Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document And Entity Information [Abstract] [Abstract] | ' |
Document Type | '8-K |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Trading Symbol | 'ALB |
Entity Registrant Name | 'ALBEMARLE CORP |
Entity Central Index Key | '0000915913 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $599,843 | $586,597 |
Cost of goods sold | 404,244 | 390,686 |
Gross profit | 195,599 | 195,911 |
Selling, general and administrative expenses | 78,104 | 63,575 |
Research and development expenses | 22,572 | 19,953 |
Restructuring and other charges, net (Note 13) | 17,000 | 0 |
Operating profit | 77,923 | 112,383 |
Interest and financing expenses | -8,773 | -5,231 |
Other income (expenses), net | 1,143 | -4,194 |
Income from continuing operations before income taxes and equity in net income of unconsolidated investments | 70,293 | 102,958 |
Income tax expense | 13,190 | 25,538 |
Income from continuing operations before equity in net income of unconsolidated investments | 57,103 | 77,420 |
Equity in net income of unconsolidated investments (net of tax) | 8,901 | 10,261 |
Net income from continuing operations | 66,004 | 87,681 |
(Loss) income from discontinued operations (net of tax) | -1,769 | 1,835 |
Net income | 64,235 | 89,516 |
Net income attributable to noncontrolling interests | -7,652 | -5,529 |
Net income attributable to Albemarle Corporation | $56,583 | $83,987 |
Basic earnings per share from continuing operations (in dollars per share) | $0.73 | $0.93 |
Basic earnings (loss) per share from discontinued operations (in dollars per share) | ($0.02) | $0.02 |
Basic earnings per share (in dollars per share) | $0.71 | $0.95 |
Diluted earnings per share from continuing operations (in dollars per share) | $0.73 | $0.92 |
Diluted earnings (loss) per share from discontinued operations (in dollars per share) | ($0.02) | $0.02 |
Diluted earnings per share (in dollars per share) | $0.71 | $0.94 |
Weighted-average common shares outstanding - basic (in shares) | 79,735 | 88,719 |
Weighted-average common shares outstanding - diluted (in shares) | 80,112 | 89,236 |
Cash dividends declared per share of common stock (in dollars per share) | $0.28 | $0.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net income | $64,235 | $89,516 | ||
Other comprehensive (loss) income, net of tax: | ' | ' | ||
Foreign currency translation | -5,258 | -33,909 | ||
Pension and postretirement benefits | -301 | [1] | -74 | [1] |
Unrealized loss on interest rate swap | -4,011 | 0 | ||
Other | 35 | 32 | ||
Total other comprehensive loss, net of tax | -9,535 | -33,951 | ||
Comprehensive income | 54,700 | 55,565 | ||
Comprehensive income attributable to non-controlling interests | -7,435 | -5,833 | ||
Comprehensive income attributable to Albemarle Corporation | $47,265 | $49,732 | ||
[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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $524,043 | $477,239 |
Trade accounts receivable, less allowance for doubtful accounts (2014 – $1,614; 2013 - $1,614) | 427,979 | 446,864 |
Other accounts receivable | 34,919 | 45,094 |
Inventories | 420,299 | 436,049 |
Other current assets | 70,162 | 77,669 |
Total current assets | 1,477,402 | 1,482,915 |
Property, plant and equipment, at cost | 2,975,692 | 2,972,084 |
Less accumulated depreciation and amortization | 1,635,354 | 1,615,015 |
Net property, plant and equipment | 1,340,338 | 1,357,069 |
Investments | 219,076 | 212,178 |
Other assets | 152,786 | 160,229 |
Goodwill | 283,364 | 284,203 |
Other intangibles, net of amortization | 85,762 | 88,203 |
Total assets | 3,558,728 | 3,584,797 |
Current liabilities: | ' | ' |
Accounts payable | 183,461 | 194,064 |
Accrued expenses | 194,927 | 190,533 |
Current portion of long-term debt | 18,063 | 24,554 |
Dividends payable | 21,488 | 19,197 |
Income taxes payable | 5,260 | 8,015 |
Total current liabilities | 423,199 | 436,363 |
Long-term debt | 1,052,790 | 1,054,310 |
Postretirement benefits | 53,195 | 53,903 |
Pension benefits | 72,710 | 57,647 |
Other noncurrent liabilities | 101,630 | 110,610 |
Deferred income taxes | 127,603 | 129,188 |
Commitments and contingencies (Note 8) | ' | ' |
Albemarle Corporation shareholders’ equity: | ' | ' |
Common stock, $.01 par value, issued and outstanding - 79,544 in 2014 and 80,053 in 2013 | 795 | 801 |
Additional paid-in capital | 3,113 | 9,957 |
Accumulated other comprehensive income | 106,927 | 116,245 |
Retained earnings | 1,493,916 | 1,500,358 |
Total Albemarle Corporation shareholders’ equity | 1,604,751 | 1,627,361 |
Noncontrolling interests | 122,850 | 115,415 |
Total equity | 1,727,601 | 1,742,776 |
Total liabilities and equity | $3,558,728 | $3,584,797 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Trade accounts receivable, allowance for doubtful accounts | $1,614 | $1,614 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, issued (in shares) | 79,544 | 80,053 |
Common stock, outstanding (in shares) | 79,544 | 80,053 |
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, 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 | 89,516 | ' | ' | ' | 83,987 | 83,987 | 5,529 |
Other comprehensive (loss) income | -33,951 | ' | ' | -34,255 | ' | -34,255 | 304 |
Cash dividends declared | -21,226 | ' | ' | ' | -21,226 | -21,226 | 0 |
Stock-based compensation and other | 2,237 | ' | 2,237 | ' | ' | 2,237 | ' |
Exercise of stock options (in shares) | ' | 64,368 | ' | ' | ' | ' | ' |
Exercise of stock options | 1,720 | 1 | 1,719 | ' | ' | 1,720 | ' |
Shares repurchased (in shares) | ' | -1,013,650 | ' | ' | ' | ' | ' |
Shares repurchased | -64,522 | -10 | -1,167 | ' | -63,345 | -64,522 | ' |
Tax benefit related to stock plans | 1,901 | ' | 1,901 | ' | ' | 1,901 | ' |
Issuance of common stock, net (in shares) | ' | 216,113 | ' | ' | ' | ' | ' |
Issuance of common stock, net | ' | 2 | -2 | ' | ' | ' | ' |
Shares withheld for withholding taxes associated with common stock issuances (in shares) | ' | -85,488 | ' | ' | ' | ' | ' |
Shares withheld for withholding taxes associated with common stock issuances | -5,443 | -1 | -5,442 | ' | ' | -5,443 | ' |
Ending Balance at Mar. 31, 2013 | 1,902,240 | 881 | 2,007 | 51,009 | 1,744,100 | 1,797,997 | 104,243 |
Ending Balance (in shares) at Mar. 31, 2013 | ' | 88,080,552 | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 1,742,776 | 801 | 9,957 | 116,245 | 1,500,358 | 1,627,361 | 115,415 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 80,052,842 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 64,235 | ' | ' | ' | 56,583 | 56,583 | 7,652 |
Other comprehensive (loss) income | -9,535 | ' | ' | -9,318 | ' | -9,318 | -217 |
Cash dividends declared | -21,873 | ' | ' | ' | -21,873 | -21,873 | 0 |
Stock-based compensation and other | 3,099 | ' | 3,099 | ' | ' | 3,099 | ' |
Exercise of stock options (in shares) | ' | 41,680 | ' | ' | ' | ' | ' |
Exercise of stock options | 1,281 | 0 | 1,281 | ' | ' | 1,281 | ' |
Shares repurchased (in shares) | ' | -623,248 | ' | ' | ' | ' | ' |
Shares repurchased | -50,000 | -6 | -8,842 | ' | -41,152 | -50,000 | ' |
Tax benefit related to stock plans | 586 | ' | 586 | ' | ' | 586 | ' |
Issuance of common stock, net (in shares) | ' | 119,685 | ' | ' | ' | ' | ' |
Issuance of common stock, net | ' | 1 | -1 | ' | ' | ' | ' |
Shares withheld for withholding taxes associated with common stock issuances (in shares) | ' | -46,667 | ' | ' | ' | ' | ' |
Shares withheld for withholding taxes associated with common stock issuances | -2,968 | -1 | -2,967 | ' | ' | -2,968 | ' |
Ending Balance at Mar. 31, 2014 | $1,727,601 | $795 | $3,113 | $106,927 | $1,493,916 | $1,604,751 | $122,850 |
Ending Balance (in shares) at Mar. 31, 2014 | ' | 79,544,292 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash and cash equivalents at beginning of year | $477,239 | $477,696 |
Cash flows from operating activities: | ' | ' |
Net income | 64,235 | 89,516 |
Adjustments to reconcile net income to cash flows from operating activities: | ' | ' |
Depreciation and amortization | 27,809 | 25,244 |
Write-offs associated with restructuring and other | 3,000 | 0 |
Stock-based compensation | 3,402 | 2,513 |
Excess tax benefits realized from stock-based compensation arrangements | -586 | -1,901 |
Equity in net income of unconsolidated investments (net of tax) | -8,901 | -10,261 |
Dividends received from unconsolidated investments and nonmarketable securities | 3,085 | 559 |
Pension and postretirement expense | 16,669 | 1,582 |
Pension and postretirement contributions | -2,540 | -1,741 |
Unrealized gain on investments in marketable securities | -635 | -1,037 |
Increase (Decrease) in Deferred Income Taxes | 4,139 | 6,506 |
Working capital changes | 39,826 | -12,641 |
Other, net | -330 | 311 |
Net cash provided by operating activities | 149,173 | 98,650 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -23,667 | -55,335 |
Sales of marketable securities, net | 2,151 | 821 |
Net cash used in investing activities | -21,516 | -54,514 |
Cash flows from financing activities: | ' | ' |
Repayments of long-term debt | -101 | -3,604 |
Other borrowings (repayments), net | -8,434 | 0 |
Dividends paid to shareholders | -19,582 | -17,808 |
Repurchases of common stock | -50,000 | -60,798 |
Proceeds from exercise of stock options | 1,255 | 1,720 |
Excess tax benefits realized from stock-based compensation arrangements | 586 | 1,901 |
Withholding taxes paid on stock-based compensation award distributions | -2,968 | -5,443 |
Debt financing costs | -1,370 | 0 |
Net cash used in financing activities | -80,614 | -84,032 |
Net effect of foreign exchange on cash and cash equivalents | -239 | -2,896 |
Increase (decrease) in cash and cash equivalents | 46,804 | -42,792 |
Cash and cash equivalents at end of period | $524,043 | $434,904 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, 2014 and December 31, 2013, and our consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in equity and condensed consolidated statements of cash flows for the three-month periods ended March 31, 2014 and 2013. 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, 2013, which was filed with the Securities and Exchange Commission (SEC) on February 25, 2014. The December 31, 2013 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 period ended March 31, 2014 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. | ||||||||
Recast of Financial Information for Discontinued Operations | ||||||||
On April 15, 2014, the Company signed a definitive agreement to sell its antioxidant, ibuprofen and propofol businesses and assets to SI Group, Inc. for an undisclosed amount of cash. In the second quarter of 2014, the Company began accounting for these assets as held for sale. The Company has recast certain historical information to reflect the results of operations of the disposal group as discontinued operations for all periods presented, including the consolidated statements of income and throughout the document. Long-lived assets and asset groups are classified as held for sale and reported as discontinued operations in the periods in which the specific criteria are met in accordance with applicable accounting standards. | ||||||||
A summary of results of discontinued operations is as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net sales | $ | 56,836 | $ | 55,028 | ||||
(Loss) income from discontinued operations | $ | (2,513 | ) | $ | 2,489 | |||
Income tax (benefit) expense | (744 | ) | 654 | |||||
(Loss) income from discontinued operations (net of tax) | $ | (1,769 | ) | $ | 1,835 | |||
Foreign_Exchange
Foreign Exchange | 3 Months Ended |
Mar. 31, 2014 | |
Foreign Currency [Abstract] | ' |
Foreign Exchange | ' |
Foreign Exchange: | |
Foreign exchange transaction losses were $4.8 million for the three-month period ended March 31, 2013 and are included in Other income (expenses), net in our consolidated statements of income. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes: | |
The effective income tax rate for the first quarter of 2014 was 18.8% compared to 24.8% for the first quarter of 2013. 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 2014 and 2013 periods is mainly due to the impact of earnings from outside the U.S. Our effective income tax rate for the 2014 period was also impacted by $17.0 million of pre-tax charges (approximately $11.1 million after income taxes) in connection with a reduction of high cost supply capacity of certain aluminum alkyl products (see Note 13), and an actuarial loss of $15.4 million (approximately $9.8 million after income taxes) related to one of our U.S. defined benefit pension plans and our supplemental executive retirement plan (see Note 10). |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share | ' | |||||||
Earnings Per Share: | ||||||||
Basic and diluted earnings per share from continuing operations for the three-month periods ended March 31, 2014 and 2013 are calculated as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands, except per share amounts) | ||||||||
Basic earnings per share from continuing operations | ||||||||
Numerator: | ||||||||
Net income from continuing operations | $ | 66,004 | $ | 87,681 | ||||
Net income from continuing operations attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Net income from continuing operations attributable to Albemarle Corporation | $ | 58,352 | $ | 82,152 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic earnings per share | 79,735 | 88,719 | ||||||
Basic earnings per share from continuing operations | $ | 0.73 | $ | 0.93 | ||||
Diluted earnings per share from continuing operations | ||||||||
Numerator: | ||||||||
Net income from continuing operations | $ | 66,004 | $ | 87,681 | ||||
Net income from continuing operations attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Net income from continuing operations attributable to Albemarle Corporation | $ | 58,352 | $ | 82,152 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic earnings per share | 79,735 | 88,719 | ||||||
Incremental shares under stock compensation plans | 377 | 517 | ||||||
Total shares | 80,112 | 89,236 | ||||||
Diluted earnings per share from continuing operations | $ | 0.73 | $ | 0.92 | ||||
On February 25, 2014, the Company increased the regular quarterly dividend by 15% to $0.275 per share and declared a cash dividend of said amount for the first quarter of 2014, which was paid on April 1, 2014 to shareholders of record at the close of business as of March 14, 2014. | ||||||||
Under our existing Board authorized share repurchase program, on February 3, 2014, the Company entered into an accelerated share repurchase agreement (the ASR Agreement) with Merrill Lynch International (“Merrill Lynch”), acting through its agent Merrill Lynch, Pierce, Fenner and Smith Incorporated, relating to a fixed-dollar, uncollared accelerated share repurchase program (the ASR Program) pursuant to which we will purchase $50 million of our shares from Merrill Lynch. The shares will be purchased by Merrill Lynch in two $25 million tranches that may be settled separately or simultaneously. Pursuant to the terms of the ASR Agreement, Merrill Lynch 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 February 3, 2014, the Company paid $50 million to Merrill Lynch and received an initial delivery of 623,248 shares of our common stock with a fair market value of approximately $40 million. This purchase was funded with cash on hand. | ||||||||
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 623,248 shares reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the three-month period ended March 31, 2014. The total number of shares to ultimately be purchased under the ASR Agreement will be determined at the completion of the trade and will generally be based on the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock over the term of the ASR Agreement, less a forward price adjustment amount of approximately $0.77. | ||||||||
The Company evaluated the ASR Agreement for its potential dilution of earnings per share and has determined that, based on the daily Rule 10b-18 volume-weighted average prices calculated as of March 31, 2014, additional shares expected to be received upon final settlement (approximately 157,000 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 period ended March 31, 2014. The final settlement amount may increase or decrease depending upon the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock during the remaining term of the ASR Agreement. Final settlement may be accelerated, and the number of shares to be delivered upon final settlement may be adjusted upon the announcement or occurrence of certain corporate events, including without limitation, tender offers, delisting, merger events or insolvency. The agreement will be terminated at any time that our share price is at or below $30 per share. No more than 1.5 million shares can be repurchased under the ASR Program, and the ASR Program is expected to be completed by the end of April 2014. | ||||||||
During the three-month period ended March 31, 2014, the Company repurchased 623,248 shares of its common stock pursuant to the terms of its share repurchase program and the ASR Program. As of March 31, 2014, there were 5,316,346 remaining shares available for repurchase under the Company’s authorized share repurchase program. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories: | ||||||||
The following table provides a breakdown of inventories at March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Finished goods | $ | 321,735 | $ | 340,863 | ||||
Raw materials | 50,844 | 47,784 | ||||||
Stores, supplies and other | 47,720 | 47,402 | ||||||
Total inventories | $ | 420,299 | $ | 436,049 | ||||
Investments
Investments | 3 Months Ended |
Mar. 31, 2014 | |
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 $5.8 million and $5.5 million at March 31, 2014 and December 31, 2013, respectively. Our maximum exposure to loss in connection with our continuing involvement with Stannica LLC is limited to our investment carrying value. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt: | ||||||||
Long-term debt at March 31, 2014 and December 31, 2013 consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
5.10% Senior notes, net of unamortized discount of $28 at March 31, 2014 | $ | 324,972 | $ | 324,964 | ||||
and $36 at December 31, 2013 | ||||||||
4.50% Senior notes, net of unamortized discount of $2,107 at March 31, 2014 | 347,893 | 347,814 | ||||||
and $2,186 at December 31, 2013 | ||||||||
Commercial paper notes | 363,000 | 363,000 | ||||||
Fixed-rate foreign borrowings | 7,869 | 7,879 | ||||||
Variable-rate foreign bank loans | 26,923 | 34,910 | ||||||
Miscellaneous | 196 | 297 | ||||||
Total long-term debt | 1,070,853 | 1,078,864 | ||||||
Less amounts due within one year | 18,063 | 24,554 | ||||||
Long-term debt, less current portion | $ | 1,052,790 | $ | 1,054,310 | ||||
On February 7, 2014, we entered into a new $750.0 million credit facility. The five-year, revolving, unsecured credit agreement (hereinafter referred to as the February 2014 credit agreement) matures on February 7, 2019 and (i) replaces our previous $750.0 million amended and restated credit agreement dated as of September 22, 2011; (ii) provides for an additional $250.0 million in credit, if needed, subject to the terms of the agreement; and (iii) provides for the ability to extend the maturity date under certain conditions. Borrowings bear interest at variable rates based on the London Inter-Bank Offered Rate (LIBOR) for deposits in the relevant currency plus an applicable margin which ranges from 0.900% to 1.500%, depending on the Company’s credit rating from Standard & Poor’s Ratings Services (S&P) and Moody’s Investors Services (Moody’s). The applicable margin on the facility was 1.000% as of March 31, 2014. As of March 31, 2014, there were no borrowings outstanding under the February 2014 credit agreement. | ||||||||
At March 31, 2014, we had $363.0 million of commercial paper notes (the “Notes”) outstanding bearing a weighted-average interest rate of approximately 0.23% and a weighted-average maturity of 22 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 commercial paper notes or borrowings under the February 2014 credit agreement. | ||||||||
Our $325.0 million aggregate principal amount of senior notes, issued on January 20, 2005, mature on February 1, 2015. At March 31, 2014, we have classified these senior notes as long-term based on our ability and intent to refinance them on a long-term basis through the issuance of new senior notes or borrowings under the February 2014 credit agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies: | ||||
We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2014, as follows (in thousands): | ||||
Beginning balance at December 31, 2013 | $ | 16,599 | ||
Expenditures | (1,322 | ) | ||
Changes in estimates recorded to earnings and other | — | |||
Foreign currency translation | 57 | |||
Ending balance at March 31, 2014 | 15,334 | |||
Less amounts reported in Accrued expenses | 7,118 | |||
Amounts reported in Other noncurrent liabilities | $ | 8,216 | ||
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 $6.5 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 $6.1 million. | ||||
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 | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Operating Segments | ' | |||||||
Operating Segments: | ||||||||
Effective January 1, 2014, the Company’s assets and businesses were realigned under two operating segments to better align the Company’s resources to support its ongoing business strategy. The Performance Chemicals segment includes the Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services product categories, consolidating our bromine, mineral and custom manufacturing assets under one business unit. The Catalyst Solutions segment includes the Refinery Catalyst Solutions and Performance Catalyst Solutions product categories. Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset and market focus, agility and responsiveness. The new structure also facilitates the continued standardization of business processes across the organization as part of our ongoing One Albemarle strategy. The new segment structure is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions, and each segment president is responsible for execution of the segment’s business strategy. | ||||||||
Segment income represents segment operating profit 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. Results for 2013 have been recast to reflect the change in operating segments noted above, and segment results for all periods presented exclude discontinued operations as described in Note 1. Corporate & other includes corporate-related items not allocated to the reportable segments. Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to each segment whereas the remaining components of pension and OPEB benefits cost or credit are included in Corporate & other. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Net sales: | ||||||||
Performance Chemicals | $ | 350,257 | $ | 351,024 | ||||
Catalyst Solutions | 249,586 | 235,573 | ||||||
Total net sales | $ | 599,843 | $ | 586,597 | ||||
Segment operating profit: | ||||||||
Performance Chemicals | $ | 80,476 | $ | 85,465 | ||||
Catalyst Solutions | 49,212 | 42,139 | ||||||
Total segment operating profit | 129,688 | 127,604 | ||||||
Equity in net income of unconsolidated investments: | ||||||||
Performance Chemicals | 2,917 | 2,308 | ||||||
Catalyst Solutions | 5,984 | 7,953 | ||||||
Total equity in net income of unconsolidated investments | 8,901 | 10,261 | ||||||
Net income attributable to noncontrolling interests: | ||||||||
Performance Chemicals | (7,652 | ) | (5,529 | ) | ||||
Total net income attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Segment income: | ||||||||
Performance Chemicals | 75,741 | 82,244 | ||||||
Catalyst Solutions | 55,196 | 50,092 | ||||||
Total segment income | 130,937 | 132,336 | ||||||
Corporate & other(a) | (34,765 | ) | (15,221 | ) | ||||
Restructuring and other charges, net | (17,000 | ) | — | |||||
Interest and financing expenses | (8,773 | ) | (5,231 | ) | ||||
Other income (expenses), net | 1,143 | (4,194 | ) | |||||
Income tax expense | (13,190 | ) | (25,538 | ) | ||||
(Loss) income from discontinued operations (net of tax) | (1,769 | ) | 1,835 | |||||
Net income attributable to Albemarle Corporation | $ | 56,583 | $ | 83,987 | ||||
(a) | For the three months ended March 31, 2014 and 2013, Corporate & other includes $(14.6) million and $1.2 million, respectively, of pension and OPEB plan (costs) credits. |
Pension_Plans_and_Other_Postre
Pension Plans and Other Postretirement Benefits | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Pension Benefits Cost (Credit): | ||||||||
Service cost | $ | 2,841 | $ | 3,642 | ||||
Interest cost | 8,169 | 7,218 | ||||||
Expected return on assets | (10,205 | ) | (9,872 | ) | ||||
Actuarial loss(a) | 15,432 | — | ||||||
Amortization of prior service benefit | (273 | ) | (49 | ) | ||||
Total net pension benefits cost | $ | 15,964 | $ | 939 | ||||
Postretirement Benefits Cost (Credit): | ||||||||
Service cost | $ | 54 | $ | 83 | ||||
Interest cost | 760 | 688 | ||||||
Expected return on assets | (85 | ) | (103 | ) | ||||
Amortization of prior service benefit | (24 | ) | (25 | ) | ||||
Total net postretirement benefits cost | $ | 705 | $ | 643 | ||||
Total net pension and postretirement benefits cost | $ | 16,669 | $ | 1,582 | ||||
(a) | In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for one of our U.S. defined benefit plans and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for our domestic pension plans was reduced from 5.14% to 4.97%. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) for the first quarter of 2014 of $15.4 million. | |||||||
During the three-month periods ended March 31, 2014 and 2013, we made contributions of $1.1 million and $0.6 million, respectively, to our qualified and nonqualified pension plans. | ||||||||
We paid $1.4 million and $1.1 million in premiums to the U.S. postretirement benefit plan during the three-month periods ended March 31, 2014 and 2013, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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. | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Recorded | Fair Value | Recorded | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | $ | 1,070,853 | $ | 1,102,265 | $ | 1,078,864 | $ | 1,109,878 | ||||||||
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 March 31, 2014 and December 31, 2013, we had outstanding foreign currency forward contracts with notional values totaling $337.1 million and $321.4 million, respectively. At March 31, 2014, $0.2 million was included in Accrued expenses associated with the fair value of our foreign currency forward contracts. At December 31, 2013, $0.2 million was included in Other accounts receivable associated with the fair value of our foreign currency forward contracts. | ||||||||||||||||
Gains and losses on foreign currency forward contracts are recognized currently in Other income (expenses), net; further, fluctuations in the value of these contracts are generally expected to be offset by changes in the value of the underlying exposures being hedged. For the three-month periods ended March 31, 2014 and 2013, we recognized losses of $(1.1) million and $(4.7) million, respectively, in Other income (expenses), net in our consolidated statements of income related to the change in the fair value of our foreign currency forward contracts. These amounts are generally expected to be offset by changes in the value of the underlying exposures being hedged which are also reported in Other income (expenses), net. Also, for the three-month periods ended March 31, 2014 and 2013, we recorded $1.1 million and $4.7 million, respectively, related to the change in the fair value of our foreign currency forward contracts, and cash settlements of $(0.8) million and $(5.5) million, respectively, in Other, net in our condensed consolidated statements of cash flows. | ||||||||||||||||
Interest Rate Swap—In anticipation of refinancing our 2015 senior notes in the fourth quarter of 2014, on January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap with J.P. Morgan Chase Bank, N.A., to be effective October 15, 2014. Our risk management objective and strategy for undertaking this hedge is to eliminate the variability in the interest rate and partial credit spread on the 20 future semi-annual coupon payments that we would pay when we refinance our 2015 senior notes with another 10 year note. The notional amount of the swap is $325.0 million and the fixed rate is 3.281%. A cash settlement will occur on the termination date determined by reference to the changes in the U.S. dollar 3-month LIBOR and credit spreads from the date we entered into the swap until the date we terminate the swap. This derivative financial instrument has been designated and is accounted for as a cash flow hedge under Accounting Standards Codification (ASC) 815, Derivatives and Hedging. Effectiveness of the hedge relationship is assessed prospectively and retrospectively on a quarterly basis. At March 31, 2014, the fair value of our pay fixed, receive variable rate forward starting interest rate swap was a liability of $6.3 million and is included in Accrued expenses. We determined there was no ineffectiveness during the three months ended March 31, 2014, which resulted in the change in fair value of this swap being recorded in Accumulated other comprehensive income. | ||||||||||||||||
The counterparties to our foreign currency forward contracts and our interest rate swap are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 three-month period ended March 31, 2014. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
31-Mar-14 | Quoted Prices in | Quoted Prices in | Unobservable Inputs | ||||||||||||||
Active Markets | Active Markets | (Level 3) | |||||||||||||||
for Identical | for Similar Items | ||||||||||||||||
Items | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Investments under executive deferred compensation | $ | 21,546 | $ | 21,546 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Equity securities(b) | $ | 738 | $ | 21 | $ | — | $ | 717 | |||||||||
Liabilities: | |||||||||||||||||
Obligations under executive deferred compensation | $ | 21,546 | $ | 21,546 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Interest rate swap contract(c) | $ | 6,319 | $ | — | $ | 6,319 | $ | — | |||||||||
Foreign currency forward contracts(d) | $ | 159 | $ | — | $ | 159 | $ | — | |||||||||
31-Dec-13 | Quoted Prices in | Quoted Prices in | Unobservable Inputs | ||||||||||||||
Active Markets | Active Markets | (Level 3) | |||||||||||||||
for Identical | for Similar Items | ||||||||||||||||
Items | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Investments under executive deferred compensation | $ | 23,030 | $ | 23,030 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Equity securities(b) | $ | 771 | $ | 21 | $ | — | $ | 750 | |||||||||
Foreign currency forward contracts(d) | $ | 161 | $ | — | $ | 161 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Obligations under executive deferred compensation | $ | 23,030 | $ | 23,030 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
(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) | Primarily consists of private equity securities 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 income (expenses), net in our consolidated statements of income. Holdings in private equity securities are typically valued using the net asset valuations provided by the underlying private investment companies and as such are classified within Level 3. | ||||||||||||||||
(c) | In anticipation of refinancing our 2015 senior notes in the fourth quarter of 2014, on January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap, to be effective October 15, 2014. This derivative financial instrument has been designated and is accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. The fair value of the forward starting interest rate swap was calculated based on inputs derived from observable market data and as such is classified within Level 2. See Note 11 for additional details about this interest rate swap contract. | ||||||||||||||||
(d) | 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 foreign currency forward contracts. These derivative financial instruments are not designated as hedging instruments under ASC 815, Derivatives and Hedging. 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 | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Restructuring and Other | ' | |||
Restructuring and Other | ||||
In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. Payments under this workforce reduction plan are expected to occur through 2014. We had the following activity in our recorded workforce reduction liabilities for the three months ended March 31, 2014 (in thousands): | ||||
Beginning balance at December 31, 2013 | $ | 39,104 | ||
Workforce reduction charges | — | |||
Payments | (19,069 | ) | ||
Amount reversed to income(a) | (940 | ) | ||
Foreign currency translation | (57 | ) | ||
Ending balance at March 31, 2014 | $ | 19,038 | ||
Amounts reported in Accrued expenses | $ | 19,038 | ||
(a) | Amount reversed to income reflects adjustments based on actual timing and amount of final settlements. | |||
During the first quarter of 2014 we initiated action to reduce high cost supply capacity of certain aluminum alkyl products, primarily through the termination of a third party manufacturing contract. Based on the contract termination, we estimate costs of approximately $14.0 million (recorded in Accrued expenses at March 31, 2014) for contract termination and volume commitments. Additionally, we have recorded an impairment charge of $3.0 million for certain capital project costs also related to aluminum alkyls capacity which we do not expect to recover. After income taxes, these charges were approximately $11.1 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
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 months ended March 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||
Foreign | Pension | Unrealized Loss on Interest Rate Swap | Other | Total | ||||||||||||||||||||||||
Currency | and Post- | |||||||||||||||||||||||||||
Translation | Retirement | |||||||||||||||||||||||||||
Benefits(a) | ||||||||||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 116,465 | $ | 487 | $ | — | $ | (707 | ) | $ | 116,245 | |||||||||||||||||
Other comprehensive (loss) income before | (5,258 | ) | — | (4,011 | ) | — | (9,269 | ) | ||||||||||||||||||||
reclassifications | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other | — | (301 | ) | — | 35 | (266 | ) | |||||||||||||||||||||
comprehensive income | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (5,258 | ) | (301 | ) | (4,011 | ) | 35 | (9,535 | ) | |||||||||||||||||||
Other comprehensive loss attributable to | 217 | — | — | — | 217 | |||||||||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 111,424 | $ | 186 | $ | (4,011 | ) | $ | (672 | ) | $ | 106,927 | ||||||||||||||||
Three months ended March 31, 2013 | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 85,117 | $ | 989 | $ | — | $ | (842 | ) | $ | 85,264 | |||||||||||||||||
Other comprehensive (loss) income before | (33,909 | ) | — | — | (2 | ) | (33,911 | ) | ||||||||||||||||||||
reclassifications | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other | — | (74 | ) | — | 34 | (40 | ) | |||||||||||||||||||||
comprehensive income | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of | (33,909 | ) | (74 | ) | — | 32 | (33,951 | ) | ||||||||||||||||||||
tax | ||||||||||||||||||||||||||||
Other comprehensive income attributable to | (304 | ) | — | — | — | (304 | ) | |||||||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 50,904 | $ | 915 | $ | — | $ | (810 | ) | $ | 51,009 | |||||||||||||||||
(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 periods ended March 31, 2014 and 2013 is provided in the following (in thousands): | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Foreign | Pension | Unrealized Loss on Interest Rate Swap | Other | Foreign | Pension | Other | ||||||||||||||||||||||
Currency | and Post- | Currency | and Post- | |||||||||||||||||||||||||
Translation | retirement | Translation | retirement | |||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||
Other comprehensive (loss) income, | $ | (4,723 | ) | $ | (297 | ) | $ | (6,319 | ) | $ | 54 | $ | (34,252 | ) | $ | (74 | ) | $ | 52 | |||||||||
before tax | ||||||||||||||||||||||||||||
Income tax benefit (expense) | (535 | ) | (4 | ) | 2,308 | (19 | ) | 343 | — | (20 | ) | |||||||||||||||||
Other comprehensive (loss) income, | $ | (5,258 | ) | $ | (301 | ) | $ | (4,011 | ) | $ | 35 | $ | (33,909 | ) | $ | (74 | ) | $ | 32 | |||||||||
net of tax | ||||||||||||||||||||||||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements: | |
In February 2013, the Financial Accounting Standards Board (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. These amendments became effective on January 1, 2014 and had no impact on our consolidated 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. These amendments became effective on January 1, 2014 and will be applied prospectively. The impact of these new requirements on our financial statements will depend upon the nature, terms and size of derecognition events, if any, that may occur in the future related to any of our foreign entities. | |
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 became effective on January 1, 2014 and did not have a material effect on our consolidated financial statements. | |
In April 2014, the FASB issued accounting guidance that changes the criteria for reporting discontinued operations and modifies related disclosure requirements to provide users of financial statements with more information about the assets, liabilities, revenues and expenses of discontinued operations. The guidance improves the definition of discontinued operations by limiting its scope to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. Additionally, these new requirements require entities to disclose the pretax profit or loss related to disposals of significant components that do not qualify as discontinued operations. These new requirements become effective for public entities in annual periods beginning on or after December 15, 2014 and interim periods within those years. Early adoption is permitted, but only for disposals that have not already been reported in previously issued financial statements. We are assessing the impact of these new requirements on our financial statements. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Subsequent Events [Abstract] | ' | |||
Subsequent Events | ' | |||
Subsequent Events: | ||||
Agreement to Sell Assets | ||||
On April 15, 2014, the Company signed a definitive agreement to sell its antioxidant, ibuprofen and propofol businesses and assets to SI Group, Inc. for an undisclosed amount of cash. Included in the transaction are Albemarle’s manufacturing sites in Orangeburg, South Carolina and Jinshan, China, along with Albemarle’s antioxidant product lines manufactured in Ningbo, China. The sale is subject to customary closing conditions and is expected to close later in 2014. | ||||
At March 31, 2014, the carrying amounts of assets and liabilities by major category included in the sale were as follows (in thousands): | ||||
31-Mar-14 | ||||
Assets | ||||
Current assets | $ | 58,870 | ||
Net property, plant and equipment | $ | 94,193 | ||
Goodwill | $ | 16,227 | ||
Other intangibles, net of amortization | $ | 40,958 | ||
Liabilities | ||||
Deferred income taxes | $ | 21,447 | ||
We have considered the accounting guidance in ASC 360, Property, Plant and Equipment, and determined that the relevant asset group did not meet the criteria to accounted for as held for sale as of the balance sheet date. Additionally, we have determined that as of March 31, 2014, expected cash flows associated with this asset group were sufficient to establish recoverability of the asset carrying values, and therefore no impairment charge has been recorded in the accompanying financial statements. Beginning in the second quarter of 2014, the Company will account for and report these assets as held for sale and we expect to recognize an estimated loss on disposal, based on preliminary estimates, ranging from $50 million to $120 million. This range of estimates is based on information that was available to management at the time these condensed consolidated financial statements were prepared. Actual amounts could differ pending determination of final settlement amounts related to certain agreements, assets and liabilities included in the transaction. |
Recently_Issued_Accounting_Pro1
Recently Issued Accounting Pronouncments (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
In February 2013, the Financial Accounting Standards Board (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. These amendments became effective on January 1, 2014 and had no impact on our consolidated 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. These amendments became effective on January 1, 2014 and will be applied prospectively. The impact of these new requirements on our financial statements will depend upon the nature, terms and size of derecognition events, if any, that may occur in the future related to any of our foreign entities. | |
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 became effective on January 1, 2014 and did not have a material effect on our consolidated financial statements. | |
In April 2014, the FASB issued accounting guidance that changes the criteria for reporting discontinued operations and modifies related disclosure requirements to provide users of financial statements with more information about the assets, liabilities, revenues and expenses of discontinued operations. The guidance improves the definition of discontinued operations by limiting its scope to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. Additionally, these new requirements require entities to disclose the pretax profit or loss related to disposals of significant components that do not qualify as discontinued operations. These new requirements become effective for public entities in annual periods beginning on or after December 15, 2014 and interim periods within those years. Early adoption is permitted, but only for disposals that have not already been reported in previously issued financial statements. We are assessing the impact of these new requirements on our financial statements. |
Basis_of_Presentation_Disconti
Basis of Presentation Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||
A summary of results of discontinued operations is as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net sales | $ | 56,836 | $ | 55,028 | ||||
(Loss) income from discontinued operations | $ | (2,513 | ) | $ | 2,489 | |||
Income tax (benefit) expense | (744 | ) | 654 | |||||
(Loss) income from discontinued operations (net of tax) | $ | (1,769 | ) | $ | 1,835 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Calculation of Basic and Diluted Earning Per Share | ' | |||||||
Basic and diluted earnings per share from continuing operations for the three-month periods ended March 31, 2014 and 2013 are calculated as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands, except per share amounts) | ||||||||
Basic earnings per share from continuing operations | ||||||||
Numerator: | ||||||||
Net income from continuing operations | $ | 66,004 | $ | 87,681 | ||||
Net income from continuing operations attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Net income from continuing operations attributable to Albemarle Corporation | $ | 58,352 | $ | 82,152 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic earnings per share | 79,735 | 88,719 | ||||||
Basic earnings per share from continuing operations | $ | 0.73 | $ | 0.93 | ||||
Diluted earnings per share from continuing operations | ||||||||
Numerator: | ||||||||
Net income from continuing operations | $ | 66,004 | $ | 87,681 | ||||
Net income from continuing operations attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Net income from continuing operations attributable to Albemarle Corporation | $ | 58,352 | $ | 82,152 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic earnings per share | 79,735 | 88,719 | ||||||
Incremental shares under stock compensation plans | 377 | 517 | ||||||
Total shares | 80,112 | 89,236 | ||||||
Diluted earnings per share from continuing operations | $ | 0.73 | $ | 0.92 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Breakdown of Inventories | ' | |||||||
The following table provides a breakdown of inventories at March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Finished goods | $ | 321,735 | $ | 340,863 | ||||
Raw materials | 50,844 | 47,784 | ||||||
Stores, supplies and other | 47,720 | 47,402 | ||||||
Total inventories | $ | 420,299 | $ | 436,049 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt | ' | |||||||
Long-term debt at March 31, 2014 and December 31, 2013 consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
5.10% Senior notes, net of unamortized discount of $28 at March 31, 2014 | $ | 324,972 | $ | 324,964 | ||||
and $36 at December 31, 2013 | ||||||||
4.50% Senior notes, net of unamortized discount of $2,107 at March 31, 2014 | 347,893 | 347,814 | ||||||
and $2,186 at December 31, 2013 | ||||||||
Commercial paper notes | 363,000 | 363,000 | ||||||
Fixed-rate foreign borrowings | 7,869 | 7,879 | ||||||
Variable-rate foreign bank loans | 26,923 | 34,910 | ||||||
Miscellaneous | 196 | 297 | ||||||
Total long-term debt | 1,070,853 | 1,078,864 | ||||||
Less amounts due within one year | 18,063 | 24,554 | ||||||
Long-term debt, less current portion | $ | 1,052,790 | $ | 1,054,310 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Activity in Recorded Environmental Liabilities | ' | |||
We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2014, as follows (in thousands): | ||||
Beginning balance at December 31, 2013 | $ | 16,599 | ||
Expenditures | (1,322 | ) | ||
Changes in estimates recorded to earnings and other | — | |||
Foreign currency translation | 57 | |||
Ending balance at March 31, 2014 | 15,334 | |||
Less amounts reported in Accrued expenses | 7,118 | |||
Amounts reported in Other noncurrent liabilities | $ | 8,216 | ||
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Reportable Segments Summarized Financial Information | ' | |||||||
Summarized financial information concerning our reportable segments is shown in the following table. Results for 2013 have been recast to reflect the change in operating segments noted above, and segment results for all periods presented exclude discontinued operations as described in Note 1. Corporate & other includes corporate-related items not allocated to the reportable segments. Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to each segment whereas the remaining components of pension and OPEB benefits cost or credit are included in Corporate & other. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Net sales: | ||||||||
Performance Chemicals | $ | 350,257 | $ | 351,024 | ||||
Catalyst Solutions | 249,586 | 235,573 | ||||||
Total net sales | $ | 599,843 | $ | 586,597 | ||||
Segment operating profit: | ||||||||
Performance Chemicals | $ | 80,476 | $ | 85,465 | ||||
Catalyst Solutions | 49,212 | 42,139 | ||||||
Total segment operating profit | 129,688 | 127,604 | ||||||
Equity in net income of unconsolidated investments: | ||||||||
Performance Chemicals | 2,917 | 2,308 | ||||||
Catalyst Solutions | 5,984 | 7,953 | ||||||
Total equity in net income of unconsolidated investments | 8,901 | 10,261 | ||||||
Net income attributable to noncontrolling interests: | ||||||||
Performance Chemicals | (7,652 | ) | (5,529 | ) | ||||
Total net income attributable to noncontrolling interests | (7,652 | ) | (5,529 | ) | ||||
Segment income: | ||||||||
Performance Chemicals | 75,741 | 82,244 | ||||||
Catalyst Solutions | 55,196 | 50,092 | ||||||
Total segment income | 130,937 | 132,336 | ||||||
Corporate & other(a) | (34,765 | ) | (15,221 | ) | ||||
Restructuring and other charges, net | (17,000 | ) | — | |||||
Interest and financing expenses | (8,773 | ) | (5,231 | ) | ||||
Other income (expenses), net | 1,143 | (4,194 | ) | |||||
Income tax expense | (13,190 | ) | (25,538 | ) | ||||
(Loss) income from discontinued operations (net of tax) | (1,769 | ) | 1,835 | |||||
Net income attributable to Albemarle Corporation | $ | 56,583 | $ | 83,987 | ||||
(a) | For the three months ended March 31, 2014 and 2013, Corporate & other includes $(14.6) million and $1.2 million, respectively, of pension and OPEB plan (costs) credits. |
Pension_Plans_and_Other_Postre1
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Pension Benefits Cost (Credit): | ||||||||
Service cost | $ | 2,841 | $ | 3,642 | ||||
Interest cost | 8,169 | 7,218 | ||||||
Expected return on assets | (10,205 | ) | (9,872 | ) | ||||
Actuarial loss(a) | 15,432 | — | ||||||
Amortization of prior service benefit | (273 | ) | (49 | ) | ||||
Total net pension benefits cost | $ | 15,964 | $ | 939 | ||||
Postretirement Benefits Cost (Credit): | ||||||||
Service cost | $ | 54 | $ | 83 | ||||
Interest cost | 760 | 688 | ||||||
Expected return on assets | (85 | ) | (103 | ) | ||||
Amortization of prior service benefit | (24 | ) | (25 | ) | ||||
Total net postretirement benefits cost | $ | 705 | $ | 643 | ||||
Total net pension and postretirement benefits cost | $ | 16,669 | $ | 1,582 | ||||
(a) | In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for one of our U.S. defined benefit plans and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for our domestic pension plans was reduced from 5.14% to 4.97%. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) for the first quarter of 2014 of $15.4 million |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Long-Term Debt | ' | |||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Recorded | Fair Value | Recorded | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | $ | 1,070,853 | $ | 1,102,265 | $ | 1,078,864 | $ | 1,109,878 | ||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
31-Mar-14 | Quoted Prices in | Quoted Prices in | Unobservable Inputs | ||||||||||||||
Active Markets | Active Markets | (Level 3) | |||||||||||||||
for Identical | for Similar Items | ||||||||||||||||
Items | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Investments under executive deferred compensation | $ | 21,546 | $ | 21,546 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Equity securities(b) | $ | 738 | $ | 21 | $ | — | $ | 717 | |||||||||
Liabilities: | |||||||||||||||||
Obligations under executive deferred compensation | $ | 21,546 | $ | 21,546 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Interest rate swap contract(c) | $ | 6,319 | $ | — | $ | 6,319 | $ | — | |||||||||
Foreign currency forward contracts(d) | $ | 159 | $ | — | $ | 159 | $ | — | |||||||||
31-Dec-13 | Quoted Prices in | Quoted Prices in | Unobservable Inputs | ||||||||||||||
Active Markets | Active Markets | (Level 3) | |||||||||||||||
for Identical | for Similar Items | ||||||||||||||||
Items | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Investments under executive deferred compensation | $ | 23,030 | $ | 23,030 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
Equity securities(b) | $ | 771 | $ | 21 | $ | — | $ | 750 | |||||||||
Foreign currency forward contracts(d) | $ | 161 | $ | — | $ | 161 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Obligations under executive deferred compensation | $ | 23,030 | $ | 23,030 | $ | — | $ | — | |||||||||
plan(a) | |||||||||||||||||
(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) | Primarily consists of private equity securities 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 income (expenses), net in our consolidated statements of income. Holdings in private equity securities are typically valued using the net asset valuations provided by the underlying private investment companies and as such are classified within Level 3. | ||||||||||||||||
(c) | In anticipation of refinancing our 2015 senior notes in the fourth quarter of 2014, on January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap, to be effective October 15, 2014. This derivative financial instrument has been designated and is accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. The fair value of the forward starting interest rate swap was calculated based on inputs derived from observable market data and as such is classified within Level 2. See Note 11 for additional details about this interest rate swap contract. | ||||||||||||||||
(d) | 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 foreign currency forward contracts. These derivative financial instruments are not designated as hedging instruments under ASC 815, Derivatives and Hedging. 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) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Activity in Recorded Workforce Reduction Liabilities | ' | |||
We had the following activity in our recorded workforce reduction liabilities for the three months ended March 31, 2014 (in thousands): | ||||
Beginning balance at December 31, 2013 | $ | 39,104 | ||
Workforce reduction charges | — | |||
Payments | (19,069 | ) | ||
Amount reversed to income(a) | (940 | ) | ||
Foreign currency translation | (57 | ) | ||
Ending balance at March 31, 2014 | $ | 19,038 | ||
Amounts reported in Accrued expenses | $ | 19,038 | ||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
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 months ended March 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||
Foreign | Pension | Unrealized Loss on Interest Rate Swap | Other | Total | ||||||||||||||||||||||||
Currency | and Post- | |||||||||||||||||||||||||||
Translation | Retirement | |||||||||||||||||||||||||||
Benefits(a) | ||||||||||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 116,465 | $ | 487 | $ | — | $ | (707 | ) | $ | 116,245 | |||||||||||||||||
Other comprehensive (loss) income before | (5,258 | ) | — | (4,011 | ) | — | (9,269 | ) | ||||||||||||||||||||
reclassifications | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other | — | (301 | ) | — | 35 | (266 | ) | |||||||||||||||||||||
comprehensive income | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (5,258 | ) | (301 | ) | (4,011 | ) | 35 | (9,535 | ) | |||||||||||||||||||
Other comprehensive loss attributable to | 217 | — | — | — | 217 | |||||||||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 111,424 | $ | 186 | $ | (4,011 | ) | $ | (672 | ) | $ | 106,927 | ||||||||||||||||
Three months ended March 31, 2013 | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 85,117 | $ | 989 | $ | — | $ | (842 | ) | $ | 85,264 | |||||||||||||||||
Other comprehensive (loss) income before | (33,909 | ) | — | — | (2 | ) | (33,911 | ) | ||||||||||||||||||||
reclassifications | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other | — | (74 | ) | — | 34 | (40 | ) | |||||||||||||||||||||
comprehensive income | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of | (33,909 | ) | (74 | ) | — | 32 | (33,951 | ) | ||||||||||||||||||||
tax | ||||||||||||||||||||||||||||
Other comprehensive income attributable to | (304 | ) | — | — | — | (304 | ) | |||||||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 50,904 | $ | 915 | $ | — | $ | (810 | ) | $ | 51,009 | |||||||||||||||||
(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 periods ended March 31, 2014 and 2013 is provided in the following (in thousands): | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Foreign | Pension | Unrealized Loss on Interest Rate Swap | Other | Foreign | Pension | Other | ||||||||||||||||||||||
Currency | and Post- | Currency | and Post- | |||||||||||||||||||||||||
Translation | retirement | Translation | retirement | |||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||
Other comprehensive (loss) income, | $ | (4,723 | ) | $ | (297 | ) | $ | (6,319 | ) | $ | 54 | $ | (34,252 | ) | $ | (74 | ) | $ | 52 | |||||||||
before tax | ||||||||||||||||||||||||||||
Income tax benefit (expense) | (535 | ) | (4 | ) | 2,308 | (19 | ) | 343 | — | (20 | ) | |||||||||||||||||
Other comprehensive (loss) income, | $ | (5,258 | ) | $ | (301 | ) | $ | (4,011 | ) | $ | 35 | $ | (33,909 | ) | $ | (74 | ) | $ | 32 | |||||||||
net of tax | ||||||||||||||||||||||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Subsequent Events [Abstract] | ' | |||
Schedule of Subsequent Events | ' | |||
At March 31, 2014, the carrying amounts of assets and liabilities by major category included in the sale were as follows (in thousands): | ||||
31-Mar-14 | ||||
Assets | ||||
Current assets | $ | 58,870 | ||
Net property, plant and equipment | $ | 94,193 | ||
Goodwill | $ | 16,227 | ||
Other intangibles, net of amortization | $ | 40,958 | ||
Liabilities | ||||
Deferred income taxes | $ | 21,447 | ||
Basis_of_Presentation_Disconti1
Basis of Presentation Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
(Loss) income from discontinued operations (net of tax) | ($1,769) | $1,835 |
Antioxidant, Ibuprofen and Propofol Assets [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net sales | 56,836 | 55,028 |
(Loss) income from discontinued operations | -2,513 | 2,489 |
Income tax (benefit) expense | -744 | 654 |
(Loss) income from discontinued operations (net of tax) | ($1,769) | $1,835 |
Foreign_Exchange_Additional_In
Foreign Exchange - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Foreign Currency [Abstract] | ' |
Net foreign exchange transaction gain (losses) | ($4.80) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | |
Effective income tax rate | 18.80% | 24.80% | |
Restructuring and other charges, net | $17,000,000 | $0 | |
Restructuring and other charges, net of tax | 11,100,000 | ' | |
Pension Benefits | ' | ' | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | |
Actuarial loss | 15,432,000 | [1] | 0 |
Actuarial loss, net of tax | $9,800,000 | [1] | ' |
[1] | In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for one of our U.S. defined benefit plans and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for our domestic pension plans was reduced from 5.14% to 4.97%. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) for the first quarter of 2014 of $15.4 million. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Feb. 25, 2014 | Mar. 31, 2014 | Feb. 03, 2014 | Mar. 31, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Mar. 31, 2014 | |
Common Stock | Merrill Lynch | Merrill Lynch | Merrill Lynch | Merrill Lynch | Merrill Lynch | ||||
Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | Accelerated Share Repurchase Agreement | |||||
tranche | Initial Delivery | Fair Market Value | Final Settlement | ||||||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in dividend rate, percentage | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' |
Cash dividend, amount per share (in dollars per share) | ' | ' | $0.28 | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' |
Number of tranches | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Authorized amount per tranche purchased | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' |
Payment for repurchase of common stock | 50,000,000 | 60,798,000 | ' | ' | ' | ' | 50,000,000 | ' | ' |
Repurchase of common stock shares (in shares) | ' | ' | ' | ' | ' | ' | 623,248 | ' | 157,000 |
Share price minimum for repurchase agreement transaction (in dollars per share) | ' | ' | ' | ' | $30 | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' |
Forward Purchase Price adjustment amount (in dollars per share) | ' | ' | ' | ' | ' | $0.77 | ' | ' | ' |
Number of shares authorized to be repurchased (in shares) | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' |
Shares repurchased (in shares) | ' | ' | ' | 623,248 | ' | ' | ' | ' | ' |
Shares available for repurchase (in shares) | 5,316,346 | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic earnings per share | ' | ' |
Net income from continuing operations | $66,004 | $87,681 |
Net income from continuing operations attributable to noncontrolling interests | -7,652 | -5,529 |
Net income from continuing operations attributable to Albemarle Corporation | 58,352 | 82,152 |
Weighted-average common shares for basic earnings per share (in shares) | 79,735 | 88,719 |
Basic earnings per share from continuing operations (in dollars per share) | $0.73 | $0.93 |
Diluted earnings per share | ' | ' |
Net income from continuing operations | 66,004 | 87,681 |
Net income from continuing operations attributable to noncontrolling interests | -7,652 | -5,529 |
Net income from continuing operations attributable to Albemarle Corporation | $58,352 | $82,152 |
Weighted-average common shares for basic earnings per share (in shares) | 79,735 | 88,719 |
Incremental shares under stock compensation plans (in shares) | 377 | 517 |
Total shares | 80,112 | 89,236 |
Diluted earnings per share from continuing operations (in dollars per share) | $0.73 | $0.92 |
Inventories_Breakdown_of_Inven
Inventories - Breakdown of Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $321,735 | $340,863 |
Raw materials | 50,844 | 47,784 |
Stores, supplies and other | 47,720 | 47,402 |
Total inventories | $420,299 | $436,049 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (Stannica LLC, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Stannica LLC | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Carrying value of unconsolidated investment | $5.80 | $5.50 |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Commercial paper notes | $363,000 | $363,000 |
Fixed rate foreign borrowings | 7,869 | 7,879 |
Variable-rate foreign bank loans | 26,923 | 34,910 |
Miscellaneous | 196 | 297 |
Total long-term debt | 1,070,853 | 1,078,864 |
Less amounts due within one year | 18,063 | 24,554 |
Long-term debt, less current portion | 1,052,790 | 1,054,310 |
5.10% Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | 324,972 | 324,964 |
4.50% Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | $347,893 | $347,814 |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
5.10% Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unamortized discount | $28 | $36 |
Debt instrument, interest rate | 5.10% | 5.10% |
4.50% Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unamortized discount | $2,107 | $2,186 |
Debt instrument, interest rate | 4.50% | 4.50% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 2 Months Ended | 2 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014 | Feb. 07, 2014 | Dec. 31, 2013 | Feb. 07, 2014 | Mar. 31, 2014 | Sep. 22, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2005 | Jan. 20, 2005 | |
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | 5.10% Senior Notes | 5.10% Senior Notes | ||||
Minimum | Maximum | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $750,000,000 | ' | $750,000,000 | ' | ' | ' | ' |
Additional borrowing capacity | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 1.00% | ' | 0.90% | 1.50% | ' | ' |
Commercial paper notes | 363,000,000 | ' | 363,000,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate | 0.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average maturity period | '22 days | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $325,000,000 |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 1-Feb-15 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | ' | ' |
Potential revision on future environmental remediation costs before tax | $17,000,000 | ' |
Estimated site remediation liabilities | 15,334,000 | 16,599,000 |
Bergheim, Germany Site | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Estimated site remediation liabilities | 6,500,000 | ' |
Pledged land and housing facilities | $6,100,000 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Accrual for Environmental Loss Contingencies [Roll Forward] | ' |
Balance at beginning of period | $16,599 |
Expenditures | -1,322 |
Changes in estimates recorded to earnings and other | 0 |
Foreign currency translation | 57 |
Balance at end of period | 15,334 |
Less amounts reported in Accrued expenses | 7,118 |
Amounts reported in Other noncurrent liabilities | $8,216 |
Operating_Segments_Summarized_
Operating Segments - Summarized Financial Information by Reportable Segments (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $599,843 | $586,597 | ||
Total segment operating profit | 77,923 | 112,383 | ||
Equity in net income of unconsolidated investments | 8,901 | 10,261 | ||
Net (income) loss attributable to noncontrolling interests | -7,652 | -5,529 | ||
Segment income | 130,937 | 132,336 | ||
Corporate & other | -34,765 | [1] | -15,221 | [1] |
Restructuring and other charges, net | -17,000 | 0 | ||
Interest and financing expenses | -8,773 | -5,231 | ||
Other income (expenses), net | 1,143 | -4,194 | ||
Income tax expense | -13,190 | -25,538 | ||
(Loss) income from discontinued operations (net of tax) | -1,769 | 1,835 | ||
Net income attributable to Albemarle Corporation | 56,583 | 83,987 | ||
Performance Chemicals | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 350,257 | 351,024 | ||
Total segment operating profit | 80,476 | 85,465 | ||
Equity in net income of unconsolidated investments | 2,917 | 2,308 | ||
Net (income) loss attributable to noncontrolling interests | -7,652 | -5,529 | ||
Segment income | 75,741 | 82,244 | ||
Catalyst Solutions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 249,586 | 235,573 | ||
Total segment operating profit | 49,212 | 42,139 | ||
Equity in net income of unconsolidated investments | 5,984 | 7,953 | ||
Segment income | 55,196 | 50,092 | ||
Total segment operating profit | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total segment operating profit | $129,688 | $127,604 | ||
[1] | For the three months ended March 31, 2014 and 2013, Corporate & other includes $(14.6) million and $1.2 million, respectively, of pension and OPEB plan (costs) credits. |
Operating_Segments_Summarized_1
Operating Segments -Summarized Financial Information by Reportable Segments (Parenthetical) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Segments [Abstract] | ' | ' |
Postretirement credits included in corporate and other | ($14.60) | $1.20 |
Operating_Segments_Additional_
Operating Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Pension contributions | $1.10 | $0.60 |
Premiums paid to U.S. post-retirement benefit plan | $1.40 | $1.10 |
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 | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total net pension benefits cost | $16,669 | $1,582 | |
Pension Benefits | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Service cost | 2,841 | 3,642 | |
Interest cost | 8,169 | 7,218 | |
Expected return on assets | -10,205 | -9,872 | |
Actuarial loss | 15,432 | [1] | 0 |
Amortization of prior service benefit | -273 | -49 | |
Total net pension benefits cost | 15,964 | 939 | |
Postretirement Benefits | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Service cost | 54 | 83 | |
Interest cost | 760 | 688 | |
Expected return on assets | -85 | -103 | |
Amortization of prior service benefit | -24 | -25 | |
Total net pension benefits cost | $705 | $643 | |
[1] | In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for one of our U.S. defined benefit plans and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for our domestic pension plans was reduced from 5.14% to 4.97%. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) for the first quarter of 2014 of $15.4 million. |
Pension_Plans_and_Other_Postre4
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Parenthetical) (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||
United States Pension Plan of US Entity, Defined Benefit | United States Pension Plan of US Entity, Defined Benefit | Pension Benefits | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $800,000 | ' | ' | ' | ' | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | ' | 4.97% | 5.14% | ' | ' | |
Actuarial loss | ' | ' | ' | $15,432,000 | [1] | $0 |
[1] | In connection with the announced realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which will result in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for one of our U.S. defined benefit plans and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for our domestic pension plans was reduced from 5.14% to 4.97%. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) for the first quarter of 2014 of $15.4 million. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Long-term debt, Recorded Amount | $1,070,853 | $1,078,864 |
Long-term debt, Fair Value | $1,102,265 | $1,109,878 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 22, 2014 | Mar. 31, 2014 | |||
Other Accounts Receivable | Accrued Expenses | Other income (expenses), net | Other income (expenses), net | Other, net | Other, net | Jp Morgan | Jp Morgan | |||||
payment | ||||||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notional amount | $337,100,000 | $321,400,000 | ' | ' | ' | ' | ' | ' | $325,000,000 | ' | ||
Fair value foreign currency forward contracts, assets | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of foreign currency forward contracts, liabilities | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ||
Recognized gains (losses) of foreign currency forward contracts | ' | ' | ' | ' | -1,100,000 | -4,700,000 | ' | ' | ' | ' | ||
Change in the fair value of foreign currency forward contracts | ' | ' | ' | ' | ' | ' | 1,100,000 | 4,700,000 | ' | ' | ||
Cash settlements | ' | ' | ' | ' | ' | ' | -800,000 | -5,500,000 | ' | ' | ||
Number of semi annual coupon payments | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ||
Expected future issuance of senior notes - maturity period | '22 days | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ||
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.28% | ' | ||
Interest rate swap contract, liability | $6,319,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | $6,300,000 | [1] |
[1] | In anticipation of refinancing our 2015 senior notes in the fourth quarter of 2014, on January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap, to be effective October 15, 2014. This derivative financial instrument has been designated and is accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. The fair value of the forward starting interest rate swap was calculated based on inputs derived from observable market data and as such is classified within Level 2. See Note 11 for additional details about this interest rate swap contract. |
Fair_Value_Measurement_Financi
Fair Value Measurement - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments under executive deferred compensation plan | $21,546 | [1] | $23,030 | [1] |
Equity securities | 738 | [2] | 771 | [2] |
Foreign currency forward contracts, assets | ' | 161 | [3] | |
Obligations under executive deferred compensation plan | 21,546 | [1] | 23,030 | [1] |
Interest rate swap contract, liability | 6,319 | [4] | ' | |
Foreign currency forward contracts, liabilities | 159 | [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 | 21,546 | [1] | 23,030 | [1] |
Equity securities | 21 | [2] | 21 | [2] |
Foreign currency forward contracts, assets | ' | 0 | ||
Obligations under executive deferred compensation plan | 21,546 | [1] | 23,030 | [1] |
Interest rate swap contract, liability | 0 | ' | ||
Foreign currency forward contracts, liabilities | 0 | ' | ||
Quoted Prices in Active Markets for Similar Items (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments under executive deferred compensation plan | 0 | 0 | ||
Equity securities | 0 | 0 | ||
Foreign currency forward contracts, assets | ' | 161 | [3] | |
Obligations under executive deferred compensation plan | 0 | 0 | ||
Interest rate swap contract, liability | 6,319 | [4] | ' | |
Foreign currency forward contracts, liabilities | 159 | [3] | ' | |
Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments under executive deferred compensation plan | 0 | 0 | ||
Equity securities | 717 | [2] | 750 | [2] |
Foreign currency forward contracts, assets | ' | 0 | ||
Obligations under executive deferred compensation plan | 0 | 0 | ||
Interest rate swap contract, liability | 0 | ' | ||
Foreign currency forward contracts, liabilities | $0 | ' | ||
[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] | Primarily consists of private equity securities 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 income (expenses), net in our consolidated statements of income. Holdings in private equity securities are typically valued using the net asset valuations provided by the underlying private investment companies and as such are classified within Level 3. | |||
[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 foreign currency forward contracts. These derivative financial instruments are not designated as hedging instruments under ASC 815, Derivatives and Hedging. 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. | |||
[4] | In anticipation of refinancing our 2015 senior notes in the fourth quarter of 2014, on January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap, to be effective October 15, 2014. This derivative financial instrument has been designated and is accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. The fair value of the forward starting interest rate swap was calculated based on inputs derived from observable market data and as such is classified within Level 2. See Note 11 for additional details about this interest rate swap contract. |
Restructuring_and_Other_Activi
Restructuring and Other - Activity in Recorded Workforce Reduction Liabilities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Restructuring and Related Activities [Abstract] | ' | |
Beginning balance | $39,104 | |
Workforce reduction charges | 0 | |
Payments | -19,069 | |
Amount reversed to income | -940 | [1] |
Foreign currency translation | -57 | |
Ending balance | 19,038 | |
Less amounts reported in Accrued expenses | $19,038 | |
[1] | Amount reversed to income reflects adjustments based on actual timing and amount of final settlements. |
Restructuring_and_Other_Additi
Restructuring and Other Additional Information (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ' |
Business exit costs | $14 |
Asset impairment charges | 3 |
Restructuring and other charges, net of tax | $11.10 |
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 | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Foreign Currency Translation, Beginning balance | $116,465 | $85,117 | ||
Foreign Currency Translations, Other comprehensive (loss) income before reclassifications | -5,258 | -33,909 | ||
Foreign Currency Translation, Other comprehensive (loss) income, net of tax | -5,258 | -33,909 | ||
Foreign Currency Translation, Other comprehensive (income) loss attributable to noncontrolling interests | 217 | -304 | ||
Foreign Currency Translation, Ending balance | 111,424 | 50,904 | ||
Pension and Post-retirement Benefits, Beginning balance | 487 | [1] | 989 | [1] |
Pension and Post-retirement Benefits, Amounts reclassified from accumulated other comprehensive income | -301 | [1] | -74 | [1] |
Pension and Post-retirement Benefits, Other comprehensive (loss) income, net of tax | -301 | -74 | ||
Pension and Post-retirement Benefits, Ending balance | 186 | 915 | ||
Unrealized loss on interest rate swap, beginning balance | 0 | 0 | ||
Interest Rate Swap, Other comprehensive income (loss) before reclassifications | -4,011 | 0 | ||
Unrealized loss on interest rate swap, Other comprehensive (loss) income, net of tax | -4,011 | 0 | ||
Unrealizedd loss on interest rate swap, ending balance | -4,011 | 0 | ||
Other, Beginning balance | -707 | -842 | ||
Other, Other comprehensive (loss) income before reclassifications | 0 | -2 | ||
Other, Amounts reclassified from accumulated other comprehensive income | 35 | 34 | ||
Other, Other comprehensive (loss) income, net of tax | 35 | 32 | ||
Other, Ending balance | -672 | -810 | ||
Beginning Balance | 116,245 | 85,264 | ||
Other comprehensive income (loss) before reclassifications | -9,269 | -33,911 | ||
Amounts reclassified from accumulated other comprehensive income | -266 | -40 | ||
Total other comprehensive loss, net of tax | -9,535 | -33,951 | ||
Other comprehensive (income) loss attributable to noncontrolling interests | -217 | 304 | ||
Ending balance | $106,927 | $51,009 | ||
[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 | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Foreign Currency Translation, Other comprehensive (loss) income, before tax | ($4,723) | ($34,252) |
Foreign Currency Translation, Income tax benefit (expense) | -535 | 343 |
Foreign Currency Translation, Other comprehensive (loss) income, net of tax | -5,258 | -33,909 |
Pension and Post-retirement Benefits, Other comprehensive income (loss), before tax | -297 | -74 |
Pension and Post-retirement Benefits, Income tax benefit (expense) | -4 | 0 |
Pension and Post-retirement Benefits, Other comprehensive (loss) income, net of tax | -301 | -74 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | -6,319 | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 2,308 | ' |
Unrealized loss on interest rate swap, Other comprehensive (loss) income, net of tax | -4,011 | 0 |
Other, Other comprehensive (loss) income, before tax | 54 | 52 |
Other, Income tax benefit (expense) | -19 | -20 |
Other, Other comprehensive (loss) income, net of tax | $35 | $32 |
Subsequent_Events_Agreement_to
Subsequent Events Agreement to Sell Assets (Details) (Antioxidant, Ibuprofen and Propofol Assets [Member], USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Antioxidant, Ibuprofen and Propofol Assets [Member] | ' |
Subsequent Event [Line Items] | ' |
Current assets | $58,870 |
Net property, plant and equipment | 94,193 |
Goodwill | 16,227 |
Other intangibles, net of amortization | 40,958 |
Deferred income taxes | $21,447 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 4 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Aug. 07, 2014 | Aug. 07, 2014 |
Minimum | Maximum | ||
Antioxidant, Ibuprofen and Propofol Assets [Member] | Antioxidant, Ibuprofen and Propofol Assets [Member] | ||
Scenario, Forecast | Scenario, Forecast | ||
Subsequent Event | Subsequent Event | ||
Subsequent Event [Line Items] | ' | ' | ' |
Asset impairment charges | $3 | $50 | $120 |