Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 110,763,247 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 821,629 | $ 722,063 |
Cost of goods sold | 516,650 | 467,107 |
Gross profit | 304,979 | 254,956 |
Selling, general and administrative expenses | 101,370 | 108,928 |
Research and development expenses | 20,986 | 24,323 |
Operating profit | 182,623 | 121,705 |
Interest and financing expenses | (13,538) | (68,513) |
Other (expenses) income, net | (30,476) | 265 |
Income before income taxes and equity in net income of unconsolidated investments | 138,609 | 53,457 |
Income tax expense | 20,361 | 11,971 |
Income before equity in net income of unconsolidated investments | 118,248 | 41,486 |
Equity in net income of unconsolidated investments (net of tax) | 20,677 | 21,171 |
Net income | 138,925 | 62,657 |
Net income attributable to noncontrolling interests | (7,165) | (11,444) |
Net income attributable to Albemarle Corporation | $ 131,760 | $ 51,213 |
Basic earnings per share (in dollars per share) | $ 1.19 | $ 0.46 |
Diluted earnings per share (in dollars per share) | $ 1.18 | $ 0.45 |
Weighted-average common shares outstanding - basic (in shares) | 110,681 | 111,986 |
Weighted-average common shares outstanding - diluted (in shares) | 111,867 | 113,289 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.335 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 138,925 | $ 62,657 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | 64,891 | 79,055 |
Pension and postretirement benefits | 3 | (7) |
Net investment hedge | (14,421) | (13,685) |
Interest rate swap | 642 | 529 |
Total other comprehensive income (loss), net of tax | 51,115 | 65,892 |
Comprehensive income | 190,040 | 128,549 |
Comprehensive income attributable to noncontrolling interests | (7,351) | (11,905) |
Comprehensive income attributable to Albemarle Corporation | $ 182,689 | $ 116,644 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 692,188 | $ 1,137,303 |
Trade accounts receivable, less allowance for doubtful accounts (2018 – $10,098; 2017 – $10,425) | 606,968 | 534,326 |
Other accounts receivable | 43,410 | 37,937 |
Inventories | 666,567 | 592,781 |
Other current assets | 113,763 | 136,064 |
Assets held for sale | 35,829 | 39,152 |
Total current assets | 2,158,725 | 2,477,563 |
Property, plant and equipment, at cost | 4,247,345 | 4,124,335 |
Less accumulated depreciation and amortization | 1,678,139 | 1,631,025 |
Net property, plant and equipment | 2,569,206 | 2,493,310 |
Investments | 524,687 | 534,064 |
Noncurrent assets held for sale | 151,743 | 139,813 |
Other assets | 78,619 | 74,164 |
Goodwill | 1,643,746 | 1,610,355 |
Other intangibles, net of amortization | 429,614 | 421,503 |
Total assets | 7,556,340 | 7,750,772 |
Current liabilities: | ||
Accounts payable | 481,726 | 418,537 |
Accrued expenses | 262,883 | 268,336 |
Current portion of long-term debt | 39,216 | 422,012 |
Dividends payable | 36,885 | 35,165 |
Liabilities held for sale | 2,173 | 1,938 |
Income taxes payable | 45,977 | 54,937 |
Total current liabilities | 868,860 | 1,200,925 |
Long-term debt | 1,436,852 | 1,415,360 |
Postretirement benefits | 52,090 | 52,003 |
Pension benefits | 296,671 | 294,611 |
Noncurrent liabilities held for sale | 682 | 614 |
Other noncurrent liabilities | 588,640 | 599,174 |
Deferred income taxes | 369,115 | 370,389 |
Commitments and contingencies (Note 10) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 110,756 in 2018 and 110,547 in 2017 | 1,107 | 1,105 |
Additional paid-in capital | 1,855,321 | 1,863,949 |
Accumulated other comprehensive loss | (174,739) | (225,668) |
Retained earnings | 2,118,621 | 2,035,163 |
Total Albemarle Corporation shareholders’ equity | 3,800,310 | 3,674,549 |
Noncontrolling interests | 143,120 | 143,147 |
Total equity | 3,943,430 | 3,817,696 |
Total liabilities and equity | $ 7,556,340 | $ 7,750,772 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 10,098 | $ 10,425 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, issued | 110,756 | 110,547 |
Common stock, outstanding | 110,756 | 110,547 |
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, 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) | (250,000) | |||
Issuance of common stock, net (in shares) | 225,559 | ||||||
Issuance of common stock, net | 0 | $ 2 | (2) | 0 | |||
Termination of Tianqi Lithium Corporation 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 |
Beginning Balance (in shares) at Dec. 31, 2017 | 110,546,674 | ||||||
Beginning Balance at Dec. 31, 2017 | 3,817,696 | $ 1,105 | 1,863,949 | (225,668) | 2,035,163 | 3,674,549 | 143,147 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 138,925 | 131,760 | 131,760 | 7,165 | |||
Other comprehensive income | 51,115 | 50,929 | 50,929 | 186 | |||
Cash dividends declared | (44,481) | (37,103) | (37,103) | (7,378) | |||
Cumulative adjustment from adoption of income tax standard update (Note 18) | (11,199) | (11,199) | (11,199) | ||||
Stock-based compensation and other | 5,737 | 5,737 | 5,737 | ||||
Exercise of stock options (in shares) | 12,740 | ||||||
Exercise of stock options | 646 | $ 0 | 646 | 646 | |||
Issuance of common stock, net (in shares) | 319,440 | ||||||
Issuance of common stock, net | 0 | $ 3 | (3) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (122,740) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (15,009) | $ (1) | (15,008) | (15,009) | |||
Ending Balance (in shares) at Mar. 31, 2018 | 110,756,114 | ||||||
Ending Balance at Mar. 31, 2018 | $ 3,943,430 | $ 1,107 | $ 1,855,321 | $ (174,739) | $ 2,118,621 | $ 3,800,310 | $ 143,120 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 1,137,303 | $ 2,269,756 |
Cash flows from operating activities: | ||
Net income | 138,925 | 62,657 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 50,330 | 45,070 |
Gain on acquisition | 0 | (7,433) |
Stock-based compensation | 2,869 | 5,046 |
Equity in net income of unconsolidated investments (net of tax) | (20,677) | (21,171) |
Dividends received from unconsolidated investments and nonmarketable securities | 25,462 | 2,551 |
Pension and postretirement benefit | (890) | (26) |
Pension and postretirement contributions | (3,548) | (2,891) |
Unrealized gain on investments in marketable securities | (393) | (873) |
Loss on early extinguishment of debt | 0 | 52,801 |
Deferred income taxes | 29,067 | 1,363 |
Working capital changes | (95,050) | (63,325) |
Other, net | (4,541) | 8,816 |
Net cash provided by operating activities | 121,554 | 82,585 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | (27,742) |
Capital expenditures | (131,815) | (54,143) |
Sales of marketable securities, net | 10 | 492 |
Repayments from joint ventures | 0 | 1,250 |
Investments in equity and other corporate investments | (735) | 0 |
Net cash used in investing activities | (132,540) | (80,143) |
Cash flows from financing activities: | ||
Repayments of long-term debt | 0 | (751,209) |
Other (repayments) borrowings, net | (381,159) | 66,384 |
Fees related to early extinguishment of debt | 0 | (46,959) |
Dividends paid to shareholders | (35,382) | (34,330) |
Dividends paid to noncontrolling interests | (7,378) | 0 |
Repurchases of common stock | 0 | (250,000) |
Proceeds from exercise of stock options | 646 | 2,170 |
Withholding taxes paid on stock-based compensation award distributions | (15,009) | (7,855) |
Net cash used in financing activities | (438,282) | (1,021,799) |
Net effect of foreign exchange on cash and cash equivalents | 4,153 | 4,137 |
Decrease in cash and cash equivalents | (445,115) | (1,015,220) |
Cash and cash equivalents at end of period | $ 692,188 | $ 1,254,536 |
Basis of Presentaion
Basis of Presentaion | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 , 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, 2018 and 2017 . All adjustments are of a normal and recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 , which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2018. The December 31, 2017 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, 2018 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. Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” and all related amendments using the modified retrospective method. There was no material impact to our results of operations or financial position upon adoption, and no adjustment was made to Retained earnings in our consolidated balance sheets because such adjustment was determined to be immaterial. In addition, new presentation requirements, including separate disclosure of net sales from sources other than customers on our consolidated statements of income and separate disclosures of contract assets or liabilities on our consolidated balance sheets, generally did not have a material impact. However, business circumstances, including the nature of customer contracts, can change and as such, we are expanding processes and controls to recognize such changes, and as necessary, consider whether any of these currently immaterial items might differ in the future. See Note 18, “Recently Issued Accounting Pronouncements,” for additional information. Included in Trade accounts receivable at March 31, 2018 is approximately $591.8 million arising from contracts with customers. The remaining balance of Trade accounts receivable at March 31, 2018 includes primarily value-added taxes collected from customers on behalf of various taxing authorities. In addition, see below for a description of our updated revenue recognition accounting policy. Revenue Recognition Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services, and is recognized when performance obligations are satisfied under the terms of contracts with our customers. A performance obligation is deemed to be satisfied when control of the product or service is transferred to our customer. The transaction price of a contract, or the amount we expect to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as customer rebates, noncash consideration or consideration payable to the customer, although these adjustments are generally not material. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not built into our contracts. Any unsatisfied performance obligations are not material. Standalone selling prices are based on prices we charge to our customers, which in some cases is based on established market prices. Sales and other similar taxes collected from customers on behalf of third parties are excluded from revenue. Our payment terms are generally between 30 to 90 days, however, they vary by market factors, such as customer size, geography and competitive environment. All of our revenue is derived from contracts with customers, and almost all of our contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer upon shipment or delivery. Significant portions of our sales are sold free on board shipping point or on an equivalent basis, while delivery terms of other transactions are based upon specific contractual arrangements. Our standard terms of delivery are generally included in our contracts of sale, order confirmation documents and invoices, while the timing between shipment and delivery generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs. The Company currently utilizes the following practical expedients, as permitted by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers: • All sales and other pass-through taxes are excluded from contract value; • In utilizing the modified retrospective transition method, no adjustment would be necessary for contracts that do not cross over a reporting year; • We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year; • If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and • We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less. Certain products we produce are made to our customer’s specifications where such products have no alternative use or would need significant rework costs in order to be sold to another customer. In management’s judgment, control of these arrangements is transferred to the customer at a point in time (upon shipment or delivery) and not over the time they are produced. Therefore revenue is recognized upon shipment or delivery of these products. Costs incurred to obtain contracts with customers are not significant and are expensed immediately as the amortization period would be one year or less. When the Company incurs pre-production or other fulfillment costs in connection with an existing or specific anticipated contract and such costs are recoverable through margin or explicitly reimbursable, such costs are capitalized and amortized to Cost of goods sold on a systematic basis that is consistent with the pattern of transfer to the customer of the goods or services to which the asset relates, which is less than one year. We record bad debt expense in specific situations when we determine the customer is unable to meet its financial obligation. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Divestitures: Assets Held for Sale On December 14, 2017, the Company signed a definitive agreement to sell the polyolefin catalysts and components portion of its Performance Catalyst Solutions (“PCS”) business to W.R. Grace & Co., with the sale closing on April 3, 2018. We received net cash proceeds of approximately $416 million . The transaction includes Albemarle’s Product Development Center located in Baton Rouge, Louisiana, and operations at its Yeosu, South Korea site. The sale does not include the Company’s organometallics or curatives portion of its PCS business. The sale of the polyolefin catalysts business and components reflects the Company’s commitment to investing in the future growth of its high priority businesses and returning capital to shareholders. We currently expect to record a gain in the second quarter of 2018 related to this business. In the fourth quarter of 2017, we determined that the assets held for sale criteria in accordance with ASC 360, Property, Plant and Equipment , were met for this business. As such, the assets and liabilities of this business are included in Assets held for sale and Liabilities held for sale, respectively, in the consolidated balance sheets as of March 31, 2018 and December 31, 2017. The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at March 31, 2018 and December 31, 2017, are as follows (in thousands): March 31, December 31, 2018 2017 Assets Current assets $ 35,829 $ 39,152 Net, property, plant and equipment 133,506 121,759 Goodwill 14,422 14,422 Other intangibles, net of amortization 3,815 3,632 Assets held for sale $ 187,572 $ 178,965 Liabilities Current liabilities $ 2,173 $ 1,938 Noncurrent liabilities 682 614 Liabilities held for sale $ 2,855 $ 2,552 The results of operations of the business classified as held for sale is include d in the consolidated statements of income. This business did not qualify for discontinued operations treatment because the Company’s management does not consider the 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, 2018 | |
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, 2018 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2017 (a)(b) $ 1,389,089 $ 20,319 $ 194,361 $ 6,586 $ 1,610,355 Foreign currency translation adjustments and other 26,110 — 7,281 — 33,391 Balance at March 31, 2018 (b) $ 1,415,199 $ 20,319 $ 201,642 $ 6,586 $ 1,643,746 (a) The December 31, 2017 balances have been recast to reflect a change in segments. See Note 11, “Segment Information,” for additional information. (b) As of March 31, 2018 and December 31, 2017 , $14.4 million of Goodwill was classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2018 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2017 $ 439,312 $ 18,981 $ 61,618 $ 37,256 $ 557,167 Foreign currency translation adjustments and other 13,054 324 1,668 3,862 18,908 Balance at March 31, 2018 $ 452,366 $ 19,305 $ 63,286 $ 41,118 $ 576,075 Accumulated Amortization Balance at December 31, 2017 $ (74,704 ) $ (8,295 ) $ (35,203 ) $ (17,462 ) $ (135,664 ) Amortization (5,962 ) — (368 ) (1,088 ) (7,418 ) Foreign currency translation adjustments and other (2,005 ) (102 ) (727 ) (545 ) (3,379 ) Balance at March 31, 2018 $ (82,671 ) $ (8,397 ) $ (36,298 ) $ (19,095 ) $ (146,461 ) Net Book Value at December 31, 2017 (b) $ 364,608 $ 10,686 $ 26,415 $ 19,794 $ 421,503 Net Book Value at March 31, 2018 (b) $ 369,695 $ 10,908 $ 26,988 $ 22,023 $ 429,614 (a) Balances as of March 31, 2018 and December 31, 2017 include only indefinite-lived intangible assets. (b) As of March 31, 2018 and December 31, 2017 , $3.8 million and $3.6 million , respectively, of Other intangibles, net of amortization were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information. |
Foreign Exchange
Foreign Exchange | 3 Months Ended |
Mar. 31, 2018 | |
Foreign Currency [Abstract] | |
Foreign Exchange | Foreign Exchange: Foreign exchange transaction and revaluation losses were $3.2 million and $4.9 million for the three-month periods ended March 31, 2018 and 2017 , 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The effective income tax rate for the three-month period ended March 31, 2018 was 14.7% , compared to 22.4% for the three-month period ended March 31, 2017 . 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 of 21% and our effective income tax rate for the three-months ended March 31, 2018 was impacted by a variety of factors, primarily stemming from discrete tax benefits related to adjustments recorded for the U.S. Tax Cuts and Jobs Act (“TCJA”) as noted below and excess tax benefits realized from stock-based compensation arrangements. The difference between the U.S. federal statutory income tax rate of 35% and our effective income tax rate for the three-months ended March 31, 2017 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 connection with the TCJA, we recorded a provisional amount of income tax expense of $429.2 million related to the one-time transition tax and income tax benefit of $62.3 million related to the remeasurement of deferred tax balances for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin (“SAB”) 118, the effects of the TCJA may be adjusted within a one-year measurement period from the enactment date for the items that were previously reported as provisional, or where a provisional estimate could not be made. The income tax provision for the three-months ended March 31, 2018 reflected a discrete tax benefit of $2.8 million related to an adjustment of our estimate of the one-time transition tax and a discrete tax benefit of $3.7 million related to other provisions of the TCJA. The effective income tax rate for the three-months ended March 31, 2018, included a $3.0 million tax expense on global intangible low-taxed income enacted by the TCJA. For the global intangible low-taxed income provisions of the TCJA, we have not yet elected an accounting policy with respect to either recognizing deferred taxes for basis differences expected to impact global intangible low-taxed income, or to record such as period costs if and when incurred. We also continue to evaluate our indefinite reinvestment assertion as a result of the TCJA. We will continue to assess forthcoming guidance and accounting interpretations on the effects of the TCJA and expect to finalize our analysis within the measurement period in accordance with the SEC guidance. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month periods ended March 31, 2018 and 2017 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2018 2017 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Denominator: Weighted-average common shares for basic earnings per share 110,681 111,986 Basic earnings per share $ 1.19 $ 0.46 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Denominator: Weighted-average common shares for basic earnings per share 110,681 111,986 Incremental shares under stock compensation plans 1,186 1,303 Weighted-average common shares for diluted earnings per share 111,867 113,289 Diluted earnings per share $ 1.18 $ 0.45 On February 23, 2018, the Company increased the regular quarterly dividend by 5% to $0.335 per share and declared a cash dividend of said amount for the first quarter of 2018, which was paid on April 2, 2018 to shareholders of record at the close of business as of March 15, 2018 . On May 8, 2018 , the Company declared a cash dividend of $0.335 per share, which is payable on July 2, 2018 to shareholders of record at the close of business as of June 15, 2018 . |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Finished goods (a) $ 453,662 $ 404,239 Raw materials and work in process (b) 154,679 132,891 Stores, supplies and other 58,226 55,651 Total (c) $ 666,567 $ 592,781 (a) Increase primarily due to the build up of inventory in our Catalysts segment due to the timing of net sales expected in the second quarter, and an increased net sales in the near term for our Lithium segment. (b) Increase primarily due to higher forecasted production levels in the second quarter from our Catalysts segment. Included $66.2 million and $59.6 million at March 31, 2018 and December 31, 2017 , respectively, of work in process related to the Lithium product category. (c) As of March 31, 2018 and December 31, 2017 , $23.0 million and $24.7 million , respectively, of Inventories were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), where the ownership 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 this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $338.7 million and $355.2 million at March 31, 2018 and December 31, 2017 , respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs for which the Company is not the primary beneficiary was $8.5 million and $8.7 million at March 31, 2018 and December 31, 2017 , respectively. Our unconsolidated VIEs are reported in Investments on 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 its 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 retained 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, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at March 31, 2018 and December 31, 2017 consisted of the following (in thousands): March 31, December 31, 2018 2017 1.875% Senior notes, net of unamortized discount and debt issuance costs of $3,859 at March 31, 2018 and $3,971 at December 31, 2017 $ 482,567 $ 463,575 4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,250 at March 31, 2018 and $3,372 at December 31, 2017 421,750 421,628 4.50% Senior notes, net of unamortized discount and debt issuance costs of $815 at March 31, 2018 and $891 at December 31, 2017 174,401 174,325 5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,120 at March 31, 2018 and $4,159 at December 31, 2017 345,880 345,841 Commercial paper notes 38,500 421,321 Variable-rate foreign bank loans 7,560 5,298 Other 5,410 5,384 Total long-term debt 1,476,068 1,837,372 Less amounts due within one year 39,216 422,012 Long-term debt, less current portion $ 1,436,852 $ 1,415,360 Current portion of long-term debt at March 31, 2018 consisted primarily of commercial paper notes with a weighted-average interest rate of approximately 2.37% and a weighted-average maturity of 31 days . During the first quarter of 2018, we repaid a net amount of $382.8 million of commercial paper notes using cash on hand. 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, 2018 and 2017, losses of $14.4 million and $13.7 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, 2018 | |
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, 2018 , as follows (in thousands): Beginning balance at December 31, 2017 $ 39,808 Expenditures (2,612 ) Accretion of discount 225 Additions and revisions of estimates 16,236 Foreign currency translation adjustments 786 Ending balance at March 31, 2018 54,443 Less amounts reported in Accrued expenses 5,060 Amounts reported in Other noncurrent liabilities $ 49,383 Environmental remediation liabilities included discounted liabilities of $44.1 million and $28.1 million at March 31, 2018 and December 31, 2017 , respectively, discounted at rates with a weighted-average of 3.7% and 3.6% , respectively, with the undiscounted amount totaling $85.5 million and $68.2 million at March 31, 2018 and December 31, 2017 , 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, could be an additional $10 million to $20 million before income taxes, in excess of amounts already recorded. 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. Following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, within our Catalysts segment, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act (“FCPA”) and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business, within our Catalysts segment, to the U.S. Department of Justice (“DOJ”) and SEC, and are cooperating with the DOJ and SEC in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with any investigations by the DOJ or SEC. We also are unable to predict what, if any, action may be taken by the DOJ or SEC or what penalties or remedial actions they may seek. Any determination that our operations or activities are not in compliance with existing laws or regulations, however, could result in the imposition of fines, penalties, disgorgement, equitable relief or other losses. We do not believe, however, that any fines, penalties, disgorgement, equitable relief or other losses would have a material adverse effect on our financial condition or liquidity. In the first quarter of 2018, a jury rendered a verdict against Albemarle in a legal matter related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures. Although Albemarle has filed post trial motions to set aside the verdict, we have recorded an estimated accrual of $17.6 million in the three months ended March 31, 2018, and in Accrued liabilities as of the balance sheet date, to reflect this matter. 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 $32.4 million and $42.7 million at March 31, 2018 and December 31, 2017 , 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, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | Segment Information: In the first quarter of 2018, the PCS product category merged with our former Refining Solutions reportable segment to form a global business focused on catalysts. As a result, our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. 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 business 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. Results for 2017 have been recast to reflect the change in segments noted above. The “All Other” category includes only the fine chemistry services business that does not fit into any of our core businesses. 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 adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include 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. 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 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 2018 2017 (In thousands) Net sales: Lithium $ 298,032 $ 216,229 Bromine Specialties 225,639 219,191 Catalysts 260,717 253,558 All Other 37,165 32,419 Corporate 76 666 Total net sales $ 821,629 $ 722,063 Adjusted EBITDA: Lithium $ 131,014 $ 99,852 Bromine Specialties 69,969 68,488 Catalysts 67,830 69,749 All Other 3,862 5,156 Corporate (23,957 ) (31,869 ) Total adjusted EBITDA $ 248,718 $ 211,376 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium Bromine Specialties Catalysts Reportable Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2018 Net income (loss) attributable to Albemarle Corporation $ 108,334 $ 59,536 $ 55,660 $ 223,530 $ 1,760 $ (93,530 ) $ 131,760 Depreciation and amortization 24,065 10,433 12,170 46,668 2,102 1,560 50,330 Acquisition and integration related costs (a) — — — — — 2,201 2,201 Interest and financing expenses — — — — — 13,538 13,538 Income tax expense — — — — — 20,361 20,361 Non-operating pension and OPEB items — — — — — (2,197 ) (2,197 ) Legal accrual (b) — — — — — 17,628 17,628 Other (c) (1,385 ) — — (1,385 ) — 16,482 15,097 Adjusted EBITDA $ 131,014 $ 69,969 $ 67,830 $ 268,813 $ 3,862 $ (23,957 ) $ 248,718 Three months ended March 31, 2017 Net income (loss) attributable to Albemarle Corporation $ 77,614 $ 58,694 $ 56,966 $ 193,274 $ 3,246 $ (145,307 ) $ 51,213 Depreciation and amortization 19,065 9,794 12,783 41,642 1,910 1,518 45,070 Utilization of inventory markup (d) 10,606 — — 10,606 — — 10,606 Restructuring and other, net (e) — — — — — 12,905 12,905 Gain on acquisition (f) (7,433 ) — — (7,433 ) — — (7,433 ) Acquisition and integration related costs (a) — — — — — 14,281 14,281 Interest and financing expenses (g) — — — — — 68,513 68,513 Income tax expense — — — — — 11,971 11,971 Non-operating pension and OPEB items — — — — — (1,063 ) (1,063 ) Other (h) — — — — — 5,313 5,313 Adjusted EBITDA $ 99,852 $ 68,488 $ 69,749 $ 238,089 $ 5,156 $ (31,869 ) $ 211,376 (a) Included amounts for the three-month periods ended March 31, 2018 and 2017 recorded in (1) Cost of goods sold of $1.0 million and $8.9 million , respectively; and (2) Selling, general and administrative expenses of $1.2 million and $5.4 million , respectively, relating to various significant projects, including the Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) acquisition, which contains unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements. (b) Included in Other (expenses) income, see Note 10, “Commitments and Contingencies” for additional information. (c) Included amounts for the three months ended March 31, 2018 recorded in: ▪ Cost of goods sold - $1.1 million related to the write-off of fixed assets in our JBC joint venture. ▪ Selling, general and administrative expenses - $1.4 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year. ▪ Other (expenses) income, net - $15.6 million of environmental charges related to a site formerly owned by Albemarle, partially offset by a net gain of $0.2 million related to the the reversal of previously recorded expenses of disposed businesses. (d) 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 $23.1 million . The inventory markup was 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. (e) During the first quarter of 2017, we initiated actions 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, 2018, with the expectation that the majority of these plans will be completed by the end of 2018. (f) Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile. The calculation of the initial gain recorded during the three months ended March 31, 2017 was based on management’s preliminary estimates and assumptions available at that time. (g) During the first quarter of 2017, 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, included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million , representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes. (h) 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. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month periods ended March 31, 2018 and 2017 were as follows (in thousands): Three Months Ended 2018 2017 Pension Benefits Cost (Credit): Service cost $ 1,268 $ 1,003 Interest cost 8,027 8,288 Expected return on assets (10,764 ) (9,908 ) Amortization of prior service benefit 22 27 Total net pension benefits credit $ (1,447 ) $ (590 ) Postretirement Benefits Cost (Credit): Service cost $ 29 $ 31 Interest cost 542 585 Expected return on assets (2 ) (28 ) Amortization of prior service benefit (12 ) (24 ) Total net postretirement benefits cost $ 557 $ 564 Total net pension and postretirement benefits credit $ (890 ) $ (26 ) As a result of the adoption of new accounting guidance effective January 1, 2018, on a retrospective basis, all components of net benefit cost (credit), other than service cost, are to be shown outside of operations on the consolidated statements of income. We recast these components of net benefit cost (credit), which resulted in a reduction of $0.2 million in Cost of goods sold and $0.9 million in Selling, general and administrative expenses, with an offsetting increase of $1.1 million in Other (expenses) income, net for the three months ended March 31, 2017. There was no impact to Net income attributable to Albemarle Corporation. During the three-month periods ended March 31, 2018 and 2017 , we made contributions of $3.1 million and $2.4 million , respectively, to our qualified and nonqualified pension plans. We paid $0.5 million in premiums to the U.S. postretirement benefit plan during both the three-month periods ended March 31, 2018 and 2017 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 December 31, 2017 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,483,794 $ 1,553,114 $ 1,845,309 $ 1,949,638 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, 2018 and December 31, 2017 , we had outstanding foreign currency forward contracts with notional values totaling $494.7 million and $357.4 million , respectively. Our foreign currency forward contracts outstanding at March 31, 2018 and December 31, 2017 were not designated as hedging instruments under ASC 815, Derivatives and Hedging . At March 31, 2018 and December 31, 2017 , $0.2 million and $5.0 million , respectively, 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, 2018 and 2017 , we recognized gains of $4.8 million and $4.5 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, 2018 and 2017 , we recorded gains of $4.8 million and $4.5 million , respectively, related to the change in the fair value of our foreign currency forward contracts, and net cash receipts of $0.1 million and $4.3 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, 2018 | |
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, 2018 . 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, 2018 and December 31, 2017 (in thousands): March 31, 2018 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) $ 25,878 $ 25,878 $ — $ — Private equity securities (b) $ 37 $ 37 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,117 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 25,878 $ 25,878 $ — $ — Foreign currency forward contracts (d) $ 241 $ — $ 241 $ — December 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) $ 25,494 $ 25,494 $ — $ — Private equity securities (b) $ 38 $ 38 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,121 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 25,494 $ 25,494 $ — $ — Foreign currency forward contracts (d) $ 4,954 $ — $ 4,954 $ — (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 certain 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, 2018 | |
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, 2018 Balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ (14,629 ) $ (225,668 ) Other comprehensive income (loss) before reclassifications 64,891 — (14,421 ) — 50,470 Amounts reclassified from accumulated other comprehensive loss — 3 — 642 645 Other comprehensive income (loss), net of tax 64,891 3 (14,421 ) 642 51,115 Other comprehensive income attributable to noncontrolling interests (186 ) — — — (186 ) Balance at March 31, 2018 $ (192,864 ) $ (18 ) $ 32,130 $ (13,987 ) $ (174,739 ) 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 ) (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 credit. See Note 12, “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 benefit (expense) allocated to each component of Other comprehensive income (loss) for the three-month periods ended March 31, 2018 and 2017 is provided in the following tables (in thousands): Three Months Ended March 31, 2018 2017 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 $ 64,891 $ 3 $ (18,734 ) $ 834 $ 80,141 $ (6 ) $ (21,580 ) $ 834 Income tax benefit (expense) — — 4,313 (192 ) (1,086 ) (1 ) 7,895 (305 ) Other comprehensive income (loss), net of tax $ 64,891 $ 3 $ (14,421 ) $ 642 $ 79,055 $ (7 ) $ (13,685 ) $ 529 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions: Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended 2018 2017 Sales to unconsolidated affiliates $ 4,605 $ 7,189 Purchases from unconsolidated affiliates $ 68,916 $ 40,570 Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): March 31, 2018 December 31, 2017 Receivable from related parties $ 2,184 $ 2,406 Payable to related parties $ 67,244 $ 55,801 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Three Months Ended 2018 2017 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 74,906 $ 18,874 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
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. During 2016, the FASB issued amendments to this new guidance that provides clarification, technical corrections and practical expedients. Topics of potential relevance to the Company include principal versus agent considerations, collectability, presentation of sales tax from customers, contract modifications at transition and accounting transition. These new requirements became effective on January 1, 2018 and did not have a material impact on our condensed consolidated financial statements. We adopted the new standard using the modified retrospective method. We have implemented appropriate changes to the business processes, controls and control activities to support recognition, presentation and disclosure under the new standard for the first quarter of 2018, however, we have not made any significant changes to our existing systems as a result of this new standard. 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. We have made significant progress in evaluating our existing lease contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In addition, we are in the process of reviewing the impact of this standard on our current business processes and existing systems. In October 2016, the FASB issued accounting guidance that eliminated the deferral of tax effects of intra-entity asset transfers other than inventory. As a result, the tax expense from the intercompany sale of assets, other than inventory, and associated changes to deferred taxes will be recognized when the sale occurs even though the pre-tax effects of the transaction have not been recognized as they are eliminated in consolidation. This guidance was effective using the modified retrospective method as of January 1, 2018, which resulted in a $11.2 million cumulative adjustment to decrease Retained earnings and is not reflected in periods prior to this date. In November 2016, the FASB issued accounti ng 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 became effective on January 1, 2018 and did not 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 became effective on January 1, 2018 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill imp airment. 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 became effective on January 1, 2018 and did not have a significant impact on our financial statements. The prior year consolidated statements of income have been recast to conform to the current presentation required by this guidance. See Note 12, “Pension Plans and Other Postretirement Benefits,” for additional details. In May 2017, the FASB issued accounting guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This new guidance became effective on January 1, 2018 and did not have a significant impact on our financial statements. In August 2017, the FASB issued accounting guidance to better align an entity’s risk management activities with hedge accounting, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. 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 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 February 2018, the FASB issued accounting guidance that will give companies the option to reclassify stranded tax effects caused by the TCJA from accumulated other comprehensive income to retained earnings. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities will have the option to apply this guidance retrospectively or to record the reclassification as of the beginning of the period of adoption. We are currently assessing the impact of this new guidance on our financial statements. In March 2018, the FASB issued additional guidance pursuant to the issuance of SAB 118, that provides clarification for a company’s ability to comply with the accounting requirements for the income tax effects of the TCJA in the period of enactment, effective immediately. SAB 118 allows disclosure that timely determination of some or all of the income tax effects from the TCJA are incomplete by the due date of the financial statements and if possible to provide a reasonable estimate. We have accounted for the tax effects of the TCJA under the guidance of SAB 118, on a provisional basis. Our accounting for certain income tax effects is incomplete, but we have determined reasonable estimates for those effects and have recorded provisional amounts in our condensed consolidated financial statements. |
Recently Issued Accounting Pr26
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. During 2016, the FASB issued amendments to this new guidance that provides clarification, technical corrections and practical expedients. Topics of potential relevance to the Company include principal versus agent considerations, collectability, presentation of sales tax from customers, contract modifications at transition and accounting transition. These new requirements became effective on January 1, 2018 and did not have a material impact on our condensed consolidated financial statements. We adopted the new standard using the modified retrospective method. We have implemented appropriate changes to the business processes, controls and control activities to support recognition, presentation and disclosure under the new standard for the first quarter of 2018, however, we have not made any significant changes to our existing systems as a result of this new standard. 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. We have made significant progress in evaluating our existing lease contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In addition, we are in the process of reviewing the impact of this standard on our current business processes and existing systems. In October 2016, the FASB issued accounting guidance that eliminated the deferral of tax effects of intra-entity asset transfers other than inventory. As a result, the tax expense from the intercompany sale of assets, other than inventory, and associated changes to deferred taxes will be recognized when the sale occurs even though the pre-tax effects of the transaction have not been recognized as they are eliminated in consolidation. This guidance was effective using the modified retrospective method as of January 1, 2018, which resulted in a $11.2 million cumulative adjustment to decrease Retained earnings and is not reflected in periods prior to this date. In November 2016, the FASB issued accounti ng 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 became effective on January 1, 2018 and did not 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 became effective on January 1, 2018 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill imp airment. 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 became effective on January 1, 2018 and did not have a significant impact on our financial statements. The prior year consolidated statements of income have been recast to conform to the current presentation required by this guidance. See Note 12, “Pension Plans and Other Postretirement Benefits,” for additional details. In May 2017, the FASB issued accounting guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This new guidance became effective on January 1, 2018 and did not have a significant impact on our financial statements. In August 2017, the FASB issued accounting guidance to better align an entity’s risk management activities with hedge accounting, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. 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 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 February 2018, the FASB issued accounting guidance that will give companies the option to reclassify stranded tax effects caused by the TCJA from accumulated other comprehensive income to retained earnings. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities will have the option to apply this guidance retrospectively or to record the reclassification as of the beginning of the period of adoption. We are currently assessing the impact of this new guidance on our financial statements. In March 2018, the FASB issued additional guidance pursuant to the issuance of SAB 118, that provides clarification for a company’s ability to comply with the accounting requirements for the income tax effects of the TCJA in the period of enactment, effective immediately. SAB 118 allows disclosure that timely determination of some or all of the income tax effects from the TCJA are incomplete by the due date of the financial statements and if possible to provide a reasonable estimate. We have accounted for the tax effects of the TCJA under the guidance of SAB 118, on a provisional basis. Our accounting for certain income tax effects is incomplete, but we have determined reasonable estimates for those effects and have recorded provisional amounts in our condensed consolidated financial statements. |
Divestitures Divestitures (Tabl
Divestitures Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at March 31, 2018 and December 31, 2017, are as follows (in thousands): March 31, December 31, 2018 2017 Assets Current assets $ 35,829 $ 39,152 Net, property, plant and equipment 133,506 121,759 Goodwill 14,422 14,422 Other intangibles, net of amortization 3,815 3,632 Assets held for sale $ 187,572 $ 178,965 Liabilities Current liabilities $ 2,173 $ 1,938 Noncurrent liabilities 682 614 Liabilities held for sale $ 2,855 $ 2,552 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2017 (a)(b) $ 1,389,089 $ 20,319 $ 194,361 $ 6,586 $ 1,610,355 Foreign currency translation adjustments and other 26,110 — 7,281 — 33,391 Balance at March 31, 2018 (b) $ 1,415,199 $ 20,319 $ 201,642 $ 6,586 $ 1,643,746 (a) The December 31, 2017 balances have been recast to reflect a change in segments. See Note 11, “Segment Information,” for additional information. (b) As of March 31, 2018 and December 31, 2017 , $14.4 million of Goodwill was classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” 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, 2018 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2017 $ 439,312 $ 18,981 $ 61,618 $ 37,256 $ 557,167 Foreign currency translation adjustments and other 13,054 324 1,668 3,862 18,908 Balance at March 31, 2018 $ 452,366 $ 19,305 $ 63,286 $ 41,118 $ 576,075 Accumulated Amortization Balance at December 31, 2017 $ (74,704 ) $ (8,295 ) $ (35,203 ) $ (17,462 ) $ (135,664 ) Amortization (5,962 ) — (368 ) (1,088 ) (7,418 ) Foreign currency translation adjustments and other (2,005 ) (102 ) (727 ) (545 ) (3,379 ) Balance at March 31, 2018 $ (82,671 ) $ (8,397 ) $ (36,298 ) $ (19,095 ) $ (146,461 ) Net Book Value at December 31, 2017 (b) $ 364,608 $ 10,686 $ 26,415 $ 19,794 $ 421,503 Net Book Value at March 31, 2018 (b) $ 369,695 $ 10,908 $ 26,988 $ 22,023 $ 429,614 (a) Balances as of March 31, 2018 and December 31, 2017 include only indefinite-lived intangible assets. (b) As of March 31, 2018 and December 31, 2017 , $3.8 million and $3.6 million , respectively, of Other intangibles, net of amortization were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month periods ended March 31, 2018 and 2017 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2018 2017 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Denominator: Weighted-average common shares for basic earnings per share 110,681 111,986 Basic earnings per share $ 1.19 $ 0.46 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Denominator: Weighted-average common shares for basic earnings per share 110,681 111,986 Incremental shares under stock compensation plans 1,186 1,303 Weighted-average common shares for diluted earnings per share 111,867 113,289 Diluted earnings per share $ 1.18 $ 0.45 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Finished goods (a) $ 453,662 $ 404,239 Raw materials and work in process (b) 154,679 132,891 Stores, supplies and other 58,226 55,651 Total (c) $ 666,567 $ 592,781 (a) Increase primarily due to the build up of inventory in our Catalysts segment due to the timing of net sales expected in the second quarter, and an increased net sales in the near term for our Lithium segment. (b) Increase primarily due to higher forecasted production levels in the second quarter from our Catalysts segment. Included $66.2 million and $59.6 million at March 31, 2018 and December 31, 2017 , respectively, of work in process related to the Lithium product category. (c) As of March 31, 2018 and December 31, 2017 , $23.0 million and $24.7 million , respectively, of Inventories were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at March 31, 2018 and December 31, 2017 consisted of the following (in thousands): March 31, December 31, 2018 2017 1.875% Senior notes, net of unamortized discount and debt issuance costs of $3,859 at March 31, 2018 and $3,971 at December 31, 2017 $ 482,567 $ 463,575 4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,250 at March 31, 2018 and $3,372 at December 31, 2017 421,750 421,628 4.50% Senior notes, net of unamortized discount and debt issuance costs of $815 at March 31, 2018 and $891 at December 31, 2017 174,401 174,325 5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,120 at March 31, 2018 and $4,159 at December 31, 2017 345,880 345,841 Commercial paper notes 38,500 421,321 Variable-rate foreign bank loans 7,560 5,298 Other 5,410 5,384 Total long-term debt 1,476,068 1,837,372 Less amounts due within one year 39,216 422,012 Long-term debt, less current portion $ 1,436,852 $ 1,415,360 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , as follows (in thousands): Beginning balance at December 31, 2017 $ 39,808 Expenditures (2,612 ) Accretion of discount 225 Additions and revisions of estimates 16,236 Foreign currency translation adjustments 786 Ending balance at March 31, 2018 54,443 Less amounts reported in Accrued expenses 5,060 Amounts reported in Other noncurrent liabilities $ 49,383 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Three Months Ended 2018 2017 (In thousands) Net sales: Lithium $ 298,032 $ 216,229 Bromine Specialties 225,639 219,191 Catalysts 260,717 253,558 All Other 37,165 32,419 Corporate 76 666 Total net sales $ 821,629 $ 722,063 Adjusted EBITDA: Lithium $ 131,014 $ 99,852 Bromine Specialties 69,969 68,488 Catalysts 67,830 69,749 All Other 3,862 5,156 Corporate (23,957 ) (31,869 ) Total adjusted EBITDA $ 248,718 $ 211,376 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium Bromine Specialties Catalysts Reportable Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2018 Net income (loss) attributable to Albemarle Corporation $ 108,334 $ 59,536 $ 55,660 $ 223,530 $ 1,760 $ (93,530 ) $ 131,760 Depreciation and amortization 24,065 10,433 12,170 46,668 2,102 1,560 50,330 Acquisition and integration related costs (a) — — — — — 2,201 2,201 Interest and financing expenses — — — — — 13,538 13,538 Income tax expense — — — — — 20,361 20,361 Non-operating pension and OPEB items — — — — — (2,197 ) (2,197 ) Legal accrual (b) — — — — — 17,628 17,628 Other (c) (1,385 ) — — (1,385 ) — 16,482 15,097 Adjusted EBITDA $ 131,014 $ 69,969 $ 67,830 $ 268,813 $ 3,862 $ (23,957 ) $ 248,718 Three months ended March 31, 2017 Net income (loss) attributable to Albemarle Corporation $ 77,614 $ 58,694 $ 56,966 $ 193,274 $ 3,246 $ (145,307 ) $ 51,213 Depreciation and amortization 19,065 9,794 12,783 41,642 1,910 1,518 45,070 Utilization of inventory markup (d) 10,606 — — 10,606 — — 10,606 Restructuring and other, net (e) — — — — — 12,905 12,905 Gain on acquisition (f) (7,433 ) — — (7,433 ) — — (7,433 ) Acquisition and integration related costs (a) — — — — — 14,281 14,281 Interest and financing expenses (g) — — — — — 68,513 68,513 Income tax expense — — — — — 11,971 11,971 Non-operating pension and OPEB items — — — — — (1,063 ) (1,063 ) Other (h) — — — — — 5,313 5,313 Adjusted EBITDA $ 99,852 $ 68,488 $ 69,749 $ 238,089 $ 5,156 $ (31,869 ) $ 211,376 (a) Included amounts for the three-month periods ended March 31, 2018 and 2017 recorded in (1) Cost of goods sold of $1.0 million and $8.9 million , respectively; and (2) Selling, general and administrative expenses of $1.2 million and $5.4 million , respectively, relating to various significant projects, including the Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) acquisition, which contains unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements. (b) Included in Other (expenses) income, see Note 10, “Commitments and Contingencies” for additional information. (c) Included amounts for the three months ended March 31, 2018 recorded in: ▪ Cost of goods sold - $1.1 million related to the write-off of fixed assets in our JBC joint venture. ▪ Selling, general and administrative expenses - $1.4 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year. ▪ Other (expenses) income, net - $15.6 million of environmental charges related to a site formerly owned by Albemarle, partially offset by a net gain of $0.2 million related to the the reversal of previously recorded expenses of disposed businesses. (d) 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 $23.1 million . The inventory markup was 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. (e) During the first quarter of 2017, we initiated actions 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, 2018, with the expectation that the majority of these plans will be completed by the end of 2018. (f) Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile. The calculation of the initial gain recorded during the three months ended March 31, 2017 was based on management’s preliminary estimates and assumptions available at that time. (g) During the first quarter of 2017, 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, included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million , representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes. (h) 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. |
Pension Plans and Other Postr34
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month periods ended March 31, 2018 and 2017 were as follows (in thousands): Three Months Ended 2018 2017 Pension Benefits Cost (Credit): Service cost $ 1,268 $ 1,003 Interest cost 8,027 8,288 Expected return on assets (10,764 ) (9,908 ) Amortization of prior service benefit 22 27 Total net pension benefits credit $ (1,447 ) $ (590 ) Postretirement Benefits Cost (Credit): Service cost $ 29 $ 31 Interest cost 542 585 Expected return on assets (2 ) (28 ) Amortization of prior service benefit (12 ) (24 ) Total net postretirement benefits cost $ 557 $ 564 Total net pension and postretirement benefits credit $ (890 ) $ (26 ) |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 December 31, 2017 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,483,794 $ 1,553,114 $ 1,845,309 $ 1,949,638 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 (in thousands): March 31, 2018 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) $ 25,878 $ 25,878 $ — $ — Private equity securities (b) $ 37 $ 37 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,117 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 25,878 $ 25,878 $ — $ — Foreign currency forward contracts (d) $ 241 $ — $ 241 $ — December 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) $ 25,494 $ 25,494 $ — $ — Private equity securities (b) $ 38 $ 38 $ — $ — Private equity securities measured at net asset value (b)(c) $ 5,121 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 25,494 $ 25,494 $ — $ — Foreign currency forward contracts (d) $ 4,954 $ — $ 4,954 $ — (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 certain 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, 2018 | |
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, 2018 Balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ (14,629 ) $ (225,668 ) Other comprehensive income (loss) before reclassifications 64,891 — (14,421 ) — 50,470 Amounts reclassified from accumulated other comprehensive loss — 3 — 642 645 Other comprehensive income (loss), net of tax 64,891 3 (14,421 ) 642 51,115 Other comprehensive income attributable to noncontrolling interests (186 ) — — — (186 ) Balance at March 31, 2018 $ (192,864 ) $ (18 ) $ 32,130 $ (13,987 ) $ (174,739 ) 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 ) (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 credit. See Note 12, “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 Benefit (Expense) Allocated to Component of Other Comprehensive Income (Loss) | The amount of income tax benefit (expense) allocated to each component of Other comprehensive income (loss) for the three-month periods ended March 31, 2018 and 2017 is provided in the following tables (in thousands): Three Months Ended March 31, 2018 2017 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 $ 64,891 $ 3 $ (18,734 ) $ 834 $ 80,141 $ (6 ) $ (21,580 ) $ 834 Income tax benefit (expense) — — 4,313 (192 ) (1,086 ) (1 ) 7,895 (305 ) Other comprehensive income (loss), net of tax $ 64,891 $ 3 $ (14,421 ) $ 642 $ 79,055 $ (7 ) $ (13,685 ) $ 529 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended 2018 2017 Sales to unconsolidated affiliates $ 4,605 $ 7,189 Purchases from unconsolidated affiliates $ 68,916 $ 40,570 Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): March 31, 2018 December 31, 2017 Receivable from related parties $ 2,184 $ 2,406 Payable to related parties $ 67,244 $ 55,801 |
Supplemental Cash Flow Inform39
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information Related to Consolidated Statement of Cash Flows | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Three Months Ended 2018 2017 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 74,906 $ 18,874 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Trade accounts receivable arising from contracts with customers | $ 591.8 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Timing between shipment and delivery | 1 day |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 90 days |
Timing between shipment and delivery | 45 days |
Divestitures Divestitures - Oth
Divestitures Divestitures - Other Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Apr. 03, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets | $ 35,829 | $ 39,152 | |
Goodwill | 14,400 | 14,400 | |
Other intangibles, net of amortization | 3,800 | 3,600 | |
Current liabilities | 2,173 | 1,938 | |
Assets held for sale, excluding discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets | 35,829 | 39,152 | |
Net, property, plant and equipment | 133,506 | 121,759 | |
Goodwill | 14,422 | 14,422 | |
Other intangibles, net of amortization | 3,815 | 3,632 | |
Assets held for sale | 187,572 | 178,965 | |
Current liabilities | 2,173 | 1,938 | |
Noncurrent liabilities | 682 | 614 | |
Liabilities held for sale | $ 2,855 | $ 2,552 | |
Subsequent Event | Assets held for sale, excluding discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash proceeds from divestitures, net | $ 416,000 |
Goodwill and Other Intangible42
Goodwill and Other Intangibles - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill classified as assets held for sale | $ 14,400 | $ 14,400 |
Goodwill [Roll Forward] | ||
Balance at beginning of period | 1,610,355 | |
Foreign currency translation adjustments and other | 33,391 | |
Balance at end of period | 1,643,746 | |
Reportable Segments | Lithium | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 1,389,089 | |
Foreign currency translation adjustments and other | 26,110 | |
Balance at end of period | 1,415,199 | |
Reportable Segments | Bromine Specialties | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 20,319 | |
Foreign currency translation adjustments and other | 0 | |
Balance at end of period | 20,319 | |
Reportable Segments | Catalysts | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 194,361 | |
Foreign currency translation adjustments and other | 7,281 | |
Balance at end of period | 201,642 | |
Reportable Segments | All Other | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 6,586 | |
Foreign currency translation adjustments and other | 0 | |
Balance at end of period | $ 6,586 |
Goodwill and Other Intangible43
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 557,167 | |
Foreign currency translation adjustments and other | 18,908 | |
Gross Asset Value, End of Period | 576,075 | |
Accumulated Amortization, Beginning of Period | (135,664) | |
Amortization | (7,418) | |
Foreign currency translation adjustments and other | (3,379) | |
Accumulated Amortization, End of Period | (146,461) | |
Net Book Value | 429,614 | $ 421,503 |
Other intangibles classified as assets held for sale | 3,800 | 3,600 |
Customer lists and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 439,312 | |
Foreign currency translation adjustments and other | 13,054 | |
Gross Asset Value, End of Period | 452,366 | |
Accumulated Amortization, Beginning of Period | (74,704) | |
Amortization | (5,962) | |
Foreign currency translation adjustments and other | (2,005) | |
Accumulated Amortization, End of Period | (82,671) | |
Net Book Value | 369,695 | 364,608 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 18,981 | |
Foreign currency translation adjustments and other | 324 | |
Gross Asset Value, End of Period | 19,305 | |
Accumulated Amortization, Beginning of Period | (8,295) | |
Amortization | 0 | |
Foreign currency translation adjustments and other | (102) | |
Accumulated Amortization, End of Period | (8,397) | |
Net Book Value | 10,908 | 10,686 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 61,618 | |
Foreign currency translation adjustments and other | 1,668 | |
Gross Asset Value, End of Period | 63,286 | |
Accumulated Amortization, Beginning of Period | (35,203) | |
Amortization | (368) | |
Foreign currency translation adjustments and other | (727) | |
Accumulated Amortization, End of Period | (36,298) | |
Net Book Value | 26,988 | 26,415 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 37,256 | |
Foreign currency translation adjustments and other | 3,862 | |
Gross Asset Value, End of Period | 41,118 | |
Accumulated Amortization, Beginning of Period | (17,462) | |
Amortization | (1,088) | |
Foreign currency translation adjustments and other | (545) | |
Accumulated Amortization, End of Period | (19,095) | |
Net Book Value | $ 22,023 | $ 19,794 |
Foreign Exchange - Additional I
Foreign Exchange - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign Currency [Abstract] | ||
Net foreign transaction and revaluation losses | $ 3.2 | $ 4.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 14.70% | 22.40% | |
Federal statutory income tax rate | 21.00% | 35.00% | |
Provisional tax expense related to transition tax on foreign earnings | $ 429.2 | ||
Provisional tax benefit related to remeasurement of deferred tax balances | $ 62.3 | ||
Discrete tax benefit related to one-time transition tax | $ 2.8 | ||
Discrete tax benefit related to other provisions of TCJA | 3.7 | ||
Income tax expense on global intangible low-taxed income | $ 3 |
Earnings Per Share - Calculatio
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, 2018 | Mar. 31, 2017 | |
Basic earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 131,760 | $ 51,213 |
Weighted-average common shares for basic earnings per share (in shares) | 110,681 | 111,986 |
Basic earnings per share (in dollars per share) | $ 1.19 | $ 0.46 |
Diluted earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 131,760 | $ 51,213 |
Weighted-average common shares for basic earnings per share (in shares) | 110,681 | 111,986 |
Incremental shares under stock compensation plans (in shares) | 1,186 | 1,303 |
Weighted-average common shares outstanding - diluted (in shares) | 111,867 | 113,289 |
Diluted earnings per share (in dollars per share) | $ 1.18 | $ 0.45 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares | May 07, 2018 | Feb. 23, 2018 |
Earnings Per Share Disclosure [Line Items] | ||
Increase in dividend rate, percentage | 5.00% | |
Cash dividend, amount per share (in dollars per share) | $ 0.335 | |
Subsequent Event | ||
Earnings Per Share Disclosure [Line Items] | ||
Cash dividend, amount per share (in dollars per share) | $ 0.335 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 453,662 | $ 404,239 |
Raw materials and work in process | 154,679 | 132,891 |
Stores, supplies and other | 58,226 | 55,651 |
Total inventories | $ 666,567 | $ 592,781 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventories classified as assets held for sale | $ 23 | $ 24.7 |
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 66.2 | $ 59.6 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | ||||
Termination of Tianqi Lithium Corporation option agreement | $ 13,100 | $ 0 | ||
Windfield Holdings | ||||
Schedule of Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | |||
Carrying value of unconsolidated investment | $ 338,700 | $ 355,200 | ||
Other variable interest entities | ||||
Schedule of Investments [Line Items] | ||||
Carrying value of unconsolidated investment | $ 8,500 | $ 8,700 | ||
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, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 1,476,068 | $ 1,837,372 |
Current portion of long-term debt | 39,216 | 422,012 |
Long-term debt | 1,436,852 | 1,415,360 |
Senior Notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 482,567 | 463,575 |
Senior Notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 421,750 | 421,628 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 174,401 | 174,325 |
Senior Notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 345,880 | 345,841 |
Commercial paper notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 38,500 | 421,321 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 7,560 | 5,298 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 5,410 | $ 5,384 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Repayments of commercial paper | $ 382,800 | ||
Net investment hedge loss | $ (14,421) | $ (13,685) | |
1.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% |
Commercial paper notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.37% | ||
Debt instrument maturity period | 31 days |
Long-Term Debt - Interest Rates
Long-Term Debt - Interest Rates (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
1.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ 3,859 | $ 3,971 | |
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% |
4.15% Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ 3,250 | $ 3,372 | |
Debt instrument, interest rate | 4.15% | 4.15% | |
4.50% Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ 815 | $ 891 | |
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% |
5.45% Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ 4,120 | $ 4,159 | |
Debt instrument, interest rate | 5.45% | 5.45% |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 39,808 | |
Expenditures | (2,612) | |
Accretion of discount | 225 | |
Additions and revisions of estimates | 16,236 | |
Foreign currency translation adjustments | 786 | |
Balance at end of period | $ 39,808 | $ 54,443 |
Less amounts reported in Accrued expenses | 5,060 | |
Amounts reported in Other noncurrent liabilities | $ 49,383 |
Commitments and Contingencies55
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 44,100 | $ 28,100 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.70% | 3.60% |
Environmental remediation liabilities - undiscounted | $ 85,500 | $ 68,200 |
Legal accrual | 17,628 | |
Tax indemnification liability | 32,400 | $ 42,700 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 10,000 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | $ 20,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 821,629 | $ 722,063 |
Adjusted EBITDA | 248,718 | 211,376 |
Net income attributable to Albemarle Corporation | 131,760 | 51,213 |
Depreciation and amortization | 50,330 | 45,070 |
Utilization of inventory markup | 10,606 | |
Restructuring and other, net | 12,905 | |
Gain on acquisition | 0 | (7,433) |
Acquisition and integration related costs | 2,201 | 14,281 |
Interest and financing expenses | 13,538 | 68,513 |
Income tax expense | 20,361 | 11,971 |
Non-operating pension and OPEB items | (2,197) | (1,063) |
Legal accrual | 17,628 | |
Other | 15,097 | 5,313 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 37,165 | 32,419 |
Adjusted EBITDA | 3,862 | 5,156 |
Net income attributable to Albemarle Corporation | 1,760 | 3,246 |
Depreciation and amortization | 2,102 | 1,910 |
Utilization of inventory markup | 0 | |
Restructuring and other, net | 0 | |
Gain on acquisition | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Legal accrual | 0 | |
Other | 0 | 0 |
Reportable Segments | Lithium | ||
Segment Reporting Information [Line Items] | ||
Net sales | 298,032 | 216,229 |
Adjusted EBITDA | 131,014 | 99,852 |
Net income attributable to Albemarle Corporation | 108,334 | 77,614 |
Depreciation and amortization | 24,065 | 19,065 |
Utilization of inventory markup | 10,606 | |
Restructuring and other, net | 0 | |
Gain on acquisition | (7,433) | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Legal accrual | 0 | |
Other | (1,385) | 0 |
Reportable Segments | Bromine Specialties | ||
Segment Reporting Information [Line Items] | ||
Net sales | 225,639 | 219,191 |
Adjusted EBITDA | 69,969 | 68,488 |
Net income attributable to Albemarle Corporation | 59,536 | 58,694 |
Depreciation and amortization | 10,433 | 9,794 |
Utilization of inventory markup | 0 | |
Restructuring and other, net | 0 | |
Gain on acquisition | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Legal accrual | 0 | |
Other | 0 | 0 |
Reportable Segments | Catalysts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 260,717 | 253,558 |
Adjusted EBITDA | 67,830 | 69,749 |
Net income attributable to Albemarle Corporation | 55,660 | 56,966 |
Depreciation and amortization | 12,170 | 12,783 |
Utilization of inventory markup | 0 | |
Restructuring and other, net | 0 | |
Gain on acquisition | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Legal accrual | 0 | |
Other | 0 | 0 |
Reportable Segments | Reportable Segments Total | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 268,813 | 238,089 |
Net income attributable to Albemarle Corporation | 223,530 | 193,274 |
Depreciation and amortization | 46,668 | 41,642 |
Utilization of inventory markup | 10,606 | |
Restructuring and other, net | 0 | |
Gain on acquisition | (7,433) | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Legal accrual | 0 | |
Other | (1,385) | 0 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales | 76 | 666 |
Adjusted EBITDA | (23,957) | (31,869) |
Net income attributable to Albemarle Corporation | (93,530) | (145,307) |
Depreciation and amortization | 1,560 | 1,518 |
Utilization of inventory markup | 0 | |
Restructuring and other, net | 12,905 | |
Gain on acquisition | 0 | |
Acquisition and integration related costs | 2,201 | 14,281 |
Interest and financing expenses | 13,538 | 68,513 |
Income tax expense | 20,361 | 11,971 |
Non-operating pension and OPEB items | (2,197) | (1,063) |
Legal accrual | 17,628 | |
Other | $ 16,482 | $ 5,313 |
Segment Information - Summari58
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) $ in Thousands, € in Millions | 3 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Dec. 31, 2017 | Feb. 01, 2017 | |
Segment Reporting Information [Line Items] | |||||
Acquisition and integration related costs | $ 2,201 | $ 14,281 | |||
Utilization of inventory markup | 10,606 | ||||
Restructuring and other, net | 12,905 | ||||
Repayments of long-term debt | 0 | 751,209 | |||
Repayment of debt premium | 45,200 | ||||
Loss on extinguishment of debt | 0 | 52,801 | |||
Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||||
Segment Reporting Information [Line Items] | |||||
Inventory markup | 23,100 | ||||
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] | |||||
Acquisition and integration related costs | 1,000 | 8,900 | |||
Write-off of fixed assets at JBC | 1,100 | ||||
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] | |||||
Acquisition and integration related costs | 1,200 | 5,400 | |||
Gain related to a refund form Chilean authorities | 1,400 | ||||
Restructuring and other, net | 4,200 | ||||
Other (expenses) income, net | |||||
Segment Reporting Information [Line Items] | |||||
Environmental charges related to a site formerly owned by Albemarle | 15,600 | ||||
Reversal of previously recorded expenses of a disposed business | $ 200 | ||||
Asset retirement obligation charges | 3,200 | ||||
Loss on sale of properties | (2,100) | ||||
Research and development expenses | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other, net | $ 5,800 | ||||
3.00% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Debt instrument, interest rate | 3.00% | ||||
1.875% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | ||
4.50% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | ||
Senior Notes | 3.00% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes | 1.875% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Repayments of long-term debt | € | € 307 | ||||
Senior Notes | 4.50% Senior Notes | |||||
Segment Reporting Information [Line Items] | |||||
Repayments of long-term debt | $ 174,700 |
Pension Plans and Other Postr59
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total net pension and postretirement benefits credit | $ (890) | $ (26) |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,268 | 1,003 |
Interest cost | 8,027 | 8,288 |
Expected return on assets | (10,764) | (9,908) |
Amortization of prior service benefit | 22 | 27 |
Total net pension and postretirement benefits credit | (1,447) | (590) |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 29 | 31 |
Interest cost | 542 | 585 |
Expected return on assets | (2) | (28) |
Amortization of prior service benefit | (12) | (24) |
Total net pension and postretirement benefits credit | $ 557 | $ 564 |
Pension Plans and Other Postr60
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Cost of goods sold | $ 516,650 | $ 467,107 |
Selling, general and administrative expense | 101,370 | 108,928 |
Other (expenses) income, net | (30,476) | 265 |
Pension contributions | 3,100 | 2,400 |
Other postretirement benefits payments | $ 500 | 500 |
Accounting Standards Update 2017-07 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cost of goods sold | 200 | |
Selling, general and administrative expense | 900 | |
Other (expenses) income, net | $ 1,100 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 1,483,794 | $ 1,845,309 |
Total long-term debt, fair value, excluding debt issuance costs | $ 1,553,114 | $ 1,949,638 |
Fair Value of Financial Instr62
Fair Value of Financial Instruments Additional Information (Details) - Forward contracts - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | $ 494.7 | $ 357.4 | |
Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts, liabilities | 0.2 | $ 5 | |
Other (expenses) income, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Recognized gains of foreign currency forward contracts | 4.8 | $ 4.5 | |
Other, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in the fair value of foreign currency forward contracts | (4.8) | (4.5) | |
Cash receipts | $ 0.1 | $ 4.3 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Level 1 to Level 2 Transfers, Amount | $ 0 | |
Investments under executive deferred compensation plan | 25,878,000 | $ 25,494,000 |
Private equity securities | 37,000 | 38,000 |
Private equity securities measured at net asset value | 5,117,000 | 5,121,000 |
Obligations under executive deferred compensation plan | 25,878,000 | 25,494,000 |
Foreign currency forward contracts, liabilities | 241,000 | 4,954,000 |
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 | 25,878,000 | 25,494,000 |
Private equity securities | 37,000 | 38,000 |
Private equity securities measured at net asset value | 0 | 0 |
Obligations under executive deferred compensation plan | 25,878,000 | 25,494,000 |
Foreign currency forward contracts, liabilities | 0 | 0 |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 241,000 | 4,954,000 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | $ 0 | $ 0 |
Accumulated Other Comprehensi64
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, 2018 | Mar. 31, 2017 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ 3,817,696 | $ 3,942,604 |
Other comprehensive income (loss), before reclassifications | 50,470 | 65,370 |
Amounts reclassified from accumulated other comprehensive loss | 645 | 522 |
Total other comprehensive income (loss), net of tax | 51,115 | 65,892 |
Other comprehensive income attributable to noncontrolling interests | (186) | (461) |
Ending Balance | 3,943,430 | 3,783,972 |
Foreign Currency Translation | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (257,569) | (484,121) |
Other comprehensive income (loss), before reclassifications | 64,891 | 79,055 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income (loss), net of tax | 64,891 | 79,055 |
Other comprehensive income attributable to noncontrolling interests | (186) | (461) |
Ending Balance | (192,864) | (405,527) |
Pension and Postretirement Benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (21) | 76 |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 3 | (7) |
Total other comprehensive income (loss), net of tax | 3 | (7) |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 |
Ending Balance | (18) | 69 |
Net Investment Hedge | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 46,551 | 88,378 |
Other comprehensive income (loss), before reclassifications | (14,421) | (13,685) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income (loss), net of tax | (14,421) | (13,685) |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 |
Ending Balance | 32,130 | 74,693 |
Interest Rate Swap | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (14,629) | (16,745) |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 642 | 529 |
Total other comprehensive income (loss), net of tax | 642 | 529 |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 |
Ending Balance | (13,987) | (16,216) |
Accumulated Other Comprehensive (Loss) Income | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (225,668) | (412,412) |
Total other comprehensive income (loss), net of tax | 50,929 | 65,431 |
Ending Balance | $ (174,739) | $ (346,981) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive (Loss) Income - Amount of Income Tax Benefit (Expense) Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Foreign Currency Translation, Other comprehensive income (loss), before tax | $ 64,891 | $ 80,141 |
Foreign Currency Translation, Income tax benefit (expense) | 0 | (1,086) |
Foreign currency translation, Other comprehensive income (loss), net of tax | 64,891 | 79,055 |
Pension and Postretirement Benefits, Other comprehensive income (loss), before tax | 3 | (6) |
Pension and Postretirement Benefits, Income tax benefit (expense) | 0 | (1) |
Pension and Postretirement Benefits, Other comprehensive income (loss), net of tax | 3 | (7) |
Net investment hedge, Other comprehensive income (loss), before tax | (18,734) | (21,580) |
Net investment hedge, Income tax benefit (expense) | 4,313 | 7,895 |
Net investment hedge, Other comprehensive income (loss), net of tax | (14,421) | (13,685) |
Interest rate swap, Other comprehensive income (loss), before tax | 834 | 834 |
Interest rate swap, Income tax benefit (expense) | (192) | (305) |
Interest rate swap, Other comprehensive income (loss), net of tax | $ 642 | $ 529 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Sales to unconsolidated affiliates | $ 4,605 | $ 7,189 | |
Purchases from unconsolidated affiliates | 68,916 | $ 40,570 | |
Receivable from related parties | 2,184 | $ 2,406 | |
Payable to related parties | $ 67,244 | $ 55,801 |
Supplemental Cash Flow Inform67
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 74,906 | $ 18,874 |
Recently Issued Accounting Pr68
Recently Issued Accounting Pronouncements (Details) $ in Millions | Jan. 01, 2018USD ($) |
Retained Earnings | Accounting Standards Update 2016-16 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle adopted | $ (11.2) |