Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document And Entity Information [Abstract] [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ALB | |
Entity Registrant Name | ALBEMARLE CORP | |
Entity Central Index Key | 915,913 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 110,752,288 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 722,063 | $ 657,211 |
Cost of goods sold | 466,975 | 414,677 |
Gross profit | 255,088 | 242,534 |
Selling, general and administrative expenses | 108,001 | 82,631 |
Research and development expenses | 24,323 | 19,872 |
Gain on sales of businesses, net | 0 | (121,324) |
Acquisition and integration related costs | 0 | 18,558 |
Operating profit | 122,764 | 242,797 |
Interest and financing expenses | (68,513) | (15,114) |
Other (expenses) income, net | (794) | 47 |
Income from continuing operations before income taxes and equity in net income of unconsolidated investments | 53,457 | 227,730 |
Income tax expense | 11,971 | 25,485 |
Income from continuing operations before equity in net income of unconsolidated investments | 41,486 | 202,245 |
Equity in net income of unconsolidated investments (net of tax) | 21,171 | 15,991 |
Net income from continuing operations | 62,657 | 218,236 |
Income from discontinued operations (net of tax) | 0 | 17,312 |
Net income | 62,657 | 235,548 |
Net income attributable to noncontrolling interests | (11,444) | (7,362) |
Net income attributable to Albemarle Corporation | $ 51,213 | $ 228,186 |
Basic earnings per share: | ||
Basic earnings per share from continuing operations (in dollars per share) | $ 0.46 | $ 1.88 |
Basic earnings per share from discontinued operations (in dollars per share) | 0 | 0.15 |
Basic earnings per share (in dollars per share) | 0.46 | 2.03 |
Diluted earnings per share: | ||
Diluted earnings per share from continuing operations (in dollars per share) | 0.45 | 1.87 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0 | 0.15 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 2.02 |
Weighted-average common shares outstanding - basic (in shares) | 111,986 | 112,260 |
Weighted-average common shares outstanding - diluted (in shares) | 113,289 | 112,770 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.32 | $ 0.305 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 62,657 | $ 235,548 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | 79,055 | 98,906 |
Pension and postretirement benefits | (7) | 1 |
Net investment hedge | (13,685) | (9,524) |
Interest rate swap | 529 | 525 |
Total other comprehensive income, net of tax | 65,892 | 89,908 |
Comprehensive income | 128,549 | 325,456 |
Comprehensive income attributable to noncontrolling interests | (11,905) | (7,645) |
Comprehensive income attributable to Albemarle Corporation | $ 116,644 | $ 317,811 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,254,536 | $ 2,269,756 |
Trade accounts receivable, less allowance for doubtful accounts (2017 – $15,403; 2016 – $15,312) | 508,460 | 486,035 |
Other accounts receivable | 54,486 | 41,985 |
Inventories | 518,936 | 450,263 |
Other current assets | 53,836 | 58,579 |
Total current assets | 2,390,254 | 3,306,618 |
Property, plant and equipment, at cost | 3,965,656 | 3,910,522 |
Less accumulated depreciation and amortization | 1,584,276 | 1,550,382 |
Net property, plant and equipment | 2,381,380 | 2,360,140 |
Investments | 493,406 | 457,533 |
Other assets | 146,497 | 142,320 |
Goodwill | 1,544,574 | 1,540,032 |
Other intangibles, net of amortization | 410,357 | 354,564 |
Total assets | 7,366,468 | 8,161,207 |
Current liabilities: | ||
Accounts payable | 336,890 | 281,874 |
Accrued expenses | 253,930 | 322,165 |
Current portion of long-term debt | 314,500 | 247,544 |
Dividends payable | 35,215 | 34,104 |
Income taxes payable | 267,412 | 254,416 |
Total current liabilities | 1,207,947 | 1,140,103 |
Long-term debt | 1,398,386 | 2,121,718 |
Postretirement benefits | 50,619 | 50,538 |
Pension benefits | 301,304 | 298,695 |
Other noncurrent liabilities | 201,884 | 194,810 |
Deferred income taxes | 422,356 | 412,739 |
Commitments and contingencies (Note 11) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 110,752 in 2017 and 112,524 in 2016 | 1,108 | 1,125 |
Additional paid-in capital | 1,845,839 | 2,084,418 |
Accumulated other comprehensive loss | (346,981) | (412,412) |
Retained earnings | 2,137,703 | 2,121,931 |
Total Albemarle Corporation shareholders’ equity | 3,637,669 | 3,795,062 |
Noncontrolling interests | 146,303 | 147,542 |
Total equity | 3,783,972 | 3,942,604 |
Total liabilities and equity | $ 7,366,468 | $ 8,161,207 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 15,403 | $ 15,312 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, issued | 110,752 | 112,524 |
Common stock, outstanding | 110,752 | 112,524 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Albemarle Shareholders' Equity | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2015 | 112,219,351 | ||||||
Beginning Balance at Dec. 31, 2015 | $ 3,401,313 | $ 1,122 | $ 2,059,151 | $ (421,288) | $ 1,615,407 | $ 3,254,392 | $ 146,921 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 235,548 | 228,186 | 228,186 | 7,362 | |||
Other comprehensive income | 89,908 | 89,625 | 89,625 | 283 | |||
Cash dividends declared | (34,251) | (34,251) | (34,251) | 0 | |||
Stock-based compensation and other | 4,517 | 4,517 | 4,517 | ||||
Tax deficiency related to stock plans | (195) | (195) | (195) | ||||
Issuance of common stock, net (in shares) | 112,624 | ||||||
Issuance of common stock, net | 0 | $ 1 | (1) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (35,176) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (1,969) | $ 0 | (1,969) | (1,969) | |||
Ending Balance (in shares) at Mar. 31, 2016 | 112,296,799 | ||||||
Ending Balance at Mar. 31, 2016 | 3,694,871 | $ 1,123 | 2,061,503 | (331,663) | 1,809,342 | 3,540,305 | 154,566 |
Beginning Balance (in shares) at Dec. 31, 2016 | 112,523,790 | ||||||
Beginning Balance at Dec. 31, 2016 | 3,942,604 | $ 1,125 | 2,084,418 | (412,412) | 2,121,931 | 3,795,062 | 147,542 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 62,657 | 51,213 | 51,213 | 11,444 | |||
Other comprehensive income | 65,892 | 65,431 | 65,431 | 461 | |||
Cash dividends declared | (35,441) | (35,441) | (35,441) | 0 | |||
Stock-based compensation and other | 3,945 | 3,945 | 3,945 | ||||
Exercise of stock options (in shares) | 37,146 | ||||||
Exercise of stock options | 2,170 | $ 0 | 2,170 | 2,170 | |||
Shares repurchased (in shares) | (1,948,178) | ||||||
Shares repurchased | (250,000) | $ (19) | (249,981) | 0 | (250,000) | ||
Issuance of common stock, net (in shares) | 225,559 | ||||||
Issuance of common stock, net | 0 | $ 2 | (2) | 0 | |||
Termination of Tianqi option agreement | 0 | 13,144 | 13,144 | (13,144) | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (86,117) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (7,855) | $ 0 | (7,855) | (7,855) | |||
Ending Balance (in shares) at Mar. 31, 2017 | 110,752,200 | ||||||
Ending Balance at Mar. 31, 2017 | $ 3,783,972 | $ 1,108 | $ 1,845,839 | $ (346,981) | $ 2,137,703 | $ 3,637,669 | $ 146,303 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 2,269,756 | $ 213,734 |
Cash flows from operating activities: | ||
Net income | 62,657 | 235,548 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 45,070 | 60,552 |
Gain on acquisition | (7,433) | 0 |
Gain on sales of businesses, net | 0 | (121,324) |
Stock-based compensation | 5,046 | 4,007 |
Equity in net income of unconsolidated investments (net of tax) | (21,171) | (16,566) |
Dividends received from unconsolidated investments and nonmarketable securities | 2,551 | 200 |
Pension and postretirement (benefit) expense | (26) | 1,389 |
Pension and postretirement contributions | (2,891) | (4,224) |
Unrealized (gain) loss on investments in marketable securities | (873) | 1,044 |
Loss on early extinguishment of debt | 52,801 | 0 |
Deferred income tax expense | 1,363 | 816 |
Working capital changes | (63,325) | 10,467 |
Other, net | 8,816 | 799 |
Net cash provided by operating activities | 82,585 | 172,708 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (27,742) | 0 |
Cash payments related to acquisitions and other | 0 | (81,988) |
Capital expenditures | (54,143) | (58,120) |
Cash proceeds from divestitures, net | 0 | 307,165 |
Sales of marketable securities, net | 492 | 1,191 |
Repayments from joint ventures | 1,250 | 0 |
Net cash (used in) provided by investing activities | (80,143) | 168,248 |
Cash flows from financing activities: | ||
Repayments of long-term debt | (751,209) | (331,595) |
Other borrowings, net | 66,384 | 68,829 |
Fees related to early extinguishment of debt | (46,959) | 0 |
Dividends paid to shareholders | (34,330) | (32,541) |
Repurchases of common stock | (250,000) | 0 |
Proceeds from exercise of stock options | 2,170 | 0 |
Withholding taxes paid on stock-based compensation award distributions | (7,855) | (1,969) |
Net cash used in financing activities | (1,021,799) | (297,276) |
Net effect of foreign exchange on cash and cash equivalents | 4,137 | (5,032) |
(Decrease) increase in cash and cash equivalents | (1,015,220) | 38,648 |
Cash and cash equivalents at end of period | $ 1,254,536 | $ 252,382 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and December 31, 2016 , 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, 2017 and 2016 . Income tax expense for the three-month period ended March 31, 2017 includes income tax expense of $5.1 million due to an adjustment in the Company's deferred tax liabilities for basis differences in Chilean fixed assets related to the three-month period ended September 30, 2016. The Company does not believe this adjustment is material to the consolidated financial statements for the three-month period ended March 31, 2017, the three- or nine-month periods ended September 30, 2016, or the year ended December 31, 2016. All other 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, 2016 , which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017. The December 31, 2016 condensed 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, 2017 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation. In addition, for the three-month period ended March 31, 2017 , the Company began reporting its acquisition and integration related costs and restructuring and other costs in Cost of goods sold, Selling, general and administrative expenses and Research and development expenses. See Note 2, “Acquisitions,” and Note 12, “Segment Information,” for further details. As described further in Note 3, “Divestitures,” on December 14, 2016, the Company closed the sale of its Chemetall ® Surface Treatment business to BASF SE. Financial results of this business have been presented as discontinued operations in the consolidated statements of income and excluded from segment results for the three-month period ended March 31, 2016. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On December 31, 2016, we completed the acquisition of all equity interests in the lithium hydroxide and lithium carbonate conversion business of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) for a cash purchase price of approximately $145 million . This includes manufacturing assets located in both Jiangxi and Sichuan, China focused on the production of battery-grade lithium carbonate and lithium hydroxide. This acquisition will enable us to supply premium lithium salts to an expanded global customer base while solidifying our leading position in the lithium industry. The aggregate purchase price was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values as of December 31, 2016, which were based, in part, upon outside preliminary appraisals for certain assets. The preliminary estimated fair values of the assets and liabilities acquired were primarily related to Property, plant and equipment of $29.0 million , Other intangibles of $32.0 million and Deferred tax liabilities of $3.9 million . In addition, the estimated fair value of net working capital acquired was $6.2 million , however, an equal liability was recorded in Accrued expenses, as it will be repaid to the previous owners of the acquired business. The excess of the purchase price over the preliminary estimated fair value of the net assets acquired was approximately $87.9 million and was recorded as goodwill. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based upon preliminary information and is subject to change within the measurement period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the property, plant and equipment, other intangible assets, deferred income taxes, as well as various working capital accounts. The fair values of the assets acquired and liabilities assumed are based on management’s preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it will evaluate any necessary information prior to finalization of the amounts. During the measurement period, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. During the three-month period ended March 31, 2017 , the Company purchased inventory with a fair value of $37.0 million in connection with the Jiangli New Materials acquisition, $19.4 million of which was paid during the first quarter. The fair value included the markup of the underlying book value of $23.0 million . The inventory markup is being expensed over the estimated remaining selling period, with $10.6 million recorded in the three-month period ended March 31, 2017 . Goodwill arising from the acquisition consists largely of the anticipated synergies and economies of scale from the combined assets and the overall strategic importance of the acquired assets to Albemarle. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. The weighted-average amortization periods for the other intangible assets acquired are 20 years for patents and technology, 18 years for customer lists and relationships and 3 years for other. The weighted-average amortization period for all definite-lived intangible assets acquired is 17 years. On February 1, 2017, the Company acquired the remaining 50% interest in the Sales de Magnesio Ltda. (“Salmag”) joint venture in Chile from SQM Salar S.A. for approximately $8.3 million , net of cash acquired. In connection with the acquisition, the Company recorded a gain of $7.4 million , calculated based on the difference between the purchase price and the book value of the investment in Other (expenses) income, net on the consolidated statements of income for the three-month period ended March 31, 2017 . The calculation of the gain and the fair values of the assets acquired and liabilities assumed are based on management’s preliminary estimates and assumptions. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it will evaluate any necessary information prior to finalization of the amounts. Acquisition and integration related costs of $8.9 million and $5.4 million were included in Cost of goods sold and Selling, general and administrative expenses, respectively, on our consolidated statements of income for the three-month period ended March 31, 2017 , primarily resulting from the Jiangli New Materials acquisition, including unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements. Included in Acquisition and integration related costs on our consolidated statements of income for the the three-month period ended March 31, 2016 were $16.9 million of integration costs resulting from the acquisition of Rockwood Holdings, Inc. (mainly consisting of professional services and advisory fees, costs to achieve synergies, relocation costs, and other integration costs) and $1.7 million of costs in connection with other significant projects. |
Divestitures Divestitures
Divestitures Divestitures | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures: Discontinued Operations On June 17, 2016, we entered into a definitive agreement to sell the Chemetall Surface Treatment business to BASF SE. On December 14, 2016, the Company closed the sale of this business and received proceeds of approximately $3.1 billion , net of purchase price adjustments. The sale of the Chemetall Surface Treatment business, a separate reportable segment, qualified for discontinued operations treatment because it represented a strategic shift that will have a major effect on the Company’s operations and financial results. As a result, the Company accounted for this business as discontinued operations in the consolidated statements of income and excluded the business from segment results for the three-month period ended March 31, 2016. The Company stopped recording depreciation and amortization expense on assets of the Chemetall Surface Treatment business as of the date this business qualified for discontinued operations treatment, in the second quarter of 2016. The major components of Income from discontinued operations (net of tax) for the three-month period ended March 31, 2016 were as follows (in thousands): Three Months Ended March 31, 2016 Net sales $ 208,187 Cost of goods sold 113,323 Operating expenses, net 62,853 Interest and financing expenses (a) 10,137 Other income, net (938 ) Income before income taxes 22,812 Income tax expense 5,500 Income from discontinued operations (net of tax) $ 17,312 (a) Interest and financing expenses included the allocation of interest expense not directly attributable to other operations as well as interest expense related to debt to be assumed by the buyer. The allocation of interest expense to discontinued operations was based on the ratio of net assets held for sale to the sum of total net assets plus consolidated debt. Depreciation and amortization and capital expenditures from discontinued operations for the three -month period ended March 31, 2016 were as follows (in thousands): Three Months Ended March 31, 2016 Depreciation and amortization $ 16,943 Capital expenditures $ 5,747 Other Divestitures On November 5, 2015, the Company signed a definitive agreement to sell its Tribotecc metal sulfides business to Treibacher Industrie AG. Included in the transaction were sites in Vienna and Arnoldstein, Austria, and Tribotecc’s proprietary sulfide synthesis process. On January 4, 2016, t he Company closed the sale of this business, effective for the first day of business in 2016. We received net proceeds of approximate ly $137 million and recorded a gain of $11.5 million before income taxes in the first quarter of 2016 related to the sale of this business. On December 16, 2015, the Company signed a definitive agreement to sell its minerals-based flame retardants and specialty chemicals business to Huber Engineered Materials, a division of J.M. Huber Corporation. The transaction included Albemarle’s Martinswerk GmbH subsidiary and manufacturing facility located in Bergheim, Germany, and Albemarle’s 50% ownership interest in Magnifin Magnesiaprodukte GmbH, a joint-venture with Radex Heraklith Industriebeteiligung AG at Breitenau, Au stria. On February 1, 2016, the Company closed the sale of these businesses. We received net proceeds of approximately $187 million and recorded a gain of $111.3 million before income taxes in the first quarter of 2016 related to the sale of these businesses. Also included in Gain on sales of businesses, net, for the first quarter of 2016 was a loss of $1.5 million on the sale of our wafer reclaim business. These businesses did not qualify for discontinued operations treatment because the Company’s management did not consider their sale as representing a strategic shift that had or will have a major effect on the Company’s operations and financial results. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2017 (in thousands): Lithium and Advanced Materials Bromine Specialties Refining Solutions All Other Total Balance at December 31, 2016 $ 1,348,261 $ 20,319 $ 164,866 $ 6,586 $ 1,540,032 Acquisitions (a) (21,822 ) — — — (21,822 ) Foreign currency translation adjustments 20,694 — 5,670 — 26,364 Balance at March 31, 2017 $ 1,347,133 $ 20,319 $ 170,536 $ 6,586 $ 1,544,574 (a) Primarily represents preliminary purchase price adjustments for the Jiangli New Materials acquisition. See Note 2, “Acquisitions,” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2017 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2016 $ 387,893 $ 16,514 $ 38,434 $ 18,844 $ 461,685 Acquisitions (b) 1,717 — 25,555 19,917 47,189 Foreign currency translation adjustments and other 10,340 264 514 1,774 12,892 Balance at March 31, 2017 $ 399,950 $ 16,778 $ 64,503 $ 40,535 $ 521,766 Accumulated Amortization Balance at December 31, 2016 $ (49,165 ) $ (7,952 ) $ (31,683 ) $ (18,321 ) $ (107,121 ) Amortization (4,801 ) — (413 ) (526 ) (5,740 ) Foreign currency translation adjustments and other (1,164 ) (94 ) (503 ) 3,213 1,452 Balance at March 31, 2017 $ (55,130 ) $ (8,046 ) $ (32,599 ) $ (15,634 ) $ (111,409 ) Net Book Value at December 31, 2016 $ 338,728 $ 8,562 $ 6,751 $ 523 $ 354,564 Net Book Value at March 31, 2017 $ 344,820 $ 8,732 $ 31,904 $ 24,901 $ 410,357 (a) Balances as of March 31, 2017 and December 31, 2016 include only indefinite-lived intangible assets. (b) Represents preliminary purchase price adjustments for the Jiangli New Materials acquisition and the acquisition of the remaining equity interest in Salmag. See Note 2, “Acquisitions,” for additional information. |
Foreign Exchange
Foreign Exchange | 3 Months Ended |
Mar. 31, 2017 | |
Foreign Currency [Abstract] | |
Foreign Exchange | Foreign Exchange: Foreign exchange transaction losses were $4.9 million and $0.1 million for the three-month periods ended March 31, 2017 and 2016 , respectively, and were included in Other (expenses) income, net, in our consolidated statements of income, with the unrealized portion included in Other, net, in our condensed consolidated statements of cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The effective income tax rate for the three-month period ended March 31, 2017 was 22.4% , compared to 11.2% for the three-month period ended March 31, 2016 . The Company’s effective income tax rate fluctuates based on, among other factors, its level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the 2017 and 2016 periods was primarily due to the impact of earnings from outside the U.S., and is mainly attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. In addition, Income tax expense for the three-month period ended March 31, 2017 included a $5.1 million out-of-period adjustment as described in Note 1, "Basis of Presentation," partially offset by a $4.1 million reduction from the tax effects of share-based compensation awards. Our effective tax rate for the three-month period ended March 31, 2016 was driven down by a variety of factors, primarily low tax gains from the sale of the minerals-based flame retardant business, as well as a favorable mix of earnings in lower tax jurisdictions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2017 2016 Basic earnings per share from continuing operations Numerator: Net income from continuing operations $ 62,657 $ 218,236 Net income from continuing operations attributable to noncontrolling interests (11,444 ) (7,362 ) Net income from continuing operations attributable to Albemarle Corporation $ 51,213 $ 210,874 Denominator: Weighted-average common shares for basic earnings per share 111,986 112,260 Basic earnings per share from continuing operations $ 0.46 $ 1.88 Diluted earnings per share from continuing operations Numerator: Net income from continuing operations $ 62,657 $ 218,236 Net income from continuing operations attributable to noncontrolling interests (11,444 ) (7,362 ) Net income from continuing operations attributable to Albemarle Corporation $ 51,213 $ 210,874 Denominator: Weighted-average common shares for basic earnings per share 111,986 112,260 Incremental shares under stock compensation plans 1,303 510 Weighted-average common shares for diluted earnings per share 113,289 112,770 Diluted earnings per share from continuing operations $ 0.45 $ 1.87 On February 23, 2017, the Company increased the regular quarterly dividend by 5% to $0.32 per share and declared a cash dividend of said amount for the first quarter of 2017, which was paid on April 3, 2017 to shareholders of record at the close of business as of March 15, 2017 . Under our existing Board authorized share repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution on March 1, 2017. Under the ASR agreement, i n March 2017, t he Company paid $250 million from available cash on hand and received and retired an initial delivery of 1,948,178 shares of our common sto ck with a fair market value of $200 million , which 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, 2017. The total number of shares to ultimately be delivered under the ASR agreement will be determined upon completion of the ASR agreement, which will be by the end of the second quarter of 2017, 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 an agreed discount . 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. No more than 15,000,000 shares can be repurchased under the Company’s authorized share repurchase program. As of March 31, 2017 , there were 13,051,822 remaining shares available for repurchase under the Company’s authorized share repurchase program. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Finished goods $ 345,892 $ 289,102 Raw materials and work in process (a) 120,759 109,706 Stores, supplies and other 52,285 51,455 Total inventories $ 518,936 $ 450,263 (a) Included $50.1 million and $47.1 million at March 31, 2017 and December 31, 2016 , respectively, of work in process related to the Lithium product category. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”). With regard to the Company’s ownership in Windfield, the parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $318.8 million and $288.6 million at March 31, 2017 and December 31, 2016 , respectively. The Company’s aggregate net investment in all other entities which it considers to be VIE’s for which the Company is not the primary beneficiary was $9.1 million and $8.8 million at March 31, 2017 and December 31, 2016 , respectively. Our unconsolidated VIE’s are reported in Investments in the condensed consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments. As part of the original Windfield joint venture agreement, Tianqi Lithium Corporation ("Tianqi") was granted an option to purchase from 20% to 30% of the equity interests in Rockwood Lithium GmbH, a wholly-owned German subsidiary of Albemarle, and its subsidiaries. In February 2017, Albemarle and Tianqi terminated the option agreement, and as a result, we will retain 100% of the ownership interest in Rockwood Lithium GmbH and its subsidiaries. Following the termination of the option agreement, the $13.1 million fair value of the option agreement originally recorded in Noncontrolling interests was reversed and recorded as an adjustment to Additional paid-in capital. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): March 31, December 31, 2017 2016 1.875% Senior notes, net of unamortized discount and debt issuance costs of $4,305 at March 31, 2017 and $7,823 at December 31, 2016 $ 418,471 $ 719,617 3.00% Senior notes, net of unamortized discount and debt issuance costs of $1,286 at December 31, 2016 — 248,714 4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,737 at March 31, 2017 and $3,859 at December 31, 2016 421,262 421,141 4.50% Senior notes, net of unamortized discount and debt issuance costs of $1,116 at March 31, 2017 and $2,380 at December 31, 2016 174,098 347,620 5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,274 at March 31, 2017 and $4,313 at December 31, 2016 345,726 345,687 Commercial paper notes 314,500 247,503 Variable-rate foreign bank loans 38,829 38,939 Miscellaneous — 41 Total long-term debt 1,712,886 2,369,262 Less amounts due within one year 314,500 247,544 Long-term debt, less current portion $ 1,398,386 $ 2,121,718 In the three-month period ended March 31, 2017 , using a portion of the proceeds from the sale of the Chemetall Surface Treatment business, we repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million . As a result, during the three-month period ended March 31, 2017, we recorded a loss on early extinguishment of debt of $52.8 million in Interest and financing expenses on the consolidated statements of income, representing the tender premiums, fees, unamortized discounts and unamortized deferred financings costs from the redemption of these senior notes. Current portion of long-term debt at March 31, 2017 consisted of commercial paper notes with a weighted-average interest rate of approximately 1.54% and a weighted-average maturity of 29 days . The carrying value of our 1.875% Euro-denominated senior notes has been designated as an effective hedge of our net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency are recorded in accumulated other comprehensive loss. During the three-month periods ended March 31, 2017 and 2016 , losses of $13.7 million and $9.5 million (net of income taxes), respectively, were recorded in accumulated other comprehensive loss in connection with the revaluation of these senior notes to our reporting currency. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2017 , as follows (in thousands): Beginning balance at December 31, 2016 $ 34,919 Expenditures (303 ) Accretion of discount 183 Foreign currency translation adjustments and other 640 Ending balance at March 31, 2017 35,439 Less amounts reported in Accrued expenses 2,345 Amounts reported in Other noncurrent liabilities $ 33,094 Environmental remediation liabilities included discounted liabilities of $24.2 million and $22.8 million at March 31, 2017 and December 31, 2016 , respectively, discounted at rates with a weighted-average of 3.6% , with the undiscounted amount totaling $62.1 million and $61.1 million at March 31, 2017 and December 31, 2016 , respectively. For certain locations where the Company is operating groundwater monitoring and/or remediation systems, prior owners or insurers have assumed all or most of the responsibility. 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. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely 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. Litigation 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 for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. Indemnities We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties who may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party who may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities. The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $39.5 million and $38.2 million at March 31, 2017 and December 31, 2016 , respectively, recorded in Other noncurrent liabilities related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. Other 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 certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments | Segment Information: Our three reportable segments include Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. 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. This structure aligns with the markets and customers we serve through each of the segments. The structure also facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. Summarized financial information concerning our reportable segments is shown in the following tables. The “All Other” category comprises operating segments that did not fit into any of our core businesses. During the first quarter of 2016 , we completed the sales of the metal sulfides business and the minerals-based flame retardants and specialty chemicals businesses. For additional information about these businesses, see Note 3, “Divestitures.” Following the sales of these businesses, the “All Other” category includes only the fine chemistry services business. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating 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 the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items such as acquisition and integration related costs, utilization of inventory markup, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items (“adjusted EBITDA”), in a balanced manner and on a segment basis to assess the ongoing performance of the Company’s business segments and to allocate resources. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP. Three Months Ended 2017 2016 (In thousands) Net sales: Lithium and Advanced Materials $ 284,375 $ 216,173 Bromine Specialties 219,191 196,553 Refining Solutions 185,412 170,579 All Other 32,419 72,089 Corporate 666 1,817 Total net sales $ 722,063 $ 657,211 Adjusted EBITDA: Lithium and Advanced Materials $ 120,022 $ 86,474 Bromine Specialties 68,488 61,608 Refining Solutions 49,579 55,074 All Other 5,156 8,464 Corporate (31,869 ) (19,587 ) Total adjusted EBITDA $ 211,376 $ 192,033 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium and Advanced Materials Bromine Specialties Refining Solutions Reportable Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2017 Net income (loss) attributable to Albemarle Corporation $ 94,106 $ 58,694 $ 40,474 $ 193,274 $ 3,246 $ (145,307 ) $ 51,213 Depreciation and amortization 22,743 9,794 9,105 41,642 1,910 1,518 45,070 Utilization of inventory markup (a) 10,606 — — 10,606 — — 10,606 Restructuring and other (b) — — — — — 12,905 12,905 Gain on acquisition (c) (7,433 ) — — (7,433 ) — — (7,433 ) Acquisition and integration related costs (d) — — — — — 14,281 14,281 Interest and financing expenses (e) — — — — — 68,513 68,513 Income tax expense — — — — — 11,971 11,971 Non-operating pension and OPEB items — — — — — (1,063 ) (1,063 ) Other (f) — — — — — 5,313 5,313 Adjusted EBITDA $ 120,022 $ 68,488 $ 49,579 $ 238,089 $ 5,156 $ (31,869 ) $ 211,376 Three months ended March 31, 2016 Net income (loss) attributable to Albemarle Corporation $ 63,327 $ 51,853 $ 46,314 $ 161,494 $ 130,709 $ (64,017 ) $ 228,186 Depreciation and amortization 23,147 9,755 8,760 41,662 612 1,335 43,609 (Gain) loss on sales of businesses, net (g) — — — — (122,857 ) 1,533 (121,324 ) Acquisition and integration related costs (d) — — — — — 18,558 18,558 Interest and financing expenses — — — — — 15,114 15,114 Income tax expense — — — — — 25,485 25,485 Income from discontinued operations (net of tax) — — — — — (17,312 ) (17,312 ) Non-operating pension and OPEB items — — — — — (283 ) (283 ) Adjusted EBITDA $ 86,474 $ 61,608 $ 55,074 $ 203,156 $ 8,464 $ (19,587 ) $ 192,033 (a) In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.0 million . The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup. (b) During the first quarter of 2017, we initiated action to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2017, with the expectation that the majority of this plan will be completed by the end of 2017. (c) Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. (d) See Note 2, “Acquisitions,” for additional information. (e) Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million . See Note 10, “Long-term Debt,” for additional information. (f) Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business. (g) See Note 3, “Divestitures,” for additional information. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) from continuing operations for the three-month periods ended March 31, 2017 and 2016 were as follows (in thousands): Three Months Ended 2017 2016 Pension Benefits Cost (Credit): Service cost $ 1,003 $ 1,048 Interest cost 8,288 9,366 Expected return on assets (9,908 ) (10,173 ) Actuarial gain — (50 ) Amortization of prior service benefit 27 28 Total net pension benefits (credit) cost $ (590 ) $ 219 Postretirement Benefits Cost (Credit): Service cost $ 31 $ 29 Interest cost 585 621 Expected return on assets (28 ) (47 ) Amortization of prior service benefit (24 ) (24 ) Total net postretirement benefits cost $ 564 $ 579 Total net pension and postretirement benefits (credit) cost (a) $ (26 ) $ 798 (a) For the three-month period ended March 31, 2016 , $0.6 million of net pension and postretirement benefits cost are included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information. During the three-month periods ended March 31, 2017 and 2016 , we made contributions of $2.4 million to our qualified and nonqualified pension plans for continuing operations. Contributions to discontinued operations qualified and nonqualified pension plans were $1.0 million for the three-month period ended March 31, 2016 . We paid $0.5 million and $0.8 million in premiums to the U.S. postretirement benefit plan during the three-month periods ended March 31, 2017 and 2016 , respectively. Multiemployer Plan Our contributions to the Pensionskasse Dynamit Nobel Versicherungsverein auf Gegenseitigkeit, Troisdorf (“DN Pensionskasse”) multiemployer plan for continuing operations were €0.2 million (approximately $0.2 million and $0.3 million ) during the three-month periods ended March 31, 2017 and 2016 , respectively. Contributions for discontinued operations were €0.2 million (approximately $0.2 million ) during the three-month period ended March 31, 2016 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
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 are estimated using Level 1 inputs and account for 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. March 31, 2017 December 31, 2016 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,721,455 $ 1,807,576 $ 2,381,370 $ 2,472,813 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, 2017 and December 31, 2016 , we had outstanding foreign currency forward contracts with notional values totaling $285.9 million and $251.6 million , respectively. Our foreign currency forward contracts outstanding at March 31, 2017 and December 31, 2016 were not designated as hedging instruments under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging . At March 31, 2017 , less than $0.1 million was included in Other accounts receivable associated with the fair value of our foreign currency forward contracts, and at December 31, 2016 , $0.2 million was included in Accrued expenses associated with the fair value of our foreign currency forward contracts. Gains and losses on foreign currency forward contracts are recognized in Other (expenses) income, 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, which are also reported in Other (expenses) income, net. For the three-month periods ended March 31, 2017 and 2016 , we recognized gains of $4.5 million and $5.8 million , respectively, in Other (expenses) income, net, in our consolidated statements of income related to the change in the fair value of our foreign currency forward contracts. Also, for the three -month periods ended March 31, 2017 and 2016 , we recorded gains of $4.5 million and $5.8 million , respectively, related to the change in the fair value of our foreign currency forward contracts, and net cash receipts of $4.3 million and $5.1 million , respectively, in Other, net, in our condensed consolidated statements of cash flows. The counterparties to our foreign currency forward contracts 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, 2017 | |
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, 2017 . 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, 2017 and December 31, 2016 (in thousands): March 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Investments under executive deferred compensation plan (a) $ 22,417 $ 22,417 $ — $ — Private equity securities (b) $ 36 $ 36 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,492 $ — $ — $ — Foreign currency forward contracts (d) $ 7 $ — $ 7 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 22,417 $ 22,417 $ — $ — December 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Investments under executive deferred compensation plan (a) $ 22,037 $ 22,037 $ — $ — Private equity securities (b) $ 35 $ 35 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,498 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 22,037 $ 22,037 $ — $ — Foreign currency forward contracts (d) $ 182 $ — $ 182 $ — (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 (expenses) income, net, in our consolidated statements of income. (c) Holdings in private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (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. Unless otherwise noted, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation Pension and Postretirement Benefits (a) Net Investment Hedge Interest Rate Swap (b) Total Three months ended March 31, 2017 Balance at December 31, 2016 $ (484,121 ) $ 76 $ 88,378 $ (16,745 ) $ (412,412 ) Other comprehensive income (loss) before reclassifications 79,055 — (13,685 ) — 65,370 Amounts reclassified from accumulated other comprehensive loss — (7 ) — 529 522 Other comprehensive income (loss), net of tax 79,055 (7 ) (13,685 ) 529 65,892 Other comprehensive income attributable to noncontrolling interests (461 ) — — — (461 ) Balance at March 31, 2017 $ (405,527 ) $ 69 $ 74,693 $ (16,216 ) $ (346,981 ) Three months ended March 31, 2016 Balance at December 31, 2015 $ (463,914 ) $ (758 ) $ 62,245 $ (18,861 ) $ (421,288 ) Other comprehensive income (loss) before reclassifications 98,906 — (9,524 ) — 89,382 Amounts reclassified from accumulated other comprehensive loss — 1 — 525 526 Other comprehensive income (loss), net of tax 98,906 1 (9,524 ) 525 89,908 Other comprehensive income attributable to noncontrolling interests (283 ) — — — (283 ) Balance at March 31, 2016 $ (365,291 ) $ (757 ) $ 52,721 $ (18,336 ) $ (331,663 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 13, “Pension Plans and Other Postretirement Benefits.” (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month periods ended March 31, 2017 and 2016 is provided in the following tables (in thousands): Three Months Ended March 31, 2017 2016 Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Interest Rate Swap Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Interest Rate Swap Other comprehensive income (loss), before tax $ 80,141 $ (6 ) $ (21,580 ) $ 834 $ 99,277 $ 4 $ (15,121 ) $ 834 Income tax (expense) benefit (1,086 ) (1 ) 7,895 (305 ) (371 ) (3 ) 5,597 (309 ) Other comprehensive income (loss), net of tax $ 79,055 $ (7 ) $ (13,685 ) $ 529 $ 98,906 $ 1 $ (9,524 ) $ 525 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions: Our condensed consolidated financial statements include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended 2017 2016 Sales to unconsolidated affiliates $ 7,189 $ 6,174 Purchases from unconsolidated affiliates 40,570 35,621 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance designed to enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that revenue recognized from a transaction or event that arises from a contract with a customer should reflect the consideration to which an entity expects to be entitled in exchange for goods or services provided. To achieve that core principle the new guidance sets forth a five-step revenue recognition model that will need to be applied consistently to all contracts with customers, except those that are within the scope of other topics in the ASC. Also required are new disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized related to the costs to obtain or fulfill a contract. In March 2016 and April 2016, the FASB issued amendments to this new guidance that provides clarification about principal versus agent considerations, identification of performance obligations and accounting for the licensing of intellectual property. In May 2016, the FASB issued an amendment to the guidance that provides clarification about collectibility, noncash consideration, presentation of sales tax, and transition. In December 2016, the FASB issued an amendment to the guidance that provides narrow-scope improvements and practical expedient regarding collectibility, presentation of sales tax collected from customers, non-cash considerations, contract modifications at transition, completed contracts at transition and other technical corrections. These new requirements become effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. We expect to adopt the new standard in the first quarter of 2018 using the modified retrospective method. We have made significant progress in evaluating our existing contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance that requires inventory to be measured at the lower of cost and net realizable value. The scope of this guidance excludes inventory measured using the last-in first-out method or the retail inventory method. This new requirement became effective on January 1, 2017 and did not have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued accounting guidance that requires assets and liabilities arising from leases to be recorded on the balance sheet. Additional disclosures are required regarding the amount, timing, and uncertainty of cash flows from leases. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied using a modified retrospective approach. Early adoption is permitted. The impact of this new requirement on our financial statements is being assessed and is not yet known. In March 2016, the FASB issued accounting guidance that simplifies several aspects of the accounting for share-based payment awards. Among other things, this guidance requires all tax effects related to share-based payment awards to be recognized as income tax expense or benefit on the income statement, thus eliminating all additional paid-in capital pools. An entity should recognize excess tax benefits regardless of whether the benefit reduces income taxes payable in the current period. For interim reporting purposes, excess tax benefits and tax deficiencies should be accounted for as discrete items in the reporting period in which they occur. Additionally, this new guidance requires all tax related cash flows resulting from share-based payments to be presented as an operating activity on the statement of cash flows rather than as a financing activity. This guidance became effective on January 1, 2017. The impact of recognizing excess tax benefits in the income statement resulted in a $4.1 million reduction in Income tax expense for the three-month period ended March 31, 2017. The remaining aspects of adopting this guidance did not have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued accounting guidance which clarifies the proper presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance addresses cash flow issues including, but not limited to, debt prepayment or debt extinguishment costs and distributions received from equity method investments. As allowed by the provisions of this new guidance, we early-adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a significant impact on our condensed consolidated financial statements. In November 2016, the FASB issued accounting guidance that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the statement of cash flows. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted. We do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to clarify the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a reporting unit to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. We do not expect this guidance to have a significant impact on our financial statements. In March 2017, the FASB issued accounting guidance that changes the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”) in the income statement. This new guidance requires service cost to be presented as part of operating income (expense) and all other components of net benefit cost are to be shown outside of operations. This guidance will be effective for periods beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted as of the beginning of an annual period for which an entity’s financial statements have not been issued or made available for issuance. We do not expect this guidance to have a significant impact on our financial statements. |
Recently Issued Accounting Pr26
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance designed to enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that revenue recognized from a transaction or event that arises from a contract with a customer should reflect the consideration to which an entity expects to be entitled in exchange for goods or services provided. To achieve that core principle the new guidance sets forth a five-step revenue recognition model that will need to be applied consistently to all contracts with customers, except those that are within the scope of other topics in the ASC. Also required are new disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized related to the costs to obtain or fulfill a contract. In March 2016 and April 2016, the FASB issued amendments to this new guidance that provides clarification about principal versus agent considerations, identification of performance obligations and accounting for the licensing of intellectual property. In May 2016, the FASB issued an amendment to the guidance that provides clarification about collectibility, noncash consideration, presentation of sales tax, and transition. In December 2016, the FASB issued an amendment to the guidance that provides narrow-scope improvements and practical expedient regarding collectibility, presentation of sales tax collected from customers, non-cash considerations, contract modifications at transition, completed contracts at transition and other technical corrections. These new requirements become effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. We expect to adopt the new standard in the first quarter of 2018 using the modified retrospective method. We have made significant progress in evaluating our existing contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance that requires inventory to be measured at the lower of cost and net realizable value. The scope of this guidance excludes inventory measured using the last-in first-out method or the retail inventory method. This new requirement became effective on January 1, 2017 and did not have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued accounting guidance that requires assets and liabilities arising from leases to be recorded on the balance sheet. Additional disclosures are required regarding the amount, timing, and uncertainty of cash flows from leases. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied using a modified retrospective approach. Early adoption is permitted. The impact of this new requirement on our financial statements is being assessed and is not yet known. In March 2016, the FASB issued accounting guidance that simplifies several aspects of the accounting for share-based payment awards. Among other things, this guidance requires all tax effects related to share-based payment awards to be recognized as income tax expense or benefit on the income statement, thus eliminating all additional paid-in capital pools. An entity should recognize excess tax benefits regardless of whether the benefit reduces income taxes payable in the current period. For interim reporting purposes, excess tax benefits and tax deficiencies should be accounted for as discrete items in the reporting period in which they occur. Additionally, this new guidance requires all tax related cash flows resulting from share-based payments to be presented as an operating activity on the statement of cash flows rather than as a financing activity. This guidance became effective on January 1, 2017. The impact of recognizing excess tax benefits in the income statement resulted in a $4.1 million reduction in Income tax expense for the three-month period ended March 31, 2017. The remaining aspects of adopting this guidance did not have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued accounting guidance which clarifies the proper presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance addresses cash flow issues including, but not limited to, debt prepayment or debt extinguishment costs and distributions received from equity method investments. As allowed by the provisions of this new guidance, we early-adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a significant impact on our condensed consolidated financial statements. In November 2016, the FASB issued accounting guidance that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the statement of cash flows. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted. We do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to clarify the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a reporting unit to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. We do not expect this guidance to have a significant impact on our financial statements. In March 2017, the FASB issued accounting guidance that changes the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”) in the income statement. This new guidance requires service cost to be presented as part of operating income (expense) and all other components of net benefit cost are to be shown outside of operations. This guidance will be effective for periods beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted as of the beginning of an annual period for which an entity’s financial statements have not been issued or made available for issuance. We do not expect this guidance to have a significant impact on our financial statements. |
Divestitures Divestitures (Tabl
Divestitures Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | The major components of Income from discontinued operations (net of tax) for the three-month period ended March 31, 2016 were as follows (in thousands): Three Months Ended March 31, 2016 Net sales $ 208,187 Cost of goods sold 113,323 Operating expenses, net 62,853 Interest and financing expenses (a) 10,137 Other income, net (938 ) Income before income taxes 22,812 Income tax expense 5,500 Income from discontinued operations (net of tax) $ 17,312 (a) Interest and financing expenses included the allocation of interest expense not directly attributable to other operations as well as interest expense related to debt to be assumed by the buyer. The allocation of interest expense to discontinued operations was based on the ratio of net assets held for sale to the sum of total net assets plus consolidated debt. Depreciation and amortization and capital expenditures from discontinued operations for the three -month period ended March 31, 2016 were as follows (in thousands): Three Months Ended March 31, 2016 Depreciation and amortization $ 16,943 Capital expenditures $ 5,747 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2017 (in thousands): Lithium and Advanced Materials Bromine Specialties Refining Solutions All Other Total Balance at December 31, 2016 $ 1,348,261 $ 20,319 $ 164,866 $ 6,586 $ 1,540,032 Acquisitions (a) (21,822 ) — — — (21,822 ) Foreign currency translation adjustments 20,694 — 5,670 — 26,364 Balance at March 31, 2017 $ 1,347,133 $ 20,319 $ 170,536 $ 6,586 $ 1,544,574 (a) Primarily represents preliminary purchase price adjustments for the Jiangli New Materials acquisition. See Note 2, “Acquisitions,” for additional information. |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2017 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2016 $ 387,893 $ 16,514 $ 38,434 $ 18,844 $ 461,685 Acquisitions (b) 1,717 — 25,555 19,917 47,189 Foreign currency translation adjustments and other 10,340 264 514 1,774 12,892 Balance at March 31, 2017 $ 399,950 $ 16,778 $ 64,503 $ 40,535 $ 521,766 Accumulated Amortization Balance at December 31, 2016 $ (49,165 ) $ (7,952 ) $ (31,683 ) $ (18,321 ) $ (107,121 ) Amortization (4,801 ) — (413 ) (526 ) (5,740 ) Foreign currency translation adjustments and other (1,164 ) (94 ) (503 ) 3,213 1,452 Balance at March 31, 2017 $ (55,130 ) $ (8,046 ) $ (32,599 ) $ (15,634 ) $ (111,409 ) Net Book Value at December 31, 2016 $ 338,728 $ 8,562 $ 6,751 $ 523 $ 354,564 Net Book Value at March 31, 2017 $ 344,820 $ 8,732 $ 31,904 $ 24,901 $ 410,357 (a) Balances as of March 31, 2017 and December 31, 2016 include only indefinite-lived intangible assets. (b) Represents preliminary purchase price adjustments for the Jiangli New Materials acquisition and the acquisition of the remaining equity interest in Salmag. See Note 2, “Acquisitions,” for additional information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2017 2016 Basic earnings per share from continuing operations Numerator: Net income from continuing operations $ 62,657 $ 218,236 Net income from continuing operations attributable to noncontrolling interests (11,444 ) (7,362 ) Net income from continuing operations attributable to Albemarle Corporation $ 51,213 $ 210,874 Denominator: Weighted-average common shares for basic earnings per share 111,986 112,260 Basic earnings per share from continuing operations $ 0.46 $ 1.88 Diluted earnings per share from continuing operations Numerator: Net income from continuing operations $ 62,657 $ 218,236 Net income from continuing operations attributable to noncontrolling interests (11,444 ) (7,362 ) Net income from continuing operations attributable to Albemarle Corporation $ 51,213 $ 210,874 Denominator: Weighted-average common shares for basic earnings per share 111,986 112,260 Incremental shares under stock compensation plans 1,303 510 Weighted-average common shares for diluted earnings per share 113,289 112,770 Diluted earnings per share from continuing operations $ 0.45 $ 1.87 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Finished goods $ 345,892 $ 289,102 Raw materials and work in process (a) 120,759 109,706 Stores, supplies and other 52,285 51,455 Total inventories $ 518,936 $ 450,263 (a) Included $50.1 million and $47.1 million at March 31, 2017 and December 31, 2016 , respectively, of work in process related to the Lithium product category. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): March 31, December 31, 2017 2016 1.875% Senior notes, net of unamortized discount and debt issuance costs of $4,305 at March 31, 2017 and $7,823 at December 31, 2016 $ 418,471 $ 719,617 3.00% Senior notes, net of unamortized discount and debt issuance costs of $1,286 at December 31, 2016 — 248,714 4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,737 at March 31, 2017 and $3,859 at December 31, 2016 421,262 421,141 4.50% Senior notes, net of unamortized discount and debt issuance costs of $1,116 at March 31, 2017 and $2,380 at December 31, 2016 174,098 347,620 5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,274 at March 31, 2017 and $4,313 at December 31, 2016 345,726 345,687 Commercial paper notes 314,500 247,503 Variable-rate foreign bank loans 38,829 38,939 Miscellaneous — 41 Total long-term debt 1,712,886 2,369,262 Less amounts due within one year 314,500 247,544 Long-term debt, less current portion $ 1,398,386 $ 2,121,718 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 , as follows (in thousands): Beginning balance at December 31, 2016 $ 34,919 Expenditures (303 ) Accretion of discount 183 Foreign currency translation adjustments and other 640 Ending balance at March 31, 2017 35,439 Less amounts reported in Accrued expenses 2,345 Amounts reported in Other noncurrent liabilities $ 33,094 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Three Months Ended 2017 2016 (In thousands) Net sales: Lithium and Advanced Materials $ 284,375 $ 216,173 Bromine Specialties 219,191 196,553 Refining Solutions 185,412 170,579 All Other 32,419 72,089 Corporate 666 1,817 Total net sales $ 722,063 $ 657,211 Adjusted EBITDA: Lithium and Advanced Materials $ 120,022 $ 86,474 Bromine Specialties 68,488 61,608 Refining Solutions 49,579 55,074 All Other 5,156 8,464 Corporate (31,869 ) (19,587 ) Total adjusted EBITDA $ 211,376 $ 192,033 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium and Advanced Materials Bromine Specialties Refining Solutions Reportable Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2017 Net income (loss) attributable to Albemarle Corporation $ 94,106 $ 58,694 $ 40,474 $ 193,274 $ 3,246 $ (145,307 ) $ 51,213 Depreciation and amortization 22,743 9,794 9,105 41,642 1,910 1,518 45,070 Utilization of inventory markup (a) 10,606 — — 10,606 — — 10,606 Restructuring and other (b) — — — — — 12,905 12,905 Gain on acquisition (c) (7,433 ) — — (7,433 ) — — (7,433 ) Acquisition and integration related costs (d) — — — — — 14,281 14,281 Interest and financing expenses (e) — — — — — 68,513 68,513 Income tax expense — — — — — 11,971 11,971 Non-operating pension and OPEB items — — — — — (1,063 ) (1,063 ) Other (f) — — — — — 5,313 5,313 Adjusted EBITDA $ 120,022 $ 68,488 $ 49,579 $ 238,089 $ 5,156 $ (31,869 ) $ 211,376 Three months ended March 31, 2016 Net income (loss) attributable to Albemarle Corporation $ 63,327 $ 51,853 $ 46,314 $ 161,494 $ 130,709 $ (64,017 ) $ 228,186 Depreciation and amortization 23,147 9,755 8,760 41,662 612 1,335 43,609 (Gain) loss on sales of businesses, net (g) — — — — (122,857 ) 1,533 (121,324 ) Acquisition and integration related costs (d) — — — — — 18,558 18,558 Interest and financing expenses — — — — — 15,114 15,114 Income tax expense — — — — — 25,485 25,485 Income from discontinued operations (net of tax) — — — — — (17,312 ) (17,312 ) Non-operating pension and OPEB items — — — — — (283 ) (283 ) Adjusted EBITDA $ 86,474 $ 61,608 $ 55,074 $ 203,156 $ 8,464 $ (19,587 ) $ 192,033 (a) In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.0 million . The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup. (b) During the first quarter of 2017, we initiated action to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2017, with the expectation that the majority of this plan will be completed by the end of 2017. (c) Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. (d) See Note 2, “Acquisitions,” for additional information. (e) Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million . See Note 10, “Long-term Debt,” for additional information. (f) Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business. (g) See Note 3, “Divestitures,” for additional information. |
Pension Plans and Other Postr34
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) from continuing operations for the three-month periods ended March 31, 2017 and 2016 were as follows (in thousands): Three Months Ended 2017 2016 Pension Benefits Cost (Credit): Service cost $ 1,003 $ 1,048 Interest cost 8,288 9,366 Expected return on assets (9,908 ) (10,173 ) Actuarial gain — (50 ) Amortization of prior service benefit 27 28 Total net pension benefits (credit) cost $ (590 ) $ 219 Postretirement Benefits Cost (Credit): Service cost $ 31 $ 29 Interest cost 585 621 Expected return on assets (28 ) (47 ) Amortization of prior service benefit (24 ) (24 ) Total net postretirement benefits cost $ 564 $ 579 Total net pension and postretirement benefits (credit) cost (a) $ (26 ) $ 798 (a) For the three-month period ended March 31, 2016 , $0.6 million of net pension and postretirement benefits cost are included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information. |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of 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. March 31, 2017 December 31, 2016 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,721,455 $ 1,807,576 $ 2,381,370 $ 2,472,813 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and December 31, 2016 (in thousands): March 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Investments under executive deferred compensation plan (a) $ 22,417 $ 22,417 $ — $ — Private equity securities (b) $ 36 $ 36 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,492 $ — $ — $ — Foreign currency forward contracts (d) $ 7 $ — $ 7 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 22,417 $ 22,417 $ — $ — December 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Investments under executive deferred compensation plan (a) $ 22,037 $ 22,037 $ — $ — Private equity securities (b) $ 35 $ 35 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,498 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 22,037 $ 22,037 $ — $ — Foreign currency forward contracts (d) $ 182 $ — $ 182 $ — (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 (expenses) income, net, in our consolidated statements of income. (c) Holdings in private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (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. Unless otherwise noted, 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. |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation Pension and Postretirement Benefits (a) Net Investment Hedge Interest Rate Swap (b) Total Three months ended March 31, 2017 Balance at December 31, 2016 $ (484,121 ) $ 76 $ 88,378 $ (16,745 ) $ (412,412 ) Other comprehensive income (loss) before reclassifications 79,055 — (13,685 ) — 65,370 Amounts reclassified from accumulated other comprehensive loss — (7 ) — 529 522 Other comprehensive income (loss), net of tax 79,055 (7 ) (13,685 ) 529 65,892 Other comprehensive income attributable to noncontrolling interests (461 ) — — — (461 ) Balance at March 31, 2017 $ (405,527 ) $ 69 $ 74,693 $ (16,216 ) $ (346,981 ) Three months ended March 31, 2016 Balance at December 31, 2015 $ (463,914 ) $ (758 ) $ 62,245 $ (18,861 ) $ (421,288 ) Other comprehensive income (loss) before reclassifications 98,906 — (9,524 ) — 89,382 Amounts reclassified from accumulated other comprehensive loss — 1 — 525 526 Other comprehensive income (loss), net of tax 98,906 1 (9,524 ) 525 89,908 Other comprehensive income attributable to noncontrolling interests (283 ) — — — (283 ) Balance at March 31, 2016 $ (365,291 ) $ (757 ) $ 52,721 $ (18,336 ) $ (331,663 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 13, “Pension Plans and Other Postretirement Benefits.” (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. |
Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) | The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month periods ended March 31, 2017 and 2016 is provided in the following tables (in thousands): Three Months Ended March 31, 2017 2016 Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Interest Rate Swap Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Interest Rate Swap Other comprehensive income (loss), before tax $ 80,141 $ (6 ) $ (21,580 ) $ 834 $ 99,277 $ 4 $ (15,121 ) $ 834 Income tax (expense) benefit (1,086 ) (1 ) 7,895 (305 ) (371 ) (3 ) 5,597 (309 ) Other comprehensive income (loss), net of tax $ 79,055 $ (7 ) $ (13,685 ) $ 529 $ 98,906 $ 1 $ (9,524 ) $ 525 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Our condensed consolidated financial statements include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended 2017 2016 Sales to unconsolidated affiliates $ 7,189 $ 6,174 Purchases from unconsolidated affiliates 40,570 35,621 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other tax expense | $ 5.1 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Feb. 01, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Inventories | $ 450,263 | $ 518,936 | $ 450,263 | ||
Cash paid for inventory | 27,742 | $ 0 | |||
Gain on acquisition | 7,433 | 0 | |||
Acquisition and integration related costs | 0 | 18,558 | |||
Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | 145,000 | ||||
Property, plant and equipment | 29,000 | 29,000 | |||
Other intangibles | 32,000 | 32,000 | |||
Deferred tax assets | 3,900 | 3,900 | |||
Fair value of net working capital | $ 6,200 | 6,200 | |||
Inventories | 37,000 | ||||
Cash paid for inventory | 19,400 | ||||
Inventory markup | 23,000 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 17 years | ||||
Sales de Magnesio Ltda. | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 8,300 | ||||
Percentage of Equity Interests Acquired | 50.00% | ||||
Gain on acquisition | 7,400 | ||||
Rockwood Holdings, Inc. | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration related costs | 16,900 | ||||
Other significant projects | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration related costs | $ 1,700 | ||||
Lithium and Advanced Materials | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 87,900 | ||||
Patents and technology | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 20 years | ||||
Customer lists and relationships | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 18 years | ||||
Other | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||||
Cost of goods sold | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration related costs | 8,900 | ||||
Cost of goods sold | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Business Acquisition [Line Items] | |||||
Utilization of inventory markup | 10,600 | ||||
Selling, general and administrative expenses | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration related costs | $ 5,400 |
Divestitures Divestitures- Disc
Divestitures Divestitures- Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations (net of tax) | $ 0 | $ 17,312 | |
Chemetall Surface Treatment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 208,187 | ||
Cost of goods sold | 113,323 | ||
Operating expenses, net | 62,853 | ||
Interest and financing expenses | [1] | 10,137 | |
Other income, net | (938) | ||
Income before income taxes | 22,812 | ||
Income tax expense | 5,500 | ||
Income from discontinued operations (net of tax) | 17,312 | ||
Depreciation and amortization | 16,943 | ||
Capital expenditures | $ 5,747 | ||
[1] | Interest and financing expenses included the allocation of interest expense not directly attributable to other operations as well as interest expense related to debt to be assumed by the buyer. The allocation of interest expense to discontinued operations was based on the ratio of net assets held for sale to the sum of total net assets plus consolidated debt. |
Divestitures Divestitures - Add
Divestitures Divestitures - Additional Information (Details) - USD ($) $ in Thousands | Dec. 14, 2016 | Feb. 01, 2016 | Jan. 04, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds from divestitures, net | $ 0 | $ 307,165 | |||
Gain (loss) on sales of businesses, net | $ 0 | 121,324 | |||
Chemetall Surface Treatment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds from divestitures, net | $ 3,100,000 | ||||
Metal Sulfides Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds from divestitures, net | $ 137,000 | ||||
Gain (loss) on sales of businesses, net | 11,500 | ||||
Mineral Flame Retardants and Specialty Chemicals Businesses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds from divestitures, net | $ 187,000 | ||||
Gain (loss) on sales of businesses, net | 111,300 | ||||
Magnifin Magnesiaprodukte GmbH & Co. KG | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Corporate | Wafer Reclaim | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sales of businesses, net | $ (1,500) |
Goodwill and Other Intangible43
Goodwill and Other Intangibles Changes in Goodwill (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,540,032 | |
Acquisitions | (21,822) | [1] |
Foreign currency translation adjustments | 26,364 | |
Balance at end of period | 1,544,574 | |
Reportable Segments | Lithium and Advanced Materials | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 1,348,261 | |
Acquisitions | (21,822) | [1] |
Foreign currency translation adjustments | 20,694 | |
Balance at end of period | 1,347,133 | |
Reportable Segments | Bromine Specialties | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 20,319 | |
Acquisitions | 0 | [1] |
Foreign currency translation adjustments | 0 | |
Balance at end of period | 20,319 | |
Reportable Segments | Refining Solutions | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 164,866 | |
Acquisitions | 0 | [1] |
Foreign currency translation adjustments | 5,670 | |
Balance at end of period | 170,536 | |
Reportable Segments | All Other | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 6,586 | |
Acquisitions | 0 | [1] |
Foreign currency translation adjustments | 0 | |
Balance at end of period | $ 6,586 | |
[1] | Primarily represents preliminary purchase price adjustments for the Jiangli New Materials acquisition. See Note 2, “Acquisitions,” for additional information. |
Goodwill and Other Intangible44
Goodwill and Other Intangibles Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset Value, Beginning of Period | $ 461,685 | ||
Acquisitions | [1] | 47,189 | |
Foreign currency translation adjustments and other | 12,892 | ||
Gross Asset Value, End of Period | 521,766 | ||
Accumulated Amortization, Beginning of Period | (107,121) | ||
Amortization | (5,740) | ||
Foreign currency translation adjustments and other | 1,452 | ||
Accumulated Amortization, End of Period | (111,409) | ||
Net Book Value | 410,357 | $ 354,564 | |
Customer lists and relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset Value, Beginning of Period | 387,893 | ||
Acquisitions | [1] | 1,717 | |
Foreign currency translation adjustments and other | 10,340 | ||
Gross Asset Value, End of Period | 399,950 | ||
Accumulated Amortization, Beginning of Period | (49,165) | ||
Amortization | (4,801) | ||
Foreign currency translation adjustments and other | (1,164) | ||
Accumulated Amortization, End of Period | (55,130) | ||
Net Book Value | 344,820 | 338,728 | |
Trade names and trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset Value, Beginning of Period | [2] | 16,514 | |
Acquisitions | [1] | 0 | |
Foreign currency translation adjustments and other | 264 | ||
Gross Asset Value, End of Period | [2] | 16,778 | |
Accumulated Amortization, Beginning of Period | [2] | (7,952) | |
Amortization | 0 | ||
Foreign currency translation adjustments and other | (94) | ||
Accumulated Amortization, End of Period | [2] | (8,046) | |
Net Book Value | [2] | 8,732 | 8,562 |
Patents and technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset Value, Beginning of Period | 38,434 | ||
Acquisitions | [1] | 25,555 | |
Foreign currency translation adjustments and other | 514 | ||
Gross Asset Value, End of Period | 64,503 | ||
Accumulated Amortization, Beginning of Period | (31,683) | ||
Amortization | (413) | ||
Foreign currency translation adjustments and other | (503) | ||
Accumulated Amortization, End of Period | (32,599) | ||
Net Book Value | 31,904 | 6,751 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset Value, Beginning of Period | 18,844 | ||
Acquisitions | [1] | 19,917 | |
Foreign currency translation adjustments and other | 1,774 | ||
Gross Asset Value, End of Period | 40,535 | ||
Accumulated Amortization, Beginning of Period | (18,321) | ||
Amortization | (526) | ||
Foreign currency translation adjustments and other | 3,213 | ||
Accumulated Amortization, End of Period | (15,634) | ||
Net Book Value | $ 24,901 | $ 523 | |
[1] | Represents preliminary purchase price adjustments for the Jiangli New Materials acquisition and the acquisition of the remaining equity interest in Salmag. See Note 2, “Acquisitions,” for additional information. | ||
[2] | Balances as of March 31, 2017 and December 31, 2016 include only indefinite-lived intangible assets. |
Foreign Exchange - Additional I
Foreign Exchange - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign Currency [Abstract] | ||
Net foreign exchange transaction losses | $ (4.9) | $ (0.1) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.40% | 11.20% |
Other tax expense | $ 5.1 | |
Excess tax benefits | $ 4.1 |
Earnings Per Share Calculation
Earnings Per Share Calculation of Basic and Diluted Earnings Per Share From Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic earnings per share from continuing operations | ||
Net income from continuing operations | $ 62,657 | $ 218,236 |
Net income from continuing operations attributable to noncontrolling interests | (11,444) | (7,362) |
Net income from continuing operations attributable to Albemarle Corporation | $ 51,213 | $ 210,874 |
Weighted-average common shares for basic earnings per share (in shares) | 111,986 | 112,260 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.46 | $ 1.88 |
Diluted earnings per share from continuing operations | ||
Net income from continuing operations | $ 62,657 | $ 218,236 |
Net income from continuing operations attributable to noncontrolling interests | (11,444) | (7,362) |
Net income from continuing operations attributable to Albemarle Corporation | $ 51,213 | $ 210,874 |
Weighted-average common shares for basic earnings per share (in shares) | 111,986 | 112,260 |
Incremental shares under stock compensation plans (in shares) | 1,303 | 510 |
Weighted-average common shares outstanding - diluted (in shares) | 113,289 | 112,770 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.45 | $ 1.87 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Feb. 23, 2017 | |
Earnings Per Share Disclosure [Line Items] | ||||
Increase in dividend rate, percentage | 5.00% | |||
Cash dividend, amount per share (in dollars per share) | $ 0.32 | |||
Payment for repurchase of common stock | $ 250,000 | $ 0 | ||
Number of shares authorized to be repurchased (in shares) | 15,000,000 | 15,000,000 | ||
Shares available for repurchase (in shares) | 13,051,822 | 13,051,822 | ||
Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Payment for repurchase of common stock | $ 250,000 | |||
Initial Delivery | Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Repurchase of common stock shares (in shares) | 1,948,178 | |||
Fair Market Value | Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Shares repurchased | $ 200,000 |
Inventories Inventories (Detail
Inventories Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 345,892 | $ 289,102 | |
Raw materials and work in process | [1] | 120,759 | 109,706 |
Stores, supplies and other | 52,285 | 51,455 | |
Total inventories | $ 518,936 | $ 450,263 | |
[1] | Included $50.1 million and $47.1 million at March 31, 2017 and December 31, 2016, respectively, of work in process related to the Lithium product category. |
Inventories Inventories - Addit
Inventories Inventories - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 50.1 | $ 47.1 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||
Termination of Tianqi option agreement | $ 13,100 | $ 0 | |
Windfield Holdings | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | ||
Carrying value of unconsolidated investment | $ 318,800 | $ 288,600 | |
Other variable interest entities | |||
Schedule of Investments [Line Items] | |||
Carrying value of unconsolidated investment | $ 9,100 | $ 8,800 | |
Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 100.00% | ||
Minimum | Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 20.00% | ||
Maximum | Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 30.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,712,886 | $ 2,369,262 |
Current portion of long-term debt | 314,500 | 247,544 |
Long-term debt | 1,398,386 | 2,121,718 |
Senior Notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 418,471 | 719,617 |
Senior Notes | 3.00% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | 248,714 |
Senior Notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 421,262 | 421,141 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 174,098 | 347,620 |
Senior Notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 345,726 | 345,687 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 314,500 | 247,503 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 38,829 | 38,939 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 0 | $ 41 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Thousands, € in Millions | 3 Months Ended | |||
Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 751,209 | $ 331,595 | ||
Payments of debt premium | 45,200 | |||
Loss on early extinguishment of debt | 52,801 | 0 | ||
Net investment hedge, loss | $ (13,685) | $ (9,524) | ||
3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 3.00% | 3.00% | 3.00% | |
1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | |
4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | |
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.54% | 1.54% | ||
Debt instrument maturity period | 29 days | 29 days | ||
Senior Notes | 3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 250,000 | |||
Senior Notes | 1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | € | € 307 | |||
Senior Notes | 4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 174,700 |
Long-Term Debt Interest Rates (
Long-Term Debt Interest Rates (Details) $ in Thousands, € in Millions | 3 Months Ended | |||
Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 751,209 | $ 331,595 | ||
1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 4,305 | $ 7,823 | ||
Debt instrument, interest rate | 1.875% | 1.875% | ||
3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 0 | $ 1,286 | ||
Debt instrument, interest rate | 3.00% | 3.00% | ||
4.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 3,737 | $ 3,859 | ||
Debt instrument, interest rate | 4.15% | 4.15% | ||
4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 1,116 | $ 2,380 | ||
Debt instrument, interest rate | 4.50% | 4.50% | ||
5.45% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 4,274 | $ 4,313 | ||
Debt instrument, interest rate | 5.45% | 5.45% | ||
Senior Notes | 1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | € | € 307 | |||
Senior Notes | 3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 250,000 | |||
Senior Notes | 4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 174,700 |
Commitments and Contingencies A
Commitments and Contingencies Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 34,919 | |
Expenditures | (303) | |
Accretion of discount | 183 | |
Foreign currency translation adjustments and other | 640 | |
Balance at end of period | $ 34,919 | $ 35,439 |
Less amounts reported in Accrued expenses | 2,345 | |
Amounts reported in Other noncurrent liabilities | $ 33,094 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental remediation liabilities - discounted | $ 24.2 | $ 22.8 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.60% | |
Environmental remediation liabilities - undiscounted | $ 62.1 | 61.1 |
Potential revision on future environmental remediation costs before tax | 17 | |
Tax indemnification liability | $ 39.5 | $ 38.2 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information Summarized
Segment Information Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 722,063 | $ 657,211 | ||
Adjusted EBITDA | (211,376) | (192,033) | ||
Net income attributable to Albemarle Corporation | (51,213) | (228,186) | ||
Depreciation and amortization | 45,070 | 60,552 | ||
Gain on acquisition | (7,433) | 0 | ||
(Gain) loss on sales of businesses, net | 0 | (121,324) | ||
Acquisition and integration related costs | 0 | 18,558 | ||
Interest and financing expenses | 68,513 | 15,114 | ||
Income tax expense | 11,971 | 25,485 | ||
Income from discontinued operations (net of tax) | 0 | (17,312) | ||
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 32,419 | 72,089 | ||
Adjusted EBITDA | (5,156) | (8,464) | ||
Reportable Segments | Lithium and Advanced Materials | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 284,375 | 216,173 | ||
Adjusted EBITDA | (120,022) | (86,474) | ||
Reportable Segments | Bromine Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 219,191 | 196,553 | ||
Adjusted EBITDA | (68,488) | (61,608) | ||
Reportable Segments | Refining Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 185,412 | 170,579 | ||
Adjusted EBITDA | (49,579) | (55,074) | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 666 | 1,817 | ||
Adjusted EBITDA | 31,869 | 19,587 | ||
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 211,376 | 192,033 | ||
Net income attributable to Albemarle Corporation | 51,213 | 228,186 | ||
Depreciation and amortization | 45,070 | 43,609 | ||
Utilization of inventory markup | [1] | 10,606 | ||
Restructuring and other, net | [2] | 12,905 | ||
Gain on acquisition | [3] | (7,433) | ||
(Gain) loss on sales of businesses, net | [4] | (121,324) | ||
Acquisition and integration related costs | [5] | 14,281 | 18,558 | |
Interest and financing expenses | 68,513 | [6] | 15,114 | |
Income tax expense | 11,971 | 25,485 | ||
Income from discontinued operations (net of tax) | (17,312) | |||
Non-operating pension and OPEB items | (1,063) | (283) | ||
Other | [7] | 5,313 | ||
Continuing Operations | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 5,156 | 8,464 | ||
Net income attributable to Albemarle Corporation | 3,246 | 130,709 | ||
Depreciation and amortization | 1,910 | 612 | ||
Utilization of inventory markup | [1] | 0 | ||
Restructuring and other, net | [2] | 0 | ||
Gain on acquisition | [3] | 0 | ||
(Gain) loss on sales of businesses, net | [4] | (122,857) | ||
Acquisition and integration related costs | [5] | 0 | 0 | |
Interest and financing expenses | 0 | [6] | 0 | |
Income tax expense | 0 | 0 | ||
Income from discontinued operations (net of tax) | 0 | |||
Non-operating pension and OPEB items | 0 | 0 | ||
Other | [7] | 0 | ||
Continuing Operations | Reportable Segments | Lithium and Advanced Materials | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 120,022 | 86,474 | ||
Net income attributable to Albemarle Corporation | 94,106 | 63,327 | ||
Depreciation and amortization | 22,743 | 23,147 | ||
Utilization of inventory markup | [1] | 10,606 | ||
Restructuring and other, net | [2] | 0 | ||
Gain on acquisition | [3] | (7,433) | ||
(Gain) loss on sales of businesses, net | [4] | 0 | ||
Acquisition and integration related costs | [5] | 0 | 0 | |
Interest and financing expenses | 0 | [6] | 0 | |
Income tax expense | 0 | 0 | ||
Income from discontinued operations (net of tax) | 0 | |||
Non-operating pension and OPEB items | 0 | 0 | ||
Other | [7] | 0 | ||
Continuing Operations | Reportable Segments | Bromine Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 68,488 | 61,608 | ||
Net income attributable to Albemarle Corporation | 58,694 | 51,853 | ||
Depreciation and amortization | 9,794 | 9,755 | ||
Utilization of inventory markup | [1] | 0 | ||
Restructuring and other, net | [2] | 0 | ||
Gain on acquisition | [3] | 0 | ||
(Gain) loss on sales of businesses, net | [4] | 0 | ||
Acquisition and integration related costs | [5] | 0 | 0 | |
Interest and financing expenses | 0 | [6] | 0 | |
Income tax expense | 0 | 0 | ||
Income from discontinued operations (net of tax) | 0 | |||
Non-operating pension and OPEB items | 0 | 0 | ||
Other | [7] | 0 | ||
Continuing Operations | Reportable Segments | Refining Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 49,579 | 55,074 | ||
Net income attributable to Albemarle Corporation | 40,474 | 46,314 | ||
Depreciation and amortization | 9,105 | 8,760 | ||
Utilization of inventory markup | [1] | 0 | ||
Restructuring and other, net | [2] | 0 | ||
Gain on acquisition | [3] | 0 | ||
(Gain) loss on sales of businesses, net | [4] | 0 | ||
Acquisition and integration related costs | [5] | 0 | 0 | |
Interest and financing expenses | 0 | [6] | 0 | |
Income tax expense | 0 | 0 | ||
Income from discontinued operations (net of tax) | 0 | |||
Non-operating pension and OPEB items | 0 | 0 | ||
Other | [7] | 0 | ||
Continuing Operations | Reportable Segments | Reportable Segments Total | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 238,089 | 203,156 | ||
Net income attributable to Albemarle Corporation | 193,274 | 161,494 | ||
Depreciation and amortization | 41,642 | 41,662 | ||
Utilization of inventory markup | [1] | 10,606 | ||
Restructuring and other, net | [2] | 0 | ||
Gain on acquisition | [3] | (7,433) | ||
(Gain) loss on sales of businesses, net | [4] | 0 | ||
Acquisition and integration related costs | [5] | 0 | 0 | |
Interest and financing expenses | 0 | [6] | 0 | |
Income tax expense | 0 | 0 | ||
Income from discontinued operations (net of tax) | 0 | |||
Non-operating pension and OPEB items | 0 | 0 | ||
Other | [7] | 0 | ||
Continuing Operations | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (31,869) | (19,587) | ||
Net income attributable to Albemarle Corporation | (145,307) | (64,017) | ||
Depreciation and amortization | 1,518 | 1,335 | ||
Utilization of inventory markup | [1] | 0 | ||
Restructuring and other, net | [2] | 12,905 | ||
Gain on acquisition | [3] | 0 | ||
(Gain) loss on sales of businesses, net | [4] | 1,533 | ||
Acquisition and integration related costs | [5] | 14,281 | 18,558 | |
Interest and financing expenses | 68,513 | [6] | 15,114 | |
Income tax expense | 11,971 | 25,485 | ||
Income from discontinued operations (net of tax) | (17,312) | |||
Non-operating pension and OPEB items | (1,063) | $ (283) | ||
Other | [7] | $ 5,313 | ||
[1] | In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.0 million. The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup. | |||
[2] | During the first quarter of 2017, we initiated action to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2017, with the expectation that the majority of this plan will be completed by the end of 2017. | |||
[3] | Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. | |||
[4] | See Note 3, “Divestitures,” for additional information. | |||
[5] | See Note 2, “Acquisitions,” for additional information. | |||
[6] | Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million. See Note 10, “Long-term Debt,” for additional information. | |||
[7] | Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business. |
Segment Information Summarize59
Segment Information Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Feb. 01, 2017 | |
Segment Reporting Information [Line Items] | |||
Loss on extinguishment of debt | $ 52,801 | $ 0 | |
Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||
Segment Reporting Information [Line Items] | |||
Inventory markup | 23,000 | ||
Sales de Magnesio Ltda. | |||
Segment Reporting Information [Line Items] | |||
Percentage of Equity Interests Acquired | 50.00% | ||
Cost of goods sold | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 2,900 | ||
Cost of goods sold | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||
Segment Reporting Information [Line Items] | |||
Utilization of inventory markup | 10,600 | ||
Selling, general and administrative expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 4,200 | ||
Research and development expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 5,800 | ||
Other (expenses) income, net | |||
Segment Reporting Information [Line Items] | |||
Asset retirement obligation charges | 3,200 | ||
Loss on sale of properties | $ 2,100 |
Pension Plans and Other Postr60
Pension Plans and Other Postretirement Benefits Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net pension benefits (credit) cost | $ (26) | $ 798 | [1] |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1,003 | 1,048 | |
Interest cost | 8,288 | 9,366 | |
Expected return on assets | (9,908) | (10,173) | |
Actuarial gain | 0 | (50) | |
Amortization of prior service benefit | 27 | 28 | |
Total net pension benefits (credit) cost | (590) | 219 | |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 31 | 29 | |
Interest cost | 585 | 621 | |
Expected return on assets | (28) | (47) | |
Amortization of prior service benefit | (24) | (24) | |
Total net pension benefits (credit) cost | $ 564 | $ 579 | |
[1] | For the three-month period ended March 31, 2016, $0.6 million of net pension and postretirement benefits cost are included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information. |
Pension Plans and Other Postr61
Pension Plans and Other Postretirement Benefits Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Footnote) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Net pension and postretirement benefits cost | $ 0.6 |
Pension Plans and Other Postr62
Pension Plans and Other Postretirement Benefits Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Other postretirement benefits payments | $ 0.5 | $ 0.8 |
Chemetall Surface Treatment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions | 1 | |
Continuing Operations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions | $ 2.4 | $ 2.4 |
Pension Plans and Other Postr63
Pension Plans and Other Postretirement Benefits Multiemployer Plan (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2016EUR (€) | Mar. 31, 2016USD ($) | |
Chemetall Surface Treatment | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, period contributions | € 0.2 | $ 0.2 | ||
Continuing Operations | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, period contributions | € 0.2 | $ 0.2 | € 0.2 | $ 0.3 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 1,721,455 | $ 2,381,370 |
Total long-term debt, fair value, excluding debt issuance costs | $ 1,807,576 | $ 2,472,813 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments Additional Information (Details) - Forward contracts - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | $ 285.9 | $ 251.6 | |
Other accounts receivable | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts, assets | 0.1 | ||
Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts, liabilities | $ 0.2 | ||
Other (expenses) income, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Recognized gains of foreign currency forward contracts | 4.5 | $ 5.8 | |
Other, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in the fair value of foreign currency forward contracts | 4.5 | 5.8 | |
Cash receipts | $ 4.3 | $ 5.1 |
Fair Value Measurement Financia
Fair Value Measurement Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between levels 1 and 2 | $ 0 | ||
Investments under executive deferred compensation plan | [1] | 22,417,000 | $ 22,037,000 |
Private equity securities | [2] | 36,000 | 35,000 |
Private equity securities measured at net asset value | [2],[3] | 5,492,000 | 5,498,000 |
Foreign currency forward contracts, assets | [4] | 7,000 | |
Obligations under executive deferred compensation plan | [1] | 22,417,000 | 22,037,000 |
Foreign currency forward contracts, liabilities | [4] | 182,000 | |
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 | [1] | 22,417,000 | 22,037,000 |
Private equity securities | [2] | 36,000 | 35,000 |
Private equity securities measured at net asset value | [2],[3] | 0 | 0 |
Foreign currency forward contracts, assets | [4] | 0 | |
Obligations under executive deferred compensation plan | [1] | 22,417,000 | 22,037,000 |
Foreign currency forward contracts, liabilities | [4] | 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 | [1] | 0 | 0 |
Private equity securities | [2] | 0 | 0 |
Private equity securities measured at net asset value | [2],[3] | 0 | 0 |
Foreign currency forward contracts, assets | [4] | 7,000 | |
Obligations under executive deferred compensation plan | [1] | 0 | 0 |
Foreign currency forward contracts, liabilities | [4] | 182,000 | |
Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments under executive deferred compensation plan | [1] | 0 | 0 |
Private equity securities | [2] | 0 | 0 |
Private equity securities measured at net asset value | [2],[3] | 0 | 0 |
Foreign currency forward contracts, assets | [4] | 0 | |
Obligations under executive deferred compensation plan | [1] | $ 0 | 0 |
Foreign currency forward contracts, liabilities | [4] | $ 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 (expenses) income, net, in our consolidated statements of income. | ||
[3] | Holdings in private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. | ||
[4] | 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. Unless otherwise noted, 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. |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive (Loss) Income Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | $ 3,942,604 | $ 3,401,313 | |
Other comprehensive income (loss), before reclassifications | 65,370 | 89,382 | |
Amounts reclassified from accumulated other comprehensive loss | 522 | 526 | |
Total other comprehensive income, net of tax | 65,892 | 89,908 | |
Other comprehensive income attributable to noncontrolling interests | (461) | (283) | |
Ending Balance | 3,783,972 | 3,694,871 | |
Foreign Currency Translation | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (484,121) | (463,914) | |
Other comprehensive income (loss), before reclassifications | 79,055 | 98,906 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income, net of tax | 79,055 | 98,906 | |
Other comprehensive income attributable to noncontrolling interests | (461) | (283) | |
Ending Balance | (405,527) | (365,291) | |
Pension and Postretirement Benefits | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 76 | (758) | |
Other comprehensive income (loss), before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | [1] | (7) | 1 |
Total other comprehensive income, net of tax | (7) | 1 | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Ending Balance | 69 | (757) | |
Net Investment Hedge | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 88,378 | 62,245 | |
Other comprehensive income (loss), before reclassifications | (13,685) | (9,524) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income, net of tax | (13,685) | (9,524) | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Ending Balance | 74,693 | 52,721 | |
Interest Rate Swap | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (16,745) | (18,861) | |
Other comprehensive income (loss), before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | [2] | 529 | 525 |
Total other comprehensive income, net of tax | 529 | 525 | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Ending Balance | (16,216) | (18,336) | |
Accumulated Other Comprehensive (Loss) Income | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (412,412) | (421,288) | |
Total other comprehensive income, net of tax | 65,431 | 89,625 | |
Ending Balance | $ (346,981) | $ (331,663) | |
[1] | The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 13, “Pension Plans and Other Postretirement Benefits.” | ||
[2] | The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive (Loss) Income Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Equity [Abstract] | ||
Foreign Currency Translation, Other comprehensive income (loss), before tax | $ 80,141 | $ 99,277 |
Foreign Currency Translation, Income tax (expense) benefit | (1,086) | (371) |
Foreign Currency Translation, Other comprehensive income (loss), net of tax | 79,055 | 98,906 |
Pension and Postretirement Benefits, Other comprehensive income (loss), before tax | (6) | 4 |
Pension and Postretirement Benefits, Income tax (expense) benefit | (1) | (3) |
Pension and Postretirement Benefits, Other comprehensive income (loss), net of tax | (7) | 1 |
Net investment hedge, Other comprehensive income (loss), before tax | (21,580) | (15,121) |
Net investment hedge, Income tax (expense) benefit | 7,895 | 5,597 |
Net investment hedge, Other comprehensive income (loss), net of tax | (13,685) | (9,524) |
Interest rate swap, Other comprehensive income (loss), before tax | 834 | 834 |
Interest rate swap, Income tax benefit (expense) benefit | (305) | (309) |
Interest rate swap, Other comprehensive income (loss), net of tax | $ 529 | $ 525 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Sales to unconsolidated affiliates | $ 7,189 | $ 6,174 |
Purchases from unconsolidated affiliates | $ 40,570 | $ 35,621 |
Recently Issued Accounting Pr70
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Excess tax benefits | $ 4.1 |