Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-12658 | |
Entity Registrant Name | ALBEMARLE CORPORATION | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1692118 | |
Entity Address, Address Line One | 4250 Congress Street, Suite 900 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | (980) | |
Local Phone Number | 299-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | COMMON STOCK, $.01 Par Value | |
Trading Symbol | ALB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 106,033,033 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 879,747 | $ 777,748 | $ 2,596,863 | $ 2,453,251 |
Cost of goods sold | 569,880 | 497,211 | 1,677,596 | 1,556,379 |
Gross profit | 309,867 | 280,537 | 919,267 | 896,872 |
Selling, general and administrative expenses | 108,135 | 100,167 | 348,205 | 325,174 |
Research and development expenses | 15,585 | 16,610 | 44,024 | 53,670 |
Gain on sale of business | 0 | 0 | 0 | 218,705 |
Operating profit | 186,147 | 163,760 | 527,038 | 736,733 |
Interest and financing expenses | (11,108) | (12,988) | (35,295) | (39,834) |
Other (expenses) income, net | (11,316) | 3,793 | (7,090) | (31,906) |
Income before income taxes and equity in net income of unconsolidated investments | 163,723 | 154,565 | 484,653 | 664,993 |
Income tax expense | 25,341 | 33,167 | 93,266 | 133,630 |
Income before equity in net income of unconsolidated investments | 138,382 | 121,398 | 391,387 | 531,363 |
Equity in net income of unconsolidated investments (net of tax) | 33,236 | 22,081 | 106,727 | 61,727 |
Net income | 171,618 | 143,479 | 498,114 | 593,090 |
Net income attributable to noncontrolling interests | (16,548) | (13,734) | (55,277) | (29,124) |
Net income attributable to Albemarle Corporation | $ 155,070 | $ 129,745 | $ 442,837 | $ 563,966 |
Basic earnings per share (in dollars per share) | $ 1.46 | $ 1.21 | $ 4.18 | $ 5.16 |
Diluted earnings per share (in dollars per share) | $ 1.46 | $ 1.20 | $ 4.16 | $ 5.11 |
Weighted-average common shares outstanding - basic (in shares) | 105,999 | 107,315 | 105,920 | 109,223 |
Weighted-average common shares outstanding - diluted (in shares) | 106,299 | 108,302 | 106,324 | 110,276 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 171,618 | $ 143,479 | $ 498,114 | $ 593,090 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation | (100,069) | (9,549) | (100,380) | (95,515) |
Pension and postretirement benefits | (5) | 11 | 8 | 37 |
Net investment hedge | 12,745 | (3,621) | 13,012 | 4,947 |
Interest rate swap | 641 | 642 | 1,923 | 1,926 |
Total other comprehensive loss, net of tax | (86,688) | (12,517) | (85,437) | (88,605) |
Comprehensive income | 84,930 | 130,962 | 412,677 | 504,485 |
Comprehensive income attributable to noncontrolling interests | (16,426) | (13,729) | (55,135) | (29,042) |
Comprehensive income attributable to Albemarle Corporation | $ 68,504 | $ 117,233 | $ 357,542 | $ 475,443 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 317,823 | $ 555,320 |
Trade accounts receivable, less allowance for doubtful accounts (2019 – $4,391; 2018 – $4,460) | 637,037 | 605,712 |
Other accounts receivable | 86,556 | 52,059 |
Inventories | 802,434 | 700,540 |
Other current assets | 125,902 | 84,790 |
Total current assets | 1,969,752 | 1,998,421 |
Property, plant and equipment, at cost | 5,406,123 | 4,799,063 |
Less accumulated depreciation and amortization | 1,882,086 | 1,777,979 |
Net property, plant and equipment | 3,524,037 | 3,021,084 |
Investments | 551,657 | 528,722 |
Other assets | 200,858 | 80,135 |
Goodwill | 1,534,241 | 1,567,169 |
Other intangibles, net of amortization | 361,058 | 386,143 |
Total assets | 8,141,603 | 7,581,674 |
Current liabilities: | ||
Accounts payable | 527,052 | 522,516 |
Accrued expenses | 273,709 | 257,323 |
Current portion of long-term debt | 539,960 | 307,294 |
Dividends payable | 38,678 | 35,169 |
Current operating lease liability | 24,606 | 0 |
Income taxes payable | 17,238 | 60,871 |
Total current liabilities | 1,421,243 | 1,183,173 |
Long-term debt | 1,381,984 | 1,397,916 |
Postretirement benefits | 45,752 | 46,157 |
Pension benefits | 272,345 | 285,396 |
Other noncurrent liabilities | 618,822 | 526,942 |
Deferred income taxes | 393,120 | 382,982 |
Commitments and contingencies (Note 9) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 106,031 in 2019 and 105,616 in 2018 | 1,060 | 1,056 |
Additional paid-in capital | 1,379,419 | 1,368,897 |
Accumulated other comprehensive loss | (435,977) | (350,682) |
Retained earnings | 2,892,057 | 2,566,050 |
Total Albemarle Corporation shareholders’ equity | 3,836,559 | 3,585,321 |
Noncontrolling interests | 171,778 | 173,787 |
Total equity | 4,008,337 | 3,759,108 |
Total liabilities and equity | $ 8,141,603 | $ 7,581,674 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 4,391 | $ 4,460 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 106,031 | 105,616 |
Common stock, outstanding (in shares) | 106,031 | 105,616 |
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, 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 | 593,090 | 563,966 | 563,966 | 29,124 | |||
Other comprehensive loss | (88,605) | (88,523) | (88,523) | (82) | |||
Cash dividends declared | (123,975) | (109,219) | (109,219) | (14,756) | |||
Cumulative adjustment from adoption of income tax standard update (Note 1) | (11,199) | (11,199) | (11,199) | ||||
Stock-based compensation | 14,015 | 14,015 | 14,015 | ||||
Exercise of stock options (in shares) | 71,649 | ||||||
Exercise of stock options | 2,302 | $ 1 | 2,301 | 2,302 | |||
Stock Repurchased and Retired During Period, Shares | (4,665,618) | ||||||
Stock Repurchased and Retired During Period, Value | (500,000) | $ (47) | (499,953) | (500,000) | |||
Issuance of common stock, net (in shares) | 378,006 | ||||||
Issuance of common stock, net | 0 | $ 4 | (4) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (144,208) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (17,047) | $ (1) | (17,046) | (17,047) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 106,186,503 | ||||||
Ending Balance at Sep. 30, 2018 | $ 3,686,277 | $ 1,062 | 1,363,262 | (314,191) | 2,478,711 | 3,528,844 | 157,433 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 1.005 | ||||||
Beginning Balance (in shares) at Jun. 30, 2018 | 108,441,363 | ||||||
Beginning Balance at Jun. 30, 2018 | $ 3,837,280 | $ 1,084 | 1,609,526 | (301,679) | 2,384,645 | 3,693,576 | 143,704 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 143,479 | 129,745 | 129,745 | 13,734 | |||
Other comprehensive loss | (12,517) | (12,512) | (12,512) | (5) | |||
Cash dividends declared | (35,679) | (35,679) | (35,679) | ||||
Stock-based compensation | 3,287 | 3,287 | 3,287 | ||||
Exercise of stock options (in shares) | 42,683 | ||||||
Exercise of stock options | 1,014 | $ 1 | 1,013 | 1,014 | |||
Stock Repurchased and Retired During Period, Shares | (2,311,485) | ||||||
Stock Repurchased and Retired During Period, Value | (250,000) | $ (23) | (249,977) | (250,000) | |||
Issuance of common stock, net (in shares) | 20,079 | ||||||
Issuance of common stock, net | 0 | $ 0 | 0 | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (6,137) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (587) | $ 0 | (587) | (587) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 106,186,503 | ||||||
Ending Balance at Sep. 30, 2018 | $ 3,686,277 | $ 1,062 | 1,363,262 | (314,191) | 2,478,711 | 3,528,844 | 157,433 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 0.335 | ||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 105,616,028 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 3,759,108 | $ 1,056 | 1,368,897 | (350,682) | 2,566,050 | 3,585,321 | 173,787 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 498,114 | 442,837 | 442,837 | 55,277 | |||
Other comprehensive loss | (85,437) | (85,295) | (85,295) | (142) | |||
Cash dividends declared | (174,042) | (116,830) | (116,830) | (57,212) | |||
Stock-based compensation | 16,999 | 16,999 | 16,999 | ||||
Exercise of stock options (in shares) | 161,909 | ||||||
Exercise of stock options | 4,814 | $ 2 | 4,812 | 4,814 | |||
Issuance of common stock, net (in shares) | 383,313 | ||||||
Issuance of common stock, net | 0 | $ 3 | (3) | 0 | |||
Increase in ownership interest of noncontrolling interest | (445) | (513) | (513) | 68 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (130,162) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (10,774) | $ (1) | (10,773) | (10,774) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 106,031,088 | ||||||
Ending Balance at Sep. 30, 2019 | $ 4,008,337 | $ 1,060 | 1,379,419 | (435,977) | 2,892,057 | 3,836,559 | 171,778 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 1.1025 | ||||||
Beginning Balance (in shares) at Jun. 30, 2019 | 105,971,464 | ||||||
Beginning Balance at Jun. 30, 2019 | $ 3,974,403 | $ 1,059 | 1,373,213 | (349,411) | 2,775,940 | 3,800,801 | 173,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 171,618 | 155,070 | 155,070 | 16,548 | |||
Other comprehensive loss | (86,688) | (86,566) | (86,566) | (122) | |||
Cash dividends declared | (57,203) | (38,953) | (38,953) | (18,250) | |||
Stock-based compensation | 4,802 | 4,802 | 4,802 | ||||
Exercise of stock options (in shares) | 36,000 | ||||||
Exercise of stock options | 1,609 | $ 1 | 1,608 | 1,609 | |||
Issuance of common stock, net (in shares) | 26,489 | ||||||
Issuance of common stock, net | 0 | $ 0 | 0 | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (2,865) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (204) | $ 0 | (204) | (204) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 106,031,088 | ||||||
Ending Balance at Sep. 30, 2019 | $ 4,008,337 | $ 1,060 | $ 1,379,419 | $ (435,977) | $ 2,892,057 | $ 3,836,559 | $ 171,778 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 0.3675 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 555,320 | $ 1,137,303 |
Cash flows from operating activities: | ||
Net income | 498,114 | 593,090 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 156,718 | 150,511 |
Gain on sale of business | 0 | (218,705) |
Gain on sale of property | (11,079) | 0 |
Stock-based compensation and other | 15,169 | 11,785 |
Equity in net income of unconsolidated investments (net of tax) | (106,727) | (61,727) |
Dividends received from unconsolidated investments and nonmarketable securities | 62,982 | 32,794 |
Pension and postretirement expense (benefit) | 1,641 | (2,708) |
Pension and postretirement contributions | (10,728) | (11,068) |
Unrealized gain on investments in marketable securities | (1,701) | (1,615) |
Deferred income taxes | 7,726 | 43,400 |
Working capital changes | (289,587) | (131,813) |
Other, net | 23,110 | (27,003) |
Net cash provided by operating activities | 345,638 | 376,941 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | (11,403) |
Capital expenditures | (608,456) | (471,675) |
Cash proceeds from divestitures, net | 0 | 413,479 |
Proceeds from sale of property and equipment | 10,356 | 0 |
Sales of (investments in) marketable securities, net | 1,177 | (761) |
Investments in equity and other corporate investments | (2,569) | (5,346) |
Net cash used in investing activities | (599,492) | (75,706) |
Cash flows from financing activities: | ||
Other borrowings (repayments), net | 232,183 | (134,505) |
Dividends paid to shareholders | (113,321) | (108,922) |
Dividends paid to noncontrolling interests | (57,212) | (14,756) |
Repurchases of common stock | 0 | (500,000) |
Proceeds from exercise of stock options | 4,814 | 2,302 |
Withholding taxes paid on stock-based compensation award distributions | (10,774) | (17,047) |
Other | (445) | 0 |
Net cash provided by (used in) financing activities | 55,245 | (772,928) |
Net effect of foreign exchange on cash and cash equivalents | (38,888) | (24,384) |
Decrease in cash and cash equivalents | (237,497) | (496,077) |
Cash and cash equivalents at end of period | $ 317,823 | $ 641,226 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation: In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three-month and nine-month periods ended September 30, 2019 and 2018 and our condensed consolidated statements of cash flows for the nine -month periods ended September 30, 2019 and 2018. Cost of goods sold for the three-month period ended September 30, 2019 includes expense of $7.0 million due to the correction of an out-of-period error regarding carbonate inventory values related to the three-month period ended June 30, 2019. The Company does not believe this adjustment is material to the consolidated financial statements for the three- or nine-month periods ended September 30, 2019, or the three- or six-month periods ended June 30, 2019. All other adjustments are of a normal and recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the Securities and Exchange Commission (“SEC”) on February 27, 2019. The December 31, 2018 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 and nine-month periods ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. The nine-month period ended September 30, 2018 includes an $11.2 million cumulative adjustment to decrease Retained earnings due to the adoption of accounting guidance that eliminated the deferral of tax effects of intra-entity asset transfers other than inventory. Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases” and all related amendments using the modified retrospective method. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of $139.1 million as of January 1, 2019. Comparative periods have not been restated and are reported in accordance with our historical accounting. The standard did not have an impact on our consolidated Net income or cash flows. In addition, as a result of the adoption of this new standard, we have implemented internal controls and system changes to prepare the financial information. As part of this adoption, we have elected the practical expedient relief package allowed by the new standard, which does not require the reassessment of (1) whether existing contracts contain a lease, (2) the lease classification or (3) unamortized initial direct costs for existing leases; and have elected to apply hindsight to the existing leases. Additionally, we have made accounting policy elections such as exclusion of short-term leases (leases with a term of 12 months or less and which do not include a purchase option that we are reasonably certain to exercise) from the balance sheet presentation, use of portfolio approach in determination of discount rate and accounting for non-lease components in a contract as part of a single lease component for all asset classes. See Note 2, “Leases” and Note 17, “Recently Issued Accounting Pronouncements,” for additional information. In addition, see below for a description of our updated lease accounting policy. Leases We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As an implicit rate for most of our leases is not determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease payments for the initial measurement of lease ROU assets and lease liabilities include fixed and variable payments based on an index or a rate. Variable lease payments that are not index or rate based are recorded as expenses when incurred. Our variable lease payments typically include real estate taxes, insurance costs and common-area maintenance. The operating lease ROU asset also includes any lease payments made, net of lease incentives. The lease term is the non-cancelable period of the lease, including any options to extend, purchase or terminate the lease when it is reasonably certain that we will exercise that option. We amortize the operating lease ROU assets on a straight-line basis over the period of the lease and the finance lease ROU assets on a straight-line basis over the shorter of their estimated useful lives or the lease terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine -month periods ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 7,939 $ 25,741 Finance lease cost: Amortization of right of use assets 157 471 Interest on lease liabilities 31 96 Total finance lease cost 188 567 Short-term lease cost 2,587 6,422 Variable lease cost 1,541 4,059 Total lease cost $ 12,255 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine months ended September 30, 2019 is as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,486 Operating cash flows from finance leases 96 Financing cash flows from finance leases 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,578 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2019 is as follows (in thousands, except as noted): September 30, 2019 Operating leases: Other assets $ 138,222 Current operating lease liability 24,606 Other noncurrent liabilities 116,590 Total operating lease liabilities 141,196 Finance leases: Net property, plant and equipment 3,793 Current portion of long-term debt 660 Long-term debt 3,174 Total finance lease liabilities 3,834 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 6.0 Weighted average discount rate (%): Operating leases 3.85 % Finance leases 2.88 % Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2019 $ 7,318 $ 197 2020 25,982 745 2021 14,843 657 2022 12,870 657 2023 12,349 657 Thereafter 105,536 1,313 Total lease payments 178,898 4,226 Less imputed interest 37,702 392 Total $ 141,196 $ 3,834 As of December 31, 2018, future non-cancelable minimum lease payments were $25.6 million in 2019; $17.9 million in 2020; $12.5 million in 2021; $10.8 million in 2022; $10.1 million in 2023; and $87.1 million |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine -month periods ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 7,939 $ 25,741 Finance lease cost: Amortization of right of use assets 157 471 Interest on lease liabilities 31 96 Total finance lease cost 188 567 Short-term lease cost 2,587 6,422 Variable lease cost 1,541 4,059 Total lease cost $ 12,255 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine months ended September 30, 2019 is as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,486 Operating cash flows from finance leases 96 Financing cash flows from finance leases 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,578 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2019 is as follows (in thousands, except as noted): September 30, 2019 Operating leases: Other assets $ 138,222 Current operating lease liability 24,606 Other noncurrent liabilities 116,590 Total operating lease liabilities 141,196 Finance leases: Net property, plant and equipment 3,793 Current portion of long-term debt 660 Long-term debt 3,174 Total finance lease liabilities 3,834 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 6.0 Weighted average discount rate (%): Operating leases 3.85 % Finance leases 2.88 % Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2019 $ 7,318 $ 197 2020 25,982 745 2021 14,843 657 2022 12,870 657 2023 12,349 657 Thereafter 105,536 1,313 Total lease payments 178,898 4,226 Less imputed interest 37,702 392 Total $ 141,196 $ 3,834 As of December 31, 2018, future non-cancelable minimum lease payments were $25.6 million in 2019; $17.9 million in 2020; $12.5 million in 2021; $10.8 million in 2022; $10.1 million in 2023; and $87.1 million |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2018 $ 1,354,779 $ 20,319 $ 185,485 $ 6,586 $ 1,567,169 Foreign currency translation adjustments (25,992 ) — (6,936 ) — (32,928 ) Balance at September 30, 2019 $ 1,328,787 $ 20,319 $ 178,549 $ 6,586 $ 1,534,241 The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2019 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2018 $ 428,372 $ 18,453 $ 55,801 $ 43,708 $ 546,334 Foreign currency translation adjustments and other (8,094 ) (304 ) (1,217 ) 1,807 (7,808 ) Balance at September 30, 2019 $ 420,278 $ 18,149 $ 54,584 $ 45,515 $ 538,526 Accumulated Amortization Balance at December 31, 2018 $ (95,797 ) $ (8,176 ) $ (35,248 ) $ (20,970 ) $ (160,191 ) Amortization (17,453 ) — (1,091 ) (1,965 ) (20,509 ) Foreign currency translation adjustments and other 1,994 104 686 448 3,232 Balance at September 30, 2019 $ (111,256 ) $ (8,072 ) $ (35,653 ) $ (22,487 ) $ (177,468 ) Net Book Value at December 31, 2018 $ 332,575 $ 10,277 $ 20,553 $ 22,738 $ 386,143 Net Book Value at September 30, 2019 $ 309,022 $ 10,077 $ 18,931 $ 23,028 $ 361,058 (a) Net Book Value includes only indefinite-lived intangible assets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The effective income tax rate for the three-month and nine-month periods ended September 30, 2019 was 15.5% and 19.2% , respectively, compared to 21.5% and 20.1% for the three-month and nine-month periods ended September 30, 2018 , respectively. The Company’s effective income tax rate fluctuates based on, among other factors, its level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2019 and 2018 was impacted by a variety of factors, primarily stemming from the location in which income was earned. For the three-month and nine-month periods ended September 30, 2019 , this was 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. Income tax expense for the three-month period ended September 30, 2018 included discrete tax expenses of $1.9 million from stock-based compensation arrangements and $1.7 million related to the accounting for the U.S. Tax Cuts and Jobs Act (“TCJA”), partially offset by discrete tax benefits of $2.0 million from foreign accrual to return adjustments and $1.2 million from the release of foreign valuation allowances. Income tax expense for the nine-month period ended September 30, 2018 included discrete tax expenses of $42.0 million for the disposition of the polyolefin catalysts and components portion of our Performance Catalyst Solutions (“PCS”) business (“Polyolefin Catalysts Divestiture”) and $7.3 million for adjustments to foreign valuation allowances, partially offset by discrete tax benefits of $8.0 million for tax accounting method changes, $4.8 million for adjustments related to accounting for the TCJA, $5.4 million from stock-based compensation arrangements and $2.0 million from foreign accrual to return adjustments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2019 and 2018 are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 155,070 $ 129,745 $ 442,837 $ 563,966 Denominator: Weighted-average common shares for basic earnings per share 105,999 107,315 105,920 109,223 Basic earnings per share $ 1.46 $ 1.21 $ 4.18 $ 5.16 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 155,070 $ 129,745 $ 442,837 $ 563,966 Denominator: Weighted-average common shares for basic earnings per share 105,999 107,315 105,920 109,223 Incremental shares under stock compensation plans 300 987 404 1,053 Weighted-average common shares for diluted earnings per share 106,299 108,302 106,324 110,276 Diluted earnings per share $ 1.46 $ 1.20 $ 4.16 $ 5.11 At September 30, 2019 , there were 226,872 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. On February 26, 2019, the Company increased the regular quarterly dividend by 10% to $0.3675 per share. On July 24, 2019 , the Company declared a cash dividend of $0.3675 per share, which was paid on October 1, 2019 to shareholders of record at the close of business as of September 13, 2019 . On October 29, 2019 , the Company declared a cash dividend of $0.3675 per share, which is payable on January 2, 2020 to shareholders of record at the close of business as of December 13, 2019 . |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at September 30, 2019 and December 31, 2018 (in thousands): September 30, December 31, 2019 2018 Finished goods (a)(b) $ 561,981 $ 482,355 Raw materials and work in process (c) 173,973 158,290 Stores, supplies and other 66,480 59,895 Total $ 802,434 $ 700,540 (a) Increase primarily due to the build-up of inventory in our Lithium and Catalysts segments to meet higher projected sales during the remainder of 2019. (b) Included $96.3 million and $104.3 million at September 30, 2019 and December 31, 2018 , respectively, of chemical grade spodumene in our Lithium segment, most of which is converted to battery-grade products either internally or through our tolling agreements. We expect this amount to continue to decrease in the fourth quarter of 2019. (c) Included $70.3 million and $71.4 million at September 30, 2019 and December 31, 2018 , respectively, of work in process in our Lithium segment. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
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 $376.5 million and $349.6 million at September 30, 2019 and December 31, 2018 , 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 $7.7 million and $8.1 million at September 30, 2019 and December 31, 2018 , 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 the investments. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, December 31, 2019 2018 1.875% Senior notes, net of unamortized discount and debt issuance costs of $2,040 at September 30, 2019 and $2,841 at December 31, 2018 $ 427,941 $ 444,155 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,519 at September 30, 2019 and $2,884 at December 31, 2018 422,481 422,116 4.50% Senior notes, net of unamortized discount and debt issuance costs of $364 at September 30, 2019 and $589 at December 31, 2018 174,852 174,626 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,889 at September 30, 2019 and $4,004 at December 31, 2018 346,112 345,996 Commercial paper notes 539,300 306,606 Variable-rate foreign bank loans 7,424 7,216 Finance lease obligations 3,834 4,495 Total long-term debt 1,921,944 1,705,210 Less amounts due within one year 539,960 307,294 Long-term debt, less current portion $ 1,381,984 $ 1,397,916 Current portion of long-term debt at September 30, 2019 consisted primarily of commercial paper notes with a weighted-average interest rate of approximately 2.28% and a weighted-average maturity of 31 days . The carrying value of our 1.875% Euro-denominated senior notes has been designated as an effective hedge of our net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency are recorded in accumulated other comprehensive loss. During the three-month and nine-month periods ended September 30, 2019 , gains of $12.7 million and $13.0 million (net of income taxes), respectively, and during the three-month and nine-month periods ended September 30, 2018 , (losses) gains of ($3.6) million and $4.9 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. On August 14, 2019, the Company entered into a $1.2 billion unsecured credit facility (the “2019 Credit Facility”) with several banks and other financial institutions. The lenders’ commitment to provide loans under the 2019 Credit Facility terminates on August 11, 2020, with each such loan maturing one year after the funding of such loan. The Company can request that the maturity date of loans be extended for an additional period of up to four additional years, but any such extension is subject to the approval of the lenders. Borrowings under the 2019 Credit Facility bear interest at variable rates based on an average London inter-bank offered rate (“LIBOR”) for deposits in the relevant currency plus an applicable margin which ranges from 0.875% to 1.625% , depending on the Company’s credit rating from Standard & Poor’s Financial Services LLC, Moody’s Investor Services, Inc. and Fitch Ratings, Inc. As of the closing of the 2019 Credit Facility, the applicable margin over LIBOR was 1.125% . There were no borrowings outstanding under the 2019 Credit Facility as of September 30, 2019 . In October 2019, we borrowed $1.0 billion under this credit facility to fund the cash portion of the October 31, 2019 acquisition of a 60% interest in Mineral Resources Limited’s (“MRL”) Wodgina hard rock lithium mine project (“Wodgina Project”) and for general corporate purposes. See Note 18, “Subsequent Events,” for further details of the acquisition. In addition, on August 14, 2019, the Company entered into an amendment to its existing credit agreement, dated as of June 21, 2018 to (a) extend the maturity date to August 9, 2024 (subject to the Company’s right to request that such maturity date be further extended for an additional one-year period), and (b) conform certain representations, warranties and covenants to those under the 2019 Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2019 (in thousands): Beginning balance at December 31, 2018 $ 49,569 Expenditures (4,626 ) Accretion of discount 799 Additions and changes in estimates 1,070 Foreign currency translation adjustments and other (2,007 ) Ending balance at September 30, 2019 44,805 Less amounts reported in Accrued expenses 9,588 Amounts reported in Other noncurrent liabilities $ 35,217 Environmental remediation liabilities included discounted liabilities of $37.0 million and $40.4 million at September 30, 2019 and December 31, 2018 , respectively, discounted at rates with a weighted-average of 3.7% , with the undiscounted amount totaling $69.7 million and $74.5 million at September 30, 2019 and December 31, 2018 , 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 $30 million before income taxes, in excess of amounts already recorded. The variability of this range is primarily driven by possible environmental remediation activity at a formerly owned site where we indemnify the buyer through a set cutoff date in 2024. 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. As previously reported in 2018, 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 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”), the SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, the SEC, and DPP 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, the SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, the SEC, or DPP, or what penalties or remedial actions they may seek to impose. Any determination that our operations or activities are not in compliance with existing laws or regulations 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. 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 $26.2 million and $45.3 million at September 30, 2019 and December 31, 2018 , respectively, recorded in Other noncurrent liabilities, and $20.6 million recorded in Accrued expenses at September 30, 2019 , related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold, as well as the proposed settlement of an ongoing audit of a previously disposed business in Germany. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Segment Information: 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. This structure also facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. Summarized financial information concerning our reportable segments is shown in the following tables. The “All Other” category 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, 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 Nine Months Ended 2019 2018 2019 2018 (In thousands) Net sales: Lithium $ 330,386 $ 270,928 $ 947,030 $ 886,523 Bromine Specialties 256,267 232,616 760,752 678,769 Catalysts 261,346 251,139 779,295 796,822 All Other 31,748 23,065 109,786 90,978 Corporate — — — 159 Total net sales $ 879,747 $ 777,748 $ 2,596,863 $ 2,453,251 Adjusted EBITDA: Lithium $ 127,459 $ 113,629 $ 384,854 $ 386,260 Bromine Specialties 88,814 78,585 248,743 217,921 Catalysts 66,944 62,602 193,890 205,534 All Other 10,448 3,968 28,931 7,729 Corporate (39,314 ) (23,702 ) (114,300 ) (75,082 ) Total adjusted EBITDA $ 254,351 $ 235,082 $ 742,118 $ 742,362 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 September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 102,136 $ 75,224 $ 54,345 $ 231,705 $ 8,305 $ (84,940 ) $ 155,070 Depreciation and amortization 25,212 12,448 12,599 50,259 2,143 2,085 54,487 Acquisition and integration related costs (a) — — — — — 4,114 4,114 Interest and financing expenses — — — — — 11,108 11,108 Income tax expense — — — — — 25,341 25,341 Non-operating pension and OPEB items — — — — — (551 ) (551 ) Other (b) 111 1,142 — 1,253 — 3,529 4,782 Adjusted EBITDA $ 127,459 $ 88,814 $ 66,944 $ 283,217 $ 10,448 $ (39,314 ) $ 254,351 Three months ended September 30, 2018 Net income (loss) attributable to Albemarle Corporation $ 90,313 $ 67,967 $ 50,491 $ 208,771 $ 1,978 $ (81,004 ) $ 129,745 Depreciation and amortization 23,370 10,618 12,111 46,099 1,990 1,618 49,707 Restructuring and other (c) — — — — — 3,724 3,724 Acquisition and integration related costs (a) — — — — — 4,305 4,305 Interest and financing expenses — — — — — 12,988 12,988 Income tax expense — — — — — 33,167 33,167 Non-operating pension and OPEB items — — — — — (2,195 ) (2,195 ) Legal accrual (d) — — — — — (1,017 ) (1,017 ) Other (e) (54 ) — — (54 ) — 4,712 4,658 Adjusted EBITDA $ 113,629 $ 78,585 $ 62,602 $ 254,816 $ 3,968 $ (23,702 ) $ 235,082 Nine months ended September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 312,609 $ 212,320 $ 156,328 $ 681,257 $ 22,629 $ (261,049 ) $ 442,837 Depreciation and amortization 71,669 35,281 37,562 144,512 6,302 5,904 156,718 Acquisition and integration related costs (a) — — — — — 14,388 14,388 Gain on sale of property (f) — — — — — (11,079 ) (11,079 ) Interest and financing expenses — — — — — 35,295 35,295 Income tax expense — — — — — 93,266 93,266 Non-operating pension and OPEB items — — — — — (1,810 ) (1,810 ) Other (b) 576 1,142 — 1,718 — 10,785 12,503 Adjusted EBITDA $ 384,854 $ 248,743 $ 193,890 $ 827,487 $ 28,931 $ (114,300 ) $ 742,118 Nine months ended September 30, 2018 Net income (loss) attributable to Albemarle Corporation $ 315,939 $ 187,176 $ 387,038 $ 890,153 $ 1,659 $ (327,846 ) $ 563,966 Depreciation and amortization 71,760 30,745 37,201 139,706 6,070 4,735 150,511 Restructuring and other (c) — — — — — 3,724 3,724 Gain on sale of business (g) — — (218,705 ) (218,705 ) — — (218,705 ) Acquisition and integration related costs (a) — — — — — 13,016 13,016 Interest and financing expenses — — — — — 39,834 39,834 Income tax expense — — — — — 133,630 133,630 Non-operating pension and OPEB items — — — — — (6,596 ) (6,596 ) Legal accrual (d) — — — — — 27,027 27,027 Environmental accrual (h) — — — — — 15,597 15,597 Albemarle Foundation contribution (i) — — — — — 15,000 15,000 Other (e) (1,439 ) — — (1,439 ) — 6,797 5,358 Adjusted EBITDA $ 386,260 $ 217,921 $ 205,534 $ 809,715 $ 7,729 $ (75,082 ) $ 742,362 (a) Included acquisition and integration related costs relating to various significant projects. For the three-month and nine-month periods ended September 30, 2019 , $4.1 million and $14.4 million was recorded in Selling, general and administrative expenses. For the three-month and nine-month periods ended September 30, 2018 , $0.9 million and $2.9 million was recorded in Cost of goods sold, respectively, and $3.4 million and $10.2 million was recorded in Selling, general and administrative expenses, respectively. (b) Included amounts for the three months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. ▪ Selling, general and administrative expenses - $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment. ▪ Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, as well as a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting. Included amounts for the nine months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.6 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. ▪ Selling, general and administrative expenses - Expected severance payments to be made in 2019 as part of a business reorganization plan of $5.3 million , with the unpaid balance recorded in Accrued expenses as of September 30, 2019, $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan, and $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment. ▪ Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting, and $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses. (c) Severance payments as part of a business reorganization plan, recorded in Selling, general and administrative expenses. (d) Included in Other (expenses) income, net for the three-month and nine-month periods ended September 30, 2018 is a gain of $1.4 million and an expense of $16.2 million , respectively, resulting from a jury rendered verdict against Albemarle related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures and expenses of $0.4 million and $10.8 million , respectively, resulting from a settlement of a legal matter related to guarantees from a previously disposed business. (e) Included amounts for the three months ended September 30, 2018 recorded in: ▪ Cost of goods sold - $3.8 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture. ▪ Selling, general and administrative expenses - $0.1 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. ▪ Other (expenses) income, net - $0.2 million gain related to the revision of previously recorded expenses of disposed businesses. Included amounts for the nine months ended September 30, 2018 recorded in: ▪ Cost of goods sold - $4.9 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture. ▪ Selling, general and administrative expenses - $1.5 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. ▪ Other (expenses) income, net - $0.8 million related to the revision of previously recorded expenses of disposed businesses. (f) Gain recorded in Other (expenses) income, net related to the sale of land in Pasadena, Texas not used as part of our operations. (g) Gain related to the sale of the Polyolefin Catalysts Divestiture, which closed in the second quarter of 2018. (h) Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other (expenses) income, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. (i) Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the ordinary annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine-month periods ended September 30, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pension Benefits Cost (Credit): Service cost $ 1,118 $ 1,238 $ 3,371 $ 3,765 Interest cost 8,314 7,967 24,854 24,010 Expected return on assets (9,414 ) (10,703 ) (28,311 ) (32,227 ) Amortization of prior service benefit (5 ) 25 7 71 Total net pension benefits cost (credit) $ 13 $ (1,473 ) $ (79 ) $ (4,381 ) Postretirement Benefits Cost (Credit): Service cost $ 24 $ 29 $ 73 $ 88 Interest cost 549 542 1,647 1,626 Expected return on assets — (1 ) — (5 ) Amortization of prior service benefit — (12 ) — (36 ) Total net postretirement benefits cost $ 573 $ 558 $ 1,720 $ 1,673 Total net pension and postretirement benefits cost (credit) $ 586 $ (915 ) $ 1,641 $ (2,708 ) All components of net benefit cost (credit), other than service cost, are included in Other (expenses) income, net on the consolidated statements of income. During the three-month and nine-month periods ended September 30, 2019 , we made contributions of $2.1 million and $8.6 million , respectively, to our qualified and nonqualified pension plans. During the three-month and nine-month periods ended September 30, 2018 , we made contributions of $3.1 million and $9.0 million , respectively, to our qualified and nonqualified pension plans. We paid $0.8 million and $2.1 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2019 , respectively. During the three-month and nine-month periods ended September 30, 2018 , we paid $0.8 million and $2.0 million , respectively, in premiums to the U.S. postretirement benefit plan. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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. September 30, 2019 December 31, 2018 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,927,898 $ 2,019,115 $ 1,712,003 $ 1,731,271 Foreign Currency Forward Contracts—we enter into foreign currency forward contracts in connection with our risk management strategies in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our foreign currency forward contracts are estimated based on current settlement values. At September 30, 2019 and December 31, 2018 , we had outstanding foreign currency forward contracts with notional values totaling $1.11 billion and $626.5 million , respectively, hedging our exposure to various currencies including the Euro, Chinese Renminbi, Chilean Peso and Australian Dollar. Our foreign currency forward contracts outstanding at September 30, 2019 and December 31, 2018 have not been designated as hedging instruments under ASC 815, Derivatives and Hedging . The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands): September 30, December 31, 2019 2018 Foreign currency forward contracts - Other accounts receivable $ — $ 431 Foreign currency forward contracts - Accrued expenses $ 1,697 $ — Gains and losses on foreign currency forward contracts are recognized currently in Other (expenses) income, net; further, fluctuations in the value of these contracts are 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. The following table summarizes these net losses recognized in our consolidated statements of income during the three-month and nine-month periods ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency forward contracts losses $ (19,331 ) $ (203 ) $ (27,647 ) $ (13,034 ) In addition, for the nine -month periods ended September 30, 2019 and 2018 , we recorded losses of $27.6 million and $13.0 million , respectively, related to the change in the fair value of our foreign currency forward contracts, and net cash settlements of $25.5 million and $18.1 million , respectively, in Other, net, in our condensed consolidated statements of cash flows. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2019 | |
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. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 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) $ 26,816 $ 26,816 $ — $ — Private equity securities (b) $ 29 $ 29 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,884 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,816 $ 26,816 $ — $ — Foreign currency forward contracts (d) $ 1,697 $ — $ 1,697 $ — December 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) $ 26,292 $ 26,292 $ — $ — Private equity securities (b) $ 26 $ 26 $ — $ — Private equity securities measured at net asset value (b)(c) $ 7,195 $ — $ — $ — Foreign currency forward contracts (d) $ 431 $ — $ 431 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — (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 | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Balance at June 30, 2019 $ (407,937 ) $ (146 ) $ 72,604 $ (13,932 ) $ (349,411 ) Other comprehensive (loss) income before reclassifications (100,069 ) — 12,745 — (87,324 ) Amounts reclassified from accumulated other comprehensive loss — (5 ) — 641 636 Other comprehensive (loss) income, net of tax (100,069 ) (5 ) 12,745 641 (86,688 ) Other comprehensive loss attributable to noncontrolling interests 122 — — — 122 Balance at September 30, 2019 $ (507,884 ) $ (151 ) $ 85,349 $ (13,291 ) $ (435,977 ) Three months ended September 30, 2018 Balance at June 30, 2018 $ (343,458 ) $ 5 $ 55,119 $ (13,345 ) $ (301,679 ) Other comprehensive loss before reclassifications (9,549 ) — (3,621 ) — (13,170 ) Amounts reclassified from accumulated other comprehensive loss — 11 — 642 653 Other comprehensive (loss) income, net of tax (9,549 ) 11 (3,621 ) 642 (12,517 ) Other comprehensive loss attributable to noncontrolling interests 5 — — — 5 Balance at September 30, 2018 $ (353,002 ) $ 16 $ 51,498 $ (12,703 ) $ (314,191 ) Nine months ended September 30, 2019 Balance at December 31, 2018 $ (407,646 ) $ (159 ) $ 72,337 $ (15,214 ) $ (350,682 ) Other comprehensive (loss) income before reclassifications (100,380 ) — 13,012 — (87,368 ) Amounts reclassified from accumulated other comprehensive loss — 8 — 1,923 1,931 Other comprehensive (loss) income, net of tax (100,380 ) 8 13,012 1,923 (85,437 ) Other comprehensive loss attributable to noncontrolling interests 142 — — — 142 Balance at September 30, 2019 $ (507,884 ) $ (151 ) $ 85,349 $ (13,291 ) $ (435,977 ) Nine months ended September 30, 2018 Balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ (14,629 ) $ (225,668 ) Other comprehensive (loss) income before reclassifications (95,515 ) — 4,947 — (90,568 ) Amounts reclassified from accumulated other comprehensive loss — 37 — 1,926 1,963 Other comprehensive (loss) income, net of tax (95,515 ) 37 4,947 1,926 (88,605 ) Other comprehensive loss attributable to noncontrolling interests 82 — — — 82 Balance at September 30, 2018 $ (353,002 ) $ 16 $ 51,498 $ (12,703 ) $ (314,191 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 11, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The amount of income tax (expense) benefit allocated to each component of Other comprehensive (loss) income for the three-month and nine-month periods ended September 30, 2019 and 2018 is provided in the following tables (in thousands): Three Months Ended September 30, 2019 2018 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 (loss) income, before tax $ (100,069 ) $ (3 ) $ 16,584 $ 834 $ (9,550 ) $ 13 $ (4,704 ) $ 834 Income tax (expense) benefit — (2 ) (3,839 ) (193 ) 1 (2 ) 1,083 (192 ) Other comprehensive (loss) income, net of tax $ (100,069 ) $ (5 ) $ 12,745 $ 641 $ (9,549 ) $ 11 $ (3,621 ) $ 642 Nine Months Ended September 30, 2019 2018 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 (loss) income, before tax $ (100,379 ) $ 10 $ 16,932 $ 2,502 $ (95,517 ) $ 43 $ 6,426 $ 2,502 Income tax (expense) benefit (1 ) (2 ) (3,920 ) (579 ) 2 (6 ) (1,479 ) (576 ) Other comprehensive (loss) income, net of tax $ (100,380 ) $ 8 $ 13,012 $ 1,923 $ (95,515 ) $ 37 $ 4,947 $ 1,926 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Sales to unconsolidated affiliates $ 4,465 $ 4,970 $ 14,128 $ 20,608 Purchases from unconsolidated affiliates (a) $ 41,304 $ 60,136 $ 160,420 $ 186,111 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. 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): September 30, 2019 December 31, 2018 Receivables from unconsolidated affiliates $ 3,041 $ 14,348 Payables to unconsolidated affiliates $ 32,699 $ 68,357 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information Related to Consolidated Statement of Cash Flows | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Nine Months Ended 2019 2018 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 174,510 $ 107,385 Other, net within Cash flows from operating activities on the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 included $14.4 million and $33.9 million , respectively, representing the reclassification of the current portion of the one-time transition tax resulting from the enactment of the TCJA, from Other noncurrent liabilities to Income taxes payable within current liabilities. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“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. In July 2018, the FASB issued an amendment which would allow entities to initially apply this new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of Retained earnings. The Company adopted this standard on January 1, 2019 using this transition method. See Note 1, “Basis of Presentation,” for further details. In June 2016, the FASB issued accounting guidance that, among other things, changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial asset. Additional disclosures are required regarding an entity’s assumptions, models and methods for estimating the expected credit loss. 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 using a modified retrospective approach. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill 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 expect to adopt this guidance on January 1, 2020 and do not expect it to 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. In October 2018, the FASB issued additional guidance that permits the use of the Overnight Index Swap Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, Derivatives and Hedging . These new requirements became effective on January 1, 2019 and did not have a significant impact on our financial statements. In August 2018, the FASB issued accounting guidance that requires implementation costs incurred in a cloud computing arrangement that is a service contract to be capitalized. Entities will be required to recognize the capitalized implementation costs to expense over the noncancellable term of the cloud computing arrangement. As allowed by its provisions, we early-adopted this new guidance in the first quarter of 2019. The adoption of this new guidance did not have a significant impact on our financial statements. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events: On October 31, 2019, we completed the previously announced acquisition of a 60% interest in MRL’s Wodgina Project for a total purchase price of $1.3 billion . The purchase price is comprised of $820 million in cash, subject to certain adjustments, and the transfer of 40% interest in certain lithium hydroxide conversion assets being built by Albemarle in Kemerton, Western Australia, expected to be valued at $480 million . The cash consideration was funded by the 2019 Credit Facility entered into on August 14, 2019, see Note 8, “Long-Term Debt,” for further details. In addition, we have formed an unincorporated joint venture with MRL for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from the Wodgina Project and for the operation of the Kemerton assets. We are entitled to a pro rata portion of 60% of all minerals (other than iron ore and tantalum) recovered from the tenements and produced by the joint venture. These undivided interests will be accounted for using the proportionate consolidation method and our proportionate share of assets, liabilities, revenue and expenses will be included in the appropriate classifications in the condensed consolidated financial statements. As part of this acquisition, MARBL Lithium Operations Pty. Ltd. (the “Manager”), an incorporated joint venture, has been formed to manage the Wodgina Project. We will consolidate our 60% ownership interest in the Manager in our condensed consolidated financial statements. Included in Selling, general and administrative expenses on our consolidated statements of income for the three and nine months ended September 30, 2019 is $1.3 million and $4.4 million , respectively, of costs directly related to this acquisition. As this acquisition was completed on October 31, 2019, the preliminary fair value of the assets acquired and liabilities assumed are not recorded in the Company’s consolidated balance sheet as of September 30, 2019. The preliminary fair value of these assets and liabilities, as well as the results of operations of the formed joint venture, will be recorded in the fourth quarter of 2019. The Company has not completed the detailed valuation work necessary to arrive at the required estimates of the fair value of the assets acquired and liabilities assumed and the related allocation of purchase price. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In February 2016, the Financial Accounting Standards Board (“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. In July 2018, the FASB issued an amendment which would allow entities to initially apply this new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of Retained earnings. The Company adopted this standard on January 1, 2019 using this transition method. See Note 1, “Basis of Presentation,” for further details. In June 2016, the FASB issued accounting guidance that, among other things, changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial asset. Additional disclosures are required regarding an entity’s assumptions, models and methods for estimating the expected credit loss. 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 using a modified retrospective approach. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill 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 expect to adopt this guidance on January 1, 2020 and do not expect it to 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. In October 2018, the FASB issued additional guidance that permits the use of the Overnight Index Swap Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, Derivatives and Hedging . These new requirements became effective on January 1, 2019 and did not have a significant impact on our financial statements. In August 2018, the FASB issued accounting guidance that requires implementation costs incurred in a cloud computing arrangement that is a service contract to be capitalized. Entities will be required to recognize the capitalized implementation costs to expense over the noncancellable term of the cloud computing arrangement. As allowed by its provisions, we early-adopted this new guidance in the first quarter of 2019. The adoption of this new guidance did not have a significant impact on our financial statements. |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table provides details of our lease contracts for the three-month and nine -month periods ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 7,939 $ 25,741 Finance lease cost: Amortization of right of use assets 157 471 Interest on lease liabilities 31 96 Total finance lease cost 188 567 Short-term lease cost 2,587 6,422 Variable lease cost 1,541 4,059 Total lease cost $ 12,255 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine months ended September 30, 2019 is as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,486 Operating cash flows from finance leases 96 Financing cash flows from finance leases 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,578 |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2019 is as follows (in thousands, except as noted): September 30, 2019 Operating leases: Other assets $ 138,222 Current operating lease liability 24,606 Other noncurrent liabilities 116,590 Total operating lease liabilities 141,196 Finance leases: Net property, plant and equipment 3,793 Current portion of long-term debt 660 Long-term debt 3,174 Total finance lease liabilities 3,834 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 6.0 Weighted average discount rate (%): Operating leases 3.85 % Finance leases 2.88 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2019 $ 7,318 $ 197 2020 25,982 745 2021 14,843 657 2022 12,870 657 2023 12,349 657 Thereafter 105,536 1,313 Total lease payments 178,898 4,226 Less imputed interest 37,702 392 Total $ 141,196 $ 3,834 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2019 $ 7,318 $ 197 2020 25,982 745 2021 14,843 657 2022 12,870 657 2023 12,349 657 Thereafter 105,536 1,313 Total lease payments 178,898 4,226 Less imputed interest 37,702 392 Total $ 141,196 $ 3,834 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the nine months ended September 30, 2019 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2018 $ 1,354,779 $ 20,319 $ 185,485 $ 6,586 $ 1,567,169 Foreign currency translation adjustments (25,992 ) — (6,936 ) — (32,928 ) Balance at September 30, 2019 $ 1,328,787 $ 20,319 $ 178,549 $ 6,586 $ 1,534,241 |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2019 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2018 $ 428,372 $ 18,453 $ 55,801 $ 43,708 $ 546,334 Foreign currency translation adjustments and other (8,094 ) (304 ) (1,217 ) 1,807 (7,808 ) Balance at September 30, 2019 $ 420,278 $ 18,149 $ 54,584 $ 45,515 $ 538,526 Accumulated Amortization Balance at December 31, 2018 $ (95,797 ) $ (8,176 ) $ (35,248 ) $ (20,970 ) $ (160,191 ) Amortization (17,453 ) — (1,091 ) (1,965 ) (20,509 ) Foreign currency translation adjustments and other 1,994 104 686 448 3,232 Balance at September 30, 2019 $ (111,256 ) $ (8,072 ) $ (35,653 ) $ (22,487 ) $ (177,468 ) Net Book Value at December 31, 2018 $ 332,575 $ 10,277 $ 20,553 $ 22,738 $ 386,143 Net Book Value at September 30, 2019 $ 309,022 $ 10,077 $ 18,931 $ 23,028 $ 361,058 (a) Net Book Value includes only indefinite-lived intangible assets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2019 and 2018 are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 155,070 $ 129,745 $ 442,837 $ 563,966 Denominator: Weighted-average common shares for basic earnings per share 105,999 107,315 105,920 109,223 Basic earnings per share $ 1.46 $ 1.21 $ 4.18 $ 5.16 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 155,070 $ 129,745 $ 442,837 $ 563,966 Denominator: Weighted-average common shares for basic earnings per share 105,999 107,315 105,920 109,223 Incremental shares under stock compensation plans 300 987 404 1,053 Weighted-average common shares for diluted earnings per share 106,299 108,302 106,324 110,276 Diluted earnings per share $ 1.46 $ 1.20 $ 4.16 $ 5.11 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at September 30, 2019 and December 31, 2018 (in thousands): September 30, December 31, 2019 2018 Finished goods (a)(b) $ 561,981 $ 482,355 Raw materials and work in process (c) 173,973 158,290 Stores, supplies and other 66,480 59,895 Total $ 802,434 $ 700,540 (a) Increase primarily due to the build-up of inventory in our Lithium and Catalysts segments to meet higher projected sales during the remainder of 2019. (b) Included $96.3 million and $104.3 million at September 30, 2019 and December 31, 2018 , respectively, of chemical grade spodumene in our Lithium segment, most of which is converted to battery-grade products either internally or through our tolling agreements. We expect this amount to continue to decrease in the fourth quarter of 2019. (c) Included $70.3 million and $71.4 million at September 30, 2019 and December 31, 2018 , respectively, of work in process in our Lithium segment. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, December 31, 2019 2018 1.875% Senior notes, net of unamortized discount and debt issuance costs of $2,040 at September 30, 2019 and $2,841 at December 31, 2018 $ 427,941 $ 444,155 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,519 at September 30, 2019 and $2,884 at December 31, 2018 422,481 422,116 4.50% Senior notes, net of unamortized discount and debt issuance costs of $364 at September 30, 2019 and $589 at December 31, 2018 174,852 174,626 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,889 at September 30, 2019 and $4,004 at December 31, 2018 346,112 345,996 Commercial paper notes 539,300 306,606 Variable-rate foreign bank loans 7,424 7,216 Finance lease obligations 3,834 4,495 Total long-term debt 1,921,944 1,705,210 Less amounts due within one year 539,960 307,294 Long-term debt, less current portion $ 1,381,984 $ 1,397,916 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2019 (in thousands): Beginning balance at December 31, 2018 $ 49,569 Expenditures (4,626 ) Accretion of discount 799 Additions and changes in estimates 1,070 Foreign currency translation adjustments and other (2,007 ) Ending balance at September 30, 2019 44,805 Less amounts reported in Accrued expenses 9,588 Amounts reported in Other noncurrent liabilities $ 35,217 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Net sales: Lithium $ 330,386 $ 270,928 $ 947,030 $ 886,523 Bromine Specialties 256,267 232,616 760,752 678,769 Catalysts 261,346 251,139 779,295 796,822 All Other 31,748 23,065 109,786 90,978 Corporate — — — 159 Total net sales $ 879,747 $ 777,748 $ 2,596,863 $ 2,453,251 Adjusted EBITDA: Lithium $ 127,459 $ 113,629 $ 384,854 $ 386,260 Bromine Specialties 88,814 78,585 248,743 217,921 Catalysts 66,944 62,602 193,890 205,534 All Other 10,448 3,968 28,931 7,729 Corporate (39,314 ) (23,702 ) (114,300 ) (75,082 ) Total adjusted EBITDA $ 254,351 $ 235,082 $ 742,118 $ 742,362 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 September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 102,136 $ 75,224 $ 54,345 $ 231,705 $ 8,305 $ (84,940 ) $ 155,070 Depreciation and amortization 25,212 12,448 12,599 50,259 2,143 2,085 54,487 Acquisition and integration related costs (a) — — — — — 4,114 4,114 Interest and financing expenses — — — — — 11,108 11,108 Income tax expense — — — — — 25,341 25,341 Non-operating pension and OPEB items — — — — — (551 ) (551 ) Other (b) 111 1,142 — 1,253 — 3,529 4,782 Adjusted EBITDA $ 127,459 $ 88,814 $ 66,944 $ 283,217 $ 10,448 $ (39,314 ) $ 254,351 Three months ended September 30, 2018 Net income (loss) attributable to Albemarle Corporation $ 90,313 $ 67,967 $ 50,491 $ 208,771 $ 1,978 $ (81,004 ) $ 129,745 Depreciation and amortization 23,370 10,618 12,111 46,099 1,990 1,618 49,707 Restructuring and other (c) — — — — — 3,724 3,724 Acquisition and integration related costs (a) — — — — — 4,305 4,305 Interest and financing expenses — — — — — 12,988 12,988 Income tax expense — — — — — 33,167 33,167 Non-operating pension and OPEB items — — — — — (2,195 ) (2,195 ) Legal accrual (d) — — — — — (1,017 ) (1,017 ) Other (e) (54 ) — — (54 ) — 4,712 4,658 Adjusted EBITDA $ 113,629 $ 78,585 $ 62,602 $ 254,816 $ 3,968 $ (23,702 ) $ 235,082 Nine months ended September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 312,609 $ 212,320 $ 156,328 $ 681,257 $ 22,629 $ (261,049 ) $ 442,837 Depreciation and amortization 71,669 35,281 37,562 144,512 6,302 5,904 156,718 Acquisition and integration related costs (a) — — — — — 14,388 14,388 Gain on sale of property (f) — — — — — (11,079 ) (11,079 ) Interest and financing expenses — — — — — 35,295 35,295 Income tax expense — — — — — 93,266 93,266 Non-operating pension and OPEB items — — — — — (1,810 ) (1,810 ) Other (b) 576 1,142 — 1,718 — 10,785 12,503 Adjusted EBITDA $ 384,854 $ 248,743 $ 193,890 $ 827,487 $ 28,931 $ (114,300 ) $ 742,118 Nine months ended September 30, 2018 Net income (loss) attributable to Albemarle Corporation $ 315,939 $ 187,176 $ 387,038 $ 890,153 $ 1,659 $ (327,846 ) $ 563,966 Depreciation and amortization 71,760 30,745 37,201 139,706 6,070 4,735 150,511 Restructuring and other (c) — — — — — 3,724 3,724 Gain on sale of business (g) — — (218,705 ) (218,705 ) — — (218,705 ) Acquisition and integration related costs (a) — — — — — 13,016 13,016 Interest and financing expenses — — — — — 39,834 39,834 Income tax expense — — — — — 133,630 133,630 Non-operating pension and OPEB items — — — — — (6,596 ) (6,596 ) Legal accrual (d) — — — — — 27,027 27,027 Environmental accrual (h) — — — — — 15,597 15,597 Albemarle Foundation contribution (i) — — — — — 15,000 15,000 Other (e) (1,439 ) — — (1,439 ) — 6,797 5,358 Adjusted EBITDA $ 386,260 $ 217,921 $ 205,534 $ 809,715 $ 7,729 $ (75,082 ) $ 742,362 (a) Included acquisition and integration related costs relating to various significant projects. For the three-month and nine-month periods ended September 30, 2019 , $4.1 million and $14.4 million was recorded in Selling, general and administrative expenses. For the three-month and nine-month periods ended September 30, 2018 , $0.9 million and $2.9 million was recorded in Cost of goods sold, respectively, and $3.4 million and $10.2 million was recorded in Selling, general and administrative expenses, respectively. (b) Included amounts for the three months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. ▪ Selling, general and administrative expenses - $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment. ▪ Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, as well as a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting. Included amounts for the nine months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.6 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. ▪ Selling, general and administrative expenses - Expected severance payments to be made in 2019 as part of a business reorganization plan of $5.3 million , with the unpaid balance recorded in Accrued expenses as of September 30, 2019, $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan, and $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment. ▪ Other (expenses) income, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting, and $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses. (c) Severance payments as part of a business reorganization plan, recorded in Selling, general and administrative expenses. (d) Included in Other (expenses) income, net for the three-month and nine-month periods ended September 30, 2018 is a gain of $1.4 million and an expense of $16.2 million , respectively, resulting from a jury rendered verdict against Albemarle related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures and expenses of $0.4 million and $10.8 million , respectively, resulting from a settlement of a legal matter related to guarantees from a previously disposed business. (e) Included amounts for the three months ended September 30, 2018 recorded in: ▪ Cost of goods sold - $3.8 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture. ▪ Selling, general and administrative expenses - $0.1 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. ▪ Other (expenses) income, net - $0.2 million gain related to the revision of previously recorded expenses of disposed businesses. Included amounts for the nine months ended September 30, 2018 recorded in: ▪ Cost of goods sold - $4.9 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture. ▪ Selling, general and administrative expenses - $1.5 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year, partially offset by a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. ▪ Other (expenses) income, net - $0.8 million related to the revision of previously recorded expenses of disposed businesses. (f) Gain recorded in Other (expenses) income, net related to the sale of land in Pasadena, Texas not used as part of our operations. (g) Gain related to the sale of the Polyolefin Catalysts Divestiture, which closed in the second quarter of 2018. (h) Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other (expenses) income, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. (i) Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the ordinary annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate. |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine-month periods ended September 30, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pension Benefits Cost (Credit): Service cost $ 1,118 $ 1,238 $ 3,371 $ 3,765 Interest cost 8,314 7,967 24,854 24,010 Expected return on assets (9,414 ) (10,703 ) (28,311 ) (32,227 ) Amortization of prior service benefit (5 ) 25 7 71 Total net pension benefits cost (credit) $ 13 $ (1,473 ) $ (79 ) $ (4,381 ) Postretirement Benefits Cost (Credit): Service cost $ 24 $ 29 $ 73 $ 88 Interest cost 549 542 1,647 1,626 Expected return on assets — (1 ) — (5 ) Amortization of prior service benefit — (12 ) — (36 ) Total net postretirement benefits cost $ 573 $ 558 $ 1,720 $ 1,673 Total net pension and postretirement benefits cost (credit) $ 586 $ (915 ) $ 1,641 $ (2,708 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. September 30, 2019 December 31, 2018 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 1,927,898 $ 2,019,115 $ 1,712,003 $ 1,731,271 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands): September 30, December 31, 2019 2018 Foreign currency forward contracts - Other accounts receivable $ — $ 431 Foreign currency forward contracts - Accrued expenses $ 1,697 $ — |
Derivative Instruments, Losses | The following table summarizes these net losses recognized in our consolidated statements of income during the three-month and nine-month periods ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency forward contracts losses $ (19,331 ) $ (203 ) $ (27,647 ) $ (13,034 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 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) $ 26,816 $ 26,816 $ — $ — Private equity securities (b) $ 29 $ 29 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,884 $ — $ — $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,816 $ 26,816 $ — $ — Foreign currency forward contracts (d) $ 1,697 $ — $ 1,697 $ — December 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) $ 26,292 $ 26,292 $ — $ — Private equity securities (b) $ 26 $ 26 $ — $ — Private equity securities measured at net asset value (b)(c) $ 7,195 $ — $ — $ — Foreign currency forward contracts (d) $ 431 $ — $ 431 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — (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 Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Balance at June 30, 2019 $ (407,937 ) $ (146 ) $ 72,604 $ (13,932 ) $ (349,411 ) Other comprehensive (loss) income before reclassifications (100,069 ) — 12,745 — (87,324 ) Amounts reclassified from accumulated other comprehensive loss — (5 ) — 641 636 Other comprehensive (loss) income, net of tax (100,069 ) (5 ) 12,745 641 (86,688 ) Other comprehensive loss attributable to noncontrolling interests 122 — — — 122 Balance at September 30, 2019 $ (507,884 ) $ (151 ) $ 85,349 $ (13,291 ) $ (435,977 ) Three months ended September 30, 2018 Balance at June 30, 2018 $ (343,458 ) $ 5 $ 55,119 $ (13,345 ) $ (301,679 ) Other comprehensive loss before reclassifications (9,549 ) — (3,621 ) — (13,170 ) Amounts reclassified from accumulated other comprehensive loss — 11 — 642 653 Other comprehensive (loss) income, net of tax (9,549 ) 11 (3,621 ) 642 (12,517 ) Other comprehensive loss attributable to noncontrolling interests 5 — — — 5 Balance at September 30, 2018 $ (353,002 ) $ 16 $ 51,498 $ (12,703 ) $ (314,191 ) Nine months ended September 30, 2019 Balance at December 31, 2018 $ (407,646 ) $ (159 ) $ 72,337 $ (15,214 ) $ (350,682 ) Other comprehensive (loss) income before reclassifications (100,380 ) — 13,012 — (87,368 ) Amounts reclassified from accumulated other comprehensive loss — 8 — 1,923 1,931 Other comprehensive (loss) income, net of tax (100,380 ) 8 13,012 1,923 (85,437 ) Other comprehensive loss attributable to noncontrolling interests 142 — — — 142 Balance at September 30, 2019 $ (507,884 ) $ (151 ) $ 85,349 $ (13,291 ) $ (435,977 ) Nine months ended September 30, 2018 Balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ (14,629 ) $ (225,668 ) Other comprehensive (loss) income before reclassifications (95,515 ) — 4,947 — (90,568 ) Amounts reclassified from accumulated other comprehensive loss — 37 — 1,926 1,963 Other comprehensive (loss) income, net of tax (95,515 ) 37 4,947 1,926 (88,605 ) Other comprehensive loss attributable to noncontrolling interests 82 — — — 82 Balance at September 30, 2018 $ (353,002 ) $ 16 $ 51,498 $ (12,703 ) $ (314,191 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 11, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. |
Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) | The amount of income tax (expense) benefit allocated to each component of Other comprehensive (loss) income for the three-month and nine-month periods ended September 30, 2019 and 2018 is provided in the following tables (in thousands): Three Months Ended September 30, 2019 2018 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 (loss) income, before tax $ (100,069 ) $ (3 ) $ 16,584 $ 834 $ (9,550 ) $ 13 $ (4,704 ) $ 834 Income tax (expense) benefit — (2 ) (3,839 ) (193 ) 1 (2 ) 1,083 (192 ) Other comprehensive (loss) income, net of tax $ (100,069 ) $ (5 ) $ 12,745 $ 641 $ (9,549 ) $ 11 $ (3,621 ) $ 642 Nine Months Ended September 30, 2019 2018 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 (loss) income, before tax $ (100,379 ) $ 10 $ 16,932 $ 2,502 $ (95,517 ) $ 43 $ 6,426 $ 2,502 Income tax (expense) benefit (1 ) (2 ) (3,920 ) (579 ) 2 (6 ) (1,479 ) (576 ) Other comprehensive (loss) income, net of tax $ (100,380 ) $ 8 $ 13,012 $ 1,923 $ (95,515 ) $ 37 $ 4,947 $ 1,926 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Sales to unconsolidated affiliates $ 4,465 $ 4,970 $ 14,128 $ 20,608 Purchases from unconsolidated affiliates (a) $ 41,304 $ 60,136 $ 160,420 $ 186,111 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. 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): September 30, 2019 December 31, 2018 Receivables from unconsolidated affiliates $ 3,041 $ 14,348 Payables to unconsolidated affiliates $ 32,699 $ 68,357 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Nine Months Ended 2019 2018 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 174,510 $ 107,385 |
Basis of Presentation Cost of G
Basis of Presentation Cost of Goods Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cost of Goods Sold [Line Items] | ||||
Cost of goods sold | $ 569,880 | $ 497,211 | $ 1,677,596 | $ 1,556,379 |
Out-of-period adjustments | ||||
Cost of Goods Sold [Line Items] | ||||
Cost of goods sold | $ 7,000 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 138,222 | ||
Operating lease, lease liability | $ 141,196 | ||
Accounting Standards Update 2016-16 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle adopted | $ 11,200 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 139,100 | ||
Operating lease, lease liability | $ 139,100 |
Leases Additional Information (
Leases Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Future minimum payments due 2019 | $ 25.6 | |
Future minimum payments due 2020 | 17.9 | |
Future minimum payments due 2021 | 12.5 | |
Future minimum payments due 2022 | 10.8 | |
Future minimum payments due 2023 | 10.1 | |
Future minimum payments due thereafter | $ 87.1 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 50 years | |
Real estate | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term of contract | 1 year | |
Real estate | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term of contract | 30 years | |
Non-real estate | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term of contract | 2 years | |
Non-real estate | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term of contract | 15 years |
Leases Leases Cost (Details)
Leases Leases Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,939 | $ 25,741 |
Amortization of right of use assets | 157 | 471 |
Interest on lease liabilities | 31 | 96 |
Total finance lease cost | 188 | 567 |
Short-term lease cost | 2,587 | 6,422 |
Variable lease cost | 1,541 | 4,059 |
Total lease cost | $ 12,255 | $ 36,789 |
Leases Leases Cash Flow (Detail
Leases Leases Cash Flow (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 22,486 |
Operating cash flows from finance leases | 96 |
Financing cash flows from finance leases | 509 |
Right-of-use asset obtained in exchange for operating leases | $ 21,578 |
Leases Leases Balance Sheet (De
Leases Leases Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Other assets | $ 138,222 | |
Current operating lease liability | 24,606 | $ 0 |
Other noncurrent liabilities | 116,590 | |
Total operating lease liabilities | 141,196 | |
Net property, plant and equipment | 3,793 | |
Current portion of long-term debt | 660 | |
Long-term debt | 3,174 | |
Total finance lease liabilities | $ 3,834 | |
Weighted average remaining lease term, operating leases | 11 years 4 months 24 days | |
Weighted average remaining lease term, finance leases | 6 years | |
Weighted average discount rate, operating leases, percent | 3.85% | |
Weighted average discount rate, finance leases, percent | 2.88% |
Leases Leases Maturity Table (D
Leases Leases Maturity Table (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
Operating lease liability payments remainder of fiscal year | $ 7,318 |
Operating lease liability payments due year two | 25,982 |
Operating lease liability payments due year three | 14,843 |
Operating lease liability payments due year four | 12,870 |
Operating lease liability payments due year five | 12,349 |
Operating lease liability payments due after year five | 105,536 |
Total operating lease liability payments | 178,898 |
Imputed interest operating leases | 37,702 |
Total operating lease liabilities | 141,196 |
Finance Leases | |
Finance lease liability payments remainder of fiscal year | 197 |
Finance lease liability payments due year two | 745 |
Finance lease liability payments due year three | 657 |
Finance lease liability payments due year four | 657 |
Finance lease liability payments due year five | 657 |
Finance lease liability payments due after year five | 1,313 |
Total finance lease liability payments | 4,226 |
Imputed interest finance leases | 392 |
Total finance lease liabilities | $ 3,834 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,567,169 |
Foreign currency translation adjustments | (32,928) |
Balance at end of period | 1,534,241 |
Reportable Segments | Lithium | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,354,779 |
Foreign currency translation adjustments | (25,992) |
Balance at end of period | 1,328,787 |
Reportable Segments | Bromine Specialties | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 20,319 |
Foreign currency translation adjustments | 0 |
Balance at end of period | 20,319 |
Reportable Segments | Catalysts | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 185,485 |
Foreign currency translation adjustments | (6,936) |
Balance at end of period | 178,549 |
Reportable Segments | All Other | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 6,586 |
Foreign currency translation adjustments | 0 |
Balance at end of period | $ 6,586 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 546,334 | |
Foreign currency translation adjustments and other | (7,808) | |
Gross Asset Value, End of Period | 538,526 | |
Accumulated Amortization, Beginning of Period | (160,191) | |
Amortization | (20,509) | |
Foreign currency translation adjustments and other | 3,232 | |
Accumulated Amortization, End of Period | (177,468) | |
Net Book Value | 361,058 | $ 386,143 |
Customer lists and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 428,372 | |
Foreign currency translation adjustments and other | (8,094) | |
Gross Asset Value, End of Period | 420,278 | |
Accumulated Amortization, Beginning of Period | (95,797) | |
Amortization | (17,453) | |
Foreign currency translation adjustments and other | 1,994 | |
Accumulated Amortization, End of Period | (111,256) | |
Net Book Value | 309,022 | 332,575 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 18,453 | |
Foreign currency translation adjustments and other | (304) | |
Gross Asset Value, End of Period | 18,149 | |
Accumulated Amortization, Beginning of Period | (8,176) | |
Amortization | 0 | |
Foreign currency translation adjustments and other | 104 | |
Accumulated Amortization, End of Period | (8,072) | |
Net Book Value | 10,077 | 10,277 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 55,801 | |
Foreign currency translation adjustments and other | (1,217) | |
Gross Asset Value, End of Period | 54,584 | |
Accumulated Amortization, Beginning of Period | (35,248) | |
Amortization | (1,091) | |
Foreign currency translation adjustments and other | 686 | |
Accumulated Amortization, End of Period | (35,653) | |
Net Book Value | 18,931 | 20,553 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 43,708 | |
Foreign currency translation adjustments and other | 1,807 | |
Gross Asset Value, End of Period | 45,515 | |
Accumulated Amortization, Beginning of Period | (20,970) | |
Amortization | (1,965) | |
Foreign currency translation adjustments and other | 448 | |
Accumulated Amortization, End of Period | (22,487) | |
Net Book Value | $ 23,028 | $ 22,738 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Tax Expense (Benefit) [Line Items] | ||||
Effective income tax rate | 15.50% | 21.50% | 19.20% | 20.10% |
Excess tax benefits (expense) | $ (1.9) | $ 5.4 | ||
Discrete tax expense (benefit) related to TCJA | 1.7 | (4.8) | ||
Release of valuation allowances | 1.2 | 7.3 | ||
Foreign accrual to return adjustment | ||||
Other Tax Expense (Benefit) [Line Items] | ||||
Other tax (benefit) expense | $ (2) | (2) | ||
Gain on sale of business | ||||
Other Tax Expense (Benefit) [Line Items] | ||||
Other tax (benefit) expense | 42 | |||
Tax accounting method change | ||||
Other Tax Expense (Benefit) [Line Items] | ||||
Other tax (benefit) expense | $ (8) |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 155,070 | $ 129,745 | $ 442,837 | $ 563,966 |
Weighted-average common shares for basic earnings per share (in shares) | 105,999 | 107,315 | 105,920 | 109,223 |
Basic earnings per share (in dollars per share) | $ 1.46 | $ 1.21 | $ 4.18 | $ 5.16 |
Diluted earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 155,070 | $ 129,745 | $ 442,837 | $ 563,966 |
Weighted-average common shares for basic earnings per share (in shares) | 105,999 | 107,315 | 105,920 | 109,223 |
Incremental shares under stock compensation plans (in shares) | 300 | 987 | 404 | 1,053 |
Weighted-average common shares outstanding - diluted (in shares) | 106,299 | 108,302 | 106,324 | 110,276 |
Diluted earnings per share (in dollars per share) | $ 1.46 | $ 1.20 | $ 4.16 | $ 5.11 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares | 9 Months Ended | |||
Sep. 30, 2019 | Oct. 29, 2019 | Jul. 24, 2019 | Feb. 26, 2019 | |
Earnings Per Share Disclosure [Line Items] | ||||
Increase in dividend rate, percentage | 10.00% | |||
Cash dividend, amount per share (in dollars per share) | $ 0.3675 | $ 0.3675 | ||
Subsequent Event | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Cash dividend, amount per share (in dollars per share) | $ 0.3675 | |||
Common Stock | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 226,872 |
Inventories - Breakdown of inve
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 561,981 | $ 482,355 |
Raw materials and work in process | 173,973 | 158,290 |
Stores, supplies and other | 66,480 | 59,895 |
Total inventories | $ 802,434 | $ 700,540 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Finished goods, chemical grade spodumene related to Lithium | $ 561,981 | $ 482,355 |
Lithium | ||
Inventory [Line Items] | ||
Finished goods, chemical grade spodumene related to Lithium | 96,300 | 104,300 |
Work in process related to Lithium | $ 70,300 | $ 71,400 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Windfield Holdings | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Carrying value of unconsolidated investment | $ 376.5 | $ 349.6 |
Other variable interest entities | ||
Schedule of Investments [Line Items] | ||
Carrying value of unconsolidated investment | $ 7.7 | $ 8.1 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 1,921,944 | $ 1,705,210 |
Current portion of long-term debt | 539,960 | 307,294 |
Long-term debt | 1,381,984 | 1,397,916 |
Senior Notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 427,941 | 444,155 |
Senior Notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 422,481 | 422,116 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 174,852 | 174,626 |
Senior Notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 346,112 | 345,996 |
Commercial paper notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 539,300 | 306,606 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 7,424 | 7,216 |
Finance lease obligations | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 3,834 | $ 4,495 |
Long-Term Debt - Interest Rates
Long-Term Debt - Interest Rates (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ 2,040 | $ 2,841 |
Debt instrument, interest rate | 1.875% | 1.875% |
4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ 2,519 | $ 2,884 |
Debt instrument, interest rate | 4.15% | 4.15% |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ 364 | $ 589 |
Debt instrument, interest rate | 4.50% | 4.50% |
5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ 3,889 | $ 4,004 |
Debt instrument, interest rate | 5.45% | 5.45% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Aug. 14, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Net investment hedge gains (losses) | $ 12,745 | $ (3,621) | $ 13,012 | $ 4,947 | ||||
Commercial paper notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate | 2.28% | 2.28% | ||||||
Debt instrument maturity period | 31 days | |||||||
1.875% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | |||||
2019 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 1,200,000 | |||||||
Interest rate margin | 1.125% | |||||||
Credit facility, borrowings outstanding | $ 0 | $ 0 | ||||||
Minimum | 2019 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 0.875% | |||||||
Maximum | 2019 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 1.625% | |||||||
Subsequent Event | 2019 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, borrowings outstanding | $ 1,000,000 | |||||||
Mineral Resources Limited's Wodgina Project | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership percentage | 60.00% |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 49,569 | |
Expenditures | (4,626) | |
Accretion of discount | 799 | |
Additions and changes in estimates | 1,070 | |
Foreign currency translation adjustments and other | (2,007) | |
Balance at end of period | $ 49,569 | $ 44,805 |
Less amounts reported in Accrued expenses | 9,588 | |
Amounts reported in Other noncurrent liabilities | $ 35,217 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 37 | $ 40.4 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.70% | 3.70% |
Environmental remediation liabilities - undiscounted | $ 69.7 | $ 74.5 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 10 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 30 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | 26.2 | $ 45.3 |
Accrued expenses | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 20.6 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 879,747 | $ 777,748 | $ 2,596,863 | $ 2,453,251 |
Adjusted EBITDA | 254,351 | 235,082 | 742,118 | 742,362 |
Net income attributable to Albemarle Corporation | 155,070 | 129,745 | 442,837 | 563,966 |
Depreciation and amortization | 54,487 | 49,707 | 156,718 | 150,511 |
Restructuring and other | 3,724 | 3,724 | ||
Gain on sale of business | 0 | 0 | 0 | (218,705) |
Acquisition and integration related costs | 4,114 | 4,305 | 14,388 | 13,016 |
Gain on sale of property | (11,079) | 0 | ||
Interest and financing expenses | 11,108 | 12,988 | 35,295 | 39,834 |
Income tax expense | 25,341 | 33,167 | 93,266 | 133,630 |
Non-operating pension and OPEB items | (551) | (2,195) | (1,810) | (6,596) |
Legal accrual | (1,017) | 27,027 | ||
Environmental accrual | 15,597 | |||
Albemarle Foundation contribution | 15,000 | |||
Other | 4,782 | 4,658 | 12,503 | 5,358 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 31,748 | 23,065 | 109,786 | 90,978 |
Adjusted EBITDA | 10,448 | 3,968 | 28,931 | 7,729 |
Net income attributable to Albemarle Corporation | 8,305 | 1,978 | 22,629 | 1,659 |
Depreciation and amortization | 2,143 | 1,990 | 6,302 | 6,070 |
Restructuring and other | 0 | 0 | ||
Gain on sale of business | 0 | |||
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Legal accrual | 0 | 0 | ||
Environmental accrual | 0 | |||
Albemarle Foundation contribution | 0 | |||
Other | 0 | 0 | 0 | 0 |
Reportable Segments | Lithium | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 330,386 | 270,928 | 947,030 | 886,523 |
Adjusted EBITDA | 127,459 | 113,629 | 384,854 | 386,260 |
Net income attributable to Albemarle Corporation | 102,136 | 90,313 | 312,609 | 315,939 |
Depreciation and amortization | 25,212 | 23,370 | 71,669 | 71,760 |
Restructuring and other | 0 | 0 | ||
Gain on sale of business | 0 | |||
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Legal accrual | 0 | 0 | ||
Environmental accrual | 0 | |||
Albemarle Foundation contribution | 0 | |||
Other | 111 | (54) | 576 | (1,439) |
Reportable Segments | Bromine Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 256,267 | 232,616 | 760,752 | 678,769 |
Adjusted EBITDA | 88,814 | 78,585 | 248,743 | 217,921 |
Net income attributable to Albemarle Corporation | 75,224 | 67,967 | 212,320 | 187,176 |
Depreciation and amortization | 12,448 | 10,618 | 35,281 | 30,745 |
Restructuring and other | 0 | 0 | ||
Gain on sale of business | 0 | |||
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Legal accrual | 0 | 0 | ||
Environmental accrual | 0 | |||
Albemarle Foundation contribution | 0 | |||
Other | 1,142 | 0 | 1,142 | 0 |
Reportable Segments | Catalysts | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 261,346 | 251,139 | 779,295 | 796,822 |
Adjusted EBITDA | 66,944 | 62,602 | 193,890 | 205,534 |
Net income attributable to Albemarle Corporation | 54,345 | 50,491 | 156,328 | 387,038 |
Depreciation and amortization | 12,599 | 12,111 | 37,562 | 37,201 |
Restructuring and other | 0 | 0 | ||
Gain on sale of business | (218,705) | |||
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Legal accrual | 0 | 0 | ||
Environmental accrual | 0 | |||
Albemarle Foundation contribution | 0 | |||
Other | 0 | 0 | 0 | 0 |
Reportable Segments | Reportable Segments Total | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 283,217 | 254,816 | 827,487 | 809,715 |
Net income attributable to Albemarle Corporation | 231,705 | 208,771 | 681,257 | 890,153 |
Depreciation and amortization | 50,259 | 46,099 | 144,512 | 139,706 |
Restructuring and other | 0 | 0 | ||
Gain on sale of business | (218,705) | |||
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Legal accrual | 0 | 0 | ||
Environmental accrual | 0 | |||
Albemarle Foundation contribution | 0 | |||
Other | 1,253 | (54) | 1,718 | (1,439) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 159 |
Adjusted EBITDA | (39,314) | (23,702) | (114,300) | (75,082) |
Net income attributable to Albemarle Corporation | (84,940) | (81,004) | (261,049) | (327,846) |
Depreciation and amortization | 2,085 | 1,618 | 5,904 | 4,735 |
Restructuring and other | 3,724 | 3,724 | ||
Gain on sale of business | 0 | |||
Acquisition and integration related costs | 4,114 | 4,305 | 14,388 | 13,016 |
Gain on sale of property | (11,079) | |||
Interest and financing expenses | 11,108 | 12,988 | 35,295 | 39,834 |
Income tax expense | 25,341 | 33,167 | 93,266 | 133,630 |
Non-operating pension and OPEB items | (551) | (2,195) | (1,810) | (6,596) |
Legal accrual | (1,017) | 27,027 | ||
Environmental accrual | 15,597 | |||
Albemarle Foundation contribution | 15,000 | |||
Other | $ 3,529 | $ 4,712 | $ 10,785 | $ 6,797 |
Segment Information - Summari_2
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Acquisition and integration related costs | $ 4,114 | $ 4,305 | $ 14,388 | $ 13,016 |
Restructuring and other | 3,724 | 3,724 | ||
Legal accrual | (1,017) | 27,027 | ||
Charitable contribution | 15,000 | |||
Cost of goods sold | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration related costs | 900 | 2,900 | ||
Non-routine Chilean labor costs | 100 | 600 | ||
Write-off of fixed assets at JBC | 3,800 | 4,900 | ||
Selling, general and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration related costs | 4,100 | 3,400 | 14,400 | 10,200 |
Write-off of uncollectable accounts receivable | 1,100 | 1,100 | ||
Restructuring and other | 5,300 | |||
Multiemployer plan shortfall contributions | 1,000 | |||
Gain related to a refund form Chilean authorities | 100 | 1,500 | ||
Charitable contribution | 1,200 | 1,200 | ||
Other (expenses) income, net | ||||
Segment Reporting Information [Line Items] | ||||
Unrecoverable vendor costs | 3,100 | 3,100 | ||
Settlement of legal matters related to previously disposed businesses or purchase accounting | $ 400 | 400 | ||
Revision of tax indemnification expense | $ 900 | |||
Revision of previously recorded expenses of a disposed business | 200 | 800 | ||
2014 Sales Contract | ||||
Segment Reporting Information [Line Items] | ||||
Legal accrual | 1,400 | 16,200 | ||
Guarantee from previously disposed business | ||||
Segment Reporting Information [Line Items] | ||||
Legal accrual | $ 400 | $ 10,800 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total net pension and postretirement benefits cost (credit) | $ 586 | $ (915) | $ 1,641 | $ (2,708) |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,118 | 1,238 | 3,371 | 3,765 |
Interest cost | 8,314 | 7,967 | 24,854 | 24,010 |
Expected return on assets | (9,414) | (10,703) | (28,311) | (32,227) |
Amortization of prior service benefit | (5) | 25 | 7 | 71 |
Total net pension and postretirement benefits cost (credit) | 13 | (1,473) | (79) | (4,381) |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 24 | 29 | 73 | 88 |
Interest cost | 549 | 542 | 1,647 | 1,626 |
Expected return on assets | 0 | (1) | 0 | (5) |
Amortization of prior service benefit | 0 | (12) | 0 | (36) |
Total net pension and postretirement benefits cost (credit) | $ 573 | $ 558 | $ 1,720 | $ 1,673 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2.1 | $ 3.1 | $ 8.6 | $ 9 |
Payment for Other Postretirement Benefits | $ 0.8 | $ 0.8 | $ 2.1 | $ 2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 1,927,898 | $ 1,712,003 |
Total long-term debt, fair value, excluding debt issuance costs | $ 2,019,115 | $ 1,731,271 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - Forward contracts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Derivative, notional amount | $ 1,110,000 | $ 1,110,000 | $ 626,500 | ||
Other accounts receivable | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts, asset | 0 | 0 | 431 | ||
Accrued expenses | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts, liability | 1,697 | 1,697 | $ 0 | ||
Other (expenses) income, net | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Recognized losses of foreign currency forward contracts | $ (19,331) | $ (203) | (27,647) | $ (13,034) | |
Other, net | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in the fair value of foreign currency forward contracts | 27,600 | 13,000 | |||
Cash settlements | $ (25,500) | $ (18,100) |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | $ 26,816 | $ 26,292 |
Private equity securities | 29 | 26 |
Foreign currency forward contracts, assets | 431 | |
Obligations under executive deferred compensation plan | 26,816 | 26,292 |
Foreign currency forward contracts, liabilities | 1,697 | |
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 | 26,816 | 26,292 |
Private equity securities | 29 | 26 |
Foreign currency forward contracts, assets | 0 | |
Obligations under executive deferred compensation plan | 26,816 | 26,292 |
Foreign currency forward contracts, liabilities | 0 | |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Foreign currency forward contracts, assets | 431 | |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 1,697 | |
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 |
Foreign currency forward contracts, assets | 0 | |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 0 | |
Fair Value Measured at Net Asset Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity securities | $ 4,884 | $ 7,195 |
Accumulated Other Comprehensi_3
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | $ 3,974,403 | $ 3,837,280 | $ 3,759,108 | $ 3,817,696 |
Other comprehensive (loss) income, before reclassifications | (87,324) | (13,170) | (87,368) | (90,568) |
Amounts reclassified from accumulated other comprehensive loss | 636 | 653 | 1,931 | 1,963 |
Total other comprehensive loss, net of tax | (86,688) | (12,517) | (85,437) | (88,605) |
Other comprehensive loss attributable to noncontrolling interests | 122 | 5 | 142 | 82 |
Ending Balance | 4,008,337 | 3,686,277 | 4,008,337 | 3,686,277 |
Foreign Currency Translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (407,937) | (343,458) | (407,646) | (257,569) |
Other comprehensive (loss) income, before reclassifications | (100,069) | (9,549) | (100,380) | (95,515) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive loss, net of tax | (100,069) | (9,549) | (100,380) | (95,515) |
Other comprehensive loss attributable to noncontrolling interests | 122 | 5 | 142 | 82 |
Ending Balance | (507,884) | (353,002) | (507,884) | (353,002) |
Pension and Postretirement Benefits | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (146) | 5 | (159) | (21) |
Other comprehensive (loss) income, before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (5) | 11 | 8 | 37 |
Total other comprehensive loss, net of tax | (5) | 11 | 8 | 37 |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | (151) | 16 | (151) | 16 |
Net Investment Hedge | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 72,604 | 55,119 | 72,337 | 46,551 |
Other comprehensive (loss) income, before reclassifications | 12,745 | (3,621) | 13,012 | 4,947 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive loss, net of tax | 12,745 | (3,621) | 13,012 | 4,947 |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | 85,349 | 51,498 | 85,349 | 51,498 |
Interest Rate Swap | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (13,932) | (13,345) | (15,214) | (14,629) |
Other comprehensive (loss) income, before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 641 | 642 | 1,923 | 1,926 |
Total other comprehensive loss, net of tax | 641 | 642 | 1,923 | 1,926 |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | (13,291) | (12,703) | (13,291) | (12,703) |
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (349,411) | (301,679) | (350,682) | (225,668) |
Total other comprehensive loss, net of tax | (86,566) | (12,512) | (85,295) | (88,523) |
Ending Balance | $ (435,977) | $ (314,191) | $ (435,977) | $ (314,191) |
Accumulated Other Comprehensi_4
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Foreign Currency Translation, Other comprehensive (loss) income, before tax | $ (100,069) | $ (9,550) | $ (100,379) | $ (95,517) |
Foreign Currency Translation, Income tax (expense) benefit | 0 | 1 | (1) | 2 |
Foreign currency translation, Other comprehensive (loss) income, net of tax | (100,069) | (9,549) | (100,380) | (95,515) |
Pension and Postretirement Benefits, Other comprehensive (loss) income, before tax | (3) | 13 | 10 | 43 |
Pension and Postretirement Benefits, Income tax (expense) benefit | (2) | (2) | (2) | (6) |
Pension and Postretirement Benefits, Other comprehensive (loss) income, net of tax | (5) | 11 | 8 | 37 |
Net investment hedge, Other comprehensive (loss) income, before tax | 16,584 | (4,704) | 16,932 | 6,426 |
Net investment hedge, Income tax (expense) benefit | (3,839) | 1,083 | (3,920) | (1,479) |
Net investment hedge, Other comprehensive (loss) income, net of tax | 12,745 | (3,621) | 13,012 | 4,947 |
Interest rate swap, Other comprehensive (loss) income, before tax | 834 | 834 | 2,502 | 2,502 |
Interest rate swap, Income tax (expense) benefit | (193) | (192) | (579) | (576) |
Interest rate swap, Other comprehensive (loss) income, net of tax | $ 641 | $ 642 | $ 1,923 | $ 1,926 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Sales to unconsolidated affiliates | $ 4,465 | $ 4,970 | $ 14,128 | $ 20,608 | |
Purchases from unconsolidated affiliates | 41,304 | $ 60,136 | 160,420 | $ 186,111 | |
Receivables from unconsolidated affiliates | 3,041 | 3,041 | $ 14,348 | ||
Payables to unconsolidated affiliates | $ 32,699 | $ 32,699 | $ 68,357 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 174,510 | $ 107,385 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Cash Flows [Abstract] | ||
Transition tax on foreign earnings, current | $ 14.4 | $ 33.9 |
Subsequent Events Subsequent _2
Subsequent Events Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||||
Acquisition and integration related costs | $ 4,114 | $ 4,305 | $ 14,388 | $ 13,016 | |
Subsequent Event | Mineral Resources Limited's Wodgina Project | |||||
Subsequent Event [Line Items] | |||||
Interest percentage acquired | 60.00% | ||||
Consideration transferred | $ 1,300,000 | ||||
Cash payments related to joint venture | $ 820,000 | ||||
Ownership percentage | 60.00% | ||||
Subsequent Event | Wodgina Lithium Operations Pty. Ltd. | |||||
Subsequent Event [Line Items] | |||||
Ownership percentage | 60.00% | ||||
Selling, general and administrative expenses | |||||
Subsequent Event [Line Items] | |||||
Acquisition and integration related costs | 4,100 | $ 3,400 | 14,400 | $ 10,200 | |
Selling, general and administrative expenses | Mineral Resources Limited's Wodgina Project | |||||
Subsequent Event [Line Items] | |||||
Acquisition and integration related costs | $ 1,300 | $ 4,400 | |||
Lithium Hydroxide Conversion Assets | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Ownership percentage | 40.00% | ||||
Lithium Hydroxide Conversion Assets | Subsequent Event | Mineral Resources Limited's Wodgina Project | |||||
Subsequent Event [Line Items] | |||||
Consideration transferred | $ 480,000 |