Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, $.01 Par Value | |
Trading Symbol | ALB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 116,721,826 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 829,291 | $ 738,845 |
Cost of goods sold | 565,604 | 496,827 |
Gross profit | 263,687 | 242,018 |
Selling, general and administrative expenses | 93,187 | 101,877 |
Research and development expenses | 14,636 | 16,097 |
Operating profit | 155,864 | 124,044 |
Interest and financing expenses | (43,882) | (16,885) |
Other income, net | 11,312 | 8,314 |
Income before income taxes and equity in net income of unconsolidated investments | 123,294 | 115,473 |
Income tax expense | 22,107 | 18,442 |
Income before equity in net income of unconsolidated investments | 101,187 | 97,031 |
Equity in net income of unconsolidated investments (net of tax) | 16,511 | 26,604 |
Net income | 117,698 | 123,635 |
Net income attributable to noncontrolling interests | (22,021) | (16,431) |
Net income attributable to Albemarle Corporation | $ 95,677 | $ 107,204 |
Basic earnings per share (in dollars per share) | $ 0.85 | $ 1.01 |
Diluted earnings per share (in dollars per share) | $ 0.84 | $ 1.01 |
Weighted-average common shares outstanding - basic (in shares) | 112,592 | 106,227 |
Weighted-average common shares outstanding - diluted (in shares) | 113,330 | 106,512 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 117,698 | $ 123,635 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation and other | (28,142) | (81,977) |
Net investment hedge | 5,110 | 2,081 |
Cash flow hedge | (1,600) | (51,460) |
Interest rate swap | 650 | 648 |
Total other comprehensive loss, net of tax | (23,982) | (130,708) |
Comprehensive income (loss) | 93,716 | (7,073) |
Comprehensive income attributable to noncontrolling interests | (22,021) | (16,477) |
Comprehensive income (loss) attributable to Albemarle Corporation | $ 71,695 | $ (23,550) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 569,859 | $ 746,724 |
Trade accounts receivable, less allowance for doubtful accounts (2021 – $2,084; 2020 – $2,083) | 532,964 | 530,838 |
Other accounts receivable | 60,558 | 61,958 |
Inventories | 685,779 | 750,237 |
Other current assets | 93,844 | 116,427 |
Assets held for sale | 66,390 | 0 |
Total current assets | 2,009,394 | 2,206,184 |
Property, plant and equipment, at cost | 7,433,593 | 7,427,641 |
Less accumulated depreciation and amortization | 2,043,264 | 2,073,016 |
Net property, plant and equipment | 5,390,329 | 5,354,625 |
Investments | 663,448 | 656,244 |
Noncurrent assets held for sale | 50,683 | 0 |
Other assets | 212,258 | 219,268 |
Goodwill | 1,629,169 | 1,665,520 |
Other intangibles, net of amortization | 335,021 | 349,105 |
Total assets | 10,290,302 | 10,450,946 |
Current liabilities: | ||
Accounts payable | 492,532 | 483,221 |
Accrued expenses | 378,973 | 440,763 |
Current portion of long-term debt | 616 | 804,677 |
Dividends payable | 45,327 | 40,937 |
Liabilities held for sale | 4,068 | 0 |
Income taxes payable | 31,740 | 32,251 |
Total current liabilities | 953,256 | 1,801,849 |
Long-term debt | 2,030,032 | 2,767,381 |
Postretirement benefits | 47,817 | 48,075 |
Pension benefits | 316,652 | 340,818 |
Other noncurrent liabilities | 619,309 | 629,377 |
Deferred income taxes | 380,683 | 394,852 |
Commitments and contingencies (Note 9) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 116,718 in 2021 and 106,842 in 2020 | 1,167 | 1,069 |
Additional paid-in capital | 2,889,923 | 1,438,038 |
Accumulated other comprehensive loss | (350,114) | (326,132) |
Retained earnings | 3,205,408 | 3,155,252 |
Total Albemarle Corporation shareholders’ equity | 5,746,384 | 4,268,227 |
Noncontrolling interests | 196,169 | 200,367 |
Total equity | 5,942,553 | 4,468,594 |
Total liabilities and equity | $ 10,290,302 | $ 10,450,946 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,084 | $ 2,083 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 116,718 | 106,842 |
Common stock, outstanding (in shares) | 116,718 | 106,842 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Albemarle Shareholders' Equity | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2019 | 106,040,215 | ||||||
Beginning Balance at Dec. 31, 2019 | $ 4,093,580 | $ 1,061 | $ 1,383,446 | $ (395,735) | $ 2,943,478 | $ 3,932,250 | $ 161,330 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 123,635 | 107,204 | 107,204 | 16,431 | |||
Other comprehensive (loss) income | (130,708) | (130,754) | (130,754) | 46 | |||
Cash dividends declared | (55,219) | (40,933) | (40,933) | (14,286) | |||
Stock-based compensation | 3,867 | 3,867 | 3,867 | ||||
Exercise of stock options (in shares) | 193,537 | ||||||
Exercise of stock options | 10,195 | $ 2 | 10,193 | 10,195 | |||
Issuance of common stock, net (in shares) | 132,320 | ||||||
Issuance of common stock, net | 0 | $ 1 | (1) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (47,458) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (3,825) | $ (1) | (3,824) | (3,825) | |||
Ending Balance (in shares) at Mar. 31, 2020 | 106,318,614 | ||||||
Ending Balance at Mar. 31, 2020 | 4,041,525 | $ 1,063 | 1,393,681 | (526,489) | 3,009,749 | 3,878,004 | 163,521 |
Beginning Balance (in shares) at Dec. 31, 2020 | 106,842,369 | ||||||
Beginning Balance at Dec. 31, 2020 | 4,468,594 | $ 1,069 | 1,438,038 | (326,132) | 3,155,252 | 4,268,227 | 200,367 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 117,698 | 95,677 | 95,677 | 22,021 | |||
Other comprehensive (loss) income | (23,982) | (23,982) | (23,982) | 0 | |||
Cash dividends declared | (71,740) | (45,521) | (45,521) | (26,219) | |||
Stock-based compensation | 4,674 | 4,674 | 4,674 | ||||
Fees related to public issuance of common stock | (902) | (902) | (902) | ||||
Exercise of stock options (in shares) | 17,964 | ||||||
Exercise of stock options | 1,183 | $ 0 | 1,183 | 1,183 | |||
Issuance of common stock, net (in shares) | 9,902,307 | ||||||
Issuance of common stock, net | 1,453,888 | $ 99 | 1,453,789 | 1,453,888 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (44,465) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (6,860) | $ (1) | (6,859) | (6,860) | |||
Ending Balance (in shares) at Mar. 31, 2021 | 116,718,175 | ||||||
Ending Balance at Mar. 31, 2021 | $ 5,942,553 | $ 1,167 | $ 2,889,923 | $ (350,114) | $ 3,205,408 | $ 5,746,384 | $ 196,169 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.39 | $ 0.385 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 746,724 | $ 613,110 |
Cash flows from operating activities: | ||
Net income | 117,698 | 123,635 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 62,260 | 53,694 |
Stock-based compensation and other | 2,560 | 2,501 |
Equity in net income of unconsolidated investments (net of tax) | (16,511) | (26,604) |
Dividends received from unconsolidated investments and nonmarketable securities | 4,950 | 0 |
Pension and postretirement benefit | (4,226) | (1,719) |
Pension and postretirement contributions | (15,329) | (6,113) |
Unrealized gain on investments in marketable securities | (1,762) | (627) |
Loss on early extinguishment of debt | 27,798 | 0 |
Deferred income taxes | (19,384) | 4,790 |
Working capital changes | (49,185) | 17,730 |
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | 43,223 | 36,723 |
Other, net | 5,857 | (48,956) |
Net cash provided by operating activities | 157,949 | 155,054 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | (22,572) |
Capital expenditures | (179,683) | (214,529) |
Sales of marketable securities, net | 5,245 | 2,589 |
Investments in equity and other corporate investments | (286) | (356) |
Net cash used in investing activities | (174,724) | (234,868) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 1,453,888 | 0 |
Repayments of long-term debt and credit agreements | (1,174,980) | 0 |
Proceeds from borrowings of credit agreements | 0 | 250,000 |
-325159000 | (325,159) | (151,872) |
Fees related to early extinguishment of debt | (23,719) | 0 |
Dividends paid to shareholders | (41,130) | (38,982) |
Dividends paid to noncontrolling interests | (26,219) | (14,286) |
Proceeds from exercise of stock options | 1,183 | 10,195 |
Withholding taxes paid on stock-based compensation award distributions | (6,860) | (3,825) |
Other | (253) | (214) |
Net cash (used in) provided by financing activities | (143,249) | 51,016 |
Net effect of foreign exchange on cash and cash equivalents | (16,841) | (31,084) |
Decrease in cash and cash equivalents | (176,865) | (59,882) |
Cash and cash equivalents at end of period | $ 569,859 | $ 553,228 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three-month periods ended March 31, 2021 and 2020 and our condensed consolidated statements of cash flows for the three-month periods ended March 31, 2021 and 2020. Income tax expense for the three-month period ended March 31, 2021 includes expense of $7.9 million due to the correction of an out-of-period error regarding an overstated deferred tax liability for the three-month period ended December 31, 2017. The Company does not believe this adjustment is material to the consolidated financial statements for the three-month period ended March 31, 2021, or the three-month period or year ended December 31, 2017. 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, 2020, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on February 19, 2021. The December 31, 2020 condensed consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three-month period ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation. The current novel coronavirus (“COVID-19”) pandemic is having an impact on overall global economic conditions. While we have not seen a material impact to our operations to date, the ultimate impact on our business will depend on the length and severity of the outbreak throughout the world. The Company has taken, and plans to continue to take, certain measures to maintain financial flexibility while still protecting our employees and customers. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Divestitures: On February 25, 2021, the Company signed a definitive agreement to sell its fine chemistry services (“FCS”) business to W. R. Grace & Co. (“Grace”) for proceeds of approximately $570 million, consisting of $300 million in cash and the issuance to Albemarle of preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and will accrue payment-in-kind (“PIK”) dividends at an annual rate of 12% beginning two years after issuance. As part of the transaction, Grace will acquire our manufacturing facilities located in South Haven, Michigan and Tyrone, Pennsylvania. The sale of the FCS business reflects the Company’s commitment to investing in its core, growth-oriented business segments. The sale is expected to close in the second quarter of 2021, subject to the satisfaction of customary closing conditions, including approvals from regulatory authorities. We currently expect to record a gain in the second quarter of 2021 related to the sale of this business. We determined that this business met the assets held for sale criteria in accordance with ASC 360, Property,Plant and Equipment during the first quarter of 2021. As such, the assets and liabilities of this business were included in Assets held for sale and Liabilities held for sale, respectively, in the consolidated balance sheet at March 31, 2021. The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at March 31, 2021 are as follows (in thousands): March 31, 2021 Assets Inventories $ 45,225 Other current assets 21,165 Net property, plant and equipment 44,080 Goodwill and other noncurrent assets 6,603 Assets held for sale $ 117,073 Liabilities Current liabilities $ 4,068 Liabilities held for sale $ 4,068 The results of operations of the business classified as held for sale is included in the consolidated statements of income. This business did not qualify for discontinued operations treatment because the Company’s management does not consider the sale as representing a strategic shift that had or will have a major effect on the Company’s operations and financial results. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2021 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2020 $ 1,441,781 $ 20,319 $ 196,834 $ 6,586 $ 1,665,520 Reclass to assets held for sale (a) — — — (6,586) (6,586) Foreign currency translation adjustments and other (23,110) — (6,655) — (29,765) Balance at March 31, 2021 $ 1,418,671 $ 20,319 $ 190,179 $ — $ 1,629,169 (a) Represents goodwill of the FCS business. See Note 2, “Divestitures,” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2021 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2020 $ 448,748 $ 18,710 $ 58,096 $ 39,864 $ 565,418 Reclass to assets held for sale (b) — — — (1,473) (1,473) Foreign currency translation adjustments and other (10,530) (321) (633) (452) (11,936) Balance at March 31, 2021 $ 438,218 $ 18,389 $ 57,463 $ 37,939 $ 552,009 Accumulated Amortization Balance at December 31, 2020 $ (147,286) $ (8,176) $ (39,500) $ (21,351) $ (216,313) Amortization (5,837) — (365) (227) (6,429) Reclass to assets held for sale (b) — — — 1,456 1,456 Foreign currency translation adjustments and other 3,390 90 604 214 4,298 Balance at March 31, 2021 $ (149,733) $ (8,086) $ (39,261) $ (19,908) $ (216,988) Net Book Value at December 31, 2020 $ 301,462 $ 10,534 $ 18,596 $ 18,513 $ 349,105 Net Book Value at March 31, 2021 $ 288,485 $ 10,303 $ 18,202 $ 18,031 $ 335,021 (a) Net Book Value includes only indefinite-lived intangible assets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The effective income tax rate for the three-month period ended March 31, 2021 was 17.9% compared to 16.0% for the three-month period ended March 31, 2020. The three-month period ended March 31, 2021 included discrete tax expense recorded for an out-of-period adjustment for an overstated deferred tax liability for the three-month period ended December 31, 2017, offset by a benefit due to the release of a foreign valuation allowance. 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 periods ended March 31, 2021 and March 31, 2020 was impacted by a variety of factors, primarily stemming from the location in which income was earned. 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 for both periods. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month periods ended March 31, 2021 and 2020 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2021 2020 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 95,677 $ 107,204 Denominator: Weighted-average common shares for basic earnings per share 112,592 106,227 Basic earnings per share $ 0.85 $ 1.01 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 95,677 $ 107,204 Denominator: Weighted-average common shares for basic earnings per share 112,592 106,227 Incremental shares under stock compensation plans 738 285 Weighted-average common shares for diluted earnings per share 113,330 106,512 Diluted earnings per share $ 0.84 $ 1.01 At March 31, 2021, there were 62,479 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. On February 8, 2021, we completed an underwritten public offering of 8,496,773 shares of our common stock, par value $0.01 per share, at a price to the public of $153.00 per share. The Company also granted to the underwriters an option to purchase up to an additional 1,274,509 shares, which was exercised. The total gross proceeds from this offering were approximately $1.5 billion, before deducting expenses, underwriting discounts and commissions. The net proceeds were used for debt repayments and general corporate purposes. See Note 8, “Long-Term Debt,” for further details. On February 25, 2021, the Company declared a cash dividend of $0.39, an increase from the prior year regular quarterly dividend. This dividend was paid on April 1, 2021 to shareholders of record at the close of business as of March 12, 2021. On May 4, 2021, the Company declared a cash dividend of $0.39 per share, which is payable on July 1, 2021 to shareholders of record at the close of business as of June 11, 2021. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Finished goods $ 394,401 $ 454,162 Raw materials and work in process (a) 216,150 219,896 Stores, supplies and other 75,228 76,179 Total $ 685,779 $ 750,237 (a) Included $136.4 million and $129.6 million at March 31, 2021 and December 31, 2020, respectively, of work in process in our Lithium segment. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
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 $496.2 million and $479.6 million at March 31, 2021 and December 31, 2020, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs for which the Company is not the primary beneficiary was $8.3 million and $8.0 million at March 31, 2021 and December 31, 2020, 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 | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, December 31, 2021 2020 1.125% notes $ 443,657 $ 610,800 1.625% notes 589,700 610,800 1.875% Senior notes — 480,007 3.45% Senior notes 171,612 300,000 4.15% Senior notes 425,000 425,000 5.45% Senior notes 350,000 350,000 Floating rate notes — 200,000 Credit facilities — 223,900 Commercial paper notes — 325,000 Variable-rate foreign bank loans 7,296 7,702 Finance lease obligations 58,910 59,181 Unamortized discount and debt issuance costs (15,527) (20,332) Total long-term debt 2,030,648 3,572,058 Less amounts due within one year 616 804,677 Long-term debt, less current portion $ 2,030,032 $ 2,767,381 In the first quarter of 2021, the Company made the following debt principal payments using proceeds from the February 2021 underwritten public offering of common stock: • €123.8 million of the 1.125% notes due in November 2025 • €393.0 million, the remaining balance, of the 1.875% Senior notes originally due in December 2021 • $128.4 million of the 3.45% Senior notes due in November 2029 • $200.0 million, the remaining balance, of the floating rate notes originally due in November 2022 • €183.3 million, the outstanding balance, of the unsecured credit facility originally entered into on August 14, 2019, as amended and restated on December 15, 2020 • $325.0 million, the outstanding balance, of the commercial paper notes As a result, included in Interest and financing expenses for the three-month period ended March 31, 2021 is a loss on early extinguishment of debt of $27.8 million, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of this debt. Prior to repayment in the first quarter of 2021, the carrying value of our 1.875% Euro-denominated senior notes was 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 were recorded in accumulated other comprehensive loss. Upon repayment of these notes, this net investment hedge was discontinued. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. Prior to the net investment hedge being |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2021 (in thousands): Beginning balance at December 31, 2020 $ 45,771 Expenditures (394) Accretion of discount 242 Foreign currency translation adjustments and other (605) Ending balance at March 31, 2021 45,014 Less amounts reported in Accrued expenses 9,209 Amounts reported in Other noncurrent liabilities $ 35,805 Environmental remediation liabilities included discounted liabilities of $38.7 million and $39.2 million at March 31, 2021 and December 31, 2020, respectively, discounted at rates with a weighted-average of 3.5%, and with the undiscounted amount totaling $72.3 million and $73.6 million at March 31, 2021 and December 31, 2020, 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 $35 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”), SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, 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, SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, 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 $29.5 million and $30.5 million at March 31, 2021 and December 31, 2020, respectively, recorded in Other noncurrent liabilities, primarily related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. Other We have contracts with certain of our customers, which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis as well as blanket coverage of multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
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 periods ended March 31, 2021 and 2020 (in thousands): Three Months Ended 2021 2020 Operating lease cost $ 9,412 $ 8,740 Finance lease cost: Amortization of right of use assets 157 154 Interest on lease liabilities 755 650 Total finance lease cost 912 804 Short-term lease cost 2,604 2,883 Variable lease cost 2,365 1,948 Total lease cost $ 15,293 $ 14,375 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,381 $ 11,177 Operating cash flows from finance leases 439 380 Financing cash flows from finance leases 159 172 Right-of-use assets obtained in exchange for lease obligations: Operating leases 707 16,021 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2021 and December 31, 2020 is as follows (in thousands, except as noted): March 31, 2021 December 31, 2020 Operating leases: Other assets $ 128,211 $ 136,292 Accrued expenses 19,784 22,297 Other noncurrent liabilities 111,719 116,765 Total operating lease liabilities 131,503 139,062 Finance leases: Net property, plant and equipment 58,701 58,963 Current portion of long-term debt (a) 2,046 1,752 Long-term debt 58,294 58,543 Total finance lease liabilities 60,340 60,295 Weighted average remaining lease term (in years): Operating leases 15.7 15.3 Finance leases 27.4 27.5 Weighted average discount rate (%): Operating leases 3.96 % 3.94 % Finance leases 4.56 % 4.56 % (a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2021 $ 17,556 $ 1,631 2022 20,458 4,454 2023 21,684 4,454 2024 10,680 4,454 2025 9,563 4,454 Thereafter 131,824 89,916 Total lease payments 211,765 109,363 Less imputed interest 80,262 49,023 Total $ 131,503 $ 60,340 |
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 periods ended March 31, 2021 and 2020 (in thousands): Three Months Ended 2021 2020 Operating lease cost $ 9,412 $ 8,740 Finance lease cost: Amortization of right of use assets 157 154 Interest on lease liabilities 755 650 Total finance lease cost 912 804 Short-term lease cost 2,604 2,883 Variable lease cost 2,365 1,948 Total lease cost $ 15,293 $ 14,375 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,381 $ 11,177 Operating cash flows from finance leases 439 380 Financing cash flows from finance leases 159 172 Right-of-use assets obtained in exchange for lease obligations: Operating leases 707 16,021 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2021 and December 31, 2020 is as follows (in thousands, except as noted): March 31, 2021 December 31, 2020 Operating leases: Other assets $ 128,211 $ 136,292 Accrued expenses 19,784 22,297 Other noncurrent liabilities 111,719 116,765 Total operating lease liabilities 131,503 139,062 Finance leases: Net property, plant and equipment 58,701 58,963 Current portion of long-term debt (a) 2,046 1,752 Long-term debt 58,294 58,543 Total finance lease liabilities 60,340 60,295 Weighted average remaining lease term (in years): Operating leases 15.7 15.3 Finance leases 27.4 27.5 Weighted average discount rate (%): Operating leases 3.96 % 3.94 % Finance leases 4.56 % 4.56 % (a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2021 $ 17,556 $ 1,631 2022 20,458 4,454 2023 21,684 4,454 2024 10,680 4,454 2025 9,563 4,454 Thereafter 131,824 89,916 Total lease payments 211,765 109,363 Less imputed interest 80,262 49,023 Total $ 131,503 $ 60,340 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 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 FCS business that does not fit into any of our core businesses. In February 2021, we announced that we signed a definitive agreement to sell the FCS business. See Note 2, “Divestitures,” for additional information. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“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 inter-segment 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 2021 2020 (In thousands) Net sales: Lithium $ 278,976 $ 236,818 Bromine Specialties 280,447 231,592 Catalysts 220,243 207,207 All Other 49,625 63,228 Total net sales $ 829,291 $ 738,845 Adjusted EBITDA: Lithium $ 106,436 $ 78,637 Bromine Specialties 94,640 83,262 Catalysts 25,427 47,470 All Other 21,479 22,824 Corporate (17,928) (35,828) Total adjusted EBITDA $ 230,054 $ 196,365 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium Bromine Specialties Catalysts Reportable Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2021 Net income (loss) attributable to Albemarle Corporation $ 74,630 $ 82,113 $ 12,916 $ 169,659 $ 20,016 $ (93,998) $ 95,677 Depreciation and amortization 31,806 12,527 12,511 56,844 1,463 3,953 62,260 Acquisition and integration related costs (a) — — — — — 2,162 2,162 Interest and financing expenses (b) — — — — — 43,882 43,882 Income tax expense — — — — — 22,107 22,107 Non-operating pension and OPEB items — — — — — (5,465) (5,465) Other (c) — — — — — 9,431 9,431 Adjusted EBITDA $ 106,436 $ 94,640 $ 25,427 $ 226,503 $ 21,479 $ (17,928) $ 230,054 Three months ended March 31, 2020 Net income (loss) attributable to Albemarle Corporation $ 53,240 $ 71,665 $ 34,892 $ 159,797 $ 20,846 $ (73,439) $ 107,204 Depreciation and amortization 25,397 11,597 12,578 49,572 1,978 2,144 53,694 Restructuring and other (d) — — — — — 1,847 1,847 Acquisition and integration related costs (b) — — — — — 2,951 2,951 Interest and financing expenses — — — — — 16,885 16,885 Income tax expense — — — — — 18,442 18,442 Non-operating pension and OPEB items — — — — — (2,908) (2,908) Other (e) — — — — — (1,750) (1,750) Adjusted EBITDA $ 78,637 $ 83,262 $ 47,470 $ 209,369 $ 22,824 $ (35,828) $ 196,365 (a) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (b) Included in Interest and financing expenses is a loss on early extinguishment of debt of $27.8 million. See Note 8, “Long-Term Debt,” for additional information. (c) Included amounts for the three months ended March 31, 2021 recorded in: • SG&A - $5.5 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements. • Other income, net - $3.9 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle. (d) In 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Germany and with our Jordanian joint venture partner. During the three months ended March 31, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $1.5 million in SG&A and a $0.3 million gain in Net income attributable to noncontrolling interests for the portion of severance expense allocated to our Jordanian joint venture partner. The balance of unpaid severance is recorded in Accrued expenses and is expected to primarily be paid through 2021. (e) Included amounts for the three months ended March 31, 2020 recorded in: ▪ Other income, net - $2.6 million net gain resulting from the settlement of legal matters related to a business sold, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month periods ended March 31, 2021 and 2020 were as follows (in thousands): Three Months Ended 2021 2020 Pension Benefits Cost (Credit): Service cost $ 1,179 $ 1,214 Interest cost 5,119 6,687 Expected return on assets (10,893) (10,063) Amortization of prior service benefit 29 (51) Total net pension benefits credit $ (4,566) $ (2,213) Postretirement Benefits Cost: Service cost $ 31 $ 26 Interest cost 309 468 Total net postretirement benefits cost $ 340 $ 494 Total net pension and postretirement benefits credit $ (4,226) $ (1,719) All components of net benefit cost (credit), other than service cost, are included in Other income, net on the consolidated statements of income. During the three-month periods ended March 31, 2021 and 2020, we made contributions of $14.7 million and $5.4 million, respectively, to our qualified and nonqualified pension plans. We paid $0.6 million and $0.7 million, respectively, in premiums to the U.S. postretirement benefit plan during the three-month periods ended March 31, 2021 and 2020, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings. March 31, 2021 December 31, 2020 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 2,042,936 $ 2,203,416 $ 3,588,157 $ 3,783,225 Foreign Currency Forward Contracts—During the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under ASC 815, Derivatives and Hedging . At March 31, 2021 and December 31, 2020, we had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $294.2 million and $75.4 million, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging , 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 non-designated foreign currency forward contracts are estimated based on current settlement values. At March 31, 2021 and December 31, 2020, we had outstanding non-designated foreign currency forward contracts with notional values totaling $559.8 million and $611.1 million, respectively, hedging our exposure to various currencies including the Euro, Australian dollar, Taiwanese dollar, Chinese renminbi and Chilean peso. The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Designated as hedging instruments (a) $ — $ 3,735 $ 7,043 $ — Not Designated as hedging instruments (b) 16,123 182 6,563 4,803 Total $ 16,123 $ 3,917 $ 13,606 $ 4,803 (a) Included $3.7 million in Accrued expenses at March 31, 2021 and $6.2 million in Other current assets and $0.9 million in Other assets at December 31, 2020. (b) Included $15.8 million in Other current assets, $0.3 million in Other assets and $0.2 million in Accrued expenses at March 31, 2021 and $6.6 million in Other current assets and $4.8 million in Accrued expenses at December 31, 2020. The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month periods ended March 31, 2021 and 2020 (in thousands): Three Months Ended 2021 2020 Designated as hedging instruments Losses recognized in Other comprehensive income $ (1,600) $ (51,460) Not designated as hedging instruments Losses recognized in Other income, net (a) $ (191) $ (5,454) (a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income, net. In addition, for the three-month periods ended March 31, 2021 and 2020, we recorded net cash settlements of $7.9 million and $6.8 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. As of March 31, 2021, there are no unrealized gains or losses related to the cash flow hedges expected to be reclassified to earnings in the next twelve months. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 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) $ 28,963 $ 28,963 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,667 $ — $ — $ — Foreign currency forward contracts (d) $ 16,123 $ — $ 16,123 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 28,963 $ 28,963 $ — $ — Foreign currency forward contracts (d) $ 3,917 $ — $ 3,917 $ — December 31, 2020 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) $ 32,447 $ 32,447 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,661 $ — $ — $ — Foreign currency forward contracts (d) $ 13,606 $ — $ 13,606 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 32,447 $ 32,447 $ — $ — Foreign currency forward contracts (d) $ 4,803 $ — $ 4,803 $ — (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 reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other 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. 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. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2021 | |
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 and Other Net Investment Hedge (a) Cash Flow Hedge (b) Interest Rate Swap (c) Total Three months ended March 31, 2021 Balance at December 31, 2020 $ (369,152) $ 46,593 $ 6,449 $ (10,022) $ (326,132) Other comprehensive (loss) income before reclassifications (28,167) 5,110 (1,600) — (24,657) Amounts reclassified from accumulated other comprehensive loss 25 — — 650 675 Other comprehensive income (loss), net of tax (28,142) 5,110 (1,600) 650 (23,982) Amounts reclassified within accumulated other comprehensive loss 51,703 (51,703) — — — Other comprehensive income attributable to noncontrolling interests — — — — — Balance at March 31, 2021 $ (345,591) $ — $ 4,849 $ (9,372) $ (350,114) Three months ended March 31, 2020 Balance at December 31, 2019 $ (468,737) $ 80,778 $ 4,847 $ (12,623) $ (395,735) Other comprehensive (loss) income before reclassifications (81,986) 2,081 (51,460) — (131,365) Amounts reclassified from accumulated other comprehensive loss 9 — — 648 657 Other comprehensive (loss) income, net of tax (81,977) 2,081 (51,460) 648 (130,708) Other comprehensive loss attributable to noncontrolling interests (46) — — — (46) Balance at March 31, 2020 $ (550,760) $ 82,859 $ (46,613) $ (11,975) $ (526,489) (a) During the first quarter of 2021 the net investment hedge was discontinued following the repayment of the 1.875% Euro-denominated senior notes. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge have been reclassified to Foreign currency translation and other, and will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. (b) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 13, “Fair Value of Financial Instruments,” for additional information. (c) 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 periods ended March 31, 2021 and 2020 is provided in the following tables (in thousands): Foreign Currency Translation and Other Net Investment Hedge Cash Flow Hedge Interest Rate Swap Three months ended March 31, 2021 Other comprehensive (loss) income, before tax $ (28,138) $ 6,552 $ (1,600) $ 834 Income tax (expense) benefit (4) (1,442) — (184) Other comprehensive (loss) income, net of tax $ (28,142) $ 5,110 $ (1,600) $ 650 Three months ended March 31, 2020 Other comprehensive (loss) income, before tax $ (81,980) $ 2,675 $ (51,460) $ 834 Income tax benefit (expense) 3 (594) — (186) Other comprehensive (loss) income, net of tax $ (81,977) $ 2,081 $ (51,460) $ 648 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Sales to unconsolidated affiliates $ 5,730 $ 7,217 Purchases from unconsolidated affiliates (a) $ 33,150 $ 76,475 (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): March 31, 2021 December 31, 2019 Receivables from unconsolidated affiliates $ 5,862 $ 4,098 Payables to unconsolidated affiliates $ 33,988 $ 30,123 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Three Months Ended 2021 2020 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 151,604 $ 176,464 As part of the purchase price paid for the acquisition of a 60% interest in MRL’s Wodgina Project, the Company transferred $43.2 million and $36.7 million of its construction in progress of the designated Kemerton assets during the three months ended March 31, 2021 and 2020, respectively, representing MRL’s 40% interest in the assets. Since the acquisition, we have transferred $387.3 million of construction in progress to MRL through March 31, 2021. The cash outflow for these assets is recorded in Capital expenditures within Cash flows from investing activities on the condensed consolidated statements of cash flows. The non-cash transfer of these assets is recorded in Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL within Cash flows from operating activities on the consolidated statements of cash flows. The Company expects to transfer a total of approximately $480 million over the construction of these assets, as defined in the purchase agreement. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In March 2020, the FASB issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances is effective March 12, 2020 through December 31, 2022. We currently do not expect this guidance to have a significant impact on our consolidated financial statements. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In March 2020, the FASB issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances is effective March 12, 2020 through December 31, 2022. We currently do not expect this guidance to have a significant impact on our consolidated financial statements. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at March 31, 2021 are as follows (in thousands): March 31, 2021 Assets Inventories $ 45,225 Other current assets 21,165 Net property, plant and equipment 44,080 Goodwill and other noncurrent assets 6,603 Assets held for sale $ 117,073 Liabilities Current liabilities $ 4,068 Liabilities held for sale $ 4,068 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2021 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2020 $ 1,441,781 $ 20,319 $ 196,834 $ 6,586 $ 1,665,520 Reclass to assets held for sale (a) — — — (6,586) (6,586) Foreign currency translation adjustments and other (23,110) — (6,655) — (29,765) Balance at March 31, 2021 $ 1,418,671 $ 20,319 $ 190,179 $ — $ 1,629,169 (a) Represents goodwill of the FCS business. See Note 2, “Divestitures,” for additional information. |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2021 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2020 $ 448,748 $ 18,710 $ 58,096 $ 39,864 $ 565,418 Reclass to assets held for sale (b) — — — (1,473) (1,473) Foreign currency translation adjustments and other (10,530) (321) (633) (452) (11,936) Balance at March 31, 2021 $ 438,218 $ 18,389 $ 57,463 $ 37,939 $ 552,009 Accumulated Amortization Balance at December 31, 2020 $ (147,286) $ (8,176) $ (39,500) $ (21,351) $ (216,313) Amortization (5,837) — (365) (227) (6,429) Reclass to assets held for sale (b) — — — 1,456 1,456 Foreign currency translation adjustments and other 3,390 90 604 214 4,298 Balance at March 31, 2021 $ (149,733) $ (8,086) $ (39,261) $ (19,908) $ (216,988) Net Book Value at December 31, 2020 $ 301,462 $ 10,534 $ 18,596 $ 18,513 $ 349,105 Net Book Value at March 31, 2021 $ 288,485 $ 10,303 $ 18,202 $ 18,031 $ 335,021 (a) Net Book Value includes only indefinite-lived intangible assets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month periods ended March 31, 2021 and 2020 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2021 2020 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 95,677 $ 107,204 Denominator: Weighted-average common shares for basic earnings per share 112,592 106,227 Basic earnings per share $ 0.85 $ 1.01 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 95,677 $ 107,204 Denominator: Weighted-average common shares for basic earnings per share 112,592 106,227 Incremental shares under stock compensation plans 738 285 Weighted-average common shares for diluted earnings per share 113,330 106,512 Diluted earnings per share $ 0.84 $ 1.01 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Finished goods $ 394,401 $ 454,162 Raw materials and work in process (a) 216,150 219,896 Stores, supplies and other 75,228 76,179 Total $ 685,779 $ 750,237 (a) Included $136.4 million and $129.6 million at March 31, 2021 and December 31, 2020, respectively, of work in process in our Lithium segment. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, December 31, 2021 2020 1.125% notes $ 443,657 $ 610,800 1.625% notes 589,700 610,800 1.875% Senior notes — 480,007 3.45% Senior notes 171,612 300,000 4.15% Senior notes 425,000 425,000 5.45% Senior notes 350,000 350,000 Floating rate notes — 200,000 Credit facilities — 223,900 Commercial paper notes — 325,000 Variable-rate foreign bank loans 7,296 7,702 Finance lease obligations 58,910 59,181 Unamortized discount and debt issuance costs (15,527) (20,332) Total long-term debt 2,030,648 3,572,058 Less amounts due within one year 616 804,677 Long-term debt, less current portion $ 2,030,032 $ 2,767,381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2021 (in thousands): Beginning balance at December 31, 2020 $ 45,771 Expenditures (394) Accretion of discount 242 Foreign currency translation adjustments and other (605) Ending balance at March 31, 2021 45,014 Less amounts reported in Accrued expenses 9,209 Amounts reported in Other noncurrent liabilities $ 35,805 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The following table provides details of our lease contracts for the three-month periods ended March 31, 2021 and 2020 (in thousands): Three Months Ended 2021 2020 Operating lease cost $ 9,412 $ 8,740 Finance lease cost: Amortization of right of use assets 157 154 Interest on lease liabilities 755 650 Total finance lease cost 912 804 Short-term lease cost 2,604 2,883 Variable lease cost 2,365 1,948 Total lease cost $ 15,293 $ 14,375 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,381 $ 11,177 Operating cash flows from finance leases 439 380 Financing cash flows from finance leases 159 172 Right-of-use assets obtained in exchange for lease obligations: Operating leases 707 16,021 |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2021 and December 31, 2020 is as follows (in thousands, except as noted): March 31, 2021 December 31, 2020 Operating leases: Other assets $ 128,211 $ 136,292 Accrued expenses 19,784 22,297 Other noncurrent liabilities 111,719 116,765 Total operating lease liabilities 131,503 139,062 Finance leases: Net property, plant and equipment 58,701 58,963 Current portion of long-term debt (a) 2,046 1,752 Long-term debt 58,294 58,543 Total finance lease liabilities 60,340 60,295 Weighted average remaining lease term (in years): Operating leases 15.7 15.3 Finance leases 27.4 27.5 Weighted average discount rate (%): Operating leases 3.96 % 3.94 % Finance leases 4.56 % 4.56 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2021 $ 17,556 $ 1,631 2022 20,458 4,454 2023 21,684 4,454 2024 10,680 4,454 2025 9,563 4,454 Thereafter 131,824 89,916 Total lease payments 211,765 109,363 Less imputed interest 80,262 49,023 Total $ 131,503 $ 60,340 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2021 $ 17,556 $ 1,631 2022 20,458 4,454 2023 21,684 4,454 2024 10,680 4,454 2025 9,563 4,454 Thereafter 131,824 89,916 Total lease payments 211,765 109,363 Less imputed interest 80,262 49,023 Total $ 131,503 $ 60,340 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Three Months Ended 2021 2020 (In thousands) Net sales: Lithium $ 278,976 $ 236,818 Bromine Specialties 280,447 231,592 Catalysts 220,243 207,207 All Other 49,625 63,228 Total net sales $ 829,291 $ 738,845 Adjusted EBITDA: Lithium $ 106,436 $ 78,637 Bromine Specialties 94,640 83,262 Catalysts 25,427 47,470 All Other 21,479 22,824 Corporate (17,928) (35,828) Total adjusted EBITDA $ 230,054 $ 196,365 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month periods ended March 31, 2021 and 2020 were as follows (in thousands): Three Months Ended 2021 2020 Pension Benefits Cost (Credit): Service cost $ 1,179 $ 1,214 Interest cost 5,119 6,687 Expected return on assets (10,893) (10,063) Amortization of prior service benefit 29 (51) Total net pension benefits credit $ (4,566) $ (2,213) Postretirement Benefits Cost: Service cost $ 31 $ 26 Interest cost 309 468 Total net postretirement benefits cost $ 340 $ 494 Total net pension and postretirement benefits credit $ (4,226) $ (1,719) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Long-Term Debt | The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings. March 31, 2021 December 31, 2020 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 2,042,936 $ 2,203,416 $ 3,588,157 $ 3,783,225 |
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 March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Designated as hedging instruments (a) $ — $ 3,735 $ 7,043 $ — Not Designated as hedging instruments (b) 16,123 182 6,563 4,803 Total $ 16,123 $ 3,917 $ 13,606 $ 4,803 (a) Included $3.7 million in Accrued expenses at March 31, 2021 and $6.2 million in Other current assets and $0.9 million in Other assets at December 31, 2020. (b) Included $15.8 million in Other current assets, $0.3 million in Other assets and $0.2 million in Accrued expenses at March 31, 2021 and $6.6 million in Other current assets and $4.8 million in Accrued expenses at December 31, 2020. |
Derivative Instruments, Losses | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month periods ended March 31, 2021 and 2020 (in thousands): Three Months Ended 2021 2020 Designated as hedging instruments Losses recognized in Other comprehensive income $ (1,600) $ (51,460) Not designated as hedging instruments Losses recognized in Other income, net (a) $ (191) $ (5,454) (a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income, net. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 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) $ 28,963 $ 28,963 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,667 $ — $ — $ — Foreign currency forward contracts (d) $ 16,123 $ — $ 16,123 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 28,963 $ 28,963 $ — $ — Foreign currency forward contracts (d) $ 3,917 $ — $ 3,917 $ — December 31, 2020 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) $ 32,447 $ 32,447 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,661 $ — $ — $ — Foreign currency forward contracts (d) $ 13,606 $ — $ 13,606 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 32,447 $ 32,447 $ — $ — Foreign currency forward contracts (d) $ 4,803 $ — $ 4,803 $ — (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 reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other 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. 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. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 and Other Net Investment Hedge (a) Cash Flow Hedge (b) Interest Rate Swap (c) Total Three months ended March 31, 2021 Balance at December 31, 2020 $ (369,152) $ 46,593 $ 6,449 $ (10,022) $ (326,132) Other comprehensive (loss) income before reclassifications (28,167) 5,110 (1,600) — (24,657) Amounts reclassified from accumulated other comprehensive loss 25 — — 650 675 Other comprehensive income (loss), net of tax (28,142) 5,110 (1,600) 650 (23,982) Amounts reclassified within accumulated other comprehensive loss 51,703 (51,703) — — — Other comprehensive income attributable to noncontrolling interests — — — — — Balance at March 31, 2021 $ (345,591) $ — $ 4,849 $ (9,372) $ (350,114) Three months ended March 31, 2020 Balance at December 31, 2019 $ (468,737) $ 80,778 $ 4,847 $ (12,623) $ (395,735) Other comprehensive (loss) income before reclassifications (81,986) 2,081 (51,460) — (131,365) Amounts reclassified from accumulated other comprehensive loss 9 — — 648 657 Other comprehensive (loss) income, net of tax (81,977) 2,081 (51,460) 648 (130,708) Other comprehensive loss attributable to noncontrolling interests (46) — — — (46) Balance at March 31, 2020 $ (550,760) $ 82,859 $ (46,613) $ (11,975) $ (526,489) (a) During the first quarter of 2021 the net investment hedge was discontinued following the repayment of the 1.875% Euro-denominated senior notes. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge have been reclassified to Foreign currency translation and other, and will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. (b) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 13, “Fair Value of Financial Instruments,” for additional information. (c) 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 periods ended March 31, 2021 and 2020 is provided in the following tables (in thousands): Foreign Currency Translation and Other Net Investment Hedge Cash Flow Hedge Interest Rate Swap Three months ended March 31, 2021 Other comprehensive (loss) income, before tax $ (28,138) $ 6,552 $ (1,600) $ 834 Income tax (expense) benefit (4) (1,442) — (184) Other comprehensive (loss) income, net of tax $ (28,142) $ 5,110 $ (1,600) $ 650 Three months ended March 31, 2020 Other comprehensive (loss) income, before tax $ (81,980) $ 2,675 $ (51,460) $ 834 Income tax benefit (expense) 3 (594) — (186) Other comprehensive (loss) income, net of tax $ (81,977) $ 2,081 $ (51,460) $ 648 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Sales to unconsolidated affiliates $ 5,730 $ 7,217 Purchases from unconsolidated affiliates (a) $ 33,150 $ 76,475 (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): March 31, 2021 December 31, 2019 Receivables from unconsolidated affiliates $ 5,862 $ 4,098 Payables to unconsolidated affiliates $ 33,988 $ 30,123 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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): Three Months Ended 2021 2020 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 151,604 $ 176,464 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of goods sold | $ 565,604 | $ 496,827 |
Income before income taxes and equity in net income of unconsolidated investments | 123,294 | 115,473 |
Income tax expense | 22,107 | $ 18,442 |
Out-of-period adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income tax expense | $ 7,900 |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Feb. 25, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Inventories | $ 45,225 | ||
Other current assets | 21,165 | ||
Net property, plant and equipment | 44,080 | ||
Goodwill and other noncurrent assets | 6,603 | ||
Assets held for sale | 117,073 | ||
Current liabilities | 4,068 | $ 0 | |
Liabilities held for sale | $ 4,068 | ||
Fine Chemistry Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 570,000 | ||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Preferred Stock, Value, Outstanding | $ 270,000 | ||
Cash Proceeds from Divestiture | $ 300,000 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,665,520 |
Reclass to assets held for sale | (6,586) |
Foreign currency translation adjustments and other | (29,765) |
Balance at end of period | 1,629,169 |
Reportable Segments | Lithium | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,441,781 |
Reclass to assets held for sale | 0 |
Foreign currency translation adjustments and other | (23,110) |
Balance at end of period | 1,418,671 |
Reportable Segments | Bromine Specialties | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 20,319 |
Reclass to assets held for sale | 0 |
Foreign currency translation adjustments and other | 0 |
Balance at end of period | 20,319 |
Reportable Segments | Catalysts | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 196,834 |
Reclass to assets held for sale | 0 |
Foreign currency translation adjustments and other | (6,655) |
Balance at end of period | 190,179 |
Reportable Segments | All Other | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 6,586 |
Reclass to assets held for sale | (6,586) |
Foreign currency translation adjustments and other | 0 |
Balance at end of period | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 565,418 | |
Reclass to Assets Held for Sale | (1,473) | |
Foreign currency translation adjustments and other | (11,936) | |
Gross Asset Value, End of Period | 552,009 | |
Accumulated Amortization, Beginning of Period | (216,313) | |
Amortization | (6,429) | |
Reclass to Assets Held for Sale | 1,456 | |
Foreign currency translation adjustments and other | 4,298 | |
Accumulated Amortization, End of Period | (216,988) | |
Net Book Value | 335,021 | $ 349,105 |
Customer lists and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 448,748 | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | (10,530) | |
Gross Asset Value, End of Period | 438,218 | |
Accumulated Amortization, Beginning of Period | (147,286) | |
Amortization | (5,837) | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | 3,390 | |
Accumulated Amortization, End of Period | (149,733) | |
Net Book Value | 288,485 | 301,462 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 18,710 | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | (321) | |
Gross Asset Value, End of Period | 18,389 | |
Accumulated Amortization, Beginning of Period | (8,176) | |
Amortization | 0 | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | 90 | |
Accumulated Amortization, End of Period | (8,086) | |
Net Book Value | 10,303 | 10,534 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 58,096 | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | (633) | |
Gross Asset Value, End of Period | 57,463 | |
Accumulated Amortization, Beginning of Period | (39,500) | |
Amortization | (365) | |
Reclass to Assets Held for Sale | 0 | |
Foreign currency translation adjustments and other | 604 | |
Accumulated Amortization, End of Period | (39,261) | |
Net Book Value | 18,202 | 18,596 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 39,864 | |
Reclass to Assets Held for Sale | (1,473) | |
Foreign currency translation adjustments and other | (452) | |
Gross Asset Value, End of Period | 37,939 | |
Accumulated Amortization, Beginning of Period | (21,351) | |
Amortization | (227) | |
Reclass to Assets Held for Sale | 1,456 | |
Foreign currency translation adjustments and other | 214 | |
Accumulated Amortization, End of Period | (19,908) | |
Net Book Value | $ 18,031 | $ 18,513 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Tax Expense (Benefit) [Line Items] | ||
Effective income tax rate | 17.90% | 16.00% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share From Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 95,677 | $ 107,204 |
Weighted-average common shares for basic earnings per share (in shares) | 112,592 | 106,227 |
Basic earnings per share (in dollars per share) | $ 0.85 | $ 1.01 |
Diluted earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 95,677 | $ 107,204 |
Weighted-average common shares for basic earnings per share (in shares) | 112,592 | 106,227 |
Incremental shares under stock compensation plans (in shares) | 738 | 285 |
Weighted-average common shares outstanding - diluted (in shares) | 113,330 | 106,512 |
Diluted earnings per share (in dollars per share) | $ 0.84 | $ 1.01 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 08, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | May 03, 2021 | Dec. 31, 2020 | Jul. 14, 2020 |
Earnings Per Share Disclosure [Line Items] | ||||||
Issuance of common stock, net (in shares) | 8,496,773 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Stock Issued During Period Value Per Share New Issues | $ 153 | |||||
Stock Issued During Period Shares New Issues Underwriter Option | 1,274,509 | |||||
Issuance of common stock, net | $ 1,500,000 | $ 1,453,888 | $ 0 | |||
Cash dividend, amount per share (in dollars per share) | $ 0.39 | |||||
Subsequent Event | ||||||
Earnings Per Share Disclosure [Line Items] | ||||||
Cash dividend, amount per share (in dollars per share) | $ 0.39 | |||||
Common Stock | ||||||
Earnings Per Share Disclosure [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share | 62,479 | |||||
Issuance of common stock, net (in shares) | 9,902,307 | 132,320 | ||||
Issuance of common stock, net | $ 99 | $ 1 |
Inventories - Breakdown of inve
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 394,401 | $ 454,162 |
Raw materials and work in process | 216,150 | 219,896 |
Stores, supplies and other | 75,228 | 76,179 |
Total inventories | $ 685,779 | $ 750,237 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 136.4 | $ 129.6 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Windfield Holdings | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Carrying value of unconsolidated investment | $ 496.2 | $ 479.6 |
Other variable interest entities | ||
Schedule of Investments [Line Items] | ||
Carrying value of unconsolidated investment | $ 8.3 | $ 8 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 2,030,648 | $ 3,572,058 |
Unamortized discount and debt issuance costs | (15,527) | (20,332) |
Current portion of long-term debt | 616 | 804,677 |
Long-term debt | $ 2,030,032 | 2,767,381 |
1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.875% | |
Unsecured debt | 1.125% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 443,657 | $ 610,800 |
Debt instrument, interest rate | 1.125% | 1.125% |
Unsecured debt | 1.625% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 589,700 | $ 610,800 |
Debt instrument, interest rate | 1.625% | 1.625% |
Unsecured debt | Floating Rate Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 0 | $ 200,000 |
Senior notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 0 | $ 480,007 |
Debt instrument, interest rate | 1.875% | 1.875% |
Senior notes | 3.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 171,612 | $ 300,000 |
Debt instrument, interest rate | 3.45% | 3.45% |
Senior notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 425,000 | $ 425,000 |
Debt instrument, interest rate | 4.15% | 4.15% |
Senior notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 350,000 | $ 350,000 |
Debt instrument, interest rate | 5.45% | 5.45% |
Credit facilities | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 0 | $ 223,900 |
Commercial paper notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 0 | 325,000 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 7,296 | 7,702 |
Finance lease obligations | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 58,910 | $ 59,181 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Thousands, € in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ (27,798) | $ 0 | ||
Net investment hedge (losses) gains | 5,110 | $ 2,081 | ||
Interest Expense | ||||
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ 27,800 | |||
1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.875% | 1.875% | ||
Commercial paper notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | $ 325,000 | |||
Unsecured debt | 1.125% Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | € | € 123.8 | |||
Debt instrument, interest rate | 1.125% | 1.125% | 1.125% | |
Unsecured debt | Floating Rate Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | $ 200,000 | |||
Credit facilities | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | € | € 183.3 | |||
Senior notes | 1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | € | € 393 | |||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | |
Senior notes | 3.45% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | $ 128,400 | |||
Debt instrument, interest rate | 3.45% | 3.45% | 3.45% |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 45,771 | |
Expenditures | (394) | |
Accretion of discount | 242 | |
Foreign currency translation adjustments and other | (605) | |
Balance at end of period | $ 45,771 | $ 45,014 |
Less amounts reported in Accrued expenses | 9,209 | |
Amounts reported in Other noncurrent liabilities | $ 35,805 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 38.7 | $ 39.2 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.50% | |
Environmental remediation liabilities - undiscounted | $ 72.3 | 73.6 |
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 | 35 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 29.5 | $ 30.5 |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2021 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,412 | $ 8,740 |
Amortization of right of use assets | 157 | 154 |
Interest on lease liabilities | 755 | 650 |
Total finance lease cost | 912 | 804 |
Short-term lease cost | 2,604 | 2,883 |
Variable lease cost | 2,365 | 1,948 |
Total lease cost | $ 15,293 | $ 14,375 |
Leases - Leases Cash Flow (Deta
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 8,381 | $ 11,177 |
Operating cash flows from finance leases | 439 | 380 |
Financing cash flows from finance leases | 159 | 172 |
Right-of-use asset obtained in exchange for operating leases | $ 707 | $ 16,021 |
Leases - Leases Balance Sheet (
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Other assets | $ 128,211 | $ 136,292 |
Accrued expenses | 19,784 | 22,297 |
Other noncurrent liabilities | 111,719 | 116,765 |
Total operating lease liabilities | 131,503 | 139,062 |
Net property, plant and equipment | 58,701 | 58,963 |
Current portion of long-term debt(a) | 2,046 | 1,752 |
Long-term debt | 58,294 | 58,543 |
Total finance lease liabilities | $ 60,340 | $ 60,295 |
Weighted average remaining lease term, operating leases | 15 years 8 months 12 days | 15 years 3 months 18 days |
Weighted average remaining lease term, finance leases | 27 years 4 months 24 days | 27 years 6 months |
Weighted average discount rate, operating leases, percent | 3.96% | 3.94% |
Weighted average discount rate, finance leases, percent | 4.56% | 4.56% |
Leases - Leases Maturity Table
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 17,556 | |
2021 | 20,458 | |
2022 | 21,684 | |
2023 | 10,680 | |
2024 | 9,563 | |
Thereafter | 131,824 | |
Total lease payments | 211,765 | |
Less imputed interest | 80,262 | |
Total operating lease liabilities | 131,503 | $ 139,062 |
Finance Leases | ||
Remainder of 2021 | 1,631 | |
2021 | 4,454 | |
2022 | 4,454 | |
2023 | 4,454 | |
2024 | 4,454 | |
Thereafter | 89,916 | |
Total lease payments | 109,363 | |
Less imputed interest | 49,023 | |
Total finance lease liabilities | $ 60,340 | $ 60,295 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 829,291 | $ 738,845 |
Adjusted EBITDA | 230,054 | 196,365 |
Net income attributable to Albemarle Corporation | 95,677 | 107,204 |
Depreciation and amortization | 62,260 | 53,694 |
Restructuring and other | 1,847 | |
Acquisition and integration related costs | 2,162 | 2,951 |
Interest and financing expenses | 43,882 | 16,885 |
Income tax expense | 22,107 | 18,442 |
Non-operating pension and OPEB items | (5,465) | (2,908) |
Other | 9,431 | (1,750) |
All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 49,625 | 63,228 |
Adjusted EBITDA | 21,479 | 22,824 |
Net income attributable to Albemarle Corporation | 20,016 | 20,846 |
Depreciation and amortization | 1,463 | 1,978 |
Restructuring and other | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Other | 0 | 0 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (17,928) | (35,828) |
Net income attributable to Albemarle Corporation | (93,998) | (73,439) |
Depreciation and amortization | 3,953 | 2,144 |
Restructuring and other | 1,847 | |
Acquisition and integration related costs | 2,162 | 2,951 |
Interest and financing expenses | 43,882 | 16,885 |
Income tax expense | 22,107 | 18,442 |
Non-operating pension and OPEB items | (5,465) | (2,908) |
Other | 9,431 | (1,750) |
Reportable Segments | Lithium | ||
Segment Reporting Information [Line Items] | ||
Net sales | 278,976 | 236,818 |
Adjusted EBITDA | 106,436 | 78,637 |
Net income attributable to Albemarle Corporation | 74,630 | 53,240 |
Depreciation and amortization | 31,806 | 25,397 |
Restructuring and other | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Other | 0 | 0 |
Reportable Segments | Bromine Specialties | ||
Segment Reporting Information [Line Items] | ||
Net sales | 280,447 | 231,592 |
Adjusted EBITDA | 94,640 | 83,262 |
Net income attributable to Albemarle Corporation | 82,113 | 71,665 |
Depreciation and amortization | 12,527 | 11,597 |
Restructuring and other | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Other | 0 | 0 |
Reportable Segments | Catalysts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 220,243 | 207,207 |
Adjusted EBITDA | 25,427 | 47,470 |
Net income attributable to Albemarle Corporation | 12,916 | 34,892 |
Depreciation and amortization | 12,511 | 12,578 |
Restructuring and other | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Other | 0 | 0 |
Reportable Segments | Reportable Segments Total | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 226,503 | 209,369 |
Net income attributable to Albemarle Corporation | 169,659 | 159,797 |
Depreciation and amortization | 56,844 | 49,572 |
Restructuring and other | 0 | |
Acquisition and integration related costs | 0 | 0 |
Interest and financing expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 |
Other | $ 0 | $ 0 |
Segment Information - Summari_2
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Loss on early extinguishment of debt | $ (27,798) | $ 0 |
Restructuring and other | 1,847 | |
Cost of goods sold | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other | 700 | |
Selling, general and administrative expenses | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other | 1,500 | |
Non-controlling Interests | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other | 300 | |
Other (expenses) income, net | ||
Segment Reporting Information [Line Items] | ||
Asset Retirement Obligation, Liabilities Incurred | 3,900 | |
Settlement of a legal claim | 2,600 | |
Revision of tax indemnification expense | $ 800 | |
Interest Expense | ||
Segment Reporting Information [Line Items] | ||
Loss on early extinguishment of debt | 27,800 | |
Non-routine Chilean labor costs | $ 5,500 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total net pension and postretirement benefits credit | $ (4,226) | $ (1,719) |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,179 | 1,214 |
Interest cost | 5,119 | 6,687 |
Expected return on assets | (10,893) | (10,063) |
Amortization of prior service benefit | 29 | (51) |
Total net pension and postretirement benefits credit | (4,566) | (2,213) |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 31 | 26 |
Interest cost | 309 | 468 |
Total net pension and postretirement benefits credit | $ 340 | $ 494 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Employer contributions | $ 14.7 | $ 5.4 |
Payment for other postretirement benefits | $ 0.6 | $ 0.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 2,042,936 | $ 3,588,157 |
Total long-term debt, fair value, excluding debt issuance costs | $ 2,203,416 | $ 3,783,225 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Foreign currency forward contracts, assets | $ 16,123 | $ 13,606 | |
Foreign currency forward contracts, liabilities | 3,917 | 4,803 | |
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | (1,600) | $ (51,460) | |
Forward contracts | Other, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Cash settlements | (7,900) | (6,800) | |
Designated as Hedging Instrument | Forward contracts | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | 294,200 | 75,400 | |
Fair value foreign currency forward contracts designated as hedging instruments, asset | 0 | 7,043 | |
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 3,735 | 0 | |
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | (1,600) | (51,460) | |
Designated as Hedging Instrument | Forward contracts | Other current assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 6,200 | ||
Designated as Hedging Instrument | Forward contracts | Other assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 900 | ||
Designated as Hedging Instrument | Forward contracts | Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 3,700 | ||
Not Designated as Hedging Instrument | Forward contracts | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | 559,800 | 611,100 | |
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 16,123 | 6,563 | |
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 182 | 4,803 | |
Not Designated as Hedging Instrument | Forward contracts | Other current assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 15,800 | 6,600 | |
Not Designated as Hedging Instrument | Forward contracts | Other assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 300 | ||
Not Designated as Hedging Instrument | Forward contracts | Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 200 | $ 4,800 | |
Not Designated as Hedging Instrument | Forward contracts | Other (expenses) income, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Recognized (losses) gains of foreign currency forward contracts not designated as hedging instruments | $ (191) | $ (5,454) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | $ 28,963 | $ 32,447 |
Private equity securities measured at net asset value | 4,667 | 4,661 |
Foreign currency forward contracts, assets | 16,123 | 13,606 |
Obligations under executive deferred compensation plan | 28,963 | 32,447 |
Foreign currency forward contracts, liabilities | 3,917 | 4,803 |
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 | 28,963 | 32,447 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 28,963 | 32,447 |
Foreign currency forward contracts, liabilities | 0 | 0 |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, assets | 16,123 | 13,606 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 3,917 | 4,803 |
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 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | $ 0 | $ 0 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ 4,468,594 | $ 4,093,580 |
Other comprehensive income (loss), before reclassifications | (24,657) | (131,365) |
Amounts reclassified within accumulated other comprehensive loss | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 675 | 657 |
Total other comprehensive loss, net of tax | (23,982) | (130,708) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | (46) |
Ending Balance | $ 5,942,553 | 4,041,525 |
1.875% Senior Notes | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Debt instrument, interest rate | 1.875% | |
Foreign Currency Translation and Other | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ (369,152) | (468,737) |
Other comprehensive income (loss), before reclassifications | (28,167) | (81,986) |
Amounts reclassified within accumulated other comprehensive loss | (51,703) | |
Amounts reclassified from accumulated other comprehensive loss | 25 | 9 |
Total other comprehensive loss, net of tax | (28,142) | (81,977) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | (46) |
Ending Balance | (345,591) | (550,760) |
Net Investment Hedge | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 46,593 | 80,778 |
Other comprehensive income (loss), before reclassifications | 5,110 | 2,081 |
Amounts reclassified within accumulated other comprehensive loss | 51,703 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive loss, net of tax | 5,110 | 2,081 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 |
Ending Balance | 0 | 82,859 |
Cash Flow Hedge | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 6,449 | 4,847 |
Other comprehensive income (loss), before reclassifications | (1,600) | (51,460) |
Amounts reclassified within accumulated other comprehensive loss | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive loss, net of tax | (1,600) | (51,460) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 |
Ending Balance | 4,849 | (46,613) |
Interest Rate Swap | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (10,022) | (12,623) |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Amounts reclassified within accumulated other comprehensive loss | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 650 | 648 |
Total other comprehensive loss, net of tax | 650 | 648 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 |
Ending Balance | (9,372) | (11,975) |
Accumulated Other Comprehensive (Loss) Income | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (326,132) | (395,735) |
Total other comprehensive loss, net of tax | (23,982) | (130,754) |
Ending Balance | $ (350,114) | $ (526,489) |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Total other comprehensive loss, net of tax | $ (23,982) | $ (130,708) |
Foreign Currency Translation and Other | ||
Equity [Abstract] | ||
Other comprehensive income (loss), before tax | (28,138) | (81,980) |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | (28,138) | (81,980) |
Income tax expense | (4) | 3 |
Total other comprehensive loss, net of tax | (28,142) | (81,977) |
Net Investment Hedge | ||
Equity [Abstract] | ||
Other comprehensive income (loss), before tax | 6,552 | 2,675 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | 6,552 | 2,675 |
Income tax expense | (1,442) | (594) |
Total other comprehensive loss, net of tax | 5,110 | 2,081 |
Cash Flow Hedge | ||
Equity [Abstract] | ||
Other comprehensive income (loss), before tax | (1,600) | (51,460) |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | (1,600) | (51,460) |
Income tax expense | 0 | 0 |
Total other comprehensive loss, net of tax | (1,600) | (51,460) |
Interest Rate Swap | ||
Equity [Abstract] | ||
Other comprehensive income (loss), before tax | 834 | 834 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | 834 | 834 |
Income tax expense | (184) | (186) |
Total other comprehensive loss, net of tax | $ 650 | $ 648 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Sales to unconsolidated affiliates | $ 5,730 | $ 7,217 | |
Purchases from unconsolidated affiliates | 33,150 | $ 76,475 | |
Receivables from unconsolidated affiliates | 5,862 | $ 4,098 | |
Payables to unconsolidated affiliates | $ 33,988 | $ 30,123 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 151,604 | $ 176,464 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 |
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 179,683 | $ 214,529 | ||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | 43,223 | 36,723 | ||
Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 60.00% | |||
Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 40.00% | |||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Consideration transferred | 480,000 | |||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | $ 43,200 | $ 36,700 | $ 387,300 |