $ | (10,117 | ) | ||||||||
(a) | In the second quarter of 2013, we identified that our consolidated statement of income for the nine-month period ended September 30, 2012 included a correction of $10.3 million for pension and OPEB plan actuarial gains that related to 2011. This amount was deemed to be not material with respect to our financial statements for the year ended December 31, 2012 and any prior period financial statements. | ||||||||||||||||
During the three-month and nine-month periods ended September 30, 2013, we made contributions of $4.8 million and $6.8 million, respectively, to our qualified and nonqualified pension plans. During the three-month and nine-month periods ended September 30, 2012, we made contributions of $0.3 million and $3.0 million, respectively, to our qualified and nonqualified pension plans, and we also made a contribution of $14.1 million to our SERP in connection with the retirement of our former CEO and executive chairman. | |||||||||||||||||
We paid $0.9 million and $3.1 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2013, respectively. Also, we paid $0.7 million and $2.6 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2012, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments: | ||||||||||||||||
In assessing the fair value of financial instruments, we use methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for our financial instruments is as follows: | |||||||||||||||||
Long-Term Debt—The fair values of our senior notes and other fixed rate foreign borrowings are estimated using Level 1 inputs and account for the majority of the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings. | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Recorded | Fair Value | Recorded | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
Long-term debt | $ | 1,079,884 | $ | 1,111,458 | $ | 699,288 | $ | 764,784 | |||||||||
Foreign Currency Forward Contracts—we enter into foreign currency forward contracts in connection with our risk management strategies in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our foreign currency forward contracts are estimated based on current settlement values. At September 30, 2013 and December 31, 2012, we had outstanding foreign currency forward contracts with notional values totaling $255.9 million and $274.0 million, respectively. At September 30, 2013, $0.1 million was included in Other accounts receivable and $0.1 million was included in Accrued expenses associated with the fair value of our foreign currency forward contracts. At December 31, 2012, $0.3 million was included in Other accounts receivable and $0.8 million was included in Accrued expenses associated with the fair value of our foreign currency forward contracts. | |||||||||||||||||
Gains and losses on foreign currency forward contracts are recognized currently in Other (expenses) income, net; further, fluctuations in the value of these contracts are intended to offset the changes in the value of the underlying exposures being hedged. For the three-month and nine-month periods ended September 30, 2013, we recognized gains (losses) of $0.4 million and $(1.8) million, respectively, in Other (expenses) income, net in our consolidated statements of income related to the change in the fair value of our foreign currency forward contracts. For the three-month and nine-month periods ended September 30, 2012, we recognized gains (losses) of $3.0 million and $(1.1) million, respectively, in Other (expenses) income, net in our consolidated statements of income related to the change in the fair value of our foreign currency forward contracts. These amounts are intended to offset changes in the value of the underlying exposures being hedged which are also reported in Other (expenses) income, net. Also, for the nine-month periods ended September 30, 2013 and 2012, we recorded $1.8 million and $1.1 million, respectively, related to the change in the fair value of our foreign currency forward contracts, and cash settlements of $(2.2) million and $(1.6) million, respectively, in Other, net in our condensed consolidated statements of cash flows. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurement | Fair Value Measurement: | ||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy: | |||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | ||||||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | ||||||||||||
Level 3 | Unobservable inputs for the asset or liability | ||||||||||||
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Transfers between levels of the fair value hierarchy are deemed to have occurred on the date of the event or change in circumstance that caused the transfer. There were no transfers between Levels 1 and 2 during the nine-month period ended September 30, 2013. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||
30-Sep-13 | Quoted Prices in | Quoted Prices in | |||||||||||
Active Markets | Active Markets | ||||||||||||
for Identical | for Similar Items | ||||||||||||
Items | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Investments under executive deferred compensation plan(a) | $ | 20,976 | $ | 20,976 | $ | — | |||||||
Equity securities(b) | $ | 23 | $ | 23 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 56 | $ | — | $ | 56 | |||||||
Liabilities: | |||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 20,976 | $ | 20,976 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 130 | $ | — | $ | 130 | |||||||
31-Dec-12 | Quoted Prices in | Quoted Prices in | |||||||||||
Active Markets | Active Markets | ||||||||||||
for Identical | for Similar Items | ||||||||||||
Items | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Investments under executive deferred compensation plan(a) | $ | 20,265 | $ | 20,265 | $ | — | |||||||
Equity securities(b) | $ | 25 | $ | 25 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 262 | $ | — | $ | 262 | |||||||
Liabilities: | |||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 20,265 | $ | 20,265 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 771 | $ | — | $ | 771 | |||||||
(a) | We maintain an Executive Deferred Compensation Plan (EDCP) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the Trust) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. | ||||||||||||
(b) | Our investments in equity securities are classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other in our consolidated statements of comprehensive income. These securities are classified within Level 1. | ||||||||||||
(c) | As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. |
Restructuring_and_Other
Restructuring and Other | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Other | Restructuring and Other | |||
We had the following activity in our recorded workforce reduction liabilities for the nine months ended September 30, 2013 (in thousands): | ||||
Beginning balance at December 31, 2012 | $ | 15,898 | ||
Workforce reduction charges | — | |||
Payments | (6,214 | ) | ||
Amount reversed to income | (991 | ) | ||
Foreign currency translation | (138 | ) | ||
Ending balance at September 30, 2013 | 8,555 | |||
Less amounts reported in Accrued expenses | 8,084 | |||
Amounts reported in Other noncurrent liabilities | $ | 471 | ||
The nine-month period ended September 30, 2012 included net charges amounting to $94.7 million ($73.6 million after income taxes) in connection with our exit of the phosphorus flame retardants business, whose products were sourced mainly at our Avonmouth, United Kingdom and Nanjing, China manufacturing sites. The charges were comprised mainly of non-cash items consisting of net asset write-offs of approximately $57 million and write-offs of foreign currency translation adjustments of approximately $12 million, as well as accruals for cash costs associated with related severance programs of approximately $13 million, estimated site remediation costs of approximately $9 million and other estimated exit costs of approximately $4 million. Payments under this restructuring plan are expected to occur through 2014. | ||||
The nine months ended September 30, 2012 includes a gain of $8.1 million ($5.1 million after income taxes) resulting from proceeds received in connection with the settlement of certain commercial litigation (net of estimated reimbursement of related legal fees of approximately $0.9 million). The litigation involved claims and cross-claims relating to alleged breaches of a purchase and sale agreement. The settlement resolved all outstanding issues and claims between the parties and they agreed to dismiss all outstanding litigation and release all existing and potential claims against each other that were or could have been asserted in the litigation. The nine months ended September 30, 2012 also includes an $8 million ($5.1 million after income taxes) charitable contribution 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 our employees live and operate. These items are included in our consolidated Selling, general and administrative expenses for the nine months ended September 30, 2012. | ||||
In the fourth quarter of 2012, we revised our presentation of Restructuring and other charges in our consolidated statements of cash flows. The corrected presentation is reflected in Non-cash charges associated with restructuring and other, net, to report the non-cash portion of such charges separately from the portion which affects working capital. We believe this presentation better reflects the impacts of restructuring events in our financial statements. The change in presentation had no impact on Net cash provided by operating activities, Net cash used in investing activities or Net cash used in financing activities for the year ended December 31, 2012 or any interim periods within that year. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: | ||||||||||||||||||||||||
The components and activity in Accumulated other comprehensive income (net of deferred income taxes) consisted of the following during the three and nine months ended September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Foreign | Pension | Other | Total | ||||||||||||||||||||||
Currency | and Post- | ||||||||||||||||||||||||
Translation | Retirement | ||||||||||||||||||||||||
Benefits(a) | |||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 56,378 | $ | 585 | $ | (781 | ) | $ | 56,182 | ||||||||||||||||
Other comprehensive income before | 40,613 | — | 4 | 40,617 | |||||||||||||||||||||
reclassifications | |||||||||||||||||||||||||
Amounts reclassified from accumulated other | |||||||||||||||||||||||||
comprehensive income | — | (201 | ) | 34 | (167 | ) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 40,613 | (201 | ) | 38 | 40,450 | ||||||||||||||||||||
Other comprehensive income attributable to | |||||||||||||||||||||||||
noncontrolling interests | (337 | ) | — | — | (337 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 96,654 | $ | 384 | $ | (743 | ) | $ | 96,295 | ||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 85,117 | $ | 989 | $ | (842 | ) | $ | 85,264 | ||||||||||||||||
Other comprehensive income (loss) before | 11,945 | — | (1 | ) | 11,944 | ||||||||||||||||||||
reclassifications | |||||||||||||||||||||||||
Amounts reclassified from accumulated other | |||||||||||||||||||||||||
comprehensive income | — | (605 | ) | 100 | (505 | ) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 11,945 | (605 | ) | 99 | 11,439 | ||||||||||||||||||||
Other comprehensive income attributable to | |||||||||||||||||||||||||
noncontrolling interests | (408 | ) | — | — | (408 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 96,654 | $ | 384 | $ | (743 | ) | $ | 96,295 | ||||||||||||||||
(a) | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.” | ||||||||||||||||||||||||
The amount of income tax benefit (expense) allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2013 and 2012 is provided in the following (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Foreign | Pension | Other | Foreign | Pension | Other | ||||||||||||||||||||
Currency | and Post- | Currency | and Post- | ||||||||||||||||||||||
Translation | retirement | Translation | retirement | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Other comprehensive income (loss), | $ | 40,436 | $ | (197 | ) | $ | 58 | $ | 29,445 | $ | (268 | ) | $ | 49 | |||||||||||
before tax | |||||||||||||||||||||||||
Income tax benefit (expense) | 177 | (4 | ) | (20 | ) | (280 | ) | 100 | (20 | ) | |||||||||||||||
Other comprehensive income (loss), | $ | 40,613 | $ | (201 | ) | $ | 38 | $ | 29,165 | $ | (168 | ) | $ | 29 | |||||||||||
net of tax | |||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Foreign | Pension | Other | Foreign | Pension | Other | ||||||||||||||||||||
Currency | and Post- | Currency | and Post- | ||||||||||||||||||||||
Translation | retirement | Translation | retirement | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Other comprehensive income (loss), | $ | 10,654 | $ | (589 | ) | $ | 159 | $ | 743 | $ | (798 | ) | $ | 155 | |||||||||||
before tax | |||||||||||||||||||||||||
Income tax benefit (expense) | 1,291 | (16 | ) | (60 | ) | 1,552 | 296 | (60 | ) | ||||||||||||||||
Other comprehensive income (loss), | $ | 11,945 | $ | (605 | ) | $ | 99 | $ | 2,295 | $ | (502 | ) | $ | 95 | |||||||||||
net of tax | |||||||||||||||||||||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: |
In December 2011, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires entities to disclose information about financial instruments (including derivatives) and transactions eligible for offset in the statement of financial position or subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued additional guidance that limits the scope of these new requirements to certain derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and lending transactions. These amendments became effective on January 1, 2013 and had no impact on our consolidated financial statements. | |
In February 2013, the FASB issued accounting guidance that requires companies to present either in a single note or on the face of the financial statements the effect of significant amounts reclassified from each component of accumulated other comprehensive income, and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies instead cross reference to the related footnote for additional information. These amendments became effective for us beginning with the first quarter of 2013 and did not have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued accounting guidance that requires entities that have obligations resulting from joint and several liability arrangements and for which the total amount is fixed at the reporting date to measure such obligations as the sum of (a) the amount the entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Entities are also required to disclose the nature, amount and any other relevant information about such obligations. This accounting guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively to all prior periods presented for obligations that exist at the beginning of an entity’s fiscal year of adoption. We are assessing the impact of these new requirements on our financial statements. | |
In March 2013, the FASB issued accounting guidance that clarifies a parent company’s accounting for the cumulative foreign currency translation adjustment when the parent sells a part or all of its investment in a foreign entity. The guidance clarifies that the sale of an investment in a foreign entity includes both (a) events that result in the loss of a controlling financial interest in a foreign entity, and (b) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative foreign currency translation adjustment should be released into net income upon the occurrence of those events. This accounting guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be applied prospectively to derecognition events occurring after the effective date. We are assessing the impact of these new requirements on our financial statements. | |
In July 2013, the FASB issued accounting guidance designed to reduce diversity in practice of financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. These new requirements become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect this new guidance to have a material effect on our consolidated financial statements. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events: |
Restructuring | |
In connection with the announced realignment of our operating segments, in October 2013, we initiated a voluntary separation program available to salaried employees in the U.S. At this time, we cannot reasonably estimate the total restructuring charge that will be incurred in the fourth quarter of 2013, as not all of our restructuring initiatives have been finalized, but as of this filing we expect the charge to be no more than $20 million. | |
Acquisition | |
On October 1, 2013, we acquired Cambridge Chemical Company, Ltd. for approximately $3.6 million. |
Recently_Issued_Accounting_Pro1
Recently Issued Accounting Pronouncments (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In December 2011, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires entities to disclose information about financial instruments (including derivatives) and transactions eligible for offset in the statement of financial position or subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued additional guidance that limits the scope of these new requirements to certain derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and lending transactions. These amendments became effective on January 1, 2013 and had no impact on our consolidated financial statements. |
In February 2013, the FASB issued accounting guidance that requires companies to present either in a single note or on the face of the financial statements the effect of significant amounts reclassified from each component of accumulated other comprehensive income, and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies instead cross reference to the related footnote for additional information. These amendments became effective for us beginning with the first quarter of 2013 and did not have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued accounting guidance that requires entities that have obligations resulting from joint and several liability arrangements and for which the total amount is fixed at the reporting date to measure such obligations as the sum of (a) the amount the entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Entities are also required to disclose the nature, amount and any other relevant information about such obligations. This accounting guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively to all prior periods presented for obligations that exist at the beginning of an entity’s fiscal year of adoption. We are assessing the impact of these new requirements on our financial statements. | |
In March 2013, the FASB issued accounting guidance that clarifies a parent company’s accounting for the cumulative foreign currency translation adjustment when the parent sells a part or all of its investment in a foreign entity. The guidance clarifies that the sale of an investment in a foreign entity includes both (a) events that result in the loss of a controlling financial interest in a foreign entity, and (b) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative foreign currency translation adjustment should be released into net income upon the occurrence of those events. This accounting guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be applied prospectively to derecognition events occurring after the effective date. We are assessing the impact of these new requirements on our financial statements. | |
In July 2013, the FASB issued accounting guidance designed to reduce diversity in practice of financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. These new requirements become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect this new guidance to have a material effect on our consolidated financial statements. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Consolidated Statements of Income | The impact of this accounting policy change on Albemarle’s consolidated financial statements for the three-month and nine-month periods ended September 30, 2012 is summarized below: | ||||||||||||
Consolidated Statements of Income | |||||||||||||
Three Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net sales | $ | 661,226 | $ | — | $ | 661,226 | |||||||
Cost of goods sold | 446,469 | (2,993 | ) | 443,476 | |||||||||
Gross profit | 214,757 | 2,993 | 217,750 | ||||||||||
Selling, general and administrative expenses | 59,982 | (6,578 | ) | 53,404 | |||||||||
Research and development expenses | 19,831 | — | 19,831 | ||||||||||
Restructuring and other charges, net | 6,508 | (6,508 | ) | — | |||||||||
Operating profit | 128,436 | 16,079 | 144,515 | ||||||||||
Interest and financing expenses | (7,914 | ) | — | (7,914 | ) | ||||||||
Other income, net | 2,370 | — | 2,370 | ||||||||||
Income before income taxes and equity in net income of | 122,892 | 16,079 | 138,971 | ||||||||||
unconsolidated investments | |||||||||||||
Income tax expense | 26,591 | 5,881 | 32,472 | ||||||||||
Income before equity in net income of unconsolidated investments | 96,301 | 10,198 | 106,499 | ||||||||||
Equity in net income of unconsolidated investments (net of tax) | 7,935 | — | 7,935 | ||||||||||
Net income | 104,236 | 10,198 | 114,434 | ||||||||||
Net income attributable to noncontrolling interests | (4,975 | ) | — | (4,975 | ) | ||||||||
Net income attributable to Albemarle Corporation | $ | 99,261 | $ | 10,198 | $ | 109,459 | |||||||
Basic earnings per share | $ | 1.11 | $ | 0.12 | $ | 1.23 | |||||||
Diluted earnings per share | $ | 1.1 | $ | 0.12 | $ | 1.22 | |||||||
Weighted-average common shares outstanding – basic | 89,327 | — | 89,327 | ||||||||||
Weighted-average common shares outstanding – diluted | 89,879 | — | 89,879 | ||||||||||
Cash dividends declared per share of common stock | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Nine Months Ended September 30, 2012 (In Thousands, Except Per Share Amounts) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net sales | $ | 2,057,824 | $ | — | $ | 2,057,824 | |||||||
Cost of goods sold | 1,352,495 | (12,689 | ) | 1,339,806 | |||||||||
Gross profit | 705,329 | 12,689 | 718,018 | ||||||||||
Selling, general and administrative expenses | 215,298 | (26,155 | ) | 189,143 | |||||||||
Research and development expenses | 59,791 | — | 59,791 | ||||||||||
Restructuring and other charges, net | 101,211 | (6,508 | ) | 94,703 | |||||||||
Operating profit | 329,029 | 45,352 | 374,381 | ||||||||||
Interest and financing expenses | (25,134 | ) | — | (25,134 | ) | ||||||||
Other income, net | 1,564 | — | 1,564 | ||||||||||
Income before income taxes and equity in net income of | 305,459 | 45,352 | 350,811 | ||||||||||
unconsolidated investments | |||||||||||||
Income tax expense | 76,804 | 16,578 | 93,382 | ||||||||||
Income before equity in net income of unconsolidated investments | 228,655 | 28,774 | 257,429 | ||||||||||
Equity in net income of unconsolidated investments (net of tax) | 29,233 | — | 29,233 | ||||||||||
Net income | 257,888 | 28,774 | 286,662 | ||||||||||
Net income attributable to noncontrolling interests | (12,852 | ) | — | (12,852 | ) | ||||||||
Net income attributable to Albemarle Corporation | $ | 245,036 | $ | 28,774 | $ | 273,810 | |||||||
Basic earnings per share | $ | 2.75 | $ | 0.32 | $ | 3.07 | |||||||
Diluted earnings per share | $ | 2.72 | $ | 0.32 | $ | 3.04 | |||||||
Weighted-average common shares outstanding – basic | 89,246 | — | 89,246 | ||||||||||
Weighted-average common shares outstanding – diluted | 89,959 | — | 89,959 | ||||||||||
Cash dividends declared per share of common stock | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Consolidated Statements of Comprehensive Income (Loss) | Consolidated Statements of Comprehensive Income | ||||||||||||
Three Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net income | $ | 104,236 | $ | 10,198 | $ | 114,434 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Foreign currency translation | 29,165 | — | 29,165 | ||||||||||
Pension and postretirement benefits | 10,030 | (10,198 | ) | (168 | ) | ||||||||
Other | 29 | — | 29 | ||||||||||
Total other comprehensive income, net of tax | 39,224 | (10,198 | ) | 29,026 | |||||||||
Comprehensive income | 143,460 | — | 143,460 | ||||||||||
Comprehensive income attributable to non-controlling interests | (4,975 | ) | — | (4,975 | ) | ||||||||
Comprehensive income attributable to Albemarle Corporation | $ | 138,485 | $ | — | $ | 138,485 | |||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Net income | $ | 257,888 | $ | 28,774 | $ | 286,662 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Foreign currency translation | 2,295 | — | 2,295 | ||||||||||
Pension and postretirement benefits | 28,272 | (28,774 | ) | (502 | ) | ||||||||
Other | 95 | — | 95 | ||||||||||
Total other comprehensive income, net of tax | 30,662 | (28,774 | ) | 1,888 | |||||||||
Comprehensive income | 288,550 | — | 288,550 | ||||||||||
Comprehensive income attributable to non-controlling interests | (13,007 | ) | — | (13,007 | ) | ||||||||
Comprehensive income attributable to Albemarle Corporation | $ | 275,543 | $ | — | $ | 275,543 | |||||||
Consolidated Statements of Changes In Equity | Consolidated Statements of Changes In Equity | ||||||||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Accumulated other comprehensive (loss) income: | |||||||||||||
Balance at January 1, 2012 | $ | (222,922 | ) | $ | 283,251 | $ | 60,329 | ||||||
Other comprehensive income | 30,507 | (28,774 | ) | 1,733 | |||||||||
Balance at September 30, 2012 | $ | (192,415 | ) | $ | 254,477 | $ | 62,062 | ||||||
Retained earnings: | |||||||||||||
Balance at January 1, 2012 | $ | 1,798,117 | $ | (283,251 | ) | $ | 1,514,866 | ||||||
Net income | 245,036 | 28,774 | 273,810 | ||||||||||
Cash dividends declared | (53,567 | ) | — | (53,567 | ) | ||||||||
Balance at September 30, 2012 | $ | 1,989,586 | $ | (254,477 | ) | $ | 1,735,109 | ||||||
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows | ||||||||||||
Nine Months Ended September 30, 2012 (In Thousands) | As Previously | Effect of | As Adjusted | ||||||||||
Reported | Accounting | ||||||||||||
Change | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 257,888 | $ | 28,774 | $ | 286,662 | |||||||
Non-cash charges associated with restructuring and other, net | 77,095 | (6,508 | ) | 70,587 | |||||||||
Pension and postretirement expense (benefit) | 28,727 | (38,844 | ) | (10,117 | ) | ||||||||
Deferred income taxes | (2,136 | ) | 16,578 | 14,442 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2013 and 2012 are calculated as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Basic earnings per share | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares for basic earnings per share | 81,385 | 89,327 | 84,711 | 89,246 | |||||||||||||
Basic earnings per share | $ | 1.11 | $ | 1.23 | $ | 3.04 | $ | 3.07 | |||||||||
Diluted earnings per share | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares for basic earnings per share | 81,385 | 89,327 | 84,711 | 89,246 | |||||||||||||
Incremental shares under stock compensation plans | 467 | 552 | 481 | 713 | |||||||||||||
Total shares | 81,852 | 89,879 | 85,192 | 89,959 | |||||||||||||
Diluted earnings per share | $ | 1.11 | $ | 1.22 | $ | 3.02 | $ | 3.04 | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Breakdown of Inventories | The following table provides a breakdown of inventories at September 30, 2013 and December 31, 2012: | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Finished goods | $ | 382,298 | $ | 325,762 | |||||
Raw materials | 57,086 | 57,245 | |||||||
Stores, supplies and other | 46,420 | 45,138 | |||||||
Total inventories | $ | 485,804 | $ | 428,145 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Debt | Long-term debt at September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
5.10% Senior notes, net of unamortized discount of $45 at September 30, 2013 | $ | 324,955 | $ | 324,930 | |||||
and $70 at December 31, 2012 | |||||||||
4.50% Senior notes, net of unamortized discount of $2,264 at September 30, | 347,736 | 347,500 | |||||||
2013 and $2,500 at December 31, 2012 | |||||||||
Commercial paper notes | 363,000 | — | |||||||
Fixed-rate foreign borrowings | 10,728 | 19,458 | |||||||
Variable-rate foreign bank loans | 33,168 | 7,006 | |||||||
Miscellaneous | 297 | 394 | |||||||
Total long-term debt | 1,079,884 | 699,288 | |||||||
Less amounts due within one year | 19,602 | 12,700 | |||||||
Long-term debt, less current portion | $ | 1,060,282 | $ | 686,588 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2013, as follows (in thousands): | |||
Beginning balance at December 31, 2012 | $ | 20,322 | ||
Expenditures | (2,248 | ) | ||
Changes in estimates recorded to earnings and other | (902 | ) | ||
Foreign currency translation | (147 | ) | ||
Ending balance at September 30, 2013 | 17,025 | |||
Less amounts reported in Accrued expenses | 7,984 | |||
Amounts reported in Other noncurrent liabilities | $ | 9,041 | ||
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Net sales: | |||||||||||||||||
Polymer Solutions | $ | 224,320 | $ | 216,992 | $ | 663,410 | $ | 692,139 | |||||||||
Catalysts | 226,042 | 251,201 | 695,433 | 773,867 | |||||||||||||
Fine Chemistry | 198,276 | 193,033 | 565,617 | 591,818 | |||||||||||||
Total net sales | $ | 648,638 | $ | 661,226 | $ | 1,924,460 | $ | 2,057,824 | |||||||||
Segment operating profit: | |||||||||||||||||
Polymer Solutions | $ | 40,678 | $ | 44,694 | $ | 128,169 | $ | 162,648 | |||||||||
Catalysts | 53,878 | 55,093 | 146,536 | 189,104 | |||||||||||||
Fine Chemistry | 43,894 | 48,336 | 120,349 | 142,403 | |||||||||||||
Total segment operating profit | 138,450 | 148,123 | 395,054 | 494,155 | |||||||||||||
Equity in net income of unconsolidated investments: | |||||||||||||||||
Polymer Solutions | 1,735 | 1,199 | 6,371 | 4,957 | |||||||||||||
Catalysts | 3,603 | 6,736 | 18,937 | 24,276 | |||||||||||||
Fine Chemistry | — | — | — | — | |||||||||||||
Corporate & other | — | — | — | — | |||||||||||||
Total equity in net income of unconsolidated | |||||||||||||||||
investments | 5,338 | 7,935 | 25,308 | 29,233 | |||||||||||||
Net income attributable to noncontrolling interests: | |||||||||||||||||
Polymer Solutions | (916 | ) | (602 | ) | (4,118 | ) | (1,255 | ) | |||||||||
Catalysts | — | — | — | — | |||||||||||||
Fine Chemistry | (6,416 | ) | (4,373 | ) | (17,132 | ) | (11,577 | ) | |||||||||
Corporate & other | — | — | — | (20 | ) | ||||||||||||
Total net income attributable to noncontrolling | |||||||||||||||||
interests | (7,332 | ) | (4,975 | ) | (21,250 | ) | (12,852 | ) | |||||||||
Segment income: | |||||||||||||||||
Polymer Solutions | 41,497 | 45,291 | 130,422 | 166,350 | |||||||||||||
Catalysts | 57,481 | 61,829 | 165,473 | 213,380 | |||||||||||||
Fine Chemistry | 37,478 | 43,963 | 103,217 | 130,826 | |||||||||||||
Total segment income | 136,456 | 151,083 | 399,112 | 510,556 | |||||||||||||
Corporate & other | (8,785 | ) | (3,608 | ) | (38,328 | ) | (25,091 | ) | |||||||||
Restructuring and other charges, net(1) | — | — | — | (94,703 | ) | ||||||||||||
Interest and financing expenses | (9,496 | ) | (7,914 | ) | (22,335 | ) | (25,134 | ) | |||||||||
Other (expenses) income, net | (389 | ) | 2,370 | (6,295 | ) | 1,564 | |||||||||||
Income tax expense | (27,274 | ) | (32,472 | ) | (74,916 | ) | (93,382 | ) | |||||||||
Net income attributable to Albemarle Corporation | $ | 90,512 | $ | 109,459 | $ | 257,238 | $ | 273,810 | |||||||||
-1 | See Note 13, “Restructuring and Other.” |
Pension_Plans_and_Other_Postre1
Pension Plans and Other Postretirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The following information is provided for domestic and foreign pension and postretirement defined benefit plans: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Net Periodic Pension Benefit Cost (Credit): | |||||||||||||||||
Service cost | $ | 3,488 | $ | 3,174 | $ | 10,462 | $ | 9,391 | |||||||||
Interest cost | 7,470 | 8,076 | 22,403 | 24,269 | |||||||||||||
Expected return on assets | (9,848 | ) | (11,634 | ) | (29,541 | ) | (34,913 | ) | |||||||||
Actuarial gain(a) | — | — | — | (5,840 | ) | ||||||||||||
Amortization of prior service benefit | (173 | ) | (245 | ) | (517 | ) | (731 | ) | |||||||||
Total net periodic pension benefit cost (credit) | $ | 937 | $ | (629 | ) | $ | 2,807 | $ | (7,824 | ) | |||||||
Net Periodic Postretirement Benefit Cost (Credit): | |||||||||||||||||
Service cost | $ | 78 | $ | 69 | $ | 232 | $ | 206 | |||||||||
Interest cost | 691 | 793 | 2,073 | 2,379 | |||||||||||||
Expected return on assets | (104 | ) | (122 | ) | (310 | ) | (366 | ) | |||||||||
Actuarial gain(a) | — | — | — | (4,439 | ) | ||||||||||||
Amortization of prior service benefit | (24 | ) | (25 | ) | (72 | ) | (73 | ) | |||||||||
Total net periodic postretirement benefit cost (credit) | $ | 641 | $ | 715 | $ | 1,923 | $ | (2,293 | ) | ||||||||
Total net periodic pension and postretirement benefit | |||||||||||||||||
cost (credit) | $ | 1,578 | $ | 86 | $ | 4,730 | $ | (10,117 | ) | ||||||||
(a) | In the second quarter of 2013, we identified that our consolidated statement of income for the nine-month period ended September 30, 2012 included a correction of $10.3 million for pension and OPEB plan actuarial gains that related to 2011. This amount was deemed to be not material with respect to our financial statements for the year ended December 31, 2012 and any prior period financial statements. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Long-Term Debt | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Recorded | Fair Value | Recorded | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
Long-term debt | $ | 1,079,884 | $ | 1,111,458 | $ | 699,288 | $ | 764,784 | |||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||
30-Sep-13 | Quoted Prices in | Quoted Prices in | |||||||||||
Active Markets | Active Markets | ||||||||||||
for Identical | for Similar Items | ||||||||||||
Items | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Investments under executive deferred compensation plan(a) | $ | 20,976 | $ | 20,976 | $ | — | |||||||
Equity securities(b) | $ | 23 | $ | 23 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 56 | $ | — | $ | 56 | |||||||
Liabilities: | |||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 20,976 | $ | 20,976 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 130 | $ | — | $ | 130 | |||||||
31-Dec-12 | Quoted Prices in | Quoted Prices in | |||||||||||
Active Markets | Active Markets | ||||||||||||
for Identical | for Similar Items | ||||||||||||
Items | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Investments under executive deferred compensation plan(a) | $ | 20,265 | $ | 20,265 | $ | — | |||||||
Equity securities(b) | $ | 25 | $ | 25 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 262 | $ | — | $ | 262 | |||||||
Liabilities: | |||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 20,265 | $ | 20,265 | $ | — | |||||||
Foreign currency forward contracts(c) | $ | 771 | $ | — | $ | 771 | |||||||
(a) | We maintain an Executive Deferred Compensation Plan (EDCP) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the Trust) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. | ||||||||||||
(b) | Our investments in equity securities are classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other in our consolidated statements of comprehensive income. These securities are classified within Level 1. | ||||||||||||
(c) | As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. |
Restructuring_and_Other_Tables
Restructuring and Other (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Restructuring and Related Activities [Abstract] | ||||
Activity in Recorded Workforce Reduction Liabilities | We had the following activity in our recorded workforce reduction liabilities for the nine months ended September 30, 2013 (in thousands): | |||
Beginning balance at December 31, 2012 | $ | 15,898 | ||
Workforce reduction charges | — | |||
Payments | (6,214 | ) | ||
Amount reversed to income | (991 | ) | ||
Foreign currency translation | (138 | ) | ||
Ending balance at September 30, 2013 | 8,555 | |||
Less amounts reported in Accrued expenses | 8,084 | |||
Amounts reported in Other noncurrent liabilities | $ | 471 | ||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Components and Activity in Accumulated Other Comprehensive Income Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive income (net of deferred income taxes) consisted of the following during the three and nine months ended September 30, 2013 (in thousands): | ||||||||||||||||||||||||
Foreign | Pension | Other | Total | ||||||||||||||||||||||
Currency | and Post- | ||||||||||||||||||||||||
Translation | Retirement | ||||||||||||||||||||||||
Benefits(a) | |||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 56,378 | $ | 585 | $ | (781 | ) | $ | 56,182 | ||||||||||||||||
Other comprehensive income before | 40,613 | — | 4 | 40,617 | |||||||||||||||||||||
reclassifications | |||||||||||||||||||||||||
Amounts reclassified from accumulated other | |||||||||||||||||||||||||
comprehensive income | — | (201 | ) | 34 | (167 | ) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 40,613 | (201 | ) | 38 | 40,450 | ||||||||||||||||||||
Other comprehensive income attributable to | |||||||||||||||||||||||||
noncontrolling interests | (337 | ) | — | — | (337 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 96,654 | $ | 384 | $ | (743 | ) | $ | 96,295 | ||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 85,117 | $ | 989 | $ | (842 | ) | $ | 85,264 | ||||||||||||||||
Other comprehensive income (loss) before | 11,945 | — | (1 | ) | 11,944 | ||||||||||||||||||||
reclassifications | |||||||||||||||||||||||||
Amounts reclassified from accumulated other | |||||||||||||||||||||||||
comprehensive income | — | (605 | ) | 100 | (505 | ) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 11,945 | (605 | ) | 99 | 11,439 | ||||||||||||||||||||
Other comprehensive income attributable to | |||||||||||||||||||||||||
noncontrolling interests | (408 | ) | — | — | (408 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 96,654 | $ | 384 | $ | (743 | ) | $ | 96,295 | ||||||||||||||||
(a) | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.” | ||||||||||||||||||||||||
Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) | The amount of income tax benefit (expense) allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2013 and 2012 is provided in the following (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Foreign | Pension | Other | Foreign | Pension | Other | ||||||||||||||||||||
Currency | and Post- | Currency | and Post- | ||||||||||||||||||||||
Translation | retirement | Translation | retirement | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Other comprehensive income (loss), | $ | 40,436 | $ | (197 | ) | $ | 58 | $ | 29,445 | $ | (268 | ) | $ | 49 | |||||||||||
before tax | |||||||||||||||||||||||||
Income tax benefit (expense) | 177 | (4 | ) | (20 | ) | (280 | ) | 100 | (20 | ) | |||||||||||||||
Other comprehensive income (loss), | $ | 40,613 | $ | (201 | ) | $ | 38 | $ | 29,165 | $ | (168 | ) | $ | 29 | |||||||||||
net of tax | |||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Foreign | Pension | Other | Foreign | Pension | Other | ||||||||||||||||||||
Currency | and Post- | Currency | and Post- | ||||||||||||||||||||||
Translation | retirement | Translation | retirement | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Other comprehensive income (loss), | $ | 10,654 | $ | (589 | ) | $ | 159 | $ | 743 | $ | (798 | ) | $ | 155 | |||||||||||
before tax | |||||||||||||||||||||||||
Income tax benefit (expense) | 1,291 | (16 | ) | (60 | ) | 1,552 | 296 | (60 | ) | ||||||||||||||||
Other comprehensive income (loss), | $ | 11,945 | $ | (605 | ) | $ | 99 | $ | 2,295 | $ | (502 | ) | $ | 95 | |||||||||||
net of tax | |||||||||||||||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Details) (Change in Assumptions for Pension Plans, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 |
Change in Assumptions for Pension Plans | ||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | ||
Actuarial gain | $10,300 | $10,300 |
Basis_of_Presentation_Consolid
Basis of Presentation - Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net sales | $648,638 | $661,226 | $1,924,460 | $2,057,824 | ||||
Cost of goods sold | 436,989 | 443,476 | 1,316,582 | 1,339,806 | ||||
Gross profit | 211,649 | 217,750 | 607,878 | 718,018 | ||||
Selling, general and administrative expenses | 62,543 | 53,404 | 190,193 | 189,143 | ||||
Research and development expenses | 19,441 | 19,831 | 60,959 | 59,791 | ||||
Restructuring and other charges, net | 0 | [1] | 0 | [1] | 0 | [1] | 94,703 | [1] |
Operating profit | 129,665 | 144,515 | 356,726 | 374,381 | ||||
Interest and financing expenses | -9,496 | -7,914 | -22,335 | -25,134 | ||||
Other income, net | -389 | 2,370 | -6,295 | 1,564 | ||||
Income before income taxes and equity in net income of unconsolidated investments | 119,780 | 138,971 | 328,096 | 350,811 | ||||
Income tax expense | 27,274 | 32,472 | 74,916 | 93,382 | ||||
Income before equity in net income of unconsolidated investments | 92,506 | 106,499 | 253,180 | 257,429 | ||||
Equity in net income of unconsolidated investments (net of tax) | 5,338 | 7,935 | 25,308 | 29,233 | ||||
Net income | 97,844 | 114,434 | 278,488 | 286,662 | ||||
Net income attributable to noncontrolling interests | -7,332 | -4,975 | -21,250 | -12,852 | ||||
Net income attributable to Albemarle Corporation | 90,512 | 109,459 | 257,238 | 273,810 | ||||
Basic earnings per share (in dollars per share) | $1.11 | $1.23 | $3.04 | $3.07 | ||||
Diluted earnings per share (in dollars per share) | $1.11 | $1.22 | $3.02 | $3.04 | ||||
Weighted-average common shares outstanding - basic (in shares) | 81,385 | 89,327 | 84,711 | 89,246 | ||||
Weighted-average common shares outstanding - diluted (in shares) | 81,852 | 89,879 | 85,192 | 89,959 | ||||
Cash dividends declared per share of common stock (in dollars per share) | $0.24 | $0.20 | $0.72 | $0.60 | ||||
As Previously Reported | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net sales | 661,226 | 2,057,824 | ||||||
Cost of goods sold | 446,469 | 1,352,495 | ||||||
Gross profit | 214,757 | 705,329 | ||||||
Selling, general and administrative expenses | 59,982 | 215,298 | ||||||
Research and development expenses | 19,831 | 59,791 | ||||||
Restructuring and other charges, net | 6,508 | 101,211 | ||||||
Operating profit | 128,436 | 329,029 | ||||||
Interest and financing expenses | -7,914 | -25,134 | ||||||
Other income, net | 2,370 | 1,564 | ||||||
Income before income taxes and equity in net income of unconsolidated investments | 122,892 | 305,459 | ||||||
Income tax expense | 26,591 | 76,804 | ||||||
Income before equity in net income of unconsolidated investments | 96,301 | 228,655 | ||||||
Equity in net income of unconsolidated investments (net of tax) | 7,935 | 29,233 | ||||||
Net income | 104,236 | 257,888 | ||||||
Net income attributable to noncontrolling interests | -4,975 | -12,852 | ||||||
Net income attributable to Albemarle Corporation | 99,261 | 245,036 | ||||||
Basic earnings per share (in dollars per share) | $1.11 | $2.75 | ||||||
Diluted earnings per share (in dollars per share) | $1.10 | $2.72 | ||||||
Weighted-average common shares outstanding - basic (in shares) | 89,327 | 89,246 | ||||||
Weighted-average common shares outstanding - diluted (in shares) | 89,879 | 89,959 | ||||||
Cash dividends declared per share of common stock (in dollars per share) | $0.20 | $0.60 | ||||||
Effect of Accounting Change | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net sales | 0 | 0 | ||||||
Cost of goods sold | -2,993 | -12,689 | ||||||
Gross profit | 2,993 | 12,689 | ||||||
Selling, general and administrative expenses | -6,578 | -26,155 | ||||||
Research and development expenses | 0 | 0 | ||||||
Restructuring and other charges, net | -6,508 | -6,508 | ||||||
Operating profit | 16,079 | 45,352 | ||||||
Interest and financing expenses | 0 | 0 | ||||||
Other income, net | 0 | 0 | ||||||
Income before income taxes and equity in net income of unconsolidated investments | 16,079 | 45,352 | ||||||
Income tax expense | 5,881 | 16,578 | ||||||
Income before equity in net income of unconsolidated investments | 10,198 | 28,774 | ||||||
Equity in net income of unconsolidated investments (net of tax) | 0 | 0 | ||||||
Net income | 10,198 | 28,774 | ||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||
Net income attributable to Albemarle Corporation | $10,198 | $28,774 | ||||||
Basic earnings per share (in dollars per share) | $0.12 | $0.32 | ||||||
Diluted earnings per share (in dollars per share) | $0.12 | $0.32 | ||||||
Weighted-average common shares outstanding - basic (in shares) | 0 | 0 | ||||||
Weighted-average common shares outstanding - diluted (in shares) | 0 | 0 | ||||||
Cash dividends declared per share of common stock (in dollars per share) | $0 | $0 | ||||||
[1] | See Note 13, “Restructuring and Other.†|
Basis_of_Presentation_Consolid1
Basis of Presentation - Consolidated Statements of Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | $97,844 | $114,434 | $278,488 | $286,662 | ||
Other comprehensive (loss) income, net of tax: | ||||||
Foreign currency translation | 40,613 | 29,165 | 11,945 | 2,295 | ||
Pension and postretirement benefits | -201 | [1] | -168 | -605 | [1] | -502 |
Other | 38 | 29 | 99 | 95 | ||
Total other comprehensive income, net of tax | 40,450 | 29,026 | 11,439 | 1,888 | ||
Comprehensive income | 138,294 | 143,460 | 289,927 | 288,550 | ||
Comprehensive income attributable to non-controlling interests | -7,669 | -4,975 | -21,658 | -13,007 | ||
Comprehensive income attributable to Albemarle Corporation | 130,625 | 138,485 | 268,269 | 275,543 | ||
As Previously Reported | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | 104,236 | 257,888 | ||||
Other comprehensive (loss) income, net of tax: | ||||||
Foreign currency translation | 29,165 | 2,295 | ||||
Pension and postretirement benefits | 10,030 | 28,272 | ||||
Other | 29 | 95 | ||||
Total other comprehensive income, net of tax | 39,224 | 30,662 | ||||
Comprehensive income | 143,460 | 288,550 | ||||
Comprehensive income attributable to non-controlling interests | -4,975 | -13,007 | ||||
Comprehensive income attributable to Albemarle Corporation | 138,485 | 275,543 | ||||
Effect of Accounting Change | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | 10,198 | 28,774 | ||||
Other comprehensive (loss) income, net of tax: | ||||||
Foreign currency translation | 0 | 0 | ||||
Pension and postretirement benefits | -10,198 | -28,774 | ||||
Other | 0 | 0 | ||||
Total other comprehensive income, net of tax | -10,198 | -28,774 | ||||
Comprehensive income | 0 | 0 | ||||
Comprehensive income attributable to non-controlling interests | 0 | 0 | ||||
Comprehensive income attributable to Albemarle Corporation | $0 | $0 | ||||
[1] | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.†|
Basis_of_Presentation_Consolid2
Basis of Presentation - Consolidated Statements of Changes In Equity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated other comprehensive (loss) income: | ||||
Beginning Balance | $56,182 | $85,264 | $60,329 | |
Other comprehensive income | 1,733 | |||
Ending balance | 96,295 | 62,062 | 96,295 | 62,062 |
Retained earnings: | ||||
Beginning Balance | 1,744,684 | 1,514,866 | ||
Net income | 90,512 | 109,459 | 257,238 | 273,810 |
Cash dividends declared | -53,567 | |||
Ending Balance | 1,363,970 | 1,735,109 | 1,363,970 | 1,735,109 |
As Previously Reported | ||||
Accumulated other comprehensive (loss) income: | ||||
Beginning Balance | -222,922 | |||
Other comprehensive income | 30,507 | |||
Ending balance | -192,415 | -192,415 | ||
Retained earnings: | ||||
Beginning Balance | 1,798,117 | |||
Net income | 99,261 | 245,036 | ||
Cash dividends declared | -53,567 | |||
Ending Balance | 1,989,586 | 1,989,586 | ||
Effect of Accounting Change | ||||
Accumulated other comprehensive (loss) income: | ||||
Beginning Balance | 283,251 | |||
Other comprehensive income | -28,774 | |||
Ending balance | 254,477 | 254,477 | ||
Retained earnings: | ||||
Beginning Balance | -283,251 | |||
Net income | 10,198 | 28,774 | ||
Cash dividends declared | 0 | |||
Ending Balance | ($254,477) | ($254,477) |
Basis_of_Presentation_Consolid3
Basis of Presentation - Consolidated Statements of Cash Flows (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | |||
Net income | $114,434 | $278,488 | $286,662 |
Non-cash charges associated with restructuring and other, net | 0 | 70,587 | |
Pension and postretirement expense (benefit) | 4,730 | -10,117 | |
Deferred income taxes | 7,115 | 14,442 | |
As Previously Reported | |||
Cash flows from operating activities: | |||
Net income | 104,236 | 257,888 | |
Non-cash charges associated with restructuring and other, net | 77,095 | ||
Pension and postretirement expense (benefit) | 28,727 | ||
Deferred income taxes | -2,136 | ||
Effect of Accounting Change | |||
Cash flows from operating activities: | |||
Net income | 10,198 | 28,774 | |
Non-cash charges associated with restructuring and other, net | -6,508 | ||
Pension and postretirement expense (benefit) | -38,844 | ||
Deferred income taxes | $16,578 |
Foreign_Exchange_Additional_In
Foreign Exchange - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign Currency [Abstract] | ||||
Net foreign exchange transaction gain (losses) | ($2) | $0.90 | ($9.10) | ($2.50) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes [Line Items] | ||||
Effective income tax rate | 22.80% | 23.40% | 22.80% | 26.60% |
Phosphorous Flame Retardant Business Exit | ||||
Income Taxes [Line Items] | ||||
Restructuring charges | 94.7 | 94.7 | ||
Restructuring charges, net of tax | 73.6 | 73.6 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Jul. 10, 2013 | Feb. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 10-May-13 | 10-May-13 | Sep. 30, 2013 | Feb. 12, 2013 | Oct. 07, 2013 | |
Common Stock | J P Morgan Securities LLC | J P Morgan Securities LLC | J P Morgan Securities LLC | J P Morgan Securities LLC | Maximum | Subsequent Event | |||||
Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | ||||||||
Initial Delivery | Fair Market Value | Final Settlement | |||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Increase in dividend rate, percentage | 20.00% | ||||||||||
Cash dividend, amount per share (in dollars per share) | $0.24 | $0.24 | $0.24 | ||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 15,000,000 | ||||||||||
Payment for repurchase of common stock | $582,298,000 | $40,470,000 | $450,000,000 | ||||||||
Repurchase of common stock shares (in shares) | 5,680,921 | 1,500,000 | |||||||||
Shares repurchased | 360,000,000 | ||||||||||
Forward Purchase Prices adjustment amount (in dollars per share) | $1.01 | ||||||||||
Shares repurchased (in shares) | 7,814,045 | ||||||||||
Shares available for repurchase (in shares) | 7,185,955 |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic earnings per share | ||||
Net income attributable to Albemarle Corporation | $90,512 | $109,459 | $257,238 | $273,810 |
Weighted-average common shares for basic earnings per share (in shares) | 81,385 | 89,327 | 84,711 | 89,246 |
Basic earnings per share (in dollars per share) | $1.11 | $1.23 | $3.04 | $3.07 |
Diluted earnings per share | ||||
Net income attributable to Albemarle Corporation | $90,512 | $109,459 | $257,238 | $273,810 |
Weighted-average common shares for basic earnings per share (in shares) | 81,385 | 89,327 | 84,711 | 89,246 |
Incremental shares under stock compensation plans (in shares) | 467 | 552 | 481 | 713 |
Total shares | 81,852 | 89,879 | 85,192 | 89,959 |
Diluted earnings per share (in dollars per share) | $1.11 | $1.22 | $3.02 | $3.04 |
Inventories_Breakdown_of_Inven
Inventories - Breakdown of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $382,298 | $325,762 |
Raw materials | 57,086 | 57,245 |
Stores, supplies and other | 46,420 | 45,138 |
Total inventories | $485,804 | $428,145 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Joint Venture Saudi Organometallic Chemicals Company | Stannica LLC | Stannica LLC | |||
Schedule of Investments [Line Items] | |||||
Carrying value of unconsolidated investment | $5,500,000 | $6,600,000 | |||
Long-term advances to joint venture | $0 | $22,500,000 | $22,500,000 | ||
Percentage of interest in joint ventures | 50.00% |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Commercial paper notes | $363,000 | $0 |
Fixed rate foreign borrowings | 10,728 | 19,458 |
Variable-rate foreign bank loans | 33,168 | 7,006 |
Miscellaneous | 297 | 394 |
Total long-term debt | 1,079,884 | 699,288 |
Less amounts due within one year | 19,602 | 12,700 |
Long-term debt, less current portion | 1,060,282 | 686,588 |
5.10% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 324,955 | 324,930 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $347,736 | $347,500 |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
5.10% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount | $45 | $70 |
Debt instrument, interest rate | 5.10% | 5.10% |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount | $2,264 | $2,500 |
Debt instrument, interest rate | 4.50% | 4.50% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | 29-May-13 | |
Commercial Paper | |||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount outstanding | $750,000,000 | ||
Commercial paper notes | $363,000,000 | $0 | |
Weighted average interest rate | 0.32% | ||
Weighted average maturity period | 41 days |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loss Contingencies [Line Items] | |||
Potential revision on future environmental remediation costs before tax | $17,000,000 | ||
Estimated site remediation liabilities | 17,025,000 | 20,322,000 | |
Exit of phosphorous flame retardants business | 8,700,000 | ||
Bergheim, Germany Site | |||
Loss Contingencies [Line Items] | |||
Estimated site remediation liabilities | 7,300,000 | ||
Pledged land and housing facilities | $6,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of period | $20,322 |
Expenditures | -2,248 |
Changes in estimates recorded to earnings and other | -902 |
Foreign currency translation | -147 |
Balance at end of period | 17,025 |
Less amounts reported in Accrued expenses | 7,984 |
Amounts reported in Other noncurrent liabilities | $9,041 |
Operating_Segments_Summarized_
Operating Segments - Summarized Financial Information by Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $648,638 | $661,226 | $1,924,460 | $2,057,824 | ||||
Total segment operating profit | 129,665 | 144,515 | 356,726 | 374,381 | ||||
Equity in net income of unconsolidated investments | 5,338 | 7,935 | 25,308 | 29,233 | ||||
Net (income) loss attributable to noncontrolling interests | -7,332 | -4,975 | -21,250 | -12,852 | ||||
Segment income | 136,456 | 151,083 | 399,112 | 510,556 | ||||
Corporate & other | -8,785 | -3,608 | -38,328 | -25,091 | ||||
Restructuring and other charges, net | 0 | [1] | 0 | [1] | 0 | [1] | -94,703 | [1] |
Interest and financing expenses | -9,496 | -7,914 | -22,335 | -25,134 | ||||
Other (expenses) income, net | -389 | 2,370 | -6,295 | 1,564 | ||||
Income tax expense | -27,274 | -32,472 | -74,916 | -93,382 | ||||
Net income attributable to Albemarle Corporation | 90,512 | 109,459 | 257,238 | 273,810 | ||||
Polymer Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 224,320 | 216,992 | 663,410 | 692,139 | ||||
Total segment operating profit | 40,678 | 44,694 | 128,169 | 162,648 | ||||
Equity in net income of unconsolidated investments | 1,735 | 1,199 | 6,371 | 4,957 | ||||
Net (income) loss attributable to noncontrolling interests | 916 | 602 | 4,118 | 1,255 | ||||
Segment income | 41,497 | 45,291 | 130,422 | 166,350 | ||||
Catalysts | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 226,042 | 251,201 | 695,433 | 773,867 | ||||
Total segment operating profit | 53,878 | 55,093 | 146,536 | 189,104 | ||||
Equity in net income of unconsolidated investments | 3,603 | 6,736 | 18,937 | 24,276 | ||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Segment income | 57,481 | 61,829 | 165,473 | 213,380 | ||||
Fine Chemistry | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 198,276 | 193,033 | 565,617 | 591,818 | ||||
Total segment operating profit | 43,894 | 48,336 | 120,349 | 142,403 | ||||
Equity in net income of unconsolidated investments | 0 | 0 | 0 | 0 | ||||
Net (income) loss attributable to noncontrolling interests | 6,416 | 4,373 | 17,132 | 11,577 | ||||
Segment income | 37,478 | 43,963 | 103,217 | 130,826 | ||||
Total segment operating profit | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total segment operating profit | 138,450 | 148,123 | 395,054 | 494,155 | ||||
Corporate and Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Equity in net income of unconsolidated investments | 0 | 0 | 0 | 0 | ||||
Net (income) loss attributable to noncontrolling interests | $0 | $0 | $0 | $20 | ||||
[1] | See Note 13, “Restructuring and Other.†|
Operating_Segments_Additional_
Operating Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Pension_Plans_and_Other_Postre2
Pension Plans and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension contributions | $4.80 | $0.30 | $6.80 | $3 |
Premiums paid to U.S. post-retirement benefit plan | 0.9 | 0.7 | 3.1 | 2.6 |
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension contributions | $14.10 |
Pension_Plans_and_Other_Postre3
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Total net periodic pension benefit cost (credit) | $1,578 | $86 | $4,730 | ($10,117) | ||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Service cost | 3,488 | 3,174 | 10,462 | 9,391 | ||||
Interest cost | 7,470 | 8,076 | 22,403 | 24,269 | ||||
Expected return on assets | -9,848 | -11,634 | -29,541 | -34,913 | ||||
Actuarial gain | 0 | [1] | 0 | [1] | 0 | [1] | -5,840 | [1] |
Amortization of prior service benefit | -173 | -245 | -517 | -731 | ||||
Total net periodic pension benefit cost (credit) | 937 | -629 | 2,807 | -7,824 | ||||
Postretirement Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Service cost | 78 | 69 | 232 | 206 | ||||
Interest cost | 691 | 793 | 2,073 | 2,379 | ||||
Expected return on assets | -104 | -122 | -310 | -366 | ||||
Actuarial gain | 0 | [1] | 0 | [1] | 0 | [1] | -4,439 | [1] |
Amortization of prior service benefit | -24 | -25 | -72 | -73 | ||||
Total net periodic pension benefit cost (credit) | $641 | $715 | $1,923 | ($2,293) | ||||
[1] | In the second quarter of 2013, we identified that our consolidated statement of income for the nine-month period ended September 30, 2012 included a correction of $10.3 million for pension and OPEB plan actuarial gains that related to 2011. This amount was deemed to be not material with respect to our financial statements for the year ended December 31, 2012 and any prior period financial statements. |
Pension_Plans_and_Other_Postre4
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Parenthetical) (Detail) (Change in Assumptions for Pension Plans, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 |
Change in Assumptions for Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial gain | $10,300 | $10,300 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Long-term debt, Recorded Amount | $1,079,884 | $699,288 |
Long-term debt, Fair Value | $1,111,458 | $764,784 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Other Accounts Receivable | Other Accounts Receivable | Accrued Expenses | Accrued Expenses | Other income (expenses), net | Other income (expenses), net | Other income (expenses), net | Other income (expenses), net | Other, net | Other, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||||||
Foreign currency forward contracts, notional values | $255.90 | $274 | ||||||||||
Fair value foreign currency forward contracts, assets | 0.1 | 0.3 | ||||||||||
Fair value of foreign currency forward contracts, liabilities | 0.1 | 0.8 | ||||||||||
Recognized gains (losses) of foreign currency forward contracts | 0.4 | 3 | -1.8 | -1.1 | ||||||||
Change in the fair value of foreign currency forward contracts | 1.8 | 1.1 | ||||||||||
Cash settlements | ($2.20) | ($1.60) |
Fair_Value_Measurement_Financi
Fair Value Measurement - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments under executive deferred compensation plan | $20,976 | [1] | $20,265 | [1] |
Equity securities | 23 | [2] | 25 | [2] |
Foreign currency forward contracts, assets | 56 | [3] | 262 | [3] |
Obligations under executive deferred compensation plan | 20,976 | [1] | 20,265 | [1] |
Foreign currency forward contracts, liabilities | 130 | [3] | 771 | [3] |
Quoted Prices in Active Markets for Identical Items (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments under executive deferred compensation plan | 20,976 | [1] | 20,265 | [1] |
Equity securities | 23 | [2] | 25 | [2] |
Obligations under executive deferred compensation plan | 20,976 | [1] | 20,265 | [1] |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency forward contracts, assets | 56 | [3] | 262 | [3] |
Foreign currency forward contracts, liabilities | $130 | [3] | $771 | [3] |
[1] | We maintain an Executive Deferred Compensation Plan (EDCP) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the Trust) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. | |||
[2] | Our investments in equity securities are classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other in our consolidated statements of comprehensive income. These securities are classified within Level 1. | |||
[3] | As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. |
Restructuring_and_Other_Activi
Restructuring and Other - Activity in Recorded Workforce Reduction Liabilities (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Restructuring and Related Activities [Abstract] | |
Beginning balance | $15,898 |
Workforce reduction charges | 0 |
Payments | -6,214 |
Amount reversed to income | -991 |
Foreign currency translation | -138 |
Ending balance | 8,555 |
Less amounts reported in Accrued expenses | 8,084 |
Amounts reported in Other noncurrent liabilities | $471 |
Restructuring_and_Other_Additi
Restructuring and Other - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | |
Phosphorous Flame Retardant Business Exit | Phosphorous Flame Retardant Business Exit | Settlement of Litigation | ||||
Restructuring And Other [Line Items] | ||||||
Restructuring charges | $94,700,000 | $94,700,000 | ||||
Restructuring charges, net of tax | 73,600,000 | 73,600,000 | ||||
Phosphorous flame retardants business exit, write off of net asset values | 57,000,000 | |||||
Write-offs of foreign currency translation adjustments of phosphorous flame retardants business | 12,000,000 | |||||
Severance costs | 0 | 13,000,000 | ||||
Site Remediation Costs | 8,700,000 | 9,000,000 | ||||
Other estimated exit costs of phosphorous flame retardants business | 4,000,000 | |||||
Gain of settlement of litigation | 8,100,000 | |||||
Gain of settlement of litigation, after income taxes | 5,100,000 | |||||
Estimated reimbursement of related legal fees | 900,000 | |||||
Charitable contribution | 8,000,000 | |||||
Charitable contribution, after income taxes | $5,100,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components and Activity in Accumulated Other Comprehensive Income Net of Deferred Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Foreign Currency Translations, Beginning balance | $56,378 | $85,117 | ||||
Foreign Currency Translations, Other comprehensive (loss) income before reclassifications | 40,613 | 11,945 | ||||
Foreign Currency Translation, Other comprehensive (loss) income, net of tax | 40,613 | 29,165 | 11,945 | 2,295 | ||
Foreign Currency Translation, Other comprehensive (income) loss attributable to noncontrolling interests | -337 | 408 | ||||
Foreign Currency Translations, Ending balance | 96,654 | 96,654 | ||||
Pension and Post-retirement Benefits, Beginning balance | 585 | [1] | 989 | [1] | ||
Pension and Post-retirement Benefits, Amounts reclassified from accumulated other comprehensive income | -201 | [1] | -168 | -605 | [1] | -502 |
Pension and Post-retirement Benefits, Other comprehensive (loss) income, net of tax | -201 | [1] | -168 | -605 | [1] | -502 |
Pension and Post-retirement Benefits, Ending balance | 384 | [1] | 384 | [1] | ||
Other, Beginning balance | -781 | -842 | ||||
Other, Other comprehensive (loss) income before reclassifications | 4 | -1 | ||||
Other, Amounts reclassified from accumulated other comprehensive income | 34 | 100 | ||||
Other, Other comprehensive (loss) income, net of tax | 38 | 29 | 99 | 95 | ||
Other, Ending balance | -743 | -743 | ||||
Beginning Balance | 56,182 | 85,264 | 60,329 | |||
Other comprehensive income (loss) before reclassifications | 40,617 | 11,944 | ||||
Amounts reclassified from accumulated other comprehensive income | -167 | -505 | ||||
Total other comprehensive income, net of tax | 40,450 | 29,026 | 11,439 | 1,888 | ||
Other comprehensive (income) loss attributable to noncontrolling interests | -337 | -408 | ||||
Ending balance | $96,295 | $62,062 | $96,295 | $62,062 | ||
[1] | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.†|
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Equity [Abstract] | ||||||
Foreign Currency Translation, Other comprehensive (loss) income, before tax | $40,436 | $29,445 | $10,654 | $743 | ||
Foreign Currency Translation, Income tax benefit (expense) | 177 | -280 | 1,291 | 1,552 | ||
Foreign Currency Translation, Other comprehensive (loss) income, net of tax | 40,613 | 29,165 | 11,945 | 2,295 | ||
Pension and Post-retirement Benefits, Other comprehensive income (loss), before tax | -197 | -268 | -589 | -798 | ||
Pension and Post-retirement Benefits, Income tax benefit (expense) | -4 | 100 | -16 | 296 | ||
Pension and Post-retirement Benefits, Other comprehensive (loss) income, net of tax | -201 | [1] | -168 | -605 | [1] | -502 |
Other, Other comprehensive (loss) income, before tax | 58 | 49 | 159 | 155 | ||
Other, Income tax benefit (expense) | -20 | -20 | -60 | -60 | ||
Other, Other comprehensive (loss) income, net of tax | $38 | $29 | $99 | $95 | ||
[1] | Amounts reclassified from accumulated other comprehensive income consist of amortization of prior service benefit. See Note 10, “Pension Plans and Other Postretirement Benefits.†|
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event, USD $) | Oct. 01, 2013 | Oct. 18, 2013 |
In Millions, unless otherwise specified | Cambridge Chemical Company | Scenario, Forecast |
Subsequent Event [Line Items] | ||
Estimated maximum restructuring costs | $20 | |
Acquistion price | $3.60 |